How much can be taken from your Universal Credit payments

How much can be taken from your payments

The most that can be taken from your Universal Credit payments each month is 25 per cent of your Universal Credit Standard Allowance (the basic amount of Universal Credit you are entitled to, before extra money for things like childcare and housing costs is added) unless last resort deductions are being taken. 

In this case, your deductions may be more than 25 per cent of your Standard Allowance.

If you are part of a joint claim for Universal Credit, you and your partner will receive a joint Universal Credit payment for your household, paid twice a month.

If you or your partner have debts or deductions, these will be taken from your Universal Credit payments before you get them.

Reducing your deductions because of financial hardship

If you do not have enough money to live on because of deductions from your Universal Credit payments, you can ask for a ‘financial hardship decision’ to reduce your deductions.

A financial hardship decision will be considered if deductions are being taken from your Universal Credit payments for:

• repaying Tax Credit overpayments
• paying off benefit debt
• repaying a Social Fund loan

If a decision is made to reduce your deductions, the new reduced deductions will apply from the start of your next Universal Credit assessment period.

When you are earning enough money again, your deductions will go back up to the normal amount.

Consideration can also be given to deferring the recovery of a Universal Credit advance for 3 months.

Deductions taken first

If your total deductions would be more than 25 per cent of your Universal Credit Standard Allowance, deductions will be made in the following order of priority

• fraud penalties
• sanctions
•  Universal Credit advance loan after a new claim or change of circumstances
•  Universal Credit advance loan after transferring from another benefit
•  budgeting advance loan

Any other deductions will be taken in the following order of priority

• housing costs
• rent or service charges included in rent (at five per cent of your standard allowance)
• fuel arrears (gas and /or electricity)
• rates arrears
• fines and compensation orders
• water charges arrears
• child maintenance
• social fund loans
• hardship payments
• housing benefit and Department for Communities administrative penalties
• housing benefit, tax credit and Department for Communities fraud overpayments
• housing benefit, tax credit and Department for Communities normal overpayments
• integration loan arrears

If a new debt is a higher priority than an existing one, Universal Credit can stop one deduction and set up a new one.