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Daily Record
Daily Record
Lifestyle
Linda Howard

Your next Universal Credit payment could be lower than the last one - how to check online

There are currently 5.2 million households across the UK claiming Universal Credit from the Department for Work and Pensions (DWP), which is the equivalent of some 5.8 million people receiving regular benefit payments to help with the costs of daily living.

However, many claimants may not be aware there are also several reasons why the DWP could deduct money from their monthly payment with the man reasons being if you have a debt, arrears or an overpayment.

If you are worried that your next Universal Credit payment will not be the same as the last one, you can quickly check online using the claimants account and searching for your next statement - just go to the ‘Payments’ section and look for ‘What we take off - deductions’.

And if you’re wondering what types of debt can be collected from your Universal Credit payment, we have outlined them below, however, full guidance can be found on the GOV.UK website here.

Types of debt

1. Advance payments

This is your repayment of a Universal Credit advance.

2. Universal Credit overpayment

This is when you have been paid too much Universal Credit. To find out more about your overpayment, sign into your online Universal Credit account, go to your journal and look for a message about overpayments.

DWP guidance adds: “If you believe you have been overpaid but have not heard from Universal Credit, you need to contact Universal Credit to tell them about this.”

3. Benefit overpayment

This is when you have been paid too much for any benefit other than Universal Credit. It includes Tax Credits and Housing Benefit overpayments.

DWP warns that penalties can be added to a benefit overpayment.

It said: “If you believe you have been overpaid but have not heard from DWP, you must report it immediately. If not, you may be prosecuted or have to pay a penalty.”

If you have been overpaid, you will have a journal message or letter explaining what the overpayment is for.

4. Recoverable hardship payment

You can apply for a hardship payment if your Universal Credit payment has been reduced because of a fraud penalty or sanction.

You will need to pay this back once your fraud penalty or sanction has ended. DWP states that “when the amount you pay back has been agreed it cannot be changed”.

5. Budgeting and crisis loan repayment

This is your repayment of a budgeting or crisis loan. How much you pay back is agreed at the time you accept the loan.

Other debts you owe

These are known as third party deductions and are taken off your Universal Credit to pay other debts.

These include:

6. Utilities such as electricity, gas and water

7. Council Tax

8. Child maintenance

9. Rent

10. Service charges

11. Court fines

It’s important to be aware that only three third party deductions can be taken at any one time.

Universal Credit will send you a message in your online journal when a third party deduction starts.

How much will be taken off your Universal Credit payment?

Universal Credit calculates the amount taken from your payment at the end of every assessment period - one calendar month.

The amount taken off may change if your:

  • Earnings change
  • Other benefits change

DWP guidance explains: “It is not possible to tell you how much will be taken before this calculation takes place.

“Normally the most that can be taken from your payment is 25% of your Universal Credit Standard Allowance.”

This is the basic amount you are entitled to, before money for things like childcare and housing costs are added.

You may have more than 25% of your Standard Allowance taken off if you pay a ‘last resort deduction’.

A ‘last resort deduction’ helps to prevent you from being evicted or having your utilities cut off, it is paid directly to the person or organisation you owe money to.

What to do if you’re struggling to repay your debt

If you’re struggling, you can ask for a financial hardship decision to reduce the amount of benefit debt you pay.

You may be considered for this if you have money taken from your Universal Credit for:

  • Benefit debt
  • Budgeting Loan and Crisis Loan repayment
  • Advances
  • Rent arrears - if they’re taken at a rate greater than 10% of the standard allowance

If a decision is made to reduce the amount you pay, it will be applied automatically to your next Universal Credit assessment period.

Find out who to contact about money taken off your Universal Credit payment on the GOV.UK website here.

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