The Department for Work and Pensions (DWP) can cut your Universal Credit payments if you owe debts or you fall behind on your bills and rent.
The amount of your Universal Credit standard allowance that can be deducted for debts is 25% – although this is going down to 15% from April 2025. The types of debts that can be recovered through Universal Credit include energy and water bills, council tax, rent arrears, service charges, child maintenance and court fines. Only three third-party deductions can be taken at any one time.
Universal Credit can also be used to repay benefit overpayments, so if you owe the DWP money. If you’re struggling to make ends meet because of the deductions, visit your nearest Citizens Advice to see if it may be possible to set out a financial hardship case to the DWP to reduce your debt repayments.
If you disagree with a decision about your deductions, you can ask for mandatory reconsideration. This is a process where you can formally appeal a sanction if you think you’ve been unfairly penalised. Citizens Advice can help you with the appeal. The DWP recently confirmed its new sanction rates for April 2025. You can see the full breakdown below.
Third-party deductions at 5% of Universal Credit standard allowance (excludes deductions for rent and service charges)
Single under 25: increasing from £15.58 to £15.85
Single 25 or over: increasing from £19.67 to £20.01
Joint claimants both under 25: increasing from £24.46 to £24.88
Joint claimants, one or both 25 or over: increasing from £30.88 to £31.41
Minimum deductions for rent and service charges at 10% of Universal Credit standard allowance
Single under 25: increasing from £31.17 to £31.70
Single 25 or over: increasing from £39.35 to £40.01
Joint claimants both under 25: increasing from £48.92 to £49.76
Joint claimants, one or both 25 or over: increasing from £61.76 to £62.81
Maximum deductions for rent and service charges at 15% of Universal Credit standard allowance (previously 20%)
Single under 25: decreasing from £62.34 to £47.55
Single 25 or over: decreasing from £78.69 to £60.02
Joint claimants both under 25: decreasing from £97.85 to £74.63
Joint claimants, one or both 25 or over: decreasing from £123.52 to £94.22
Overall maximum deduction rate at 15% of Universal Credit standard allowance (previously 25%)
Single under 25: decreasing from £77.92 to £47.55
Single 25 or over: decreasing from £98.36 to £60.02
Joint claimants both under 25: decreasing from £122.31 to £74.63
Joint claimants, one or both 25 or over: decreasing from £154.40 to £94.22
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