Budget: Universal Credit monthly debt deductions to be reduced

 If you owe money for debts including rent, council tax, utility bills and advances in benefit payments, you can have deductions automatically taken from your monthly Universal Credit payments. 

Currently, the cap on these deductions is up to 25% of your monthly Universal Credit payment. 

Under new plans announced today, this cap will be lowered to up to 15% of your monthly Universal Credit payment from April 2025. The Government says this could boost a claimant’s income by an average of £420 a year.

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