The Chancellor announced, in the Autumn Budget 2024, that they will reduce the level of debt repayments that can be taken from a household’s Universal Credit payment each month.
This will be done by reducing the overall deductions cap from 25% to 15% of a claimant’s Universal Credit standard allowance. This will be known as the “Fair Repayment Rate” measure and will be introduced from 30 April 2025.
The “Fair Repayment Rate” will enable approximately 1.2 million Universal Credit households, with deductions, to retain more of their award, on average by £420 a year or £35 per month.
also order of deductions – ‘..Move child support maintenance deduction from its current position at (… the
seventh deduction in the regulated priority order… to become the frst named provision to be deducted in the
regulated priority order.'(for 1 year).
www.legislation.gov.uk/uksi/2025/387/memorandum/contents
