Wednesday 30 April 2025
New Fair Repayment Rate – which comes into force today – caps Universal Credit deductions at 15%, down from 25%.
The Fair Repayment Rate places a limit on how much people in debt can have taken off their benefits to pay what they owe. The maximum amount that can be taken from someone’s Universal Credit standard allowance payment to repay debt has been 25% – but from today this is reduced to 15%.
This will mean an average £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children.
The change will be applied to all assessment periods that start on or after 30 April.
www.gov.uk/government/news/universal-credit-change-brings-420-boost-to-over-a-million-households
