The Department for Work and Pensions (DWP) has introduced a new process that allows Universal Credit claimants to challenge requests from landlords for deductions from their benefit payments. This change, outlined in updated government guidance, provides claimants with a seven-day window to object to such requests.
How the new process works
Under the revised rules, if a landlord asks the DWP to deduct money from a claimant's Universal Credit payment to cover rent or service charge arrears, the claimant will be notified. They then have seven days to log into their Universal Credit account and indicate their objection. If they fail to respond within this period, the deduction may proceed.
Claimants can object if they are in a dispute with their landlord about repairs, if the arrears claimed are less than a certain amount, or if they do not owe the arrears being claimed. Following an objection, claimants have an additional seven days to submit supporting evidence. The DWP will then review the evidence before deciding whether to apply the deduction.
Types of deductions
Universal Credit deductions can be used to recover various debts, including Universal Credit advances, benefit overpayments, tax credit overpayments, budgeting loans, crisis loans, rent arrears, service charges, Council Tax debts, utility bills, child maintenance, and court fines. The DWP limits third-party deductions to three at any one time.
Maximum deduction amounts
Typically, the maximum deduction is 15% of the claimant's Universal Credit standard allowance. However, larger deductions may be made in exceptional circumstances, such as to prevent eviction or utility disconnection. Claimants struggling with repayments can request a financial hardship decision, which may apply to certain debts.
The updated guidance applies to Universal Credit claimants in Scotland, England, and Wales. Claimants can view deduction details on their monthly statement by signing into their online account and checking the 'Payments' section. Full details are available on the GOV.UK website.
