DWP warns that some claimants may see their benefits cut by up to 20% in rare cases due to debts owed
These cuts, called ‘third party deductions,’ happen when someone owes money for things like court fines or rent. Usually, a fixed amount gets taken from their benefits until the debt is cleared.
For Universal Credit, they take 5% for each debt. If it’s rent, it could be 10% to 20%. Other benefits like Income Support might see a £4.55 weekly deduction for each debt.
The DWP says these deductions are only done in special cases. An organization must first try other ways to get their money back. If you’re affected, you’ll get a letter or a message in your Universal Credit journal explaining the cuts.
If you want to pay more than what’s deducted, you’ll need to sort that out directly with the organization you owe.
For those struggling with energy bills, there’s a way to set up deductions for ongoing payments. Just contact your energy supplier to get that rolling.
If you think the deductions are wrong, you can ask for a mandatory reconsideration. You’ll need to do this within a month and give a good reason.
For more details, check out the DWP’s website. They have all the info you need.
