DWP Universal Credit Change to Give £ 420 BOost to 1.2Million Households – ryan

Confirmed by Labour Chancellor Rachel Reeves in the Autumn Budget Last Year, The Maximum Deductions from the Standard Will Drop from 25% to 15%

Over One Million Universal Credit Claimants Are Set to Get a £ 420 Boost This Month AFTER A Major Department for Work and Pensions (DWP) Change.

The dwp will love the cap on the Maximum Level of deductions that can be worn from a claimant’s benents from April 30. Confirmed by Labouror Rachel Reeves in the Autumn Budget Last, the Maximum Deductions from the standard. 15%.

Currently, the DWP and Other Third Parties Can Deduct 25% of someone Universal Credit Standard Allowance Payment to Recover any Debts Some Have. The amouns are subtracted from a CLAIMANT’S Standard Allowance Each Month Until the Debt Is Repaid.

These deductions can cover a range of Debts, Including BENEFIT Advances, Historical Overpayments of Child Tax Credits, Rent and Council Tax Arrears, As Well As Outstanding Water and Utility Bills. Money can be deducted from your universal Credit Payments to pay up to three debts at once with at least 5% being deducted for Each Debt You OWE.

The types of deduction that can be be used to be oroured by priority. Deductions for A Fraud Penalty, Sanction or Advance Are Taken First. If the total of these is not above 25% of the Claimant’s standard alowance is Other deductions can be worn howver, once the 25% limit is reamed, any remaining – Lower priority – deductions canNot be taken unless it is a “Last resort deduction”.

LAST Resort Deductions Help Prevent Eviction or Cutting off of Gas or Electricity. They are primarily used to cover Rent, Home Service Changes, Or Energy Arrears. This Money is Paid Directly to the Third Party to Whom You Oe Money.

Read More: AGE CAN YOU CAN ACCESS YOUR PENSE IS RISING – WHAT YOU NEED TO KNOWRead More: HMRC WARNING AS THOUSANDS Get £ 2,800 Payout AFTER Overpaying Tax

The New Fairer Repayment Rate Will Not Cover Deductions Related to Fraud Penalties or Sanctions. This Means Universal Credit Claimants Can Have More Taken Off Their Standard Allowance.

Alongside this, deductions for child support will move the priority list-to above the Universal Credit Advances and Third-Party Deductions for Rent Arrears. The Move – Called the Fair Repayment Rate – is intended primarily to help the worst -off family.

At the time, reeves said the change befut 1.2million households, including 700,000 families with children, boosting their incomes by up to £ 420 a year – or £ 35 a month.

Save the children estimates that the measure couuling see single palents recipes up to £ 39 More of their universal credit entitlement each month. For Two-Parent Households, This Could Be Up To £ 62.

The Move has ben welcomed by Charities, Including Save the Children, Who Described the Current Level of Benefit Deductions As “Unfair and UnSustainable”. Ruth Talbot, Save the Children Uk’s Policy and Advocacy Adviser, Said: “It is bold Thinking from ministers and we know it has a significant impact for families and put more money in their pockets for food, toys, cloths and books.”

At the time, Sebian McCulough, Director of External Relations at the Debt Free Advice Firm Money Wellness Commented: “We’ve been lobbying for Changes to Deductions for Some Time. People try to survive on inadequate income inevitably increes their reliance on credit.

“64% of the People We Support with Benefit Deductions Also Need Access to A Food Bank. That is Why, Longer Term, We Waled Like to See the Government Moves Maching Decisions Based on Individual Affordability in Ensure No One Is Left Without Ensure For Ensure For essentials. “

Read More: Primark’s ‘Stunning’ £ 23 ‘Bridgerton’ Dress ‘Looks Just Like Designer Brand’