More than one deduction
More than one deduction can be made from UC. No more than three of the following deductions for third parties may be made from UC at any one time,1Sch 6 para 3(1)(b) UC,PIP,JSA&ESA(C&P) Regs and the client must be left with at least one pence of UC:2Sch 6 para 3(1)(a) UC,PIP,JSA&ESA(C&P) Regs •housing costs;
•rent arrears;
•fuel;
•water charges;
•repayment of eligible loans;
•repayment of integration loans;
•council tax arrears;
•fines, costs and compensation orders.
Without the client’s consent, the total amount payable for fuel and water charges combined cannot exceed an amount equal to 25 per cent of your standard allowance plus any child elements to which they are entitled.3Sch 6 para 3(3) UC,PIP,JSA&ESA(C&P) Regs In practice, the DWP does not usually deduct more than 25 per cent of the client’s standard allowance.4The legal limit is actually 40 per cent. Sch 6 para 4 UC,PIP,JSA&ESA(C&P) Regs; ‘Universal credit: debt and deductions that can be taken from payment’, DWP guidance, at This maximum applies to the total of most deductions from UC, not just those for third parties. The total includes all those mentioned in the priority between deductions rules (see below), as well as those for sanctions, benefit offences and to recover most overpayments of UC, JSA or ESA and advances of UC. If the total deductions would exceed 25 per cent of the clien’s standard allowance, the deductions mentioned in the priority between deductions rules are reduced (using the priority rules – see here). However, deductions for ongoing costs (as opposed to arrears) of fuel or water charges are ignored when calculating the total. Deductions of more than the limit may still be made for housing costs, rent arrears or fuel debts, if the DWP considers it would be in theclient’s best interests.5Sch 6 para 4 UC,PIP,JSA&ESA(C&P) Regs More than one third-party deduction can be made from IS, income-based JSA, income-related ESA and PC. The client must be left with at least 10 pence of benefit.6Sch 9 para 2(2) SS(C&P) Regs