How much can be deducted

CPAG

Deductions from universal credit

If deductions to third parties are made from UC, they are usually made at a fixed rate of 5 per cent of the client’s standard allowance, with the following exceptions.

•Deductions for child support maintenance are made at a flat rate of £8.40 a week (£36.40 a month) for ongoing liability or £8.40 a week (£36.40 a month) for arrears.

•Deductions for rent arrears are made at a rate of at least 10 per cent but not more than 20 per cent of your standard allowance.

In practice, deductions of any kind from UC do not usually exceed 25 per cent of the client’s standard allowance. If the client has more than one deduction, see here for how this limit applies. Third-party deductions cannot leave the client with less than one pence of UC.1Sch 6 para 3(1)(a) UC,PIP,JSA&ESA(C&P) Regs

1 Sch 6 para 3(1)(a) UC,PIP,JSA&ESA(C&P) Regs »

Deductions from other means-tested benefits

If deductions to third parties are made from IS, income-based JSA, income-related ESA or PC, the maximum deductions are shown below.

Type of arrears	Deduction for arrears	Deduction for ongoing cost
Housing costs	£4.55 for each housing debt (maximum of £13.65)	Current weekly cost
Rent arrears and hostel payments	£4.55	Nil (met by UC or HB)
Residential accommodation charges	Nil	The accommodation allowance (for those in local authority homes); all but £31.75 of your IS, JSA, ESA or PC (for those in private or voluntary homes)
Hostel payments	Nil	Weekly amount assessed by local authority
Fuel	£4.55 for each fuel debt (maximum of £9.10 payable)	Estimated amount of current consumption
Water charges	£4.55 (adjusted every 26 weeks)	Estimated costs
Council tax arrears	£4.55	Nil
Fines	Nil	£5 (lower amount £4.55)
Repayment of eligible loans	Nil	£4.55
Repayment of integration loans	Nil	£4.55
Child support maintenance	£8.40	£8.40
Repayment of tax credit overpayments and self-assessment tax debts	Nil	Maximum £13.65

Details

Debt Advice Handbook Scotland - 1st edition

Written in partnership with Citizens Advice Scotland and Money Advice Scotland, CPAG is delighted to announce the first edition of the Debt Advice Handbook Scotland. Based on CPAG’s best-selling Debt Advice Handbook, it details the stages of the debt advice process in Scotland and the key skills needed to give good advice. No money adviser should be without this essential guide. This online edition is funded by the Scottish government.

The Handbook provides the most comprehensive information needed by advisers on the tools and strategies to help clients with their financial difficulties. It details the key stages of money advice, including interviewing clients, establishing liability, prioritising debts, preparing a financial statement, negotiating with creditors and dealing with sheriff officers. Emphasis is placed on taking due care of vulnerable clients and making sure that any payment arrangements agreed are appropriate. There is a focus on sustainable credit arrangements that do not affect a client’s ability to pay essential living expenses and priority debts.

It is the go-to tool for specialist debt advisers as a first step in accessing primary legislation and regulations and is also a reliable guide and training aid for the new debt adviser. Advisers who undertake debt advice alongside other sorts of advice work or other professional disciplines – such as social workers and housing officers – will find this handbook an indispensable resource.

Fully indexed and cross-referenced to law, official guidance and to court and tribunal decisions, tactical guidance and examples are included throughout.

Author(s):

CPAG

Print publication date Jun, 2024

This content was last updated:2024-06-27

Word count173,783

Base text size -

How much can be deducted

Debt Advice Handbook Scotland - 1st edition

Chapter illustrations ()