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 PC, IS, income-based JSA or income-related ESA, the maximum deductions are shown below.

Type of arrears	Deduction for arrears	Deduction for ongoing costs
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 ed - with new material

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