You are currently in the en section of the site.

No thank you, please close this banner.

Last updated:
18/06/2020

What to do if your Universal Credit payment has been reduced or stopped?

Your Universal Credit payment is determined by several factors and therefore, can change. We explain what to do if your Universal Credit payment has been reduced or stopped.

If your Universal Credit payment has changed, you will either receive a letter or a message when you next log into your online Universal Credit account.

There are several reasons your Universal Credit payment may be reduced, such as:

What happens if my Universal Credit is used to pay off my third-party debts?

You will receive a Universal Credit deduction if the creditor asks the DWP for a third-party deduction. The DWP will inform you either by letter or through your online journal.

Your Universal Credit basic standard allowance will be reduced by 5% for most third-party deductions. However, more money can be deducted for specific debts such as rent arrears.

You can only receive a third-party deduction for Universal Credit for the following debts:

  • Gas, electric or water arrears.
  • Council tax arrears.
  • Child support maintenance.
  • Rent arrears (this can be 10-20% of your basic standard allowance of Universal Credit).
  • Service charges.
  • Loans.
  • Fines.

You can only receive a maximum of three third-party deductions at once, and it's unlikely that more than a combined 30% can be deducted from your basic standard allowance.

If you are struggling to meet your basic needs because of a deduction you should speak to a welfare benefits advisor as there may be other ways for you to get financial help, budget your money better, or they can ask the DWP to restructure your payments.

What happens if you receive an overpayment?

If you have received an overpayment of Universal Credit, or you received too much Tax Credit, the DWP will reduce your monthly payment by between 15% and 25% of your standard allowance until you have repaid the amount.

You can also have a reduction if your overpayment was a result of fraud. he DWP will take a maximum of 30% of your basic standard allowance.

If you are struggling to meet your basic needs because of an overpayment deduction, you should speak to a welfare benefits advisor.

They may be able to help you with other ways for you to get financial help, budget your money better, or ask the DWP to reduce the rate of repayments.

What to do if you are struggling financially because of a Universal Credit deduction

If you are struggling financially because of a Universal Credit deduction, you can request the DWP take a smaller deduction.

You will need to explain to the DWP how you don't have enough money to meet your basic needs - also known as financial hardship.

The DWP will ask to see a financial statement showing your income and how you spend your money. This will need to highlight that you can't make your basic living costs with the current rate of reduction applied to you.

You can provide the information the DWP requires through your Universal Credit online journal or in a letter.

What to do if you think your Universal Credit payment is wrong

If you believe your Universal Credit payment is incorrect, you should call the Universal Credit helpline or request for an explanation through your online account.

If possible, you should provide evidence of the DWPs mistake by letter or through your online journal.

What to do If you disagree with your Universal Credit deduction

If the DWP replies with their reasoning, and you still disagree with their decision, you can challenge the Universal Credit payment deduction through a mandatory reconsideration.

Share this article

Within this subject

Universal Credit Mental Health Guide

Challenging a Universal Credit decision

x

Is this article helpful to you?

Was this article helpful to you?

×
Please tell us more

For urgent help, please see Help & contacts