DWP news: Warning issued over £756 deduction for Universal Credit

The average benefit claimant misses out on £63 a month and £756 over the course of a year, which equates to £1 for every £13 they are entitled to.

The New Economics Foundation warned that the deductions, intended to repay debts such as emergency advances and previous overpayments from the Department for Work and Pensions (DWP), would have resulted in an 8 percent cut in basic Universal Credit payments.

Connor Lawlor, benefits expert at the charity Turn2us, told the Sun: “These debts can arise in a number of ways, including overpayments of Universal Credit and other benefits (even if the overpayment was made in error by the DWP), benefit advances and claiming hardship payments.

“The DWP can also make deductions on behalf of third parties if an applicant owes them debts, including rent and service charge arrears, council tax arrears, court fines, child support and utility bills such as electricity, gas and water.”

Almost one million households lost money repaying DWP household advances to cover previous emergency costs, while 730,000 households repaid a DWP advance to bridge the five-week wait for their first Universal Credit payment.

A further 640,000 households lost money to repay tax credits previously overpaid by HMRC.

Hundreds of thousands of other applicants lost money due to other deductions.

Turn2us recommends that you seek debt advice as soon as possible before disputing or accepting any deductions from the DWP.

Mr Lawlor explained: “The benefits office should set out in writing the reasons for the deductions.

“If not, the applicant should request this.

“For example, it is possible to dispute an overpayment, but a claimant should be able to provide the necessary evidence to show why they believe they have not been overpaid or are not in debt.”