Challenges Faced by Universal Credit Claimants Due to Automatic DWP Deductions

Sunday, 2 June 2024, 13:57

A recent thinktank report reveals that half of universal credit claimants experience financial losses due to automatic deductions by the DWP. This amounts to £1 lost in every £13 of their basic payment, affecting their ability to meet essential expenses. The deductions mainly aim to repay debts to private landlords, utility firms, and rectify errors made by the tax office. It is crucial to address these challenges to ensure fair financial support for vulnerable individuals.
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Challenges Faced by Universal Credit Claimants Due to Automatic DWP Deductions

Challenges Faced by Universal Credit Claimants

A recent thinktank report sheds light on the struggles encountered by universal credit claimants due to automatic deductions imposed by the DWP, impacting their financial well-being.

Financial Losses

Half of the claimants are reported to lose money, with approximately £1 deducted for every £13 of their basic payment. This financial setback hampers their ability to cover essential expenses.

Causes of Deductions

  • Repayment of debts to private landlords and utility firms
  • Correction of tax office errors

It is imperative to address these issues to ensure that vulnerable individuals receive fair and adequate financial support.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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