Overview
- The DWP says third‑party deductions are used in exceptional circumstances after other recovery options are exhausted, with up to three debts collected at once.
- For Universal Credit, 5% is typically taken per qualifying debt, while rent arrears can be higher and are reported as either 10%–15% or 10%–20% by different outlets.
- DWP guidance cited in new coverage notes a general 15% ceiling on deductions from the Universal Credit standard allowance, with higher 'last resort' payments possible to prevent eviction or utility disconnection.
- Deductions can apply to Universal Credit, Pension Credit, Income Support, income‑based JSA and income‑related ESA, and some legacy benefits face a reported £4.55 weekly cut per debt.
- Energy bill deductions under Fuel Direct require the claimant’s consent, and disputes can be challenged through a mandatory reconsideration request within one month.