Overview
- The DWP’s latest figures, covering February 2026, show 46% of Universal Credit households had money deducted, up by 300,000 from a year earlier.
- The department attributes the higher count to more people being moved from legacy benefits such as Housing Benefit, ESA and JSA onto Universal Credit.
- A deduction is money taken from a monthly Universal Credit payment to repay debt, including UC advances, arrears to landlords or energy firms, or debts owed to government bodies.
- After the Fair Repayment Rate cut reduced recoveries to a 15% cap of the standard allowance, about 21% of households were at that cap in February and just over 2% exceeded it for last‑resort cases like child maintenance or housing and energy arrears.
- Charities say deductions still shrink take‑home support and disrupt budgets, noting 2026 monthly maxima of £51 for under‑25 singles, £64 for singles 25 and over, £79 for couples under 25, and £100 for couples where either partner is 25 or older.