Debt charity calls for halt to Government universal credit deductions in cost of living crisis

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Debt charity calls for halt to Government universal credit deductions in cost of living crisis
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StepChange said its clients on the benefit are set to face an average monthly budget deficit of £77 by October even with Government support

Universal credit can also be reduced if a claimant has reported a change of circumstances that means they would be entitled to less, for example, it they have moved home, or if they have earned more from work.

The charity found that 38 per cent of clients earning less than the universal credit work allowance for those not in receipt of housing support – £573 – have a negative budget. Linking the deduction rate to earnings, so that it would incrementally increase towards 5 per cent as a claimant’s earnings increased.

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