Do you claim Universal Credit, income support or other benefits? Debt support is available

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Universal Credit, pension credit and other income based benefits can utilise third party deductions if claimants are struggling with their bills. These deductions can also be made from certain legacy benefits including income-based jobseeker’s allowance, income-related employment and support allowance and income support.

Third party deductions will take a certain amount of money from benefit payments and have it paid directly to creditors, which includes landlords or utility providers.

To apply for this set-up, benefit claimants will need to contact a Jobcentre Plus or pension centre if applying through pension credit.

Claimants will need the following when applying:

  • details of who is owed and how much
  • customer reference numbers (for bills)
  • the claimants National Insurance number

When the application is processed, Jobcentre Plus or pension centre staff will then arrange for some of the claimants benefit payments to be paid directly each month to the people or companies owed.

For Universal Credit claimants, how much is deducted from payments will be dependent on what is being paid off.

Universal Credit payments will see deductions of five percent for gas, electricity and water bills.

Additionally, at least five percent, but not more than £108.35 per month, will be taken for fines and between 10 and 20 percent will be designated for rent.

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For other state benefits, deductions will be made each time they’re paid, with £3.70 being deducted from each separate benefit being claimed to cover the debts owed.

Additionally, extra amounts will be deducted to cover bills each month.

The specific amounts are decided by Jobcentre Plus but if it ends up being more than 25 percent of the claimant’s benefits, they’ll be asked to agree to the deduction.

So long as it’s under 25 percent, the deductions can be made without the claimant’s agreement.

Throughout the process, claimants will be kept informed on what the deduction amounts will be and if they’ll change going forward.

As it stands, third party deductions cannot be used to pay:

  • a debt with a previous landlord or supplier
  • for more than three types of debt (e.g., gas, water and rent costs) but in some cases, it may be possible to use it to pay for more than three current bills.

Benefit claimants may also be able to receive support for their fuel bills through schemes such as winter fuel payments, cold weather payments and the warm home discount.

Universal Credit claimants will get payments which are tailored to their specific circumstances.

This means payment amounts will vary from person to person as the government will provide extra amounts for elements such as disabilities or childcare costs.

Additionally, Universal Credit claimants may also be able to apply for other forms of support if they’re struggling financially, which can include advance and hardship payments, alternative payment arrangements or budgeting advances.

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