When you have been overpaid benefits, the repayments can be taken from you by:
-
Making deductions from your benefit payments
-
Taking it out of benefits that are owed to you, such as arrears
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Taking amounts directly out of your wages
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Getting a court order for debt recovery.
Deductions from New Style Jobseeker's Allowance (JSA)
If money is being deducted from your New Style JSA the deduction should not usually be more than 40% of your award.
Deductions from New Style Employment and Support Allowance (ESA)
If money is being deducted from your New Style ESA, the deduction should not usually be more than 40% of your award, excluding any components.
If you are struggling to manage with the deductions, you should get advice.
Deductions from Universal Credit
If you were overpaid Universal Credit as a couple and have now separated, you should each be expected to pay half of the overpayment.
If money is being deducted from your Universal Credit to pay back the overpayment, how much will be deducted depends on your circumstances.
If you are receiving Universal Credit and have no earned income, the maximum amount that can be deducted from your Universal Credit for overpayments is set at the 'standard rate'.
If you are receiving Universal Credit and have some earned income, the maximum amount that can be deducted from your Universal Credit for overpayments is set at the 'higher rate'.
If the Department for Work and Pensions (DWP) has decided that your overpayment was caused by fraud, the maximum about that can be deducted from your Universal Credit is set at the 'Recovery for fraud' rate.
All of these maximum amounts are monthly amounts.
You should still be left with at least one penny of Universal Credit each month after the deductions.
| |
Standard rate |
Higher rate |
Recovery for fraud rate |
| Single under 25 |
37.77 |
62.94 |
100.71 |
| Single 25 and over |
47.67 |
79.46 |
127.13 |
| Couple, both under 25 |
59.28 |
98.80 |
158.08 |
| Couple, one or both 25 or over |
74.83 |
124.72 |
199.56 |
If you are struggling to manage with the deductions, you should get advice.
Deductions from wages
The maximum amount that can be taken out of your wages depends on how much you earn and whether you have been found guilty of an offence. You are usually left with at least 60% of your net earnings.