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The Department collects and analyses data on Universal Credit regularly, including on the rate of deductions. Alongside this, the Department is always building our understanding on the impact deductions can have on claimants, and has heard evidence from external organisations on this issue. We have to balance these impacts with the need for claimants to meet their obligations.
We believe the reduction from 40 percent to 30 percent strikes a fair balance between a claimant’s need to make essential repayments and their ability to ensure they can meet their day-to-day needs. It maintains our policy to enforce social obligations such as the payment of fines and Child Maintenance, ensure Government debt is recovered and vitally to safeguard claimants from the potential impacts of not repaying priority debts, such as homelessness or the deduction of fuel.