StepChange responds to changes in universal credit deductions

^{26 October 2024}

StepChange Debt Charity is pleased to see reports that the Government will announce changes to the amount that can be deducted from benefits to repay debts in Wednesday’s Budget. The charity says that unaffordable deductions have been a driver of hardship for those most at risk of problem debt and poverty.

Adam Butler, Public Policy Manager at StepChange Debt Charity, said:

“Unaffordable deductions from benefits are a huge driver of hardship in the benefits system, pushing over nine in ten of those affected to go without essentials.

“StepChange has been campaigning with sector partners for years to see deductions drastically reduced and the Government’s announcement will make a massive difference to those affected.

“StepChange research shows more than one in four people (27%) receiving Universal Credit are struggling with serious problem debt. Overhauling the deductions system will help people meet their essential costs like housing payments and reduce debt problems.

“We warmly welcome the Government signalling its intention to make real progress in tackling child poverty and taking concrete steps to increase household incomes among those most at risk of poverty and hardship.”