Pension Credit and Universal Credit are among the numerous benefits that provide important support to many people in the UK. However, the Department for Work and Pensions (DWP) warns that recipients could see their payments slashed by 5% to 15% in some cases.

These cuts, referred to as 'third-party deductions', kick in when someonereceiving benefits has unpaid debts, including court fines, rent, council tax, or energy bills. Generally, these are taken at a set rate until the debt is settled, with a maximum of three simultaneous debts recoverable through this method.

For Universal Credit recipients, each debt triggers a 5% reduction from their benefit payment, though this figure can jump to between 10% and 15% when it comes to rent arrears. Those claiming other benefits, such as income-based Jobseeker's Allowance (JSA), income-related Employment and Support Allowance (ESA), and Income Support, may also see a weekly reduction of £4.55 per debt.

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The DWP typically authorises third-party deductions following a request from an organisation owed money after alternative collection attempts have been exhausted. Advice from the Government department explains: "You’ll be told how much will be deducted by letter or in your Universal Credit journal." It adds: "If you want to pay more than the fixed rate towards your debts, you must arrange this with the organisation you owe money to."

Brits grappling with 'fuel debt' – the money owed for gas and electricity – can use a system called Fuel Direct to set up deductions from their benefits to cover their energy bills. The DWP further advises: "Contact your supplier to set up deductions for your ongoing bills. They’ll need your consent to request this for you. You can give consent on the phone. It does not need to be in writing.

"Agree an amount with them that covers the cost of the energy you use. You can stop deductions for ongoing bills at any time. Contact the office that pays your benefit to request this.

"If you choose to stop making gas and electricity payments, contact your energy supplier to arrange a different way to pay. If you want to change the amount you pay, contact your supplier.

"If you owe money but cannot afford more deductions to your benefits, your supplier can tell you what help is available for people on low incomes. They may be able to arrange a different way for you to pay."

If Brits believe the deductions taken from their benefits are incorrect, they have the right to request a mandatory reconsideration. The DWP states that such appeals must be submitted within one month of the decision, accompanied by a 'good reason' for challenging it.

This may include the following instances:

• You disagree with the reasons for the decision


• You want to have the decision reviewed again


• You believe there is an error or missing evidence in the decision made

"Some decisions cannot be reconsidered. Others can go straight to an appeal," the DWP adds. "Your original decision letter will say if this applies to you."

According to the DWP, five main benefits can be used for the third-party cuts. This includes:

• Universal Credit


• Income-based Jobseeker’s Allowance (JSA)


• Income-related Employment and Support Allowance (ESA)


• Income Support


• Pension Credit

For more information,visit GOV.UK.

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