Third party deduction amounts change from April 2026

Third party deductions from universal credit (UC) are being taken at new monthly amounts from April 2026, according to Shelter England, which published the figures on 7 April 2026¹. The deductions are requested by energy suppliers, water companies or councils and paid by the Department for Work and Pensions (DWP) to those creditors to clear debts over time¹.

Each third party deduction is 5% of the UC standard allowance, and up to three different third party debts can be taken at a time¹. The amount depends on age and whether the claim is made as a single person or a couple¹.

Amounts in the table are rounded to the nearest pound¹.

The DWP could take more than those amounts if there is a risk of an energy supply being disconnected, or if the claimant agrees to pay for ongoing gas or electricity use through Fuel Direct¹. A supplier can only ask for Fuel Direct if deductions for money owed to it are already in place, it has looked at other ways the bill could be paid, and the claimant agrees¹. Gas and electricity arrears are treated as higher priority than unpaid council tax or water debts¹. Gas, electricity and water companies can only ask for deductions while the claimant still lives in the property, and deductions should stop after a move¹.

A claimant who thinks deductions should not be made can ask for a review, called a mandatory reconsideration¹. Grounds given include moving house and no longer having the same energy supplier, clearing a debt without deductions stopping, not consenting to deductions for ongoing energy costs, or the council or company not discussing other ways of repaying the debt¹.

Why it matters for households

The amounts come out of the monthly UC payment before it reaches the household, so the money is not available for other bills. From April 2026 a single claimant under 25 has £17 a month taken for each third party debt, and a single claimant aged 25 or over has £21¹. For couples the figures are £26 where both are under 25 and £33 where either is 25 or over¹. With up to three debts taken at once, the total can be several times the single figure¹.

The deduction is a fixed percentage of the standard allowance rather than a share of the debt, so the amount taken does not change with the size of what is owed¹. Separate limits apply to other UC deductions, such as repayments of a UC advance or rent arrears¹. Deductions for gas and electricity are prioritised over council tax and water debts¹.

Households in the breathing space scheme are protected: while on it, the DWP cannot make new deductions for missed rent, council tax, gas, electricity or water payments, and must pause deductions for benefit overpayments¹. Where someone else handles a claim, see managing someone else's claim: appointees and third parties.

What happens next

The figures apply from April 2026¹. A claimant who disputes a deduction can ask for a mandatory reconsideration¹. Shelter England's page was last updated on 7 April 2026¹. No further changes to the amounts have been reported.