Around 3.2 million Universal Credit claimants are losing large chunks of money every month due to payment deductions, according to analysis of Department for Work and Pensions (DWP) data.
This follows a large rise in the overpayment of benefits such as Carer's Allowance, which has left the department chasing over 130,000 British carers for nearly £250 million, with many facing large deductions to pay it back.
Analysis by the New Economics Foundation found that the scale of DWP benefit reductions as a result of overpayment or claimant debt was reducing the overall average Universal Credit payment for each person by eight per cent - meaning £1 in every £13 handed out by the department is being clawed back through their automated repayment system.
People on benefits can have their payments deducted for a wide variety of reasons even beyond the DWP, from owing rent to a private landlord to being behind on utility bills.
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