What are Non-Dependent Deductions?

If your son or daughter on leaving school or full-time education goes into work or claims benefits you will be required to pay what is known as a non-dependent deduction. This means that your universal credit entitlement will reduce. This is because for benefit purposes your son or daughter are classed as now being able to contribute towards your household bills therefore you have more income available to you.

This applies even if you decide not to ask your child to contribute towards your household and you will be responsible for making up the shortfall towards your rent. This amount is based on a standard amount of your UC claim regardless of your child’s earnings. There are times when you may be exempt from this charge, for example, if you are in receipt of Personal Independence Payment. If you are not sure, contact our Benefits Team for advice.

What happens if I am in rent arrears?

If you fall into rent arrears we can apply to the DWP to have you’re your housing cost paid to us directly to cover your rent and ensure your home is no longer at risk. This is called an Alternative Payment Arrangement (APA). We can also apply to the DWP for a third-party deduction (rent arrears deductions)  which is an amount that is deducted from your personal benefit payment in order to pay off arrears owed to us. The DWP set this amount which can be up to a maximum rate of 20%  of your personal allowance and based on whether you already have other deductions being taken from your ongoing benefits. We don’t determine the amount to be paid and if approved by the DWP, payments will be made directly to us.

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