The autumn budget was announced today by Chancellor Rachel Reeves.

The limit on deductions from Universal Credit payments to pay down debt was reduced in the latest budget. Labor Chancellor Rachel Reeves has confirmed that the maximum amount that can be deducted from the standard allowance will fall from 25% to 15% from April 2025.

Currently, the DWP and other third parties can take 25% of a person’s Universal Credit Standard Allowance payment to recover any debts they may have. This measure, known as the fair reimbursement rate, is primarily aimed at helping the most financially vulnerable families.

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This change was initially reported earlier this week, and it is estimated that around 1.2 million households, including 700,000 families with children, are expected to benefit. This could increase their income by up to £420 a year, reports the mirror.

Chancellor Rachel Reeves today delivered the Labor Government’s first budget.. Britain’s first female chancellor will speak this afternoon after Prime Minister’s Questions and outline the government’s economic programme.