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Millions Face Universal Credit Cuts of Up to £624 Annually Due to DWP Deductions

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Millions of Universal Credit recipients are facing substantial reductions in their support, with average annual losses reaching up to £624. Recent data from the Department for Work and Pensions (DWP) reveals that more than 3.1 million households had one or more deductions applied to their Universal Credit payments in August 2025. On average, claimants are losing about £52 each month because of automatic deductions. These deductions arise for several reasons, explained Conor Lawlor, benefits expert at Turn2us.