Child Maintenance Deduction in Universal Credit - screening
Date published:
As part of the UK Government’s ‘Plan for Change’ to put more money in people’s pockets’, the new Fair Repayment Rate (FRR) was implemented on 30 April 2025. This reduced the Universal Credit (UC) overall deductions cap from 25% to 15% of the customers UC standard allowance.
The FRR is a permanent measure and did not require a legislative change. To avoid the FRR leading to a reduction in Child Maintenance (CM) deductions it was also announced that they would be temporarily moved to first place in the regulated priority order (RPO) in which deductions are taken from UC, from 30 April 2025. The repositioning affords greater protection for children receiving CM payments as it ensures that CM is still paid even in cases where the overall deductions cap of 15% is reached.
Existing/Revised/New: Revised
Date of Screening: 30/03/2026
Screening Outcome - Full EQIA recommended: No