The Fair Repayment Rate (FRR) and Child Maintenance deductions in UC - screening
Date published:
In the Autumn 2024 Budget the UK Government announced that the FRR would be introduced in April 2025. The FRR is a reduction to the Universal Credit (UC) deductions cap from 25% to 15%. To avoid this leading to a reduction in Child Maintenance (CM) deductions it was also announced that CM deductions would be moved in the priority order that deductions are taken from UC.
This proposal is made up of two separate changes to the existing policy:
- to reduce the overall deductions cap from 25% of the UC standard allowance to 15%, known as the ‘Fair Repayment Rate’ (FRR), and
- to make the child maintenance (CM) deduction the first Third Party Deduction (TPD) in the regulated priority order and allow the CM deduction to exceed the overall deductions cap, where applicable, to protect payments made to parents with care
Existing/Revised/New: Revised
Date of Screening: 07/04/2025
Screening Outcome - Full EQIA recommended: No