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Universal credit deductions of up to 25% pushing people into poverty – report

Exclusive: Policy in which benefits are cut to cover advance payments or claw back overpayments ‘driving impoverishment’

Ministers are pushing people into poverty and debt through a policy that allows universal credit payments to be cut by up to 25%, a report by the Lloyds Bank Foundation has found.

With the cost of living crisis already putting a severe strain on households, the report titled Drivers of Poverty, said a system that allows deductions from benefits was leaving some people without enough money to live on, “driving impoverishment and further debt, particularly hitting the most vulnerable”.

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