Starting in October, the Universal Credit system will see some big changes.
From October 2, a new threshold will come into place which will see the repayment cap lowered from the 40 per cent maximum, down to 30pc.
In layman's terms, the DWP was previously able to deduct up to 40 pc from claimants' benefit payments to pay back rent arrears, advanced payments or sanctions.
The new cap means that claimants who were previously having more than 30 pc deducted from their payments will get to keep more of their cash.
The cap change will also affect the level of deductions coming from child support.
Under the new changes, the Universal Credit system will give parents extra time to claim their childcare costs back.
These regulations will come in to place on Wednesday October 16, and will mean that working parents and guardians have an additional month to claim back up to 85 pc of eligible childcare costs with Universal Credit.
Before the changes, to ensure they got their money back parents were required to declare their costs in the same period where they were incurred.
Speaking about the changes, the Minister for Employment, Mims Davies, said: "Sometimes there just aren’t enough hours in the day to get everything done, and that’s before something unexpected happens like a trip to the hospital or having to stay late at work.
"We are determined to support families to balance work-life and parenthood.
"Allowing an extra month-long assessment period for people to report their childcare costs means people shouldn’t have to worry about missing out on crucial payments they are entitled to."
