Image caption,

Former nurse Nancy Crow took out payday loans to survive after her benefits were reduced

By Adam Eley

BBC News

Campaigners fear thousands more people face benefit deductions because of tax credit debts they didn't know about.

In excess of 800,000 households on universal credit received less money last year because they were previously awarded too much in tax credits, the BBC has found. More people will go on to the scheme from September.

To repay the debt, monthly benefits can be reduced by up to 25% by the Department for Work and Pensions (DWP).

The DWP says safeguards are in place.

In a statement it added: "We're committed to supporting those who are struggling with repayments."

Debt advice charities say universal credit deductions are leaving households in a spiral of debt, with families' reduced incomes meaning some are unable to afford rent or going without meals.

Data obtained by the BBC through a Freedom of Information request shows that the DWP has to claw back more than £1.5bn in overpaid tax credits - a form of benefits which will be replaced by universal credit by the end of 2024.