Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government when they will publish their evidence review on the drivers of food bank usage; and whether they have considered the potential merits of including the need to use a food bank, alongside undue hardship, in the criteria which may exempt claimants from having deductions taken from their universal credit claim.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The Department reallocated resources to prioritise work to help the COVID-19 effort. This caused delays to some work, including this literature review. The department has subsequently decided not to restart the review, as it summarises publicly available information and does not contain any new research carried out by the Department. However, we continue to monitor new research and evidence produced by external organisations.
The Department has recently published new data from the Family Resources Survey on household food security, giving us a better understanding of who is most at risk. We have also included new questions in the family resources survey for 2021/2 which will be published in March 2023 and further expand our evidence in this area. This underlines how seriously we take the issue of food insecurity.
The Government recognises the importance of supporting claimants to manage their liabilities. Under Universal Credit, there is a co-ordinated approach to deductions from benefit, which supports claimants to manage their financial obligations. The primary aim of deductions in Universal Credit is to protect vulnerable claimants by providing a last resort repayment method for arrears of essential services. We continue to aim to strike the right balance between ensuring those protections are in place and allowing claimants to retain as much of their award as possible for day-to-day needs.
There has been no specific consideration around the merits of including food bank usage when considering claimants for an exception from deductions. However, if a claimant is struggling financially, they can ask for the amount of the following deductions to be reconsidered:
For benefit overpayments and Social Fund loans, deductions can be reduced or deferred for a period. DWP will always try to ensure that Government debt is recovered effectively without causing undue hardship.
For rent arrears, claimants can ask Universal Credit staff to exercise their discretion to fix rent arrears deductions at the lowest rate in legislation – 10% of the Standard Allowance. This can be done using the Journal or by phone. However, staff would not agree to remove a rent arrears deduction entirely in order to ensure a claimant is protected from eviction.
For those repaying a New Claim Advance, a deferral of up to 3 months is available, in exceptional circumstances, which allow those claimants to temporarily receive their Universal Credit awards without advance repayments being deducted.
We encourage anyone unable to afford the proposed rate of repayment to contact DWP Debt Management at the earliest opportunity - all DWP notifications advise how to get in touch. We seek to do as much as we are able to support claimants through the recovery of their overpayments.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many benefit claims were subject to sanctions in the most recent three months for which data are available, broken down by parliamentary constituency; and how much was the (1) total, and (2) average, sum of benefit income lost by claimants due to sanctions in each constituency.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The latest monthly statistics, taken from Stat-Xplore, on the number of Universal Credit full service claimants with a payment that has been reduced due to a sanction, by Westminster parliamentary constituency, for September to November 2022, are provided in the attached spreadsheet.
The additional information requested for (1) and (2) is not readily available and to provide it would incur disproportionate cost.
Sanctions are only ever applied when a claimant fails to meet their agreed conditionality requirements without good reason.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many universal credit claimants requested a deductions waiver in the most recent six months for which data is available; of those requests, what proportion were successful; and whether all universal credit claimants subject to a deduction are automatically informed of their option to seek a waiver.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
During the last 6-month period ending January 2023, 94 Universal Credit claimants had asked for their debts to be waived. Of these, 14 cases were fully waived and a further 5 cases were partially waived.
Whilst Universal Credit claimants are not automatically informed of their option to seek a waiver, anyone who feels they cannot afford the proposed rate of recovery is encouraged to contact the department to discuss their situation.
The DWP remains committed to working with anyone who is struggling with their repayment terms and has a well-established process for working with individuals to support them to manage their debts.
Our agents will always look to negotiate affordable and sustainable repayment plans. This includes working with individuals to review their financial circumstances. In most instances, a temporary reduction in their rate of repayment can also be agreed. There is no minimum amount that a claimant has to pay. Other options agents can consider where appropriate is to suspend repayments or refer a case for consideration of waiver.
In addition, customers are routinely referred to the Money Advisor Network, who work in partnership with the DWP to offer free independent and impartial money and debt advice. We also remain committed to His Majesty’s Treasury’s Beathing Space policy, which provides those with problem debt the right to legal protections from creditor action for a period of 60 days to enable them to receive debt advice and enter into an appropriate debt solution.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many universal credit claimants were subject to deductions as a result of overpayments where the fault lay entirely with the relevant government department or agency, in the most recent month for which figures are available.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
We do not hold data on actual Universal Credit (UC) overpayments as requested, as there is no requirement to categorise UC debt because it is all recoverable in law.
However, our national statistics on fraud and error in the benefit system provide information on the estimated value of UC Official Error, both as a percentage of benefit expenditure and by value.
For UC, the figures show that UC Official Error loss has fallen from 1.3% (£250m) in 2019/20, to 0.9% (£330m) in 2020/21, to 0.7% (£270m) in 2021/22.
The statistics also indicate how many cases were estimated to have an overpayment of this type - in 2019/20 the figure stood at 4.1%; in 2021/22 it was 2.6%. We do not collect data on how many of these overpayments were detected or subsequently recovered. See:
Fraud and error in the benefit system: financial year 2021 to 2022 estimates - GOV.UK (www.gov.uk)
The DWP remains committed to working with anyone who is struggling with benefit debt deductions and encourages customers experiencing hardship to contact the DWP to discuss their repayment plan.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many universal credit claims were subject to deductions in the most recent month for which data are available, broken down by parliamentary constituency; how much was the (1) total, and (2) average, sum of deductions in each constituency; and what proportion of those sums was deducted to repay advance payments.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The Government recognises the importance of supporting the welfare of claimants who have incurred debt. We seek to balance recovery of debt against not causing hardship for claimants and their families. Processes are in place to ensure deductions are manageable, and customers can contact the DWP Debt Management Team if they are experiencing financial hardship, to discuss a reduction in their rate of repayment, or a temporary suspension, depending on their financial circumstances.
Since April 2021, we have reduced the normal maximum rate of deductions in Universal Credit from 40% to 25% of a claimant’s Standard Allowance. These positive measures were put in place to support claimants to manage financial difficulties.
Advances are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a payment in Universal Credit, and those who need it are able to receive financial support as soon as possible. Claimants can receive up to 100% of their estimated Universal Credit award if required, resulting in 25 payments over a 24-month period. This is not a debt.
The requested analysis of Universal Credit claims with a deduction in November 2022 by parliamentary constituency in Great Britain (GB) is provided in the separate spreadsheet.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether they have considered the potential merits of including the need to use a food bank, alongside undue hardship, in the criteria which may exempt claimants from having deductions taken from their universal credit claim.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
There has been no specific consideration around the merits of including food bank usage when considering claimants for an exception from deductions.
The Government recognises the importance of supporting claimants to manage their liabilities. Under Universal Credit, there is a co-ordinated approach to deductions from benefit, which supports claimants to manage their financial obligations. The primary aim of deductions in Universal Credit is to protect vulnerable claimants by providing a last resort repayment method for arrears of essential services. We continue to aim to strike the right balance between ensuring those protections are in place, and allowing claimants to retain as much of their award as possible for day-to-day needs.
If a claimant is struggling financially, they can ask for the amount of certain deductions to be reconsidered. Financial hardship decisions are made for any of the following:
Benefit debts and Social Fund loans can see deductions reduced and/or deferred. The DWP will always try to ensure that Government debt is recovered effectively without causing undue hardship.
For those repaying a New Claim Advance, a deferral of up to 3 months is available, in exceptional circumstances, which allow those claimants to temporarily receive their Universal Credit awards without advance repayments being deducted.
For rent arrears, claimants can ask Universal Credit staff to exercise their discretion to fix rent arrears deductions at the lowest rate in legislation – 10% of the Standard Allowance. This can be done using the Journal or by telephone. However, UC staff would not agree to remove a rent arrears deduction entirely to ensure a claimant is protected from eviction.
We encourage anyone unable to afford the proposed rate of repayment to contact DWP Debt Management at the earliest opportunity - all DWP notifications advise how to get in touch. We seek to do as much as we are able to support claimants through the recovery of their overpayments.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government when they will report on reform of the welfare and labour market for the over 50s.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The Government recognises the challenges faced by some aged 50 and over, which is why we are providing over £20m over the next three years for an enhanced offer for people aged 50 and over to remain in and return to work. This offer includes the introduction of 37 50PLUS Champions, more tailored support for claimants, and an expansion of the Midlife MOT.
Building on the Government’s existing package of support to help people start, stay and succeed in work, the Prime Minister has also tasked the Secretary of State to look in detail at the issue of workforce participation, and identify the barriers preventing people from joining the workforce or resulting in people leaving the workforce early.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what has been the value of Universal Credit payments as a percentage of average earnings, for each year since its inception.
Answered by Baroness Stedman-Scott
The Department for Work and Pensions publishes annual Abstract of DWP benefit rates statistics. The purpose of the publication and data tables is to provide a reference source for people who are interested in benefit uprating and the value of benefits compared to prices and earnings. The publication and supporting data tables are attached and can also be accessed via the gov.uk website.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what estimate they have made of the real value of Universal Credit since (1) May 2010, (2) May 2015, (3) June 2017, and (4) December 2019.
Answered by Baroness Stedman-Scott
The Department for Work and Pensions publishes annual Abstract of DWP benefit rates statistics. The purpose of the publication and data tables is to provide a reference source for people who are interested in benefit uprating and the value of benefits compared to prices and earnings. The publication and supporting data tables are attached and can also be accessed via the gov.uk website.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government what estimate they have made of the fall in the real value of Universal Credit over the life of this parliament.
Answered by Baroness Stedman-Scott
The requested estimate is not available as all the data required to undertake such a calculation is not yet available.