Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what plans her Department has to introduce a minimum protected income within the universal credit system to ensure that claimants are not left in poverty after any deductions are taken from their monthly award.

The Government recognises the importance of safeguarding the welfare of claimants who have incurred debt. Universal Credit already has procedures and regulations in place protect claimants from excessive deductions. The maximum rate of deductions cannot normally exceed 40% of the Universal Credit standard allowance. If a claimant is in financial difficulty as a result of the level of deductions being made they can contact the Department to request that a reduction in deductions be considered.

In January 2018, of all Universal Credit Full Service awards:

(a) 6% had a total deduction amount (either to a third party, for an advance, or for a fraud penalty) which equalled 40 per cent of the standard allowance

(b) Less than 0.5% had a total deduction amount which exceeded 40 per cent of the standard allowance. In these cases, a priority order is applied so that deductions for rent or fuel costs are applied first, in order to protect claimant welfare.