Universal Credit: Deductions

(asked on 17th October 2023) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many and what proportion of universal credit claims were subject to deductions in the most recent month for which data is available per constituency; what was the (a) average and (b) total sum of deduction per constituency; what proportion of deductions were used to repay advance payments; and if he will make a statement.


Answered by
Guy Opperman Portrait
Guy Opperman
Parliamentary Under-Secretary (Department for Transport)
This question was answered on 20th October 2023

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 May 2023 by parliamentary constituency in Great Britain (GB) is provided in the separate spreadsheet.

Data for May 2023 has been provided in line with the latest available Universal Credit Household Statistics.

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