Universal Credit

(asked on 7th February 2019) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of introducing an affordability test into the calculation of deductions taken from universal credit payments.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 18th February 2019

The aim of the deductions policy in Universal Credit is to protect vulnerable claimants by providing a last resort repayment method for arrears of essential services. The policy also enables social obligations to be enforced when other repayment methods have failed, or are not cost effective, and ensures that benefit debt is recovered in a cost effective manner. Regulations protect claimants from excessive deductions.

From October 2019, the Government will reduce the maximum rate at which deductions can be made from a Universal Credit award from 40% to 30% of the standard allowance.

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