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 payments were subject to deductions above the maximum cap of 40 per cent in the last month for which data is available.

The Government recognises the importance of safeguarding the welfare of claimants who have incurred debt. Universal Credit already has procedures and regulations in place to protect claimants from excessive deductions. The maximum rate of deductions cannot normally exceed 40 per cent of the Universal Credit standard allowance, and from October 2019 this will be reduced to 30 per cent.

However, last resort deductions can be applied to protect vulnerable claimants from eviction and/or having their fuel supply (gas/electricity) cut off, by providing a last resort repayment method for arrears of these essential services. In these circumstances, when it’s considered to be in the best interests of the claimant and their family, deductions may be taken above the 40 per cent limit.

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.

Of eligible* claims to Universal Credit Full Service due a payment in December 2018:

• 0.8% (10,000 claims) had a deduction above 40 per cent of their standard allowance.

Notes

1. *Eligible claimants are claimants that have satisfied all the requirements of claiming Universal Credit; they have provided the necessary evidence, signed their claimant commitment and are eligible and have received their first payment.

2. Deductions include Universal Credit advance repayments, third party deductions and all other deductions, but exclude sanctions and fraud penalties which are reductions of benefit rather than deductions.

3. Figures rounded to nearest 1,000.

4. Claim numbers may not match official statistics caseloads due to small methodological differences.