Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 19 June 2019 to Question 260559 on universal credit, what assessment she has made of the average length of time taken to repay in full advance payments made under universal credit.

The Department encourages all Universal Credit claimants to actively consider how best to manage their personal budget, with additional advice and support available from work coaches and case managers. When an advance payment is appropriate, claimants decide what percentage of their expected monthly award to apply for and over what period to repay it, up to a maximum of 12 monthly instalments.

Claimants have the ability to make the decision for themselves on the time period for repayment. Most claimants (around 85%) choose to repay their advance over a 12-month period, with others repaying in a shorter timeframe.

The Department has taken a number of steps to ensure that advances meet the needs of claimants and that recovery arrangements are personalised and reasonable. From October 2019 we are reducing the maximum rate of deductions to 30 per cent and from October 2021 we are increasing the maximum recovery period for advances from 12 to 16 months.