Universal Credit

(asked on 10th July 2019) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 18 June 2019 to Question 263677, for what reason the letter sent to a universal credit claimant’s journal to confirm an advance payment does not specify the (a) amount to be repaid each month or (b) number of months that the repayments will last; and if he will add that information to that letter.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 15th July 2019

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.

Claimants can view their Universal Credit statement online to see how their award is calculated and a breakdown of what deductions are being made.

We are committed to keeping all Universal Credit services and processes, under review and will make improvements where necessary.

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