Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what steps her Department is taking to understand the impact of the total amount deducted from universal credit on families living in poverty (a) at a constituency level in general and (b) in Lancaster and Fleetwood constituency.
The standard deductions cap of 25% of a claimant’s Standard Allowance strikes the right balance of ensuring priority debts are repaid whilst ensuring claimants retain most of their award to meet day-to-day needs.
In recent years, the standard deductions cap has been reduced twice – from 40% to 30% of the Standard Allowance in October 2019, and down to 25% in April 2021. Reducing the threshold further would risk key social obligations such as Child Maintenance not being met.
For DWP Debt deductions, if a claimant is struggling financially, they can contact DWP Debt Management to discuss a reduction in their repayment, or temporary suspension, depending on financial circumstances.