Question to the HM Treasury:
To ask the Chancellor of the Exchequer, whether universal credit (a) repayments and (b) deductions will be included in the criteria for the Breathing Space Scheme.
Breathing Space will cover a broad range of debts including those owed to central and local government. It is the government’s intention to include Universal Credit advances and third-party deductions in Breathing Space, alongside other benefit deductions designed to recover debt.
The government has committed to laying regulations on Breathing Space by the end of the year in order to commence the policy from early 2021. To ensure that the required IT changes align with the wider Universal Credit programme, Universal Credit advances and third-party deductions will be included in Breathing Space on a phased basis following the commencement of the wider scheme.