Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact that the total amount deducted from Universal Credit is having on families living in poverty in Lewisham Deptford constituency.
The standard deductions cap of 25% of a claimant’s Universal Credit 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.