Universal Credit

(asked on 20th January 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will place in the Library the (a) code of practice and (b) decision-making process governing universal credit deductions.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 23rd January 2020

The Department’s deductions policy strikes a fair balance between a claimant’s need to meet their obligations and their ability to ensure they can meet their day-to-day needs. From October 2019, Universal Credit deductions have been reduced to 30% of a claimant’s standard allowance down from 40% to better achieve these objectives.

Deductions are made following the priority order, which determines the order in which items should be deducted. ‘Last resort’ deductions, such as rent or fuel costs, are at the top of the priority order, ensuring that claimant welfare is prioritised, followed by social obligation deductions, such as child maintenance, and finally benefit debt, such as Social Fund loans and benefit overpayments.

The Department collects and analyses data on Universal Credit regularly, including on the rate of deductions. Alongside this, the Department is always building our understanding on the impact deductions can have on claimants, and has heard evidence from external organisations on this issue. We have to balance these impacts with the need for claimants to meet their obligations.

The Code of Practice ‘What happens if you are overpaid Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance?’ was deposited in the Library 6 May 2014. Deposit reference ‘DEP2014-0790’ refers.

http://www.parliament.uk/business/publications/business-papers/commons/deposited-papers/

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