Universal Credit

(asked on 29th January 2020) - View Source

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 effect of universal credit deductions on the (a) cost of living and (b) health and well-being of former rough sleepers.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 6th February 2020

The Department’s deductions policy strikes a fair balance between a claimant’s need to meet their financial obligations and their ability to ensure they can meet their day-to-day needs. Deductions for court fines are based on rates provided in legislation. Since October 2019, Universal Credit deductions are a maximum of 30% of a claimant’s standard allowance down from 40% previously.

We recognise the importance of safeguarding the welfare of claimants who have incurred debt, so last resort deductions can be applied to protect vulnerable claimants from eviction and/or having their fuel supply disconnected, by providing a repayment method for arrears of these essential services.

The Department engages a range of stakeholders, including welfare rights organisations, to ensure we understand the effect Universal Credit has, which helps us to design improvements. In addition, the Secretary of State for Work and Pensions has regular discussions with Cabinet colleagues, including the Secretary of State for Justice, on a range of economic and social issues.

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