Asked by: Baroness Tyler of Enfield (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government how many households had deductions from legacy benefits to repay debt due to previous overpayment for the most recent month available; and what was the average amount that was deducted for those households.
Answered by Baroness Stedman-Scott
During May 2022, 170,000 individual claimants had deductions taken from their legacy benefits in order to repay overpaid benefits. The average deduction taken in that month was £61.
DWP has a duty to protect public funds and an obligation to ensure that overpaid benefit payments are recovered in accordance with the appropriate social security legislation. However, we seek to discharge that duty without causing undue financial hardship.
We therefore have an established route by which anyone experiencing difficulties with repayments is encouraged to contact DWP Debt Management in order to negotiate a possible reduction in their rate of repayment, or a temporary suspension of repayment, depending on financial circumstances.
In exceptional circumstances there is also discretion to waive recovery of an overpayment, but only were there are compelling grounds to show that recovery of the overpayment is detrimental to the health and/or welfare of the debtor or their family.
Asked by: Baroness Tyler of Enfield (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government how many Universal Credit claimants in each parliamentary constituency had sums deducted from their claim to repay debt due to previous overpayment, including advances, in the most recent month for which data is available; and what were the (1) average, and (2) total, sums deducted in each constituency.
Answered by Baroness Stedman-Scott
The Government recognises the importance of supporting the welfare of claimants who have incurred debt. We seek to balance recovery of debt against not causing hardship for claimants and their families. Processes are in place to ensure deductions are manageable, and customers can contact DWP Debt Management if they are experiencing financial hardship, to discuss a reduction in their rate of repayment or a temporary suspension, depending on their financial circumstances.
Since April 2021, we have reduced the normal maximum rate of deductions in Universal Credit from 40% to 30 % to 25% of a claimant’s Standard Allowance. These positive measures were put in place to support claimants to manage financial difficulties.
Advances are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a payment in Universal Credit and those who need it are able to receive financial support as soon as possible. Claimants can receive up to 100% of their estimated Universal Credit award if required, resulting in 25 payments over a 24-month period. This is not a debt.
The information requested is provided in the attached spreadsheet.
Asked by: Baroness Tyler of Enfield (Liberal Democrat - Life peer)
Question to the Department for Work and Pensions:
To ask Her Majesty's Government how many households had deductions to their Universal Credit award to repay debt due to previous overpayment, including advances, for the most recent month available; and what was the average amount that was deducted.
Answered by Baroness Stedman-Scott
The Government recognises the importance of supporting the welfare of claimants who have incurred debt. We seek to balance recovery of debt against not causing hardship for claimants and their families. Processes are in place to ensure deductions are manageable, and customers can contact DWP Debt Management if they are experiencing financial hardship, to discuss a reduction in their rate of repayment or a temporary suspension, depending on their financial circumstances.
Since April 2021, we have reduced the normal maximum rate of deductions in Universal Credit from 40% to 30 % to 25% of a claimant’s Standard Allowance. These positive measures were put in place to support claimants to manage financial difficulties.
Advances are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a payment in Universal Credit and those who need it are able to receive financial support as soon as possible. Claimants can receive up to 100% of their estimated Universal Credit award if required, resulting in 25 payments over a 24-month period. This is not a debt.
The information requested is provided in the attached spreadsheet.