Universal Credit

Baroness Couttie Excerpts

Monday 23rd April 2018 Lords Chamber

[Baroness Buscombe]

My Lords, it is right to say that our focus is not necessarily on multi-agency hubs but on proper signposting by our work coaches to make sure that, working with local authorities, we protect those vulnerable groups. A particular example is prison leavers. We have made sure that they can now have up to 100% advances on their universal credit the moment they leave prison. Vulnerable groups are at the forefront of our minds.

[Baroness Couttie (Con)]

My Lords, many of those on universal credit also struggle with debt, sometimes involving expensive payday lenders, because of their credit standing. Are the Government doing anything through universal credit to support people who find themselves in such difficulties?

[Baroness Buscombe]

Yes, they are, I am pleased to say. The Government have taken a number of steps to reduce the risk of problem debt, including capping payday lending costs and promoting savings. In addition, we have outlined a firm timetable for taking forward the breathing space scheme, and we are progressing with policy proposals for this and a statutory payment plan, all through the single financial guidance Bill, under which overindebted individuals will continue to be protected from creditor action.