Oral Answers to Questions

Paul Blomfield Excerpts

Monday 13th November 2017 Commons Chamber

[Caroline Dinenage]

As you will be aware, Mr Speaker, I am married to a former Gurkha, so I fully understand and share my hon. Friend’s gratitude for their bravery and service. No member of our armed forces should be disadvantaged by their service to our country. I would like to reassure her that the DWP takes very seriously our commitment to the armed forces covenant. We will do everything we can, and work as hard as we can, to help them get the best possible support.

[Paul Blomfield (Sheffield Central) (Lab)]

2. Whether he has made an assessment of the potential merits of reducing the repayment rate on advance payments of universal credit.

[The Secretary of State for Work and Pensions (Mr David Gauke)]

Advances are interest free and repayable over six months for those making a new claim, or 12 months for those who were on benefits before claiming universal credit. Our objective is to strike the right balance between supporting claimants with their living expenses and ensuring they have the ability to repay the advance.

[Paul Blomfield]

The Secretary of State knows that the guidance states that 40% of the standard allowance can be used to repay an advanced payment, and that 40% can be deducted to pay back creditors. It is not clear from the guidance whether a claimant might end up paying both, meaning that they will have more than 40% deducted from their award. Will the Secretary of State clarify the maximum amount repayable? Does he recognise that, as it stands, this is a charter for loan sharks?

[Mr Gauke]

The deduction from subsequent payments that take into account an advance does not apply to the 40%. We have to remember that it is an advance. An advance gives people greater flexibility to access universal credit early, so they are able to cope during the initial assessment period.