Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make it her policy to (a) replace new Universal Credit claim (i) advance and (ii) benefit transfer loans with new claim grants and (b) to write off overpayments made in error.

As not all new UC customers require the same level of immediate support, replacing every new customer’s advance with a UC grant would lead to significantly increased expenditure and the potential for increased fraud and error in the social security system.

We are committed to reviewing Universal Credit, to make sure it is doing the job we want it to. We will set out the details of this in due course.

The Secretary of State has an obligation to protect public funds and to ensure that, wherever possible, an overpayment is recovered. It is our policy to recover all debt where it is reasonable and cost effective to do so. Debts should be recovered as quickly and cost effectively as possible without causing undue financial hardship.

There are no plans to write off overpayments made in error.