Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, how many universal credit claimants are being deducted the maximum amount of 25 per cent of their standard allowance from their entitlement as a result of (a) an advance or (b) other outstanding Government debts.

New Claim Advances are a claimant’s benefit entitlement paid early, allowing claimants in need to access up to 100% of their estimated Universal Credit payment upfront, resulting in 25 payments over a 24-month period. They ensure nobody in need has to wait for their first payment in Universal Credit.

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 with deductions for benefit overpayments 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.

We reduced the normal maximum rate of deductions in Universal Credit from 40% to 30% to 25% of a claimant’s Standard Allowance enabling them to retain more of the award. These changes were implemented from October 2019 to April 2021. These positive measures were put in place to support claimants to better manage financial difficulties

For Universal Credit claims with a payment due during November 2021:

• 198,000 (4% of all claims) had a deduction for Government debt that accounted for 25% of their standard allowance
• 124,000 (3% of all claims) had a deduction for the repayment of an Advance that accounted for 25% of their standard allowance.

Notes:

1) All volumes are rounded to the nearest thousand and percentages rounded to nearest percent.

2) Government debt includes: DWP Benefit Overpayment (fraud and non-fraud), Tax Credit Overpayment (fraud and non-fraud), Housing Benefit Overpayment (fraud and non-fraud), Social Fund Loan, Recoverable Hardship Payment, Administrative Penalty, Civil Penalty, Eligible Loan Deductions, Integration Loan.

3) Figures are provisional and are subject to retrospective change as later data becomes available.

4) Data for November 2021 has been provided in line with the latest available UC Household Statistics.