Universal Credit

(asked on 27th April 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what representations her Department has received from gas and electricity providers on the effect of the introduction of universal credit on levels of debt and arrears; and if she will make a statement.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 2nd May 2018

We are working closely with utility companies and regularly attend a Utility Company Debt Group to update them on the latest information regarding Universal Credit, its rollout and any changes that may have taken place. These include discussions on deductions and arrears, as well as taking feedback for future improvements to the service we provide for them.

The Government has also taken a number of steps to reduce the risk of problem debt, including capping payday lending costs and promoting savings. Within Universal Credit, we have interest free advances and a system of priority deductions to help claimants who have got into arrears. We have successfully implemented a further package of measures announced at the Autumn Budget 2017, such as making advances of up to 100% of the indicative award available to claimants and increasing the repayment period to 12 months, removing the 7 waiting days, providing an additional payment of 2 weeks of Housing Benefit to support claimants when they transition to Universal Credit, and changing how claimants in temporary accommodation receive support for their housing costs.

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