Universal Credit: Deductions

(asked on 22nd February 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent assessment she has made of the effect of universal credit deductions on the (a) levels and (b) depth of child poverty.


Answered by
Will Quince Portrait
Will Quince
Parliamentary Under-Secretary (Department for Education)
This question was answered on 25th February 2021

No assessment has been made.

Tackling poverty will always be a priority for this Government. Our recent focus has rightly been on supporting people financially during these unprecedented times, with an injection of billions of pounds to strengthen the welfare system in response to the Covid-19 pandemic, including a temporary increase in the Universal Credit Standard Allowance to support those facing the most financial disruption. Through the Covid Winter Grant Scheme, announced on 9 November, we are extending that support with an additional £170m for local authorities in England so that they can support families with children and other vulnerable people with the cost of food and essential utilities this winter.

From October 2019, the overall maximum level for standard deductions is normally limited to 30% of a claimant’s Standard Allowance except for last-resort deductions. From October 2021, this is being reduced to 25% of the claimant’s standard allowance except for last-resort deductions. We recognise the importance of safeguarding the welfare of claimants who have incurred debt, so last resort deductions can be applied to protect vulnerable claimants from eviction and/or having their fuel supply disconnected, by providing an affordable repayment plan for arrears of these essential services.

Claimants can ask for New Claims and Change of Circumstances Advance repayments to be delayed for up to 3 months in exceptional circumstances.

This content was generated for your convenience by Parallel Parliament and does not form part of the official record.
Recent Documents related to Universal Credit: Deductions

1. Universal Credit and Debt
03/06/2019 - Parliamentary Research

Found: PACK Number CDP-2019-0131, 3 June 2019 Universal Credit and Debt By Steven Kennedy Andrew Mackley

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Latest Documents
Recent Speeches related to Universal Credit: Deductions

1. Oral Answers to Questions
19/10/2020 - Commons Chamber

1: dedicated to helping people who have been out of work for three or more months and may be at risk of long-term - Speech Link
2: struggling to find work as a result of the pandemic. However, getting people back into work will require a - Speech Link
3: Britain, it will help 280,000 of our claimants to find work and build the skills to pivot into new sectors if - Speech Link

2. Oral Answers to Questions
01/07/2019 - Commons Chamber

1: 2 million people claiming universal credit, and of those, 34% are in work. We now plan to begin “the - Speech Link
2: right hon. Lady’s Government promised that“universal credit should not leave councils out of pocket.”Yet - Speech Link
3: When we met the work coaches and the other staff of the Department of Work and Pensions team at Randolphfield - Speech Link

3. Universal Credit
13/05/2020 - Lords Chamber

1: the incomes of Universal Credit claimants following the increase in the Universal Credit standard allowance - Speech Link
2: hardship and unfairness, as demonstrated by the Work and Pensions Committee, yet it is not realistic or safe - Speech Link
3: period, where their universal credit will not be capped, if they have a sustained work record. Exemptions - Speech Link

4. Finance (No. 2) Bill
19/04/2021 - Commons Chamber

1: that the freezing of tax thresholds at 2021-22 levels did not apply until 2023-24.Amendment 3, page 2 - Speech Link
2: provisions on—(a) households at different levels of income,(b) people with protected characteristics (within - Speech Link
3: would require the Government to publish an assessment of the effect on tax revenues of introducing a 55% income - Speech Link

5. Universal Credit and Debt
05/06/2019 - Westminster Hall

1: That this House has considered universal credit and debt.Universal credit affects a huge proportion of - Speech Link
2: this debate. We have had numerous debates on universal credit, and I have said this before and will say - Speech Link
3: There are certainly many changes that should be made. The evidence I have heard from people who say that - Speech Link

Latest Speeches
Recent Questions related to Universal Credit: Deductions
1. Universal Credit: Deductions
asked by: Chris Stephens
01/03/2021
... in the most recent month for which data is available.

2. Universal Credit: Deductions
asked by: Lord Field of Birkenhead
08/03/2021
... and (3) the proportion of each sum deducted to repay advance payments.

3. Universal Credit: Deductions
asked by: Chris Stephens
09/03/2021
... how many universal credit claims in each parliamentary constituency had deductions taken from them by her Department in the most recent month for which that data is available; what the average size of the sums so deducted was in each of those constituencies; what the total sum so deducted from those claims was in each of those constituencies; and what proportion of each of those sums so deducted was used to repay advance payments.

4. Universal Credit: Deductions
asked by: Karen Buck
22/04/2021
... (c) universal credit overpayments and (d) tax credit overpayments in each month from March 2019 to the most recent month for which data is available.

5. Universal Credit: Deductions
asked by: Karen Buck
22/04/2021
... and (d) tax credit overpayments in each month from March 2019 to the most recent month for which data is available.

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