Asked by: Chris Stephens (Scottish National Party - Glasgow South West)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, in the last 12 months for which data is available, what was the average monthly deduction taken from Universal Credit payments specifically for Council Tax purposes.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
Tables 1 & 2, in the attached spreadsheet, provide figures for the average monthly third-party deduction and the average monthly council tax deduction for the period December-21 to November-22.
Data for the ten largest monthly deductions taken from Universal Credit payments is not readily available and to provide this would incur disproportionate cost.
Asked by: Chris Stephens (Scottish National Party - Glasgow South West)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what the average monthly third party deduction taken from Universal Credit payments was in the last 12 months for which data is available.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
Tables 1 & 2, in the attached spreadsheet, provide figures for the average monthly third-party deduction and the average monthly council tax deduction for the period December-21 to November-22.
Data for the ten largest monthly deductions taken from Universal Credit payments is not readily available and to provide this would incur disproportionate cost.
Asked by: Stephen Timms (Labour - East Ham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 8 March 2023 to Question 161211 on Universal Credit: Coronavirus, how much was not collected in deductions from Universal Credit as a result of the suspension of deductions during the covid-19 pandemic in the period between January 2020 and January 2021.
Answered by Tom Pursglove - Minister of State (Minister for Legal Migration and Delivery)
In response to the Covid-19 pandemic, and in agreement with His Majesty’s Treasury and the Chancellor, debt recovery was paused for 3 months from April 2020.
Due to the number of variables involved, and taking account of the phased reintroduction of debt recovery, we cannot accurately provide details of the amount not collected in deductions from Universal Credit for the period January 2020 to January 2021.
The department continues to have a well-established process for working with individuals to support them to manage their debts; this might result in agreeing a reduced rate of deduction or, in exceptional cases, suspending repayments. Individuals impacted by the pandemic may have contacted the department seeking a reduction in, or suspension of, their rate of repayment, had the department not suspended all recovery.
Processing of newly identified overpayments was also suspended, and we are unable to accurately estimate the rate of repayment that would have been negotiated given the impact of the pandemic.
Additionally, as we recommenced recovery, changes to individual circumstances may have led to a lower rate of repayment than was in place prior to the pandemic.
Asked by: Lord Bishop of Durham (Bishops - Bishops)
Question to the Department for Work and Pensions:
To ask His Majesty's Government, further to the Joseph Rowntree Foundation report An Essentials Guarantee: Reforming Universal Credit to ensure we can all afford the essentials in hard times, published on 27 February, which found that "95 per cent of people on Universal Credit facing debt deductions are going without essentials", what steps they are taking to prevent debt from being (1) generated, and (2) sustained, in the social security system.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The DWP takes significant steps to ensure the accuracy of all benefit payments, and figures released in May 2022 showed the overwhelming majority of benefit, nearly 95%, was paid correctly. There are a number of measures in place to minimise the risk of debt, such as a quality checking regime and the use of HMRC’s Real Time Information.
Where errors do occur with UC payments, the DWP takes steps to detect them at the earliest opportunity. Where debt does arise, and a person feels they cannot afford the proposed rate of recovery, they are encouraged to contact the DWP. When they do, we work with them to review their financial circumstances and, in most instances, agree a temporary reduction in their rate of repayment.
We remain committed to His Majesty’s Treasury’s Breathing Space policy, which provides those with problem debt (where applicable) the right to legal protections from creditor action for a period of 60 days.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether all universal credit claimants subject to a deduction are automatically informed of their option to seek a waiver; how many universal credit claimants requested a deductions waiver in the most recent six months for which data is available; and of those requests, what proportion were successful.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
During the last 6-month period ending January 2023, 94 Universal Credit claimants had asked for their debts to be waived. Of these, 14 cases were fully waived and a further 5 cases were partially waived.
Whilst Universal Credit claimants are not automatically informed of their option to seek a waiver, anyone who feels they cannot afford the proposed rate of recovery is encouraged to contact the department to discuss their situation.
The DWP remains committed to working with anyone who is struggling with their repayment terms, and has a well-established process for working with individuals to support them to manage their debts.
Our agents will always look to negotiate affordable and sustainable repayment plans. This includes working with individuals to review their financial circumstances. In most instances, a temporary reduction in their rate of repayment can also be agreed. There is no minimum amount that a claimant has to pay. Other options agents can consider where appropriate is to suspend repayments or refer a case for consideration of waiver.
In addition, customers are routinely referred to the Money Advisor Network, who work in partnership with the DWP, to offer free independent and impartial money and debt advice. We also remain committed to His Majesty’s Treasury’s Beathing Space policy, which provides those with problem debt the right to legal protections from creditor action for a period of 60 days to enable them to receive debt advice and enter into an appropriate debt solution.
Asked by: Stephen Timms (Labour - East Ham)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if he will make an estimate of the income not received by his Department as a result of the suspension of deductions from Universal Credit during the covid-19 pandemic for the first 12 months from the start of that suspension.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
The impact of pausing deductions resulted in debt recovery being delayed rather than lost.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many universal credit claims were subject to deductions in the most recent month for which data is available, broken down by parliamentary constituency; how much was the (1) total, and (2) average sum of, deductions in each constituency; what proportion of those sums was deducted to repay advance payments; and how many universal credit claimants were subject to deductions as a result of overpayments where the fault lay entirely with the relevant government department or agency.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
I refer the Noble Peer to the answers I gave on the 3rd and 6th of March to questions HL5652 and HL5656.
Asked by: Lord Field of Birkenhead (Crossbench - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government when they will publish their evidence review on the drivers of food bank usage; and whether they have considered the potential merits of including the need to use a food bank, alongside undue hardship, in the criteria which may exempt claimants from having deductions taken from their universal credit claim.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
The Department reallocated resources to prioritise work to help the COVID-19 effort. This caused delays to some work, including this literature review. The department has subsequently decided not to restart the review, as it summarises publicly available information and does not contain any new research carried out by the Department. However, we continue to monitor new research and evidence produced by external organisations.
The Department has recently published new data from the Family Resources Survey on household food security, giving us a better understanding of who is most at risk. We have also included new questions in the family resources survey for 2021/2 which will be published in March 2023 and further expand our evidence in this area. This underlines how seriously we take the issue of food insecurity.
The Government recognises the importance of supporting claimants to manage their liabilities. Under Universal Credit, there is a co-ordinated approach to deductions from benefit, which supports claimants to manage their financial obligations. The primary aim of deductions in Universal Credit is to protect vulnerable claimants by providing a last resort repayment method for arrears of essential services. We continue to aim to strike the right balance between ensuring those protections are in place and allowing claimants to retain as much of their award as possible for day-to-day needs.
There has been no specific consideration around the merits of including food bank usage when considering claimants for an exception from deductions. However, if a claimant is struggling financially, they can ask for the amount of the following deductions to be reconsidered:
For benefit overpayments and Social Fund loans, deductions can be reduced or deferred for a period. DWP will always try to ensure that Government debt is recovered effectively without causing undue hardship.
For rent arrears, claimants can ask Universal Credit staff to exercise their discretion to fix rent arrears deductions at the lowest rate in legislation – 10% of the Standard Allowance. This can be done using the Journal or by phone. However, staff would not agree to remove a rent arrears deduction entirely in order to ensure a claimant is protected from eviction.
For those repaying a New Claim Advance, a deferral of up to 3 months is available, in exceptional circumstances, which allow those claimants to temporarily receive their Universal Credit awards without advance repayments being deducted.
We encourage anyone unable to afford the proposed rate of repayment to contact DWP Debt Management at the earliest opportunity - all DWP notifications advise how to get in touch. We seek to do as much as we are able to support claimants through the recovery of their overpayments.
Asked by: Baroness Bennett of Manor Castle (Green Party - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many households in England are affected by the under-occupancy charge for (1) one extra bedroom, or (2) more than one extra bedroom; and what assessment they have made of the financial impact of these deductions on those households.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
For the latest data available, related to September 2022, 286,149 households were subject to the Removal of the Spare Room Subsidy (RSRS) for 1 extra bedroom, and 63,759 for 2 or more extra bedrooms. This data is available on Stat-Xplore.
For 2021/22, a total of £434m worth of deductions were made for RSRS in Great Britain. This includes households on Universal Credit and Housing Benefit. No wider assessment has been made.
The RSRS policy applies to claims for housing support - either Housing Benefit or the housing element of Universal Credit - where the claimant is living in the social rented sector in a property that is deemed too large for their needs.
The policy helps encourage mobility within the social rented sector to make better use of the existing social housing stock and strengthens work-incentives. An additional bedroom is allowed in certain circumstances such as for disabled people and carers, foster carers, and parents of service personnel. Additionally, those in receipt of pension age housing benefit are exempt.
Discretionary Housing Payments (DHP’s) are available for those who need additional support with housing costs. Since 2011 we have provided nearly £1.6 billion in DHP’s to local authorities.
Asked by: Stephen Kinnock (Labour - Aberavon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many Universal Credit (a) underpayments and (b) overpayments were made due to errors by his Department in each year since 2019.
Answered by Tom Pursglove - Minister of State (Minister for Legal Migration and Delivery)
The department’s national statistics on ‘Fraud and Error in the Benefit System’ include estimates of UC official errors overpaid and underpaid. This is expressed in terms of both value, and as a percentage of cases with error.
To be clear, the percentages of cases with error reflects the average cases incorrect at one time, rather than the total number of errors over the whole year. We express this as a percentage, rather than as a whole number.
Fraud and error in the benefit system: financial year 2021 to 2022 estimates - GOV.UK (www.gov.uk).
Year | Estimated percentage of UC cases with underpayments caused by Official Error | Estimated UC expenditure underpaid due to Official Error | Estimated percentage of UC cases with overpayments caused by Official Error | Estimated UC expenditure overpaid due to Official Error |
2019/20 | 2.6% | 0.5% (£90 million) | 4.1% | 1.3% (£250 million) |
2020/21 | 1.7% | 0.4% (£140 million) | 2.2% | 0.9% (£330 million) |
2021/22 | 2.3% | 0.3% (£140 million) | 2.6% | 0.7% (£270 million) |
The DWP has taken significant steps to ensure the accuracy of benefit payments and the vast majority of benefit expenditure is paid correctly. Our Targeted Case Review initiative will review 2 million UC cases over the next 5 years, checking entitlement and helping ensure people are getting the right amount of benefit.
The department remains committed to working with anyone who is struggling with benefit debt deductions and encourages customers experiencing hardship to contact the DWP to discuss their repayment plan.