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<p>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 manage financial difficulties.</p><p>
</p><p>Protocols are in place to ensure deductions are manageable and customers 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 financial
circumstances. We encourage anyone unable to afford the proposed rate of repayment
to contact Debt Management - all 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.</p><p>
</p><p>If a claimant is struggling financially, they can ask for the amount of certain
deductions to be reconsidered. Financial hardship decisions are made for any of the
following:</p><ul><li>benefit debts,</li><li>Social Fund loan</li><li>rent arrears</li></ul><p>
</p><p>Benefit debts and Social Fund loans can see deductions reduced and/or deferred.
As the creditor, DWP will always try to ensure that Government debt is recovered effectively
without causing undue hardship.</p><p> </p><p>For rent arrears, claimants can ask
UC staff to exercise their discretion to fix rent arrears deductions at the lowest
rate in legislation – 10% of Standard Allowance. This can be done using the Journal
or by phone. However, UC staff would not agree to remove a rent arrears deduction
entirely to ensure a claimant is protected from eviction.</p><p> </p><p> </p><p>For
Universal Credit (UC), in November 2021, there were 3,100 UC households in Cynon Valley
with a deduction, this accounts for 50% of UC households in Cynon Valley.</p><p> </p><p>The
attached spreadsheet shows the number of UC households with deductions by deduction
type.</p><p> </p><p>For benefits other than UC, deductions information at constituency
level is not held.</p><p> </p>
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