| answer text |
<p>The Department’s deductions policy strikes a fair balance between a claimant’s
need to meet their obligations and their ability to ensure they can meet their day-to-day
needs. From October 2019, Universal Credit deductions have been reduced to 30% of
a claimant’s standard allowance down from 40% to better achieve these objectives.</p><p>
</p><p>Creditors can request debts to be collected through Universal Credit, typically
where other repayment methods have been unsuccessful. We are led by the creditor,
and at any time any creditor could inform us they wish to take back responsibility
for collecting the debt from Universal Credit - such requests would trigger an end
to deductions as soon as possible. The rate at which repayments are recovered from
Universal Credit are set out in Schedule 6 to the Social Security Universal Credit,
Personal Independence Payment, Jobseeker’s Allowance and Employment and Support Allowance
(Claims and Payments) Regulations 2013 – SI 2013/380.</p><p> </p><p>For any of the
deductions laid out in the regulations, creditors can approach Universal Credit directly
and typically there is no requirement for them to proactively get the claimant’s consent.
Any requests for deductions are considered by the Department on an individual basis.</p><p>
</p><p>Where recovery relates to benefit overpayments, this is managed in a sensitive
way. Maximum deduction rates are set out in legislation (Regulation 11 of the Social
Security (Overpayments and Recovery) Regulations 2013) and where a claimant cannot
afford the proposed rate of recovery they can contact the Department’s Debt Management
team so this can be reviewed. If a reduction in the repayment rate is agreed, we will
implement it quickly so that payments are adjusted accordingly.</p><p> </p><p>The
Department is always developing our understanding on the impact deductions can have
on claimants, and has heard evidence from external organisations on this issue. Ultimately,
we have to balance these impacts with the need for claimants to meet their obligations.</p><p>
</p>
|
|
