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1013092
star this property registered interest false more like this
star this property date less than 2018-11-23more like thismore than 2018-11-23
star this property answering body
Department for Work and Pensions remove filter
star this property answering dept id 29 more like this
star this property answering dept short name Work and Pensions more like this
unstar this property answering dept sort name Work and Pensions more like this
star this property hansard heading Universal Credit more like this
star this property house id 1 more like this
star this property legislature
25259
star this property pref label House of Commons more like this
star this property question text To ask the Secretary of State for Work and Pensions, what estimate her Department has made of the number of claimants of Universal Credit that have had deductions of more than 40 per cent from their Standard Allowance as a result of overpayments made by (a) computer and (b) other administrative error. more like this
star this property tabling member constituency Bristol South more like this
star this property tabling member printed
Karin Smyth remove filter
star this property uin 195087 more like this
star this property answer
answer
unstar this property is ministerial correction false more like this
star this property date of answer less than 2018-12-03more like thismore than 2018-12-03
unstar this property answer text <p>It is not possible for a deduction of more than 40 per cent of the Standard Allowance to be made as a result of overpayments whether made by a computer or other administrative error.</p><p> </p><p>When an overpayment deduction is being applied, then it has to be within the overall 40 per cent limit for deductions (reducing to 30 per cent from October 2019). The maximum deduction that can be taken for overpayments that have occurred due to computer or administrative error is either 15 per cent (standard rate) or 25 per cent (in receipt of UC with earnings) of the standard allowance. The 40 per cent maximum is only applied to overpayments caused as a consequence of fraud. As last resort deductions are higher up the deduction priority order, they will already have been taken as third party deductions, and as such the total deduction cannot exceed the 40 per cent maximum.</p><p> </p><p>For example:</p><ol><li>Last resort deduction for arrears of rent at 10%;</li><li>Last resort deduction for arrears of gas at 5%;</li><li>Last resort deduction for arrears of electricity at 5%;</li><li>Arrears of overpayment caused by error for a claimant with earnings. The maximum deduction rate for this is 25% but as 20% is already being taken for the third party deductions above, only 20% will be taken for the overpayment, so as not to exceed the 40% limit.</li></ol><p /><p>More generally, it is possible for the 40% ceiling to be breached but only when there is a Fraud Penalty or Sanction or an Advance repayment which means that some or all of the Last Resort Deductions cannot be applied while remaining within the 40% ceiling. If it is nevertheless in the claimant’s best interests to apply the Last Resort Deductions, then the ceiling can be breached. At this point, anything lower down the priority order (such as overpayments) would not be deducted.</p><p> </p><p>The Deduction Priority Order can be found here (p. 72) - <a href="https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683470/benefit-overpayment-recovery-guide.pdf" target="_blank">https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/683470/benefit-overpayment-recovery-guide.pdf</a></p>
star this property answering member constituency Reading West more like this
star this property answering member printed Alok Sharma more like this
star this property question first answered
remove filter
star this property answering member
4014
star this property label Biography information for Alok Sharma remove filter
star this property tabling member
4444
unstar this property label Biography information for Karin Smyth more like this