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<p>The Government recognises the importance of safeguarding the welfare of claimants
who have incurred debt. Universal Credit already has procedures and regulations in
place to protect claimants from excessive deductions. The maximum rate of deductions
cannot normally exceed 40 per cent of the Universal Credit standard allowance, and
from October 2019 this will be reduced to 30 per cent.</p><p> </p><p>However, last
resort deductions can be applied to protect vulnerable claimants from eviction and/or
having their fuel supply (gas/electricity) cut off, by providing a last resort repayment
method for arrears of these essential services. In these circumstances, when it is
considered to be in the best interests of the claimant and their family, deductions
may be taken above the 40 per cent limit.</p><p> </p><p>If a claimant is in financial
difficulty as a result of the level of deductions being made they can contact the
Department to request that a reduction in deductions be considered.</p><p> </p><p>Of
all eligible claims to Universal Credit Full Service due a payment in Feb 2019, 57%
(840,000 claims) had a deduction.</p><p> </p><p>Of this 840,000 claims with a deduction:</p><p>a)
50% (420,000 claims) had deductions up to 20% of the Standard Allowance (29% of all
eligible claims).</p><p>b) 20% (170,000 claims) had deductions between 21% and 30%
of the Standard Allowance (12% of all eligible claims).</p><p>c) 28% (238,000 claims)
had deductions between 31% and 40% of their Standard Allowance (16% of all eligible
claims).</p><p>d) 1% (13,000 claims) had deductions above 40% of their Standard Allowance
(1% of all eligible claims).</p><p> </p><p>Notes:</p><p>Claim numbers may not match
official statistics caseloads due to small methodological differences.</p><p>Claim
numbers are rounded to the nearest 1,000</p><p>When categorising claims into the groups
above the figures for the percentage of the Standard Allowance for individual claims
have been rounded to the nearest percent.</p><p>Deductions include advance repayments
and all other deductions, but exclude sanctions and fraud penalties which are reductions
of benefit rather than deductions.</p><p><strong> </strong></p><p />
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