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<p>We carefully balance our duty to the taxpayer to recover overpayments with our
support for claimants. Safeguards are in place to ensure deductions are manageable;
from 12 April 2021, we further reduced the cap on deductions from Universal Credit
awards to 25 per cent and lengthened the payback period from 12 months to 24 meaning
in effect someone can receive 25 payments over 24 months, giving them more flexibility
over the payments of their UC award. This will also allow claimants to retain more
of their award, giving additional financial security.</p><p> </p><p>New Claims Advances
are available which allows claimants to receive up to 100 per cent of their estimated
UC payment upfront. Advances are designed to ensure that the most vulnerable claimants
receive the money they need to live on during their transition to UC. Claimants have
the option to spread twenty-five UC payments over twenty-four months, giving them
more flexibility over the payments of their UC award.</p><p>From 3rd April 2020, deductions
from Universal Credit for some government debt, such as Tax Credits, benefit overpayments
and Social Fund Loans were suspended for 3 months, which resulted in many claimants
seeing an increase in the amount they received while allowing staff to prioritise
processing the unprecedented number of new benefits claims.</p><p> </p><p>Customers
can contact the Department if they are experiencing financial hardship in order to
discuss a reduction in their rate of repayment, depending on financial circumstances.</p><p>
</p><p>The information requested is provided in the attached spreadsheet.</p>
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