| 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>Deductions are made following the priority order, which determines the order
in which items should be deducted. ‘Last resort’ deductions, such as rent or fuel
costs, are at the top of the priority order, ensuring that claimant welfare is prioritised,
followed by social obligation deductions, such as child maintenance, and finally benefit
debt, such as Social Fund loans and benefit overpayments.</p><p> </p><p>The Department
collects and analyses data on Universal Credit regularly, including on the rate of
deductions. Alongside this, the Department is always building our understanding on
the impact deductions can have on claimants, and has heard evidence from external
organisations on this issue. We have to balance these impacts with the need for claimants
to meet their obligations.</p><p> </p><p>The Code of Practice ‘What happens if you
are overpaid Universal Credit, Jobseeker’s Allowance or Employment and Support Allowance?’
was deposited in the Library 6 May 2014. Deposit reference ‘DEP2014-0790’ refers.</p><p>
</p><p><a href="http://www.parliament.uk/business/publications/business-papers/commons/deposited-papers/"
target="_blank">http://www.parliament.uk/business/publications/business-papers/commons/deposited-papers/</a></p><p
/><p> </p>
|
|
