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<p>Data showing the proportion of the standard allowance which is being used to repay
a Universal Credit (UC) advance which: (a) taken out an advance at a 40 per cent deduction
rate and have been unable to pay back that advance within 12 months, (b) taken out
an advance at a 40 per cent deduction rate and (c) taken out the maximum available
advance at a 40 per cent deduction rate could only be supplied with analysis which
would incur disproportionate cost to the Department.</p><p> </p><p>The maximum amount
of a UC advance a claimant can access is subject to them being able to repay it over
12 monthly payments at a rate of no greater than 40 per cent of their standard allowance
(this will be reduced to 30 per cent from October 2019). However, there are reasons
why the advance repayment may not be taken or may be taken at a lower amount from
a claimant in any given month, such as:</p><p> </p><p>a. If they have insufficient
Universal Credit left in payment, after reductions such as earnings, capital yield
and other income are taken into account, then a reduced repayment will be taken or
none at all, depending on the amount of UC payment they have left.</p><p>b. If they
have a Fraud Penalty or Conditionality Sanction, the repayment of the advance will
stop until these end.</p><p>c. If they experience an unexpected financial hardship
then they can request a deferral of up to 3 months, during which time they will not
make any advance repayments.</p><p>d. If their UC award ends, for whatever reason,
they can renegotiate the repayment rate and period with Debt Management who will take
into account their new financial circumstances.</p>
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