Universal Credit: Deductions
The question
To ask the Secretary of State for Work and Pensions, with reference to the Public Law Project report entitled From pillar to post: barriers to dealing with deductions from Universal Credit, published on 19 September 2024, what steps her Department is taking to improve the accessibility of (a) waivers, (b) suspensions, (c) reductions in the rate of recovery and (d) other forms of discretionary relief from overpayment recovery.
Answered by Andrew Western
DWP strives to set affordable and sustainable repayment plans and encourages customers to make contact if they are unable to afford the proposed repayment rate. When a customer makes contact because they are experiencing financial hardship, the rate of repayment can be reduced or, depending on the customer’s financial circumstances, a temporary suspension of repayment can be agreed. In exceptional circumstances a waiver can be considered. Customers are never pressured to pay more than they can afford. DWP has strengthened customer notifications encouraging anyone who cannot afford the proposed rate of repayment to contact the Department to discuss an affordable repayment plan. All appropriate debt notifications also provide signposting to relevant external support.
DWP has also introduced the new Fair Repayment Rate (FRR) which has reduced the Universal Credit (UC) overall deductions cap from 25% to 15% of a customer’s UC standard allowance. This measure will help customers retain more of their UC award.
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