Universal Credit: Fylde
The question
To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 12 May 2025 to Question 51543 on Cost of Living: Fylde, how the new Fair Repayment Rate for Universal Credit debt deductions is being implemented; and how this will ensure that people who are struggling with debt are adequately supported in Fylde constituency.
Answered by Sir Stephen Timms
The Fair Repayment Rate was implemented from 30 April 2025. This measure reduced the overall deductions cap taken from the Universal Credit standard personal allowance from 25% to 15% enabling approximately 1.2 million UC households retain, on average, an additional £420 a year or £35 per month of their award. This change will be applied to assessment periods starting on or after the 30 April 2025.
The Department encourages anyone unable to afford the proposed rate of repayment to contact Universal Credit or DWP Debt Management at the earliest opportunity. The Department will seek to do as much as they are permitted to do to support customers through the recovery of their overpayments.
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