My argument is that the Amendment is not required. The intention is to align deduction rates with other recovery methods used by the Department, and therefore the maximum rate of deduction is expected to be limited to a maximum of 20% in non-fraud cases.

I stress that these are maximum regular deduction rates; the actual deduction rate will depend on the level of income and other affordability considerations, based on the Department’s experience when applying deduction caps using existing recovery guidance outlined in the benefit overpayment guide, which can be found on gov.uk. In non-fraud cases, the amount regularly deducted will likely range between 3% and 20%. Similarly, not all fraud debt will be recovered at 40%. Regular deductions in fraud cases will range between 5% and 40%, depending on the debtor’s circumstances.

How the new debt measures operate will be clearly set out in the forthcoming statutory code of practice. These powers will enable the Department to apply the most appropriate debt recovery method to ensure efficient recoveries are made. Having outlined why I feel amendments 48 and 22 are unnecessary, I will therefore resist them.