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Universal Credit

Department for Work and Pensions written question – answered on 7th October 2019.

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Photo of Steve McCabe Steve McCabe Labour, Birmingham, Selly Oak

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of October 1 to Question 290635 on universal credit, what evidence her Department used to reduce the repayment level from 40 per cent to 30 per cent of universal credit award.

Photo of Will Quince Will Quince The Parliamentary Under-Secretary of State for Work and Pensions

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.

We believe the reduction from 40 percent to 30 percent strikes a fair balance between a claimant’s need to make essential repayments and their ability to ensure they can meet their day-to-day needs. It maintains our policy to enforce social obligations such as the payment of fines and Child Maintenance, ensure Government debt is recovered and vitally to safeguard claimants from the potential impacts of not repaying priority debts, such as homelessness or the deduction of fuel.

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