Universal Credit

Department for Work and Pensions written question – answered on 11th December 2020.

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Photo of Jon Trickett Jon Trickett Labour, Hemsworth

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the implications for her policy on universal credit of recent Trussell Trust research which found that individuals using food banks are more likely to owe money to the Government through monthly deductions from universal credit payments than they are to owe family, friends and payday loan companies.

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

Tackling poverty will always be a priority for this Government. Our recent focus has rightly been on supporting people financially during these unprecedented times, with an injection of billions of pounds to strengthen the welfare system in response to the Covid-19 pandemic, including a temporary increase in the Universal Credit Standard Allowance to support those facing the most financial disruption. Through the Covid Winter Grant Scheme, announced on 9 November, we are extending that support with an additional £170m for local authorities in England so that they can support families with children and other vulnerable people with the cost of food and essential utilities this winter.

From October 2019, the overall maximum level for standard deductions is normally limited to 30% of a claimant’s Standard Allowance except for last-resort deductions. From October 2021, this is being reduced to 25% of the claimant’s standard allowance except for last-resort deductions. Claimants can ask for New Claims and Change of Circumstances Advance repayments to be delayed for up to 3 months in exceptional circumstances.

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