PARLIAMENTARY WRITTEN QUESTION
Universal Credit (2 November 2021)

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 26 October 2021 to Question 60405, on Universal Credit, what proportion of Government debt resulting in deductions taken from universal credit entitlements is as a result of advances.

Asked by:
Jonathan Reynolds (Labour)

To clarify, Advances are not Government debt. They are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a payment in Universal Credit and those who need it are able to receive financial support as soon as possible. Claimants can receive up to 100% of their estimated Universal Credit award if required, resulting in 25 payments over a 24-month period.

For Universal Credit claims with a payment due during May 2021:

• £71.6m was deducted for repayment of Advances
• £67.8m was deducted for Government debt.

1) Government debt includes: DWP Benefit Overpayment (fraud and non-fraud), Tax Credit Overpayment (fraud and non-fraud), Housing Benefit Overpayment (fraud and non-fraud), Social Fund Loan, Recoverable Hardship Payment, Administrative Penalty, Civil Penalty, Eligible Loan Deductions, Integration Loan.

2) Claims may have a deduction for both a Government debt and a repayment of an advance.

3) The above figures exclude deductions for Third Party debt; they also exclude sanctions and fraud penalties which are reductions of benefit rather than deductions.

4) Data for May 2021 has been provided in line with the latest available Universal Credit Household Statistics.

5) Figures are provisional and are subject to retrospective change as later data becomes available.

As noted in PQ 60405, on average, claimants with these deductions paid 15% of their Standard Allowance towards them. We have reduced the normal maximum rate of deductions in Universal Credit from 30% to 25% of a claimant’s Standard Allowance, enabling claimants to take home more of the award.

Customers can contact the Department if they are experiencing financial hardship to discuss a reduction in their rate of repayment, depending on their financial circumstances, whilst work coaches can also signpost claimants to other financial support.

Answered by:
David Rutley (Conservative)
8 November 2021