MPs call for debt repayments holiday for benefits claimants

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Households struggling through the cost-of-living crisis need some breathing space, MPs say in a report.

Deductions from benefit payments to recover debts should be paused to allow struggling households breathing space, MPs have said.

In its report, the committee says deductions often come without warning and are making life even harder for those trying to budget. Prices are rising at their fastest pace in 40 years, with the rising cost of living affecting Britons in much of their necessary spending, from grocery shopping to fuel and energy bills.

While this committee were attempting to address a whole swathe of issues around the cost of living, there was one problem that just kept being referenced. Evidence from so many witnesses, charities and government bodies kept circling back to the fact the playing field isn't level for everyone on universal credit.

"Deductions by DWP [Department of Work and Pensions] from benefits are contributing to the hardship and the government should give those struggling some much-needed breathing space by following its own advice to other creditors and pausing repayments until the threat of inflation recedes."

 

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