Reason £63 deducted from Universal Credit payments

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2.3 million claimants had deductions in the three months to May

UK households have an average of £63 deducted from their monthly Universal Credit payments to repay debts, based on recent figures. According to BirminghamLive, .

In that period it meant £6.8million was withheld per-month from payments, at a national average of £63. A Department for Work and Pensions spokesman said: “We provide support to help people manage repayments and have reduced the standard cap on deductions twice. Universal Credit deductions are a last resort repayment method and help to recover taxpayers’ money when overpayments are made.

"But we know people are already struggling with the cost of living which is why the UK Government is bearing down on inflation and providing record financial support worth around £3,300 per household, including raising benefits by over 10 percent this year.”Almost half of the money siphoned off was to repay upfront loans households were forced to take out as they waited five weeks for their first Universal Credit payment.

SNP MP Chris Stephens, who uncovered the figures, is proposing legislation to prohibit the Government from imposing deductions in cases where they will result in people being forced to rely on food banks. He said: “The evidence couldn’t be any clearer. Deductions are making poorer people destitute.

Andrew Forsey, national director of the Feeding Britain charity, said: “Deductions have long acted as a recruiting sergeant for food banks. In the absence of any action from the Department for Work and Pensions, to bring down the rate of deductions, millions of people on the receiving end of this policy will struggle to put food on the table this winter.

 

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