Universal Credit Deductions

Social Welfare Training have brought this to our attention.

One of the big issues with the Universal Credit system is that most (57%) of clients do not receive their full amount of Universal Credit because of deductions. 

The government say 'Deductions include advance repayments and all other deductions, but exclude sanctions and fraud penalties which are reductions of benefit rather than deductions.'

If you add in reductions,  then even more clients will not be receiving their full amount of Universal Credit.  

The figures for deductions are-

'Of all eligible claims to Universal Credit Full Service due a payment in Feb 2019, 57% (840,000 claims) had a deduction.

Of this 840,000 claims with a deduction:

1. a) 50% (420,000 claims) had deductions up to 20% of the Standard Allowance (29% of all eligible claims).
2. b) 20% (170,000 claims) had deductions between 21% and 30% of the Standard Allowance (12% of all eligible claims).
3. c) 28% (238,000 claims) had deductions between 31% and 40% of their Standard Allowance (16% of all eligible claims).
4. d) 1% (13,000 claims) had deductions above 40% of their Standard Allowance (1% of all eligible claims).'

The government add-

'Universal Credit already has procedures and regulations in place to protect claimants from excessive deductions. The maximum rate of deductions cannot normally exceed 40 per cent of the Universal Credit standard allowance, and from October 2019 this will be reduced to 30 per cent.

However, last resort deductions can be applied to protect vulnerable claimants from eviction and/or having their fuel supply (gas/electricity) cut off, by providing a last resort repayment method for arrears of these essential services. In these circumstances, when it is considered to be in the best interests of the claimant and their family, deductions may be taken above the 40 per cent limit.

If a claimant is in financial difficulty as a result of the level of deductions being made they can contact the Department to request that a reduction in deductions be considered.'

ABC Comment, have your say below: