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Social Security Benefits: Cynon Valley

Answer

We reduced the normal maximum rate of deductions in Universal Credit from 40% to 30% to 25% of a claimant’s Standard Allowance enabling them to retain more of the award. These changes were implemented from October 2019 to April 2021. These positive measures were put in place to support claimants to manage financial difficulties.

Protocols are in place to ensure deductions are manageable and customers can contact DWP Debt Management if they are experiencing financial hardship to discuss a reduction in their rate of repayment, or a temporary suspension, depending on financial circumstances. We encourage anyone unable to afford the proposed rate of repayment to contact Debt Management - all notifications advise how to get in touch. We seek to do as much as we are able to support claimants through the recovery of their overpayments.

If a claimant is struggling financially, they can ask for the amount of certain deductions to be reconsidered. Financial hardship decisions are made for any of the following:

• benefit debts,
• Social Fund loan
• rent arrears

Benefit debts and Social Fund loans can see deductions reduced and/or deferred. As the creditor, DWP will always try to ensure that Government debt is recovered effectively without causing undue hardship.

For rent arrears, claimants can ask UC staff to exercise their discretion to fix rent arrears deductions at the lowest rate in legislation – 10% of Standard Allowance. This can be done using the Journal or by phone. However, UC staff would not agree to remove a rent arrears deduction entirely to ensure a claimant is protected from eviction.

For Universal Credit (UC), in November 2021, there were 3,100 UC households in Cynon Valley with a deduction, this accounts for 50% of UC households in Cynon Valley.

The attached spreadsheet shows the number of UC households with deductions by deduction type.

For benefits other than UC, deductions information at constituency level is not held.

Secondary information

Type

Written question

Reference

1361

Session

2022-23

Attachment

Table 1

Subjects

Deductions Social security benefits Cynon Valley

Contains statistics

Yes

Link

View this Written question on www.parliament.uk