Baroness Scott of Needham Market – 2014 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Baroness Scott of Needham Market on 2014-06-11.

To ask Her Majesty’s Government what analysis has been made of the ability of Universal Credit recipients to meet other essential needs after rent arrears have been deducted at the proposed level of 40 per cent.

Lord Freud

Deductions from Universal Credit are made after considering the claimant’s individual circumstances and ability to afford the deductions. The maximum that can be deducted for all deductions, including rent arrears, is an amount equivalent to 40 per cent of the claimant’s Universal Credit Standard Allowance. The only exceptions to this rule are deductions for normal consumption of utilities and in cases where a sanction or penalty is being applied or a (Universal Credit) advance is being recovered. Where appropriate the rate of deduction can be reduced.