Over 200,000 Universal Credit claimants hit by £59 deductions

More than 206,000 households on Universal Credit in Scotland have been hit by deductions in current months.

Between December and February 2023, some £12.1million was deducted from claimants with the typical family seeing their cost slashed by £59.

Almost half of the deductions had been to repay a Universal Credit advance, which is when a claimant requests half or all of their entitlement as a mortgage, to cowl the 5 weeks till their first Universal Credit payment arrives.

SNP MP Chris Stephens obtained the figures and branded the deductions a “poverty tax”, calling on the Government to slash the speed of reductions.

The Glasgow South West MP stated: “It’s one thing for ministers to say they’re helping people on the lowest incomes with cost of living payments, but the monthly deduction of £59 from Universal Credit payments pushes those very same people deep into financial hardship.

“The poverty tax stays a outstanding driver of meals financial institution utilization and must be finished away with.

“There should be an amnesty on deductions resulting from the DWP’s own errors, a replacement of upfront loans with grants, and a much lower cap on the monthly rate of deductions.”

The three worst hit areas had been all in Glasgow. Around £375,000 was taken from 6,400 claimants in Glasgow East, with a median deduction of £59.

A complete of £334,000 was deducted from claimants from 5,900 individuals in Glasgow North East, with a median deduction of £57.

In Glasgow South West, £331,000 was taken away from the funds of 5,700 individuals with a median deduction of £58.

Deductions for a Universal Credit advance start being taken with the individual’s first cost. People often should repay the quantity inside 24 months if it was taken out because of making a brand new declare for Universal Credit.

Claimants have six months to repay the quantity in the event that they requested an advance because of a change of circumstances.

A UK Government spokesperson stated: “Deductions assist to guard claimants from enforcement actions akin to eviction, guarantee precedence money owed like little one upkeep are addressed and get better cash when overpayments are made.

“It is barely proper that we stability our responsibility to the taxpayer however inexpensive and sustainable safeguards stay in place.

“Any claimant having difficulties with repaying a benefit overpayment, can speak to the department and agree a rate of repayment that is more affordable for them.”

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