DWP takes £1 in every £13 back from 3.2 million Universal Credit claimants
04.06.2024 - 02:39
/ manchestereveningnews.co.uk
Around 3.2 million Universal Credit claimants are losing large chunks of money every month due to payment deductions, according to analysis of Department for Work and Pensions (DWP) data. This follows a large rise in the overpayment of benefits such as Carer's Allowance, which has left the department chasing over 130,000 British carers for nearly £250 million, with many facing large deductions to pay it back.
Analysis by the New Economics Foundation found that the scale of DWP benefit reductions as a result of overpayment or claimant debt was reducing the overall average Universal Credit payment for each person by eight per cent - meaning £1 in every £13 handed out by the department is being clawed back through their automated repayment system.
People on benefits can have their payments deducted for a wide variety of reasons even beyond the DWP, from owing rent to a private landlord to being behind on utility bills. Currently, half of all Universal Credit recipients are having their payments reduced to pay back debts, costing the average claimant £63 every month.
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The data revealed that 730,000 households were paying back an advance from the DWP to cover the initial five-week wait for the first Universal Credit payment, while 910,000 households were paying back budgetary loans to meet emergency costs amid the last two years of the cost of living crisis.
The economics thinktank analysis argues that the almost £1bn given out through the Household Support Fund and other discretionary cost of living payments to the poorest households has been "dwarfed" by the scale of the DWP's automated payment deduction system.
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