Recent data shows that UK households have had an average of £63 deducted from their monthly Universal Credit payments to repay debts. Almost half of the deductions were to repay upfront loans taken out while waiting for the first payment. The Department for Work and Pensions provides support to manage repayments and has reduced the standard cap on deductions. In Nottinghamshire, the scale of the problem is evident with various constituencies affected.
Figures provide a breakdown of deductions to Universal Credit payments across Nottinghamshire. Nationally, recent data has shown UK households have had an average of £63 deducted from the monthly payments to repay debts incurred.
The money was taken from payments in the three months to May. Almost half of the money siphoned off was to repay upfront loans households were forced to take out as they waited five weeks for their first Universal Credit payment. A Department for Work and Pensions spokesman said: “We provide support to help people manage repayments and have reduced the standard cap on deductions twice. Universal Credit deductions are a last resort repayment method and help to recover taxpayers’ money when overpayments are made.
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