Universal Credit – Parliamentary Written Answer

Steve McCabe: To ask the Secretary of State for Work and Pensions, what assessment he has made of the effect of further advanced payment loans on financial security in cases were the universal credit recipients roll-out has caused financial hardship.

Damian Hinds: Advances of Universal Credit are advance payments which are then recovered over an agreed period. They are in place to ensure those in need are able to receive financial support and are not reliant on illegal and high-cost lenders. Advances are recovered over a maximum of six months, although exceptionally this period could be deferred by up to three months to prevent hardship. No interest is charged.

Universal Credit: Pensioners – Parliamentary Written Answer

Frank Field: To ask the Secretary of State for Work and Pensions, how pensioners in receipt of universal credit in mixed-couple households where one partner is over pensionable age and the other is below will be affected by the under-occupation penalty.

Damian Hinds: All mixed aged couples who under-occupy social housing, are subject to the policy to remove the spare room subsidy, if one partner is in receipt of Universal Credit. This is because working age claimants are better placed to meet a rent shortfall through taking up employment or increasing their working hours; and over the long term, this measure helps ensure that people move to more suitably sized accommodation before both members of a couple reach state pension age.

Universal Credit – Parliamentary Written Answer

Frank Field: To ask the Secretary of State for Work and Pensions, what proportion of people repaying a universal credit advance are asked to repay within (a) three and (b) six months; how many of those people have other sums deducted from their monthly payment; and in how many of those cases that total deduction exceeds the maximum recommended amount.

Damian Hinds: Claimants choose the periods of repayment. Some 77% of claimants have chosen to repay in 6 months and 8% within 3 months. Deductions for arrears are made in a priority order and can never exceed 40% of the personal allowance.