Deductions policy must be realistic

In May one third of UC payments were cut at source to pay rent, council tax and utility bill arrears.*

This very high proportion of total claims strengthens the case for continuing reform set out in July by Citizens Advice.  The complex application process is causing many to fall into poverty.**

Gillian Guy, chief executive at Citizens Advice commented:

“People receiving universal credit are unlikely to have much slack in their budgets, so even small amounts can put a huge strain on their finances….The government now needs to ensure deductions are made at a manageable rate and take a person’s ability to cover their expenses into account.”

The high proportion of total claims strengthens the case for continuing reform set out in July by Citizens Advice.  The complex application process is causing many to fall into poverty.**

Elaine Parr: “Worrying potential effect”

Elaine Parr, CARBS district manager, said:

“At CARBS we’re already aware of people living precariously, not knowing if their income from work or benefits will be enough to cover essentials.  The worrying signs are this could get worse when Universal Credit rolls out fully in October.

“We know deductions can help people pay their debts but hope the government will look at the effects of this policy.  It’s also necessary that decision-makers can take proper account of individual household circumstances.”

* Source: DWP following MPs’ FOI request reported by the Guardian: Cuts to pay rent and utility bill arrears drive people into poverty, warn campaigners.

** Citizens Advice Universal Credit claims falter due to complicated application process and lack of support