Benefits deductions ‘push more into debt’

Thousands of Universal Credit claimants are having 40 per cent of their benefit deducted to pay back outstanding debts.

Labour MP Ruth George said the high level of deductions from payments “will see more people with no option but to go into debt”.

The Department for Work and Pensions said there were safeguards to protect benefit claimants from big reductions.

But figures obtained by Ms George showed that in January, 6 per cent of all Universal Credit full service claims had 40 per cent deducted from their standard allowance. The figures were released in response to a written parliamentary question.

The DWP also said a small percentage – less than 0.5 per cent – of claimants had total deductions of more than 40 per cent. In these cases, deductions for rent or fuel costs are applied first, in order to protect claimant welfare.

The deductions system has prompted concerns among MPS and charities over the impact on claimants.

Ms George, a member of the work and pensions select committee, said she was worried about the low level of income people are left with.

She said: “Support under Universal Credit is already below poverty levels for many groups, especially lone parents and disabled people.”