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Universal Credit

Question for Department for Work and Pensions

UIN HL1126, tabled on 15 July 2014

To ask Her Majesty’s Government what progress has been made on reaching a final decision on the proposal to increase the rent arrears deduction rate under Universal Credit.

Answered on

24 July 2014

We recently consulted on the proposal to increase the rate of rent arrears deductions in Universal Credit. We are currently considering the consultation responses.

Deductions from Universal Credit are made after considering the claimant’s individual circumstances and ability to afford the deductions. The maximum that can be deducted for all deductions, including rent arrears, is an amount equivalent to 40 per cent of the claimant’s Universal Credit Standard Allowance. The government will ensure that appropriate support is available to help claimants manage moving to a single monthly household payment, including budgeting and debt management advice.