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 Post subject: Pause benefit deductions for debt repayment - MPs
PostPosted: Wed Jul 27, 2022 7:17 am 
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Pause benefit deductions for debt repayment - MPs


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Deductions from benefit payments to recover debts should be paused to allow struggling households breathing space, MPs have said.

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Payments are automatically taken from about 45% of universal credit claimants to recover overpayments and arrears.

These should be put on hold to help those struggling most as the cost of living soars, the Work and Pensions Committee wrote.

It added the repayments were pushing the most vulnerable into destitution.

The repayments, taken from more than 2 million claimants, are deducted from monthly benefit payments before they arrive in the recipient's account.

In its report, the committee says deductions often come without warning and are making life even harder for those trying to budget.

In February, 20% of deductions were made to recover an overpayment, sometimes made because of a government error.

The committee wants the government to put a pause collecting these debts, and only reintroduce them once the rate of inflation falls.

Prices are rising at their fastest pace in 40 years, with the rising cost of living affecting Britons in much of their necessary spending, from grocery shopping to fuel and energy bills.


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