Owen Smith – 2016 Parliamentary Question to the Department for Work and Pensions

The below Parliamentary question was asked by Owen Smith on 2016-04-25.

To ask the Secretary of State for Work and Pensions, what estimate his Department has made of the number of people who will be affected by proposed changes to debt repayment arrangements under universal credit.

Justin Tomlinson

Analysis undertaken by DWP has identified a large number of variables that will affect debt repayments from individuals claiming Universal Credit.

This includes, but is not limited to; the number of people claiming Universal Credit, the level of Universal Credit award they receive, the amount of debt they have (across DWP, HMRC and Local Authorities), the approach for recovering debt from Universal Credit and the approach for recovering debt by deduction from earnings.

Considering this, it is likely that most Universal Credit claimants with existing debts or debt repayment arrangements will be affected to some degree. At present there is insufficient data to predict the effects of these variables accurately.

Given the scale of the change, the likely confidence interval for forecasts for any time after 2016-17 is too large to give a meaningful or indicative answer at this time.

However, as Universal Credit rolls out, DWP will continue to analyse all available data to give a wider view on any changes to debt repayment agreements that are being seen under Universal Credit.

In addition, DWP will continue to work with HMRC and Local Authorities in developing forecasting models to show the changes that people with debt will see as their benefit payments move to Universal Credit.