Stockton charity horrified at benefit "debt" deductions
A Stockton charity say they're horrified to learn that Universal Credit recipients are having their payments squeezed by debts - before it even reaches their bank account
A Stockton charity say they're horrified to learn that Universal Credit recipients are having their payments squeezed by debts - before it even reaches their bank account.
Thrive Teesside say that almost half the people on Universal Credit in the borough are facing reduced payments - as "debts" are removed from their money.
Tracey Herrington, manager of Thrive Teesside, works with her team in Stockton to try to close the poverty gap and help those facing hardship.
She told the latest children and young people select committee how more than 50% of Stockton Universal Credit claimants faced reduced payments due to debts.
And she called the situation “absolutely horrific”.
Ms Herrington added: “If you’re already on a low income and unable to afford to get by, that’s the reality for people living on Universal Credit.”
Debts for bills such as utilities, council tax and rent are known as “third party deductions” and see money taken off Universal Credit payments.
The Government has a 25% cap on deductions, however, more than this amount can be taken from payments for a “last resort deduction” to prevent evictions, or people having their utilities cut off.
Middlesbrough constituency saw 60% of Universal Credit claimants face deductions averaging ÂŁ64, while in Stockton North 4,200 of 7,800 claimants saw debt reduced their payments by an average of ÂŁ62 a month.
Middlesbrough South and East Cleveland saw 3,300 of 6,100 Universal Credit claimants face debt deductions equating to ÂŁ63-a-month.
Just under half of claimants in Stockton South also faced deductions averaging ÂŁ62 a month.
Ms Herrington explained how problems arose because money could sometimes be taken off without the claimant’s consent.
She said: “What we’ve found with the claimants we work with is the first thing they ever know about the deduction coming off is when they go to draw their benefits.
“None of the processes have taken place on whether they’ve had an affordability assessment, whether it’s in their best interests, and whether it is going to leave this person in severe financial difficulty.
“That’s why we’ve picked up on that piece of work to try to get the government to work in partnership and find a fairer solution or policy.”
A DWP spokesperson said caps on deductions had been reduced.
He added: “We carefully balance our duty to the taxpayer to recover overpayments with our support for claimants, and safeguards are in place to ensure deductions are manageable.
“We further reduced the cap on deductions from Universal Credit awards to 25%, and lengthened the payback period from 12 to 24 months.
“This will allow claimants to retain more of their award, giving additional financial security.
“Customers can contact the department if they are experiencing financial hardship in order to discuss a reduction in their rate of repayment, depending on financial circumstances.”
You can find out more about the work Thrive Teesside does and how to get help on their website or Twitter.