The Government must pause benefits deductions to give struggling households “much-needed breathing space” during the cost-of-living crisis, MPs have said.
Automatic payments to the Government and others, taken out of people’s benefits, should be halted as claimants battle soaring costs, the Work and Pensions Committee said. Deductions are taken by the Department for Work and Pensions (DWP) from people’s benefits to pay off debts, which could include advance payments of benefits, and previous errors or overpayments of benefits by the Government.
For example, new Universal Credit claimants face a five-week wait while their claim is assessed before receiving their first payment. If they need an advance payment to help them through this period, this will be deducted from the amount they receive each month going forward. Deductions can also be taken to cover some third-party debts, such as rent arrears.
