Source · Select Committees · Work and Pensions Committee
Recommendation 10
10
Rejected
Paragraph: 46
Revise Universal Credit deduction priority list to place child maintenance above government debt.
Recommendation
Child maintenance currently ranks low on the priority list for Universal Credit deductions at twelfth, below deductions for DWP debt, such as advance payments. We disagree that pursuing such debt should hold a higher priority than child maintenance. Deductions for child maintenance should take higher priority than deductions for the payment of debt owed to the Government. Deductions for child maintenance should take higher priority than deductions for the payment of debt owed to the Government. To assist families, the Government should revise the deduction priority list so that child maintenance is above Government debt and should, in its response to this Report, set out the current deduction priority list and the rationale for Child Maintenance being twelfth.
Government Response Summary
The government rejected the recommendation to reprioritise child maintenance deductions above government debt. It stated that child maintenance is already considered before other government debts like benefit overpayments and there are no current plans to alter the existing deduction priority list, citing the need to balance various deduction types.
Paragraph Reference:
46
Government Response
Rejected
HM Government
Rejected
Child Maintenance is just one of many deductions which impacts UC. We have to balance the need to make CMS deductions with the need to make others such as for rent arrears, Council Tax, energy arrears, etc. Advances are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront. They ensure nobody has to wait for a Universal Credit payment, and those who need it are able to receive financial support as soon as possible. Since April 2021, claimants requesting New Claim Advances and Benefit Transfer Advances have had the option to spread twenty-five Universal Credit payments over twenty-four months, giving them more flexibility over the payments of their Universal Credit award. In addition, in exceptional circumstances, new claims and benefit transfer advances can be deferred for up to 3 months. There are no plans currently to alter the sequence by which deductions from benefits are ordered. Government debts such as benefit overpayments are only considered if there is room within the standard 25% cap, after advances and third-party deductions, including Child Maintenance, have been considered. Domestic abuse