EXCLUSIVE: SNP MP Chris Stephens wants households to be offered grants instead of upfront loans from the DWP while they wait for their Universal Credit payment.
Half of households in Scotland relying on Universal Credit have suffered deductions in their benefit payments, figures show.
He wants the DWP to issue grants to new claimants instead of them being forced to take out upfront loans.Stephens discovered the scale of the deductions system after submitting a written question to the UK Government. "The replacement of upfront loans with grants would get to the root cause of these deductions and, in doing so, help to reduce the need for food banks in Scotland".
Guy Opperman, the UK minister for employment, said in his response: "Since April 2021, we have reduced the normal maximum rate of deductions in Universal Credit from 40 per cent to 25 per cent of a claimant’s Standard Allowance. These positive measures were put in place to support claimants. "Advances are a claimant’s benefit entitlement paid early, allowing claimants to access 100% of their estimated Universal Credit payment upfront.
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