Credit: Sarah Agnew, Unsplash
Stephen has said automatic repayments to the government by people claiming benefits should be put on hold to help households struggling with huge financial pressures during the cost of living crisis.
About 2.4 million households – nearly half of all claimants on universal credit – have on average £62 docked each month to repay benefit advances, tax credit overpayments and debts owed to landlords and utility companies.
With inflation set to peak at its highest level for 40 years, the report from the cross-party Work and Pensions Committee highlights how the deductions from benefits, usually taken to recover money owed for a variety of debts and advances, are pushing some people into hardship and leading them to depend on foodbanks.
A report published by the Work and Pensions Select Committee - which Stephen chairs - calls on DWP to pause the deductions and restore them gradually only as the rate of inflation reduces, or when benefits have been increased to accurately reflect the rise in prices. In addition, the Committee recommends that the Government reviews and increases the benefit cap - which has remained frozen since it was lowered in 2016.
Speaking about the report said: “Deductions by [the] DWP from benefits are contributing to the hardship, and the government should give those struggling some much-needed breathing space by following its own advice to other creditors and pausing repayments until the threat of inflation recedes.”