Update on deductions from OSEF

A bit of feedback from stakeholder forum on deductions from UC

Outsourcing to SERCO -

We initially outsourced basic payment calls to Serco and have now extended this to include appropriate off-benefit calls by securing access to the same Credit Reference Agency data already available to DWP Debt Management colleagues. This improves our telephony service and supports people to repay their debts more easily. Other Debt telephone enquiries are handled by DWP colleagues, who have the necessary skills to handle more complex enquiries from customers.

Smart answers -

UC customers can use Smart answers on gov.uk to find out who to contact about money taken off their Universal Credit payment for the following reasons:
• Advances
• Universal Credit overpayments
• Benefit overpayments, budgeting and crisis loan repayments
• Recoverable hardship payments
• Third party deductions - if money is owed for things like rent, Council Tax, electricity, gas and water
Details of this service are provided on the customer statement and we are working to enable a hyperlink to be included on the customer statement to make it easier to access this information.

Response to suggestions that Debt Management do not take into account non DWP debts when considering affordability -

DWP takes into account the whole picture of a claimant’s debts when considering affordability.
All customers are able to contact us if they are experiencing financial hardship, in order to negotiate a repayment plan.  We have a Repayment Negotiation Framework which is based on the individual circumstances of the customer, rather than the size of their debt and the repayment period.  It’s a simple process and ensures customers are treated fairly, whether they receive benefits or are repaying by other methods.  Our aim is always to achieve repayment plans that are affordable and sustainable for the customer.

Debt Management have access to the Public Sector Gateway (PSG), which allows them to get a better understanding of a customer’s financial position when conducting a repayment negotiation discussion. The information held on PSG includes: Credit Card information, Mortgage details, loan details and other Financial commitments such as internet, TV packages and mobile phone contracts.

Once an agreement has been made the agent amends the rate of deductions, this is reviewed again after 12 months.

Third party debts

All customer enquiries relating to Third Party Deductions (Court fines, gas, electricity, water) should be referred to the Third Party. This includes the negotiation of repayment rates.

Following a judicial review, deductions for court fines will be changed and the deduction rate will be set to a maximum 5% of the Standard Allowance. This change will apply to claims where the assessment period ends on 5 May 2021.

A journal message will be sent to all Universal claimants who have contacted us about court fines.