THE DWP is clawing back Universal Credit from more than half of all Scottish recipients, a new study has found.
Research by the children’s charity Aberlour found 55 per cent of low-income families had at least one deduction to cover debts.
Meanwhile, 27% had multiple deductions.
The debts include paying back Universal Credit advance payments, as well as “third party deductions” on behalf of local authorities and other public bodies, which could include rent arrears, school meal payments, service charges and council tax.
On average, families were being forced to hand over 10% of their monthly income, around £80.
Professor Morag Treanor of Heriot-Watt University carried out the research, which was based on freedom of information requests to the DWP.
She said: “This new report demonstrates that over half of families with children in Scotland are trapped in a damaging cycle of poverty because of Universal Credit deductions.
“With families seeing their monthly income reduced on average by £80 to cover those debts, while fuel and food prices rapidly increase is, in real times, significantly worsening their financial circumstances.
“These findings are a crucial reminder that the Government needs to act now to support low-income families as we head into winter.”
Aberlour is calling for a moratorium on all deductions from universal credit claimants, and those on legacy benefits, for a minimum of six months.
The charity’s chief executive SallyAnn Kelly said: “Aberlour campaigned for the introduction and increase of the Scottish Child Payment as a vital boost to the incomes of families in Scotland who have the least.
“Our research shows that tens of thousands of families eligible for the payment are not feeling the full benefit of that financial help, as the majority of the increase in income it provides is being cancelled out by deductions to cover the costs of debt to public bodies.
“Quite simply, Scotland’s poorest families are receiving help with one hand that is being taken away by the other.”
Scottish Labour Social Security and Social Justice spokesperson Pam Duncan-Glancy said: “Far too many people are drowning in debt and the cost of living crisis risks making things worse still.
“This bleak but important report underlines the scale of the problem and the damage it is doing to so many households.
“We need action from every level of government to help people through this, including using the powers we have in Scotland to write off school meals debt and bring forward legislation to help people manage their debt.”
A spokesperson for the DWP said: “The government recognises the importance of supporting the welfare of claimants who have incurred debt. We seek to balance recovery of debt against not causing hardship for claimants and their families.”
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