Reclaiming Fines Universal Credit 2021-03-16

2021-03-16

TAGS
Response quality

Questions & Answers

Q1 Partial Answer
Shabana Mahmood Lab
Birmingham Ladywood
Context
The question arises due to concerns about the fairness and effectiveness of automatically applying a maximum 30% deduction for court fines on individuals receiving universal credit, regardless of their financial circumstances. The approach has led to an increase in poverty among vulnerable claimants and a decrease in funds recouped.
What assessment he has made of the effectiveness of court fine deductions in reclaiming fines for people in receipt of universal credit?
Deductions from benefit orders are made by the court. When a judge makes a deduction order, they take into account the affordability and means of the person involved. Someone can apply later to remit part or all of the deduction if their circumstances have changed.
Assessment & feedback
The effectiveness of deductions in reclaiming fines specifically, and how it impacts vulnerable claimants
Deflects Towards Judicial Discretion
Response accuracy
Q2 Partial Answer
Shabana Mahmood Lab
Birmingham Ladywood
Context
Government directives to jobcentre staff to apply a uniform 30% deduction for court fines from individuals receiving universal credit have led to significant financial hardship and reduced fund recovery. The data shows a decline in recouped amounts since this policy was implemented.
I am grateful to the Minister for that answer, but he will know that the Government have ordered jobcentre staff to apply the maximum 30% deduction from universal credit for claimants who have to pay a court fine, regardless of their circumstances. This approach is failing on two fronts. It pushes vulnerable claimants further into poverty and recoups less money. The Ministry's own data shows that the amount of money recouped in respect of court fines fell by over 13% between June and August last year, when the arbitrary 30% deduction was applied to all claimants. Does the Minister accept that this is the worst of all worlds, and will he begin urgent discussions with his counterparts in the Department for Work and Pensions to follow the data and allow local decision makers a greater degree of discretion as to how much is deducted from each individual claimant to pay a court fine?
These deductions pay not only for fines but also for compensation to victims, so we should be mindful of that fact. Orders are ultimately made by a judge who considers circumstances when making an order. It is open to someone experiencing difficulty to go back to the court later to have the order remitted in part or in whole.
Assessment & feedback
The policy's impact on vulnerable claimants and fund recovery
Deflects Towards Judicial Discretion
Response accuracy