House of Commons · Ministers' Questions

Reclaiming Fines: Universal Credit

Tuesday 16 March 2021 · 2 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

Shabana Mahmood questioned the effectiveness of court fine deductions for universal credit recipients.
The Minister noted that jobcentre staff are instructed to apply a maximum 30% deduction from universal credit for court fines.
Deductions fund not only fines but also compensation to victims, and orders are made by judges who consider individual circumstances.

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Questions & Answers

Q1 Shabana Mahmood Lab Birmingham Ladywood

Justice & Courts Benefits & Welfare

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.

Question

What assessment he has made of the effectiveness of court fine deductions in reclaiming fines for people in receipt of universal credit?

Answer from Chris Philp

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.

Partly answered

Not addressed: The effectiveness of deductions in reclaiming fines specifically, and how it impacts vulnerable claimants

How: Deflects Towards Judicial Discretion

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Q2 Shabana Mahmood Lab Birmingham Ladywood

Benefits & Welfare

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.

Question

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?

Answer from Chris Philp

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.