Ref: ML.C0174.SS.22.09.22

The Rt. Hon. Chris Philip

Chief Secretary to the Treasury

HM Treasury

22nd September 2022

Pausing Debt Deductions

Dear Chris,

I am writing to you on behalf of a number of constituents who have contacted me regarding their concerns with household debt in the context of the rising cost of living. 

My constituents have asked the Government specifically that:

1. Debt deductions from Universal Credit and legacy benefits are paused until at least April 2023. 
2. This should apply to Council Tax arrears (working with devolved nations), as well as debts owed for Universal Credit advances, benefit and Tax Credit overpayments, and court fines deducted from benefits. 
3. These payment holidays should be provided to all claimants as standard, with discretion for claimants to continue to repay these debts if they can afford to do so. This will put more money into the pockets of people subject to benefit deductions while costs are high, and is separate to the aims of Breathing Space (which is to facilitate someone seeking debt advice). 

My constituents and I would be very grateful for a response to these points.

Yours sincerely,

Caroline