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<p>In response to the Covid-19 pandemic, and in agreement with His Majesty’s Treasury and the Chancellor, debt recovery was paused for 3 months from April 2020.</p><p> </p><p>Due to the number of variables involved, and taking account of the phased reintroduction of debt recovery, we cannot accurately provide details of the amount not collected in deductions from Universal Credit for the period January 2020 to January 2021.</p><p> </p><p>The department continues to have a well-established process for working with individuals to support them to manage their debts; this might result in agreeing a reduced rate of deduction or, in exceptional cases, suspending repayments. Individuals impacted by the pandemic may have contacted the department seeking a reduction in, or suspension of, their rate of repayment, had the department not suspended all recovery.</p><p> </p><p>Processing of newly identified overpayments was also suspended, and we are unable to accurately estimate the rate of repayment that would have been negotiated given the impact of the pandemic.</p><p> </p><p>Additionally, as we recommenced recovery, changes to individual circumstances may have led to a lower rate of repayment than was in place prior to the pandemic.</p> |