There are some tough changes around the corner for Universal Credit claimants after the Spring Budget.
Chancellor Jeremy Hunt announced that sanctions would be applied “more rigorously” as part of the Government's plan to get more people back into work. This means that those who fail to meet new strict work-search requirements or choose not to take up a reasonable job offer are likely to be sanctioned - which means they will have their benefits reduced in the short term.
If you claim Universal Credit to top up your wages and you work 15 hours a week or less, you could have to work more hours to keep your Universal Credit under the new regime. This means that more than 100,000 Universal Credit claimants who currently work 15 hours per week will have to step up their hours or face having their benefits cut. The lifting of the Administrative Earnings Threshold from 15 to 18 hours per week means that that anyone currently working fewer than 18 hours will have to meet with DWP job coaches to find more work or risk having their Universal Credit cut.
Read more: Universal Credit claimants sanctioned by DWP can now ask for their money back
The Chancellor also said that the Government plans to get tough on the Universal Credit sanctions regime, saying: "Sanctions will be applied more rigorously to those who fail to meet strict work-search requirements or choose not to take up a reasonable job offer." In other words, if you don't meet your work-search requirements or choose not to take up a reasonable job offer, you will be more likely to be sanctioned and lose some of your Universal Credit.
In his Budget speech, Mr Hunt said: "There are more than 2m jobseekers in this group, more than enough to fill every single vacancy in the economy. Independence is always better than dependence, which is why we believe those who can work, should."
Government figures show that 2.5% of claimants were sanctioned in August 2022, a total of 115,274 people, which equated to over £36 million taken from people's Universal Credit payments. So, with the regime set to get tougher, we take a look at what you need to know about Universal Credit sanctions and what you can do if it happens to you.
What are sanctions?
According to the DWP Understanding Universal Credit website: "In return for receiving Universal Credit you will need to do certain things. If you are able to prepare or look for work, this will include attending appointments with your work coach. These can take place by phone, video call or in person at a Jobcentre. No matter how your appointment is due to be held, it’s important that you attend. If you are asked to attend an appointment but don’t attend and don’t have a good reason why, your Universal Credit payments will be affected.
"If you fail to do what you have agreed in your Claimant Commitment without good reason, your Universal Credit payments may be reduced for a set period. This is known as a sanction.
"If you are asked to attend a work search review but don’t attend and don’t have a good reason why, you will receive a sanction until you arrange and attend another work search review."
DWP minister Guy Opperman, who is MP for Hexham, Northumberland, has previously stated that 98.2% of sanctions are for missing a meeting with a work coach.
What happens if you are sanctioned?
If you get a sanction, you will get a letter telling you how much your Universal Credit will be reduced by. There are different sanctions depending on which work-related activity group you are in, and the length of sanctions can range from a few days up until 182 days in some cases, such as if you refuse to take up a job offer or refuse to apply for a particular job when told to do so.
What happens if we claim Universal Credit as a couple?
If you claim Universal Credit as a couple and only one of you doesn’t meet their responsibilities, you may receive a sanction to your joint payment.
How much Universal Credit do I lose?
The amount of Universal Credit you will lose for your sanction will depend on how much you get each month. If there isn’t enough of your Universal Credit left to take the full sanction amount, your Universal Credit payment will be reduced to zero.
Generally:
- If you are single and over 25, the sanction will be £11 per day for as long as the sanction lasts;
- If you are single and under 25, the sanction will be £8.70 a day;
- If you are in a couple and over 25 the sanction will be £8.60 a day;
- If you are in a couple and under 25 the sanction will be £6.80 a day.
In certain circumstances, you might have less money taken, for instance if you are under 18, a carer for a child or pregnant.
How long does a sanction last?
Sanctions are split into three different categories:
- Low level: 7 days: If you fail to do the basic tasks needed to get your Universal Credit such as not attending a work focused interview, not signing on or not attending a course you have been told to go to;
- Medium level: 28 days: If you do not do enough to look for work and are not available to work. This sanction could be extended to up to 91 days if you've been sanctioned before;
- High level: 92 days: If you fail to apply or fail to accept a job which is offered to you or id you leave your job without good reason. These sanctions can be extended to up ast for 182 days if you have received a high level sanction in the last year.
What can you do if you have been sanctioned?
If you think you have been unfairly sanctioned then you can ask the DWP for a "mandatory reconsideration", either by leaving a message in your Universal Credit online account, through a CRMR1 mandatory reconsideration request form, or through a letter to the DWP, but you need to do this within one month of receiving your sanction letter. The DWP will inform you whether it has changed or upheld your sanction notice and if you feel its decision is wrong, the next step is to appeal to a tribunal.
What help can you get when you have been sanctioned?
If your Universal Credit has been cut and you are struggling financially, you might be able to get some emergency money - called a hardship payment - to help you essential expenses like food and bills. However, this money is a loan which you will usually have to pay back when your sanction ends. To be eligible for a hardship payment, you will need to show that you are "struggling to meet your basic needs" or the basic needs of a someone you’re responsible for, and you will also need to prove that you have stopped spending on all non-essentials and have exhausted any other other sources of cash. You can only apply for a hardship payment to tide you over until your next Universal Credit payday and you'll have to apply for another loan if you are still struggling after that.
Read more:
- DWP Universal Credit claimants hit as sanctions rise by 250% amid claims they are 'back with a vengeance'
- Universal Credit: What the announcements in the Budget mean for you if you claim benefits
- Calls grow for a 'social tariff' to help low-income families afford energy bills
- New rules mean cheaper broadband for more low-income families
- Cost of living: A five-step plan to get debt free in 2023
