The UK Government's first cost of living payment is being denied to some people claiming universal credit. The Department for Work and Pensions paid a £326 cost of living payment to millions of people on low incomes last month as part of a major support package aimed at helping those hardest hit by the cost of living crisis.
More than seven million eligible claimants received the benefit between July 14 and 31, with prime minister Boris Johnson saying the lump sum would show struggling households “we are on their side”. However it has been revealed that universal credits who have received a sanction at the JobCentre are being denied the payment, the Mirror reports.
Guidance to DWP staff said people whose universal credit was stopped entirely due to a sanction in a “qualifying period” - which lasted a month earlier this spring - “will not be entitled to a cost of living payment”. This is called a “nil award”. It means anyone who received a sanction during this period may have been refused payment even if they were otherwise eligible.
READ MORE : All the cost of living payments you will receive and when you will get them
What is the £650 cost of living payment?
Earlier this year the UK government announced a number of measures designed to help those most at risk of poverty due to the ongoing cost of living crisis. Part of the plans includes a £650 cost of living payment to those on means-tested benefits. The first instalment - worth £326 - was rolled out in July though certain groups might receive it this month. The DWP confirmed last week that the second payment of £324 will land in bank accounts by the end of October. You can read more about that here.
Who is being denied the payment?
According to the Mirror's report claimants who have received a sanction from their local JobCentre are being refused the payment. Guidance to DWP staff said people whose universal credit was stopped entirely due to a sanction in a “qualifying period” - which lasted a month earlier this spring - “will not be entitled to a cost of living payment”. This is called a “nil award”.
Universal credit claimants can receive sanctions for a number of reasons including failing to attend appointments at their local JobCentre or if work coaches decide they “fail to take all reasonable actions to find paid work”.
Previous guidance mentioned a number of circumstances where people might not receive the payments including if they'd had a pay rise or if they are paid twice within one assessment period. You can read more about why you might not qualify here. There was little mention at the time of claimants being refused the payments because of any sanction from their JobCentre, with the DWP website saying people weren’t eligible if they had a 'nil award' due to their earnings. But it made no mention of sanctions and said if people had a nil award due to rent or debts being deducted, they “might still be eligible”. However, the DWP confirmed to the Mirror this week it was refusing some payments due to sanctions.
How many people have been affected?
The DWP has not said how many people missed out on a cost of living payment. But official figures indicate it could be anywhere between the hundreds and tens of thousands. More detail on this is expected later this week.
Campaigners have reacted angrily to the news, with Marc Francis of poverty charity the Z2K Trust calling on the DWP to rethink its decision. He said: “These one-off payments are designed first and foremost to ensure people aren’t left unable to afford to put food on the table food or freezing in their homes."
He added said sanctions were "notoriously over-zealous", and many people hit "can’t find help" to appeal, "so just end up going without or turning to the local food bank.”
Mark Winstanley, Chief Executive of Rethink Mental Illness, said it was "outrageous", adding: "This decision compounds the distress sanctions cause, inflicting significant damage on people’s mental health. The DWP must urgently review this decision and administer the cost-of-living payment to those affected as soon as possible to prevent unnecessary suffering and harm.”
To get the latest money news straight to your inbox, subscribe to our dedicated newsletter here.
READ NEXT:
-
Why you are now getting paid 3% less than you were a year ago
-
Energy giants to pay households £66 every month straight into bank accounts from October
- Who is eligible to get a Covid booster jab this autumn
- Cheapest online supermarket named as price of basket goes up by up to £5.79
- Mum fined for 'offensive' number plate wanted to make people smile after son's tragic death
