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OVER half a million claiming Universal Credit had their payments stopped or slashed last year.
The latest figures from the Department for Work and Pensions (DWP) show 571,970 people were given a sanction between May 2023 and April 2024.
Of that figure, 535,750 had their payments cut or stopped because they failed to attend a mandatory interview with a Jobcentre work coach.
Some 16,300 were penalised for choosing not to work and another 11,900 claimants had their payments changed because they failed to go on employment programmes.
Meanwhile, 6,700 were sanctioned for failing to disclose a valid reason for quitting a job.
Samuel Thomas, senior policy adviser at charity Z2K, said: "We're very concerned to see such a high number of people being sanctioned.
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"Being sanctioned can push people into destitution and leave them unable to afford food or pay bills, which only makes it harder to find work."
When you first sign up for Universal Credit you have to sign a Claimant Commitment which lists responsibilities you must honour in order to carry on receiving the benefit.
This can include preparing and looking for work or increasing your earnings.
But fail to action these responsibilities and you can see your benefit reduced or stopped completely via sanctions which are charged daily.
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Sanction rates are set at different rates depending on your circumstances.
For example, if you are single and over 25, the sanction rate is £12.90 per day until you resolve the sanction while those who are single and under 25 are charged £10.20 per day.
Any penalties you face are only applied to your standard allowance and never surpass your standard allowance.
You won't be sanctioned on any additional elements such as the childcare or housing element.
The length of sanction you receive can range from seven days to six months.
Samuel added: "If you have been sanctioned you should seek advice immediately as you can appeal against a sanction and seek a back payment if wrongfully sanctioned.
"You can also apply for a hardship payment to get emergency money.”
REASONS YOU CAN BE SANCTIONED
There are several major reasons as to why you could be sanctioned if you claim Universal Credit.
Here are five mistakes that could see your payments stopped:
Not applying or looking for work
Part of the Claimant Commitment includes spending 35 hours a week looking for work, which you will need to keep a record of to show your work coach.
But if you don't, you may have your benefits cut.
The same goes if you're not putting the hours in to look.
If your Jobcentre work coach doesn't feel you're doing enough to get back into work you can be sanctioned.
Refusing a job offer
If you've been offered a job, you're expected to take it - so long as it's within reason.
This is because the benefits system supports you while you're out of work but with the goal of helping you find a job again.
Refusing a job offer just because you don't want it will see you sanctioned at the highest level.
Quitting your job without good reason
Quitting your job without a good reason could see you sanctioned too.
There's no set definition of what a good reason is, but it might include unaffordable childcare costs.
You might have your benefit payments reduced.
Being late to appointments and interviews
Often people on Universal Credit are required to attend interviews and appointments with the Jobcentre, in order to update them on their search for work for example.
These are held face to face or can be over the phone or via video chat.
If you're late to these appointments and interviews you could see your payments cut.
If you have a good reason why you can't attend a meeting then you should let the Jobcentre know immediately.
But if you fail to turn up to a meeting you'll likely be sanctioned until you visit your next review.
If you've repeatedly missed meetings the sanctions may be stricter and last longer.
Not updating your information
The amount of Universal Credit you are entitled to depends on many factors surrounding your individual circumstances.
That might be how many hours you work, or how many children you have.
But failing to report a change in circumstances, like moving house or getting a new job, could see you sanctioned.
In the worst cases, you may be committing benefit fraud and could even face legal action.
HOW TO APPEAL A SANCTION
If you think you've been sanctioned unfairly you can contact the DWP and ask for a "mandatory reconsideration".
You have one month from when you were notified about the sanction to do so.
If you've been sanctioned unfairly, the first thing you must do is check the level of sanction and for how long your money has been reduced.
You'll then need to contact the DWP for a mandatory reconsideration if you think they've made the wrong decision.
Citizens Advice says you should have been told:
- Why you’ve received a sanction
- The level of sanction you’ve been given
- How long the sanction will last
- How much money will be taken away from your Universal Credit payment
- The date the sanction decision was made
It is still worth applying for a mandatory reconsideration if you have missed the one month deadline for a good reason, such as being in hospital.
There are several ways you can apply for a mandatory reconsideration - just remember to include as much supporting evidence as possible.
If you have an online Universal Credit account, you can write a message to the DWP explaining why you disagree with the decision.
You can also print off and fill out the CRMR1 mandatory reconsideration request form on Gov.uk but remember to allow time for your letter to get to the DWP ahead of your deadline window.
You can also call the Universal Credit helpline on 0800 328 5644.
Letters should be sent to DWP Complaints, Post Handling Site B, Wolverhampton, WV99 2GY.
What if I don't agree with the decision?
If you disagree with the decision of your mandatory reconsideration you can appeal to a First-Tier tribunal.
Claimants have one month to do this, although this is extended to 13 months for exceptional circumstances.
You'll need to download and fill in the SSCS1 form from the HM Courts and Tribunals Service website.
The form will ask for you:
- Name and contact details
- National Insurance number
- Reasons for appealing
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Send this, along with the outcome of your mandatory reconsideration of which you should have received two copies, to:
HMCTS Appeals Centre, PO Box 1203, Bradford, BD1 9WP.
The DWP will be asked to respond to your appeal within 28 days.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us' benefits calculator works out what you could get.
Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
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