Latest stats from the DWP showed 22,000 Universal Credit claimants were facing sanctions in August, with many likely heading into the most expensive season with holes in their budgets they don’t know how to fill.
Money Helper has shared a guide on what to do if your benefits are sanctioned, noting that it’s not the end of the road.
Hardship payments are available for those claiming Employment and Support Allowance, income-based Jobseeker’s Allowance and Universal Credit. To be eligible, you must demonstrate that due to the sanction, you’ll be unable to afford essentials.
You could also qualify if you or your partner are considered vulnerable, which can include being pregnant, caring for a severely disabled person or responsible for dependent children. Hardship payments typically offer between 60% and 80% of the amount you normally receive from benefits depending on your circumstances and should be paid instantly or on your next benefit payment due date.
If you’re claiming Universal Credit, you’ll need to repay the hardship advance when your sanction ends. This will usually be deducted through a repayment rate you can afford every month until the total amount is paid off.
Local welfare schemes can also provide support with essential costs, such as heating or food bills. The exact details and eligibility criteria will differ depending where you are in the UK but can usually be found on your local government’s website.
Food banks can also be a last resort for claimants hard-done by sanctions, as they can provide a lot more than just food. Some food banks even provide fuel vouchers to top up pre-pay meters.
Money Helper issued a warning urging those who are worried about falling behind on essentials such as rent, gas, electricity or Council Tax, to contact the relevant party as soon as possible and try to work out a payment plan to avoid getting into debt.
They also recommend seeking further advice from Citizen’s Advice and Shelter if you’re concerned about losing your accommodation due to the sanctions.
Benefit sanctions can diminish the amount you receive from the Department for Work and Pensions or even halt the payments entirely depending on the reason for the reduction.
Employment and Support Allowance, Income Support, Jobseeker’s Allowance and Universal Credit are among the benefits that can be sanctioned for various reasons.
These sanctions can also impact benefit-related extras you receive like Housing Benefit or Council Tax reduction and Money Helper has urged individuals to contact the Revenues and Benefits department of their council as soon as possible after being sanctioned to explain their situation and avoid potentially falling into arrears on rent or Council Tax.
