Over 20 million people in the UK are presently claiming benefits from the Department for Work and Pensions (DWP), and that number is projected to climb as the economic impact of the coronavirus continues to take its toll on the UK workforce.
However, many people who are new to the state welfare system may be unaware that benefit payments might be sanctioned, and with over six million people claiming Universal Credit, it’s important to understand why this could happen.
It’s critical to understand what to do if your benefits have been suspended or reduced as a result of benefit sanctions. This contains instructions on how to apply for a hardship payment and other assistance until your payments resume.
What are Benefits Sanctions?
When the DWP reduces or stops your benefit payment for an extended length of time, it is referred to as a benefit sanction. This could be because they determine, for example, that you are not actively seeking work, that you skipped a job-related interview, or for some other reason.
The benefits system functions similarly to a contract. The government requires people claiming benefits like Universal Credit (UC) to meet certain work-related restrictions outlined in your ‘Claimant Commitment.’ The government pays benefits in exchange for your following through on your Claimant Commitment. If you do not, the job centre will sanction you.
Which Benefits are Sanctioned?
These are some examples:
- Employment and Support Allowance (and you’re in the work-related activity group)
- Income Support
- Jobseeker’s Allowance
- Universal Credit.
Why are Benefits Sanctioned?
If you are claiming the above-mentioned benefits, you will have signed a document known as a claimant commitment.
This outlines all of your responsibilities as well as the sanctions for failing to meet them.
Your responsibilities will be outlined in your job seeker’s agreement, action plan, or appointment letter if you do not have a claimant commitment.
Benefits are often sanctioned if:
- You’re not doing enough to find work.
- You’re running late for appointments or interviews.
- You fail to appear at a job centre meeting.
- You do not participate in any employment or training programmes.
What Effect do Benefit Sanctions have on Housing Benefits and Council Tax Reduction?
Do you already receive Housing Benefits and Council Tax Reductions (or, in Northern Ireland, rates)? If your benefits are sanctioned, you are still entitled to them.
Your job centre, on the other hand, will contact your local council. The council will then normally suspend these benefits until you have provided proof of your new salary.
It is critical that you contact your council’s ‘Revenues and Benefits’ department as soon as possible. Explain that your benefits have been approved, and provide documentation of your net income (or proof of no income). This means they have the option to reopen your claim.
If you do nothing, you may find yourself in rent and Council Tax (or rates in Northern Ireland) arrears.
Benefit Sanctions: Types and How to Avoid Them
Jobseeker’s Allowance Benefit Sanctions
There are three levels of sanction:
- lower
- medium
- higher
Your sanction’s level of severity and duration depend on:
- the reason you’re claiming Jobseeker’s Allowance – for example, if you were fired from your previous employment for misbehaviour or left without good reason
- things you haven’t done to get a job
- Whether you’ve previously received a sanction in the last year or your claim has been terminated, why
Lower-level sanctions
If you fail to comply with a: for no good reason, you may receive a low-level sanction.
- work preparation requirement defined
- work search required in order to gain paid employment, more paid work, or better-paid work
- participation in an interview for any reason connected to a work-related requirement
Medium level Sanctions
If you reapply for JSA after being denied for the following reasons, you may face a medium-level sanction:
- failing to take all reasonable steps to acquire paid work or failing to comply with a work search requirement
- failure to meet a commitment to be accessible for work
Higher-level Sanctions
If you do the following, you may receive a higher-level sanction:
- fail to meet a job preparation criterion for a certain work placement for no apparent reason
- failure to comply with a work search requirement to apply for a specific vacancy for paid labour for no reasonable reason
- fail to meet a job availability criterion for no good reason by declining an offer of paid labour or
- quit paid labour or forfeit salary due to malfeasance or voluntarily and for no valid cause
How to Avoid Jobseeker’s Allowance Benefit Sanctions
- Attend meetings with your work coach on time and participate in interviews (such as ‘work-focused interviews’). If you are unable to attend for any reason, please contact your work coach as soon as possible, as they may be able to reschedule you.
- Continue to be available for work and agree to perform the things you agreed to in your claimed pledge.
- apply for appropriate positions your advisor or work coach informs you of
- Do all the things your job coach wants you to do in order to get work, such as taking a training course, updating your CV, or doing a job search?
Benefit Sanctions for Universal Credit
If you do not satisfy the duties you committed to in your Universal Credit commitment, your payments may be decreased for up to 6 months.
Levels of sanction
Different sanctions apply based on which ‘conditionality group’ you belong to. Speak with your work coach if you’re unsure which conditionality group you belong to.
Conditionality
Conditionality refers to work-related activities that must be completed in order to receive full eligibility for Universal Credit. Based on your capabilities and circumstances, you will be assigned to one of four conditionality groups:
- all work-related obligations
- Only work-related interview and preparation requirements
- Only work-related interview requirements
- There are no work-related activity requirements.
Your conditionality group will determine the work-related tasks that you must complete.
Consult with your work coach to determine which conditionality group corresponds to you.
Lowest Level Sanctions
If you are in the ‘work-focused interview requirements’ conditionality group and do not attend or participate in a work-focused interview, the lowest level sanctions apply. These sanctions will remain in effect until you participate in the interview.
Low-level Sanctions
If you are in the ‘all work-related requirements’ or ‘work-focused interview and work preparation needs only’ conditionality groups, you will face low-level sanctions.
If you do any of the following, you may receive a low-level sanction:
- do not attend or participate in a job-related interview (and the lowest level sanction does not apply)
- don’t attend or participate in a training programme or employment scheme
- do not take any special steps to obtain paid work or improve your earnings from work
These sanctions are in effect until you complete the activity for which you were sanctioned, plus seven days for your first low-level sanction in any 365-day period, 14 days for your second, and 28 days for your third.
Medium-level Sanctions
If you are in the ‘all work-related requirements’ conditionality group, you will face medium-level sanctions.
If you do the following, you may receive a medium-level sanction:
- you must fulfil the ‘work search obligation,’ but you do not take all reasonable steps to acquire paid job or improve your earnings from work
- you must meet the ‘work availability criteria,’ yet you are unable to begin employment or attend interviews
For your first medium-level sanction in any 365-day period, you will be sanctioned for 28 days, and for your second, you will be sanctioned for 91 days.
Higher-level Sanctions
If you are in the ‘all work-related obligations’ conditionality group, you will face harsher sanctions.
If you do the following, you may receive a higher-level sanction:
- you must complete the ‘work search criteria,’ yet you do not apply for a specific job when urged to do so
- you must meet the ‘work availability criteria,’ but you decline a job offer
- leave work or reduce your working hours, either willingly or due to misconduct, while claiming Universal Credit or shortly before claiming
For your first higher-level sanction in any 365-day period, you will be sanctioned for 91 days, and for any subsequent higher-level sanction, you will be sanctioned for 182 days.
If you were sanctioned for leaving work or failing to accept a job offer before applying for Universal Credit, there are particular rules that govern how long your sanction will remain.
How to Avoid Universal Credit Benefit Sanctions
- Carry out the activities outlined in your Universal Credit Commitment.
- Attend appointments with your work coach on time and participate in interviews (such as work-focused interviews). If you are unable to attend for any reason, call your work coach as soon as possible as they may be able to re-arrange.
- Follow through on everything you committed to doing with your work coach in order to find work, such as taking a training course, updating your CV, or conducting a job search.
Furthermore, if you are in the conditionality group of ‘all work-related requirements,’ you should also:
- Continue to be available for work and
- Apply for appropriate positions your job coach informs you of
If you and another person have a joint claim,
If you do not satisfy the duties you agreed to in your Universal Credit ‘commitment,’ you may face a high, medium, low, or lowest level sanction for each sanctioned individual in a joint claim:
- The normal sanction reduction for high, medium, and low-level sanctions is 50% of the couple’s Universal Credit standard allocation.
- The normal sanction reduction for the lowest level sanctions is 20% of the couple’s Universal Credit standard amount.
How are Universal Credit Benefit Sanctions Applied?
You will not have two sanctions at the same time, although they can run concurrently. When you are sanctioned, your next Universal Credit payment or a series of subsequent payments are frequently affected.
Sanction reductions are implemented after your wages and unearned income have been considered. If you do not have enough Universal Credit to cover the whole sanction amount, your Universal Credit payment will be lowered to nil, and the sanction will be recorded as paid in full.
You will still be eligible for Universal Credit and will continue to get ‘passported’ benefits such as free school lunches.
Sixteen and Seventeen-year-olds
If you are 16 or 17, any sanctions you incur are 40% of your usual allowance and are for a shorter period of time.
Benefits Sanctions for Employment and Support Allowance
Sanctions for Employment and Support Allowance apply solely if you are in the ‘work-related activities group.’
In this group, your adviser or work coach will assist you in determining how and when to perform work-related activities while keeping your disease, disability, or health condition in mind.
If you fail to accomplish these tasks and do not have a valid cause, you will be sanctioned and your reward will be decreased. The sanction may last up to four weeks after you resume work-related interviews or activities.
Benefit Sanctions for Income Support
If you do not follow the rules of your Income Support, such as participating in work-focused interviews and work-related activities, you will be sanctioned. Labour-related interviews and activities do not obligate you to apply for jobs or perform work.
If you are sanctioned, your Income Support will be cut by 20% of the usual rate for a person over the age of 25. The sanction for the fiscal year 2021/23 is £14.94 per week. The sanction may be extended until you comply with the rules of your Income Support claim.
How to File an Appeal Against Benefit Sanctions
You can request that your local Jobcentre Plus (part of the DWP) reconsider their decision to sanction your benefits if you believe:
- They made a mistake by approving your benefits.
- They’ve given you the incorrect level of sanction.
- They have deducted the incorrect amount from your benefit.
- They have lowered your benefit for the incorrect period of time.
This is referred to as a mandatory reconsideration. This must be completed before you can file a formal appeal.
You must request this within one month of the decision letter’s date by:
- the phone number listed on the decision letter, or
- post, by filling out the CRMR1 form
Explain why you believe their judgment is incorrect, and send copies of any additional documentation you have if you believe it would help your case.
When Jobcentre Plus has reconsidered your decision, they will give you two copies of a document known as a mandatory reconsideration notification. This will inform you of the outcome of the reconsideration.
If they refuse to reconsider their decision, you can file an appeal.
It’s a good idea to seek advice from an expert if you’re appealing a benefits sanction.
How to File an Appeal for Mandatory Reconsideration on Benefit Sanctions
Before requesting a mandatory reconsideration, make sure you read the government’s instructions on how to dispute a decision.
You can only file an appeal against a benefits decision if you have received a notice of mandatory reconsideration.
To file an appeal, mail the following documents to HM Courts & Tribunals Service (the address is on the form):
- A copy of the notification of the required reconsideration.
- Form SSCI, which is available for download from the GOV.UK website.
How to Survive While Your Benefit is Sanctioned
First, determine how much of your revenue will be reduced. Second, make a note of the money you still have coming in.
Then, make a list of all your outgoings. How much money do you need to cover the essentials?
Is it possible for you to reduce your spending? Is there anything you think you might get a better deal on that would save you money now and in the long run?
Benefit Sanctions FAQ’s
How long can the DWP sanction you for?
No sanction can be in effect for more than 182 days. If the DWP sanctions you twice or more, the sanctions usually follow each other. They can, however, only run for a total of 182 days.
Are benefit sanctions illegal?
A judge has found that sanctions imposed on thousands of benefit claimants for refusing to participate in the DWP’s so-called “back-to-work” initiatives are illegal.
Are benefit sanctions illegal?
A judge has found that sanctions imposed on thousands of benefit claimants for refusing to participate in the DWP’s so-called “back-to-work” initiatives are illegal.
