Warning for anyone claiming benefits as half a million have payments cut or stopped – how to avoid it
HALF a million households claiming Universal Credit had their payments stopped or cut last year.
The latest figures released by the Department for Work and Pensions (DWP) show that 541,000 people were given a sanction between February 2022 and January 2023.
That means claimants were refused their payout or may have had their entitlement reduced.
The Universal Credit sanction rate peaked at 6.84% in October 2022.
Over 530,000 of the sanctioned households had their payments cut or stopped because they failed to attend a mandatory interview with a work coach in Jobcentres.
Over 4,000 were penalised for choosing not to work and another 4,000 claimants had their payments changed because they failed to go on employment programmes.
Over 2,000 others were sanctioned because they failed to give valid reasons for quitting a job.
When you claim Universal Credit or any benefit, you sign yourself up for commitments that you have to meet in order to get the financial support.
This may be from showing you’re actively looking for a job, to being on time for appointments.
But if you fail to do the things you’ve promised in that agreement and you could see the benefit money taken away from you.
Exactly how much you’ll have taken off your claim depends on what you’ve done – or not done.
Any penalties you might face will only apply to the standard element of your claim – so extra cash you get through the housing or childcare elements will still be paid.
And there’s always extra help out there, from the likes of the Household Support Fund, and more, that can ease some of your money pressures without applying sanctions on what your get.
Why could I be sanctioned?
There are several major reasons as to why you could be sanctioned if you claim Universal Credit.
It’s important to know what could increase your chances of having your payments cut to ensure you don’t miss out in the first place.
Here are six mistakes that could see your payments stopped:
Not applying or looking for work
In order to claim the benefit, you’ll need to agree to a Claim Commitment.
This is a list of things you promised to do in exchange for financial support.
Part of the commitment includes spending 35 hours a week looking for work, which you will need to keep a record of to show your work coach.
If you don’t bother, 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.
Not taking a job in a different sector
A rule introduced last year means you’ll have less time to accept a job offer.
Previously benefits claimants could spend three months trying to get a role that they have previous experience for.
That has been slashed to four weeks after which time Brits will be expected to accept alternative offers of employment in any sector.
Can I 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
For most benefits, you have one month from when you were notified about the sanction to apply for a mandatory reconsideration.
However, it is still worth applying for one should you have missed the 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
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