It’s important to know what to do if your benefits have been stopped or cut due to a penalty known as a benefit sanction. This guide shows how to manage if your payments are cut, and the help that is available - including how to apply for a hardship payment until your payments start again.
What’s in this guide
- What is a benefit sanction?
- Which benefits can be sanctioned?
- Why are benefits sanctioned?
- How to avoid sanctions
- How benefit sanctions affect Council Tax Reduction and Housing Benefit
- How to manage while your benefits are sanctioned
- If you fall behind with payments
- Hardship payments
- Apply to your local welfare scheme
- How to find your local food bank
- How to appeal against a benefit sanction
What is a benefit sanction?
Some benefits can be stopped or reduced if you don’t do the things you agreed to do in your claimant commitment or miss appointments or meetings. This is called a benefit sanction.
Which benefits can be sanctioned?
These include:
- Employment and Support Allowance (and you’re in the work-related activity group)
- Jobseeker’s Allowance
- Universal Credit.
Why are benefits sanctioned?
If you’re claiming the benefits listed above, you’ll have signed a document called a claimant commitment.
This sets out all your responsibilities, and what the sanctions will be if you don’t meet them.
If you don’t have a claimant commitment, your responsibilities will be in your Jobseeker’s agreement, action plan or appointment letter.
Benefits are most often sanctioned if:
- you’re not doing enough to look or getting ready to look for work
- you’re late for appointments or interviews
- you don’t turn up to a meeting at the Jobcentre
- you don’t take part in a compulsory employment or training scheme.
Find out more about the Universal Credit claimant commitment:
If you live in England, Wales or ScotlandOpens in a new window on GOV.UK
If you live in Northern IrelandOpens in a new window on nidirect
How to avoid sanctions
The best way to avoid sanctions is to do all the things set out in your claimant commitment or agreement.
Here’s a checklist to help you:
- Make sure you understand all your responsibilities.
- Ask your Work Coach or Jobcentre Adviser to explain anything that’s unclear.
- Tell the Jobcentre Adviser or Work Coach if you change address, email or phone number as otherwise you might miss an important action.
- Let the Jobcentre know as soon as possible if there’s anything in your agreement you can’t do, and explain your reasons.
- Keep track of all the dates when you have to go to the Jobcentre, and any other meetings you have to go to.
- Keep a record of all your activities relating to your benefit requirements. For example, make a note of the time you spend looking for work and any jobs you apply for.
- Keep a copy of anything the Jobcentre gives or sends you.
- If you can’t attend a meeting or interview, or know you’re going to be late, make sure you give as much notice as possible.
How benefit sanctions affect Council Tax Reduction and Housing Benefit
Are you already getting Housing Benefit, Council Tax Reduction (or rates in Northern Ireland)? Then you’re still entitled to get them if your benefits are sanctioned.
However, your Jobcentre will contact your local council. The council will then usually stop these benefits until you’ve confirmed your new income.
It’s important to contact your council as soon as you can. Explain that your benefits have been sanctioned, and give them proof of your new income (or proof of no income). This means they can restart your claim.
Doing nothing might mean you end up with rent or Council Tax (or rates in Northern Ireland) arrears.
If your Universal Credit includes your rent, it should only be your standard allowance that is stopped or reduced, unless there is a doubt about your whole claim. The amount for children or rent should still be paid. If your Universal Credit is already being reduced because of wages however, losing the standard allowance might take you off the benefit altogether.
How to manage while your benefits are sanctioned
First, try to get your Universal Credit reinstated by correcting whatever has led to the sanction.
Also check to see if you can challenge the decision (see more in the section below about appealing a benefits decision).
Then work out how much of your income will be cut and make a list of the remaining money you have coming in.
List all your outgoings. How much money do you need to pay for the basics?
Is there any way of cutting your spending? Are there any bills you could get a better deal on to save you money now and in the longer term?
It’s important to try to keep up with essential payments. These include:
- any money you have to pay towards your Council Tax (or rates in Northern Ireland)
- your rent – if you’re responsible for paying it directly to your landlord
- your mortgage, gas and electricity bills.
Find out more in our guide How to save money on household bills
If you fall behind with payments
Are you worried you’ll fall behind with essential payments while your benefits are sanctioned? Then it’s important to talk to your landlord/mortgage lender and energy supplier. Do this as soon as you can – and work out a way to get back on track.
They’ll be able to suggest ways to help you if they know there’s a problem.
If you’re worried about losing your home, you can contact Shelter for supportOpens in a new window
You can also find out more about claimant commitments and how to avoid a Universal Credit sanction on the AdvicenowOpens in a new window website.
You can also contact Citizens Advice:
- Citizens Advice England
- Citizens Advice Scotland
- Citizens Advice Wales
- if you live in Northern Ireland, contact Advice NI
Hardship payments
A hardship payment is a reduced amount of benefit. You can apply for this from the Jobcentre if your:
- Universal Credit or
- Employment and Support Allowance (ESA) or
- Jobseeker’s Allowance
has been reduced or stopped because of a sanction.
To qualify for a hardship payment:
- you must be unable to pay for essentials
- you must be able to prove you’re likely to suffer hardship or you’re vulnerable, and
- you must now be following the rules for getting your benefit.
Who is considered vulnerable?
You’re in a vulnerable group if, for example:
- you or your partner are pregnant
- you’re caring for a severely disabled person
- you’re responsible for any dependent children
- you or your partner are aged 16 or 17 and are in hardship
- you or your partner have a chronic health condition or disability.
How much is a hardship payment?
It normally pays 60% of your usual Universal Credit standard allowance.
If you or your partner are pregnant or seriously ill, you might be able to get 80% of your usual benefit payment.
How to apply for a hardship payment
To apply for a hardship payment, you can apply via your online journal or ask your Work Coach at the Jobcentre. You can find out more about applying for a Universal Credit advance payment or hardship paymentOpens in a new window on GOV.UK.
You should be given an appointment to do this on the same day or the next day. And you should get a decision at the end of the interview.
If you qualify for a hardship payment, the money should be paid into your bank account immediately, or on the date your next benefit payment is due.
Or, call the DWP contact centre on 0800 328 5644 who will set up an appointment for later in the day or the next day at your local Jobcentre.
If you’re in Northern Ireland you can contact the Universal Credit Service CentreOpens in a new window instead.
Paying back a hardship payment
If you’re getting Employment and Support Allowance or Jobseeker’s Allowance, you don’t have to pay back a hardship payment.
However, this rule might change so it’s always best to check before you apply.
If you’re getting Universal Credit, you’ll have to pay back the hardship payment when the sanction ends, unless you have successfully challenged it.
DWP will usually take repayments from your Universal Credit payment each month until it’s paid off.
Make sure you ask for repayments to be set at a rate you can afford, to avoid getting into debt.
Apply to your local welfare scheme
If you need help with essential costs, such as heating or food bills – you could apply to your local welfare scheme.
- If you live in England, contact your local council about their Crisis and Resilience fund. Find your local councilOpens in a new window on GOV.UK.
- If you live in Scotland, find out more about the Scottish Welfare FundOpens in a new window on the Scottish Government website.
- If you live in Wales, find out more about the Discretionary Assistance FundOpens in a new window on the Welsh Government website.
- If you live in Northern Ireland, find out more about Discretionary SupportOpens in a new window on the nidirect website.
How to find your local food bank
If you’re struggling to buy food, there might be a local food bank you can use.
Some food banks also give out fuel vouchers you can use to top up pre-pay meters. You can find more information in our guide Where can I get emergency help with money and food?
How to appeal against a benefit sanction
If you’ve been sanctioned and you think it is unfair, you can ask your local Jobcentre Plus to take another look at their decision:
This could be because:
- they were wrong to sanction your benefits
- they’ve given you the wrong level of sanction
- they’ve deducted the wrong amount from your benefit
- they’ve reduced your benefit for the wrong length of time.
This is officially called a mandatory reconsideration. You must do this before you can make a formal appeal.
You normally need to ask for this within one month of the date on your decision letter by:
- phone, using the number on the decision letter, or
- post, by completing the CRMR1 form.
Explain why you think their decision is wrong, and send copies of any more evidence you’ve got if you think it will help your case.
When the Jobcentre Plus has looked at your decision again, they’ll send you two copies of a document called a mandatory reconsideration notice. This will let you know the result of the reconsideration.
If they refuse to change their decision, you can then appeal against it.
If you’re appealing against a benefits sanction, it’s a good idea to get some help from an expert. For example, through Citizens Advice or your local Law Centre:
You can download the CRMR1 form and notes about how to disagree with a decisionOpens in a new window from GOV.UK.
How to appeal a mandatory reconsideration
Top tip
Make sure you read the government’s notes about how to disagree with a decisionOpens in a new window on GOV.UK before asking for a mandatory reconsideration.
You can only appeal against a benefits decision when you’ve received a mandatory reconsideration notice.
To appeal, you need to send the following to HM Courts & Tribunals Service (the address is on the form):
- A copy of the mandatory reconsideration notice.
- Form SSCS1 – download a copy of form SSCS1Opens in a new window on GOV.UK.
You can also appeal a benefit decision online on GOV.UK.
Find out more about appealing following a reconsiderationOpens in a new window on the Citizens Advice website
or what to do if you get a Universal Credit sanctionOpens in a new window on the Advicenow website
If you’re in Scotland and you disagree with a decision you can get your application looked at again.
If you disagree with a benefits decision made by Social Security Scotland you can ask for a redetermination or you can appeal.
A redetermination is stage one and will involve Social Security Scotland looking at your entire benefits application as if it was new.
An appeal is stage two if you’re unhappy with the outcome of your redetermination.
Get help making a redeterminationOpens in a new window on the Citizens Advice Scotland website and find out more about what benefits you can appealOpens in a new window on mygov.scot.