People who are on Universal Credit who have been fined because of a sanction could be given £153 back by the DWP’s hardship payment scheme.
The government department will grant a hardship payment to help claimants meet their “immediate basic essential needs”, but it must be paid back once your sanction or fraud penalty has ended.
The DWP will calculate a daily rate for your hardship payment, which is 60% of the amount of your sanction, and the total amount you’ll get is this daily rate multiplied by the number of days the sanction lasts.
For example, if your latest Universal Credit payment is reduced by £10.40 per day due to a sanction, then this would reduce your monthly payment by £312 (30 days at £10.40 per day). If you then apply for a hardship payment and this is granted, the daily rate is 60% of (£312 x 12)/365, giving a total of £6.15 per day.
If your next payment is due in 26 days then the total hardship payment you can get for 25 days is 25 x £6.15, which amounts to £153.75.
The DWP says you can only apply for a hardship payment once you’ve received a Universal Credit payment for less than you would normally due to a sanction or penalty.
A separate application must be made for each assessment period you receive a reduced payment, or no payment, and are still in hardship.
To be eligible for the payment, you must meet all of the following criteria:
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you’ve been sanctioned and had your Universal Credit payment reduced at 100% of your standard allowance (50% or more if you’re in a couple)
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you’re aged 18 or over if your payment is reduced because of a sanction, or aged 16 or over if your payment is reduced because of a fraud penalty
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you’re struggling to meet your immediate basic essential needs, or those of a child or young person you’re responsible for – this includes food, heating, hygiene and housing costs not provided by Universal Credit
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you’ve looked into all possible alternative sources of support
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you’ve taken all reasonable action to reduce non-essential costs
You cannot usually get a hardship payment if you are low on cash or need to pay for an urgent expense, and you won’t be eligible if your Universal Credit is sanctioned at the lower rate. The lower rate is 40% of your daily standard allowance, or 20% of your daily standard allowance if you’re in a couple.
You can apply for a hardship payment by asking your Universal Credit ‘work coach’, by using your online journal, or by contacting the Universal Credit helpline.
A hardship payment must be paid back once your sanction or fraud penalty has ended and your Universal Credit payment will automatically be reduced by up to 25% of your standard allowance until it is repaid.
