Warning for anyone claiming benefits as half a million have payments cut or stopped – how to avoid it

11/15/2024 04:30 AM

HALF a million households claiming Universal Credit had their payments stopped over the last 12 months.

The latest figures released by the Department for Work and Pensions (DWP) show that 583,790 people were given a sanction between August 2023 and July 2024.

That means claimants were refused their payout or may have had their entitlement reduced.

The Universal Credit sanction rate fell to 5.61% in August 2024, down by 1.5 percentage points compared to August 2023.

Despite this, over 540,640 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 20,450 were penalised for choosing not to work and another 13,510 claimants had their payments changed because they failed to go on employment programmes.

Meanwhile, 7,680 were sanctioned for failing to disclose a valid reason for quitting a job.

When you claim Universal Credit or any benefit, you sign yourself up for commitments that you have to meet 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 what you promised in that agreement, 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.

REASONS YOU CAN BE SANCTIONED

There are several major reasons why you could be sanctioned if you claim Universal Credit.

Here are five mistakes that could see your payments stopped:

Not applying or looking for work

Part of the Claimant Commitment includes spending 35 hours a week looking for work, which you will need to keep a record of to show your work coach.

But if you don’t, 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 for 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.

HOW TO 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

It is still worth applying for a mandatory reconsideration if you have missed the one-month deadline for a good reason, such as being in hospital.

You can apply for a mandatory reconsideration in several ways – 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 before 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.