A damning new report has revealed that sanctions imposed on Universal Credit claimants by the Department for Work and Pensions (DWP) are more severe than fines handed down by the courts for criminal offences.
Financial Punishment Exceeding Criminal Penalties
The research, conducted by the Public Law Project, found that a single claimant over the age of 25, sanctioned for the median length of time in May 2025, faced a staggering loss of £525. This is because claimants lose 100% of their standard allowance when a sanction is applied.
In stark contrast, the average court fine issued to individuals convicted of a crime in 2024 was just £283. This means those facing benefit sanctions for allegedly not meeting DWP conditions are subjected to a financial penalty nearly double that given to some criminals.
A System 'Failing on Its Own Terms'
Caroline Selman, a senior researcher at Public Law Project, urged the government to consider the realities faced by vulnerable individuals. She highlighted barriers such as digital exclusion, language difficulties, and the challenges faced by refugees navigating an unfamiliar system.
Ms Selman stated that the solution is not minor adjustments. "The current regime has been shown to fail on its own terms and should be revoked or failing that, fundamentally reformed," she asserted.
This sentiment was echoed by Claire Stern, deputy chief executive of Central England Law Centre, who pointed to a critical statistic: 86% of appealed sanctions are overturned.
"When 86% of appealed sanctions are overturned, the issue is not individual non-compliance – it is a system that penalises people for circumstances they cannot control," Ms Stern said. She argued that the government's claim of sanctions being a 'last resort' is completely at odds with the 'avoidable hardship' experienced by those the law centre supports.
Government Defends Its Approach to Welfare
In response, a DWP spokesperson defended the policy, emphasising the government's focus on shifting from welfare to work.
"We’re determined to get more people into good, secure jobs," the spokesperson said. "As we shift our focus from welfare to work, skills, and opportunities, it is right that there are obligations to engage with employment support, look for work and to take jobs when they are offered."
Despite this defence, the report concludes that the sanctions regime inflicts severe financial damage on claimants, often for minor administrative breaches, and calls for its complete overhaul to prevent further hardship.
