Universal Credit Sanctions Could Reduce Daily Payments by £14 for Claimants
The Department for Work and Pensions (DWP) is implementing deduction and sanction rules that could significantly impact Universal Credit claimants, potentially slashing their daily payments by up to £14. This comes at a time when many individuals are already facing financial hardship and struggling to make ends meet.
MP Questions Impact on Vulnerable Claimants
Paula Barker, Labour MP for Liverpool Wavertree, recently challenged the DWP in the House of Commons regarding the potential consequences of benefit sanctions. She specifically questioned what assessment has been made of the impact of sanctions on people who might be forced into prostitution due to extreme destitution.
Detailed Sanction Rates Revealed
The sanction structure varies depending on claimant circumstances:
- For single claimants over age 25, the 100% sanction rate is £13.90 daily, while the 40% sanction level reduces this to £5.50 per day.
- Single claimants under age 25 face 100% sanctions of £11.10 daily or 40% sanctions of £4.40 per day.
- Joint claimants where both are under 25 see reductions of £8.60 at the 100% sanction mark or £3.40 at the 40% level.
- For joint claimants where one or both are 25 and over, the 100% sanction rate is £10.90 per claimant daily, with 40% sanctions at £4.30 per claimant.
Government Response and Safeguards
Diana Johnson, Minister of State for the Department for Work and Pensions, responded to the concerns by emphasizing that Universal Credit's core objective is to support people into work or prepare them for future employment. She stated that claimants are generally expected to undertake agreed work-related activities in return for financial support.
"Any work-related requirements are agreed in discussion with the claimant and will always be tailored in light of a claimant's circumstances, ensuring they are realistic and achievable," Johnson explained.
The minister highlighted several protective measures:
- Work coaches have flexibility to personalize requirements based on health conditions, caring responsibilities, or other circumstances.
- Sanctions only apply when claimants fail to meet agreed activities without good reason.
- Claimants are always asked to provide reasoning before sanction decisions are made.
- Multiple safety checks are conducted, including vulnerability assessments and circumstance reviews.
Hardship Payments and Additional Protections
Johnson noted that if sanctioned claimants can demonstrate they cannot meet essential needs like heating, food, or hygiene, they may access recoverable hardship payments. Additionally, the DWP is implementing commitments from the Violence Against Women and Girls Strategy, including enhanced training for frontline staff to better recognize and respond to sexual exploitation and other forms of abuse.
The department is also rolling out a comprehensive 5-year safeguarding plan following a Written Statement in December 2025, aiming to strengthen protections for vulnerable claimants across the benefits system.
