The DWP has a range of payments available to help those who have received cuts or sanctions
Universal Credit recipients could be eligible for cash from the Department for Work and Pensions (DWP), potentially worth up to £370 in some instances. Hardship payments, a specific type of DWP payment, are available to those who have experienced a reduction or sanction on their benefit payments.
This loan can assist claimants with emergency expenses such as food or bills. It’s crucial to remember that a hardship payment is a loan that must be repaid to the DWP once the sanction period ends.
However, this is usually straightforward for the claimant. According to Citizens Advice, you’ll typically receive around 60% of the amount the DWP sanctioned the previous month.
Therefore, if someone receiving the maximum monthly standard allowance of £617.60 for a claim where they live with their partner and either are over 25, they could receive a hardship payment of just over £370. To be considered for a hardship payment, certain criteria must be met.
Who is eligible for a hardship payment?
In order to be considered for a hardship payment, the following must apply:
- Be over the age of 18 (or 16 if the sanction was a result of fraud)
- Struggling to meet basic needs or the basic needs of child or young person you’re responsible for
- Prove that you have taken every measure to not spend money on non-essential things such as entertainment
- Show that you have done what you can to receive money from other sources, excluding selling your belongings, claiming a bank loan, or applying for a credit card
- You have undertaken the mandatory work-related activities in the past seven days prior to applying
How to apply for a hardship payment
To apply for a hardship payment, contact the DWP directly. This can be done by updating your Universal Credit account journal online, speaking to your local Jobcentre, or calling the Universal Credit helpline at 0800 328 5644,.
When you submit an application, you’ll need to provide evidence to support your claim and demonstrate that you meet the previously outlined criteria. Additional useful forms of proof might include a financial statement detailing your monthly income and living expenses.
Paying back a payment
As for repaying a hardship payment, it’s typically automatically deducted from your Universal Credit payments each month once your sanction has ended. This could be up to 25% of your standard allowance and will continue until the payment is fully repaid.
If you’re worried about repaying a hardship payment, free advice is available from Citizens Advice who can guide you through the process. Comprehensive information on hardship payments can be found on the GOV.UK website.
