The Department for Work and Pensions (DWP) is offering hardship payments to Universal Credit (UC) claimants who have been sanctioned and are struggling financially.
These payments provide a temporary financial lifeline for those unable to meet essential needs, but eligibility criteria apply.
So, who qualifies for a hardship payment, and how much can you get? Let’s break it down.
Payment
Hardship payments offer 60% of the standard Universal Credit allowance for eligible claimants.
| Household Type | Standard Allowance | Hardship Payment (60%) |
|---|---|---|
| Single (25 or over) | £368 | £221 |
| Couple (one or both 25+) | £617 | £370 |
These payments must be repaid, meaning your future Universal Credit payments will be reduced until the amount is fully recovered.
Eligibility
To qualify for a hardship payment, all the following conditions must be met:
- You have been sanctioned and had your Universal Credit reduced by:
- 100% of your standard allowance (if single).
- 50% or more (if in a couple).
- You are aged:
- 18 or over (if sanctioned).
- 16 or over (if the reduction is due to a fraud penalty).
- You are struggling to meet immediate basic needs, including food, heating, or hygiene.
- You have explored all other possible sources of support (e.g., local welfare schemes, food banks).
- You have taken reasonable steps to reduce non-essential expenses.
- You have complied with work-related requirements in the seven days before applying.
Who Is Not Eligible?
You cannot get a hardship payment if:
- Your Universal Credit is sanctioned at the lower rate (40% for individuals, 20% for couples).
- You are simply short of money or need help with an urgent expense (e.g., rent arrears or an unexpected bill).
- You have not met the compliance condition for a low-level sanction (i.e., completing the required action to end an indefinite sanction).
Hardship Payments
The DWP calculates hardship payments based on a daily rate, which is 60% of your sanction amount.
Example:
If you were sanctioned £10 per day, your hardship payment would be £6 per day (£10 × 60%). This is then multiplied by the number of days the sanction lasts to determine the total payment.
How to Apply
If you believe you qualify, you can apply for a hardship payment through:
- Your Universal Credit online account.
- Calling the Universal Credit helpline.
- Visiting your local Jobcentre Plus.
Remember, this is a temporary support measure and should be used as a last resort if you cannot meet your essential needs.
FAQs
What is a hardship payment?
It is a temporary payment for Universal Credit claimants facing financial hardship due to sanctions.
How much can I get from a hardship payment?
You can receive 60% of your standard Universal Credit allowance.
Do I have to repay a hardship payment?
Yes, the amount will be deducted from your future Universal Credit payments.
Who qualifies for a hardship payment?
Sanctioned claimants who meet strict eligibility criteria, including financial hardship.
How can I apply for a hardship payment?
You can apply through your Universal Credit account, by phone, or at a Jobcentre Plus.
