DWP Universal Credit Claimants – Know How You Could Be Eligible for £370 Payouts

Universal Credit claimants who have had their benefits reduced or sanctioned may be eligible for a hardship payment from the Department for Work and Pensions (DWP).

In some cases, this payment could be worth up to £370 and is designed to help cover essential expenses such as food and bills.

However, a hardship payment is not a grant—it is a loan that must be repaid once the sanction ends. Here’s everything you need to know about eligibility, how to apply, and repayment details.

Hardship Payment

A hardship payment is a temporary financial support offered to Universal Credit claimants whose benefits have been sanctioned. It is intended to help cover basic living costs during the sanction period.

Features

Aspect	Details
Payment Amount	Up to £370, depending on your benefit reduction
Type of Payment	Loan (must be repaid)
Purpose	Cover emergency costs (food, bills, rent)
Repayment Method	Automatically deducted from future Universal Credit payments
Repayment Rate	Up to 25% of the standard allowance per month

Who Is Eligible

To qualify for a hardship payment, you must meet all of the following criteria:

• Be 18 or older (or 16 if the sanction was due to fraud).
• Struggle to meet basic needs, including food, housing, or essential bills.
• Demonstrate financial responsibility, meaning you haven’t spent money on non-essential items like entertainment.
• Show attempts to secure other financial support, excluding selling belongings, taking out bank loans, or applying for credit cards.
• Complete mandatory work-related activities in the seven days before applying.

Amount

Hardship payments are usually 60% of the sanctioned benefit amount from the previous month.

For example:

• If a claimant receives the maximum Universal Credit standard allowance of £617.60 (for couples aged 25+), they could receive a hardship payment of around £370.

The exact amount will vary depending on individual circumstances and the level of the benefit sanction.

How to Apply

To apply for a hardship payment, you must contact the DWP directly through one of the following methods:

Online Application

• Log into your Universal Credit account.
• Update your journal with a request for a hardship payment.

Jobcentre Visit

• Speak to a work coach at your local Jobcentre.
• Provide supporting evidence to explain your financial situation.

Universal Credit Helpline

• Call 0800 328 5644 to apply by phone.

Required Documentation

When applying, you must provide evidence showing that you meet the eligibility criteria. This may include:

• Financial statements showing your income and expenses.
• Proof of hardship, such as overdue bills or rent arrears.
• Bank statements to confirm that you have not spent money on non-essentials.

Providing clear and detailed documentation will increase the likelihood of approval.

How to Repay

Once your benefit sanction ends, the hardship payment will be automatically deducted from your future Universal Credit payments until it is fully repaid.

Repayment Details

• Deductions can be up to 25% of your standard allowance per month.
• Repayments continue until the full amount is paid back.

Need Help

If you are struggling to repay a hardship payment, you can seek free financial advice from Citizens Advice. They can help you:

• Know repayment options.
• Request lower deductions if repayment is causing financial hardship.
• Manage your budget to prevent future financial difficulties.

For full details on hardship payments, visit GOV.UK.

Final Thoughts

Hardship payments can provide essential financial relief for Universal Credit claimants facing sanctions, but they are not free money. Since they must be repaid, it’s important to:

• Apply only if absolutely necessary.
• Ensure you provide accurate information to the DWP.
• Seek financial advice if repayment becomes difficult.

If you think you qualify, apply as soon as possible to receive support during difficult times.

FAQs