Some Britons receiving Universal Credit have been denied their 'vital' cost of living payment due to sanctions at the Jobcentre.
Former Prime Minister, Boris Johnson, said that the lump £326 sum in July would show some 8million residents of the United Kingdom that 'we are on their side'. But guidance sent to the Department for Work and Pensions (DWP) staff, seen by the Mirror, told them to refute certain claimants of the payment if their benefits were stopped.
This has led to campaigners demanding that the DWP revoke the 'outrageous' and 'ill-judged' decision, with energy bills anticipated to soon exceed £5,000 a year.
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New figures which expose the scale of sanctions are set to be in-turn published tomorrow. Single parties' benefits are cut back or revoked completely if Jobcentre staff feel as though claimants have fallen foul of stringent rules.
This is inclusive of if work coaches decide that recipients of benefits 'fail to take all reasonable actions to find paid work'. Guidance to DWP workers said that people who had seen Universal Credit stopped entirely due to sanctions in a 'qualifying period' - which lasted a month this spring - 'will not be entitled to a cost of living payment' dubbed as a 'nil award'.
The ruling was not mentioned directly in general advice to Britons about the payment, in the information displayed on the Government's website. However, after being approached by The Mirror today, the Government confirmed that this is in fact the case - leading to mass outrage.
The very same website said that people weren't eligible if they had a 'nil award' due to their earnings, but there was no mention of sanctions. It also confirmed that if people had suffered a nil award due to rent or debts being deducted, they 'might still be eligible'.
Marc Francis of poverty charity the Z2K Trust demanded the DWP think again. He said: “These one-off payments are designed first and foremost to ensure people aren’t left unable to afford to put food on the table food or freezing in their homes."
Marc added that sanctions were 'notoriously over-zealous' and that many people who have been hit 'can't find help' to appeal the decision, 'so just end up going without or turning to the local food bank'.
Mark Winstanley, Chief Executive of Rethink Mental Illness, said it was 'outrageous', adding: "This decision compounds the distress sanctions cause, inflicting significant damage on people’s mental health. The DWP must urgently review this decision and administer the cost-of-living payment to those affected as soon as possible to prevent unnecessary suffering and harm.”
Although the DWP has not confirmed how many people have missed out on said payment, it is thought that the figure could be between the hundreds and tens of thousands. Sanctions across the UK rose as Jobcentres reopened after the Coronavirus pandemic, and 78,672 Universal Credit households were subject to one in February 2022.
That figure is up marginally from 75,059 in January, 64,893 in December, 49,724 in November, 40,826 in October, 26,658 in September, 18,026 last August and 8,752 last July. Sanctions mean that up to 100 per cent of a single claimant's Universal Credit is deducted, or 50 per cent for those who claim in couples.
Official figures don't state how many sanctioned parties were single, so it remains unclear how many lost their cost of living payment entirely. Some people are additionally only sanctioned for less than one month.
They last 28 days for 'medium level' sanctions, 91 days for 'higher level' sanctions, or 182 days for repeat offenders of higher level sanctions. People were assessed for the £326 payment based on whether they received any UC in a month-long bracket that ended between the dates of April 26 and May 25.
A DWP spokesperson said: “We’ve always been clear that those with a Universal Credit ‘nil award’ during the qualifying period won’t be eligible for the first instalment of the Cost of Living Payment. However, those with a ‘nil award’ due to a sanction could be entitled retrospectively if the sanction is successfully appealed.
“For those who didn’t receive the first instalment, our £37bn support package provides other help including a £400 energy payment, available to all households. People are only sanctioned if they fail, without good reason, to meet the conditions to which they agreed.
“Sanctions can often quickly be resolved by re-engaging with the Jobcentre and attending the next appointment.”
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