The number of people being hit by benefits sanctions has more than doubled in the North East since before the pandemic.
Department for Work and Pensions (DWP) statistics show that 4,513 people on Universal Credit (UC) across the region were carrying a sanction in February. That was 4.5% of claimants - more than double the 1,802 people (2.2%) under a section in the same month of 2020, before lockdown.
Benefits claimants can face the punishments for infractions such as not attending a work-related interview, failing to start a new role, or refusing a job offer. But some campaigners say sanctions are often wrongly applied, leaving struggling people 'unfairly' out of pocket.
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A sanction means benefit payments are stopped or reduced - the amount cut and the time the sanction lasts for depends on the reason it was imposed and whether the person has been penalised before.
People generally didn't face these cuts at the start of the pandemic, as job centres shut their doors and the Government focused on dealing with soaring demand from new claimants. However, the number of people across Britain seeing their UC claim reduced started rising again last summer and has now hit record levels.
In the North East, the sharpest increase in UC sanctions was in Stockton-on-Tees, where the number rose from just 54 to 408. This was 5.9% of eligible claimants – among the highest proportions across the country.
The next steepest rise was in Northumberland, where the figure increased from 105 (1.7%) to 402 (4.7%).
Across Britain, 78,672 UC claimants (3.9%) had a sanction this February, which was well over double the number, 31,129 (2.4%) recorded two years earlier. The data could include some sanctions that go on to be overturned and repaid.
Ministers recently announced new rules for some jobseekers on UC meaning they will have to look for work outside their chosen field from the fourth week of their claim, instead of after three months, and can be punished for failing to do so. The changes come as labour market shortages cause problems for various industries such as the aviation sector, which has struggled to meet demand from travellers as Covid restrictions ease.
The Office for National Statistics also recently revealed there were more job vacancies than unemployed people in the UK for the first time on record earlier this year.
But Caroline Selman, benefit sanctions researcher at the Public Law Project, said the penalties could be “disastrous” for people’s mental health. She added: “[E]ven though only a small proportion of sanctions are challenged, according to the latest available figures there is a high success rate when they are.
“This suggests many wrongly made UC sanctions go uncorrected. This leaves vulnerable people unfairly out of pocket. When someone is sanctioned they can lose up to 100% of their standard allowance, potentially indefinitely. If you are already on or below the poverty line, this can be devastating.”
Ms Selman said she was concerned the DWP was ramping up sanctions despite a lack of evidence that they support people into work, and extensive evidence of their potential harm.
A DWP spokesperson said: “We understand that people are struggling with rising prices which is why we have acted to protect the 8 million most vulnerable British families through at least £1,200 of direct payments this year. Sanction levels are proportionate to our larger pandemic caseload and people are only sanctioned if they fail, without good reason, to meet the conditions they agreed to.
“Sanctions can quickly be resolved by re-engaging with the Jobcentre and attending the next appointment.”
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