Hardship payment during Universal Credit sanction

Yes, you can apply for a hardship payment if your Universal Credit has been sanctioned, but there are specific conditions you need to meet and some important things to be aware of.

Eligibility:

You can apply for a hardship payment if you meet all of the following conditions.

1. You have been sanctioned and your Universal Credit has been reduced.
2. You have complied with all work-related requirements currently expected of you, or you have since re-complied with the requirement that led to the sanction.
3. You are in hardship, meaning you cannot meet your or your household's basic and essential needs for accommodation, heating, food, and hygiene.
4. You have made every reasonable effort to access alternative sources of support, such as savings, help from family, or other funds.

How to apply:

You apply through your Universal Credit online journal or by speaking to your work coach at the Jobcentre. You will need to explain why you are in hardship and what steps you have taken to find other sources of support.

Amount:

A hardship payment is typically 60 per cent of the amount that has been deducted from your Universal Credit standard allowance. If you are under 25, this will be 60 per cent of the lower rate. The amount is not generous, but it can be essential to cover basic needs.

Very important point about repayment:

Hardship payments under Universal Credit are recoverable. This means they are treated as an advance and will be clawed back from your future Universal Credit payments through deductions. This is different from the old Jobseeker's Allowance hardship regime where some payments were non-recoverable. You should factor this in because it means your future payments will be reduced until the amount is repaid.

Timing:

You cannot apply for a hardship payment until after your first assessment period in which the sanction takes effect. In practice, this means you will likely have to endure at least one reduced payment before you can receive a hardship payment.

Practical steps:

1. Check your Universal Credit journal or contact your work coach as soon as possible after the sanction takes effect.
2. Re-comply with whatever requirement led to the sanction, if you have not already done so, because this is a condition of eligibility.
3. Gather evidence that you are in genuine hardship and that you have explored other options.
4. If your hardship payment application is refused, you can ask for a mandatory reconsideration of that decision.

Challenging the sanction itself:

Separately from applying for a hardship payment, you should consider whether the sanction was correctly imposed. You have the right to request a mandatory reconsideration of the sanction decision, and if that is unsuccessful, you can appeal to the First-tier Tribunal (Social Entitlement Chamber). If the sanction is overturned, you would be entitled to the full amount that was deducted. There is no time limit for requesting a mandatory reconsideration of a Universal Credit decision, but it is sensible to act quickly.

If you let me know more about your circumstances, such as why the sanction was imposed or whether you think the decision was wrong, I can give you more tailored guidance on challenging it.