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Warning for anyone claiming Universal Credit as 680,000 have payments cut or stopped

Warning for anyone claiming Universal Credit as 680,000 have payments cut or stopped

The Sun07-07-2025
MORE than half a million households claiming Universal Credit saw their payments cut or stopped in the past year.
The Department for Work and Pensions (DWP) has revealed that 680,000 people were sanctioned between February 2024 and January 2025.
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This means their payments were either stopped or reduced.
Over 581,480 claimants were penalised for not attending mandatory interviews with work coaches at Jobcentres.
Another 16,440 had their payments cut for missing employment programmes, while 8,880 were sanctioned for not providing a valid reason for quitting a job.
Despite this, the Universal Credit sanction rate fell slightly to 5.5% in February 2025, down by 0.1 percentage point compared to November 2024.
When you claim Universal Credit or any benefit, you sign yourself up for commitments that you have to meet to get the financial support.
This may be from showing you're actively looking for a job to being on time for appointments.
But if you fail to do what you promised in that agreement, you could see the benefit money taken away from you.
Exactly how much you'll have taken off your claim depends on what you've done - or not done.
Any penalties you might face will only apply to the standard element of your claim - so extra cash you get through the housing or childcare elements will still be paid.
All the freebies you can get on Universal Credit
What causes sanctions?
There are several major reasons why you could be sanctioned if you claim Universal Credit.
Here are five mistakes that could see your payments stopped:
Not applying or looking for work
Part of the Claimant Commitment includes spending 35 hours a week looking for work, which you will need to keep a record of to show your work coach.
But if you don't, you may have your benefits cut.
The same goes if you're not putting the hours in to look.
If your Jobcentre work coach doesn't feel you're doing enough to get back into work, you can be sanctioned.
Refusing a job offer
If you've been offered a job, you're expected to take it - so long as it's within reason.
This is because the benefits system supports you while you're out of work but with the goal of helping you find a job again.
Refusing a job offer just because you don't want it will see you sanctioned at the highest level.
Quitting your job without good reason
Quitting your job without a good reason could see you sanctioned too.
There's no set definition of what a good reason is, but it might include unaffordable childcare costs.
You might have your benefit payments reduced.
Being late to appointments and interviews
Often, people on Universal Credit are required to attend interviews and appointments with the Jobcentre in order to update them on their search for work, for example.
These are held face to face or can be over the phone or via video chat.
If you're late for these appointments and interviews, you could see your payments cut.
If you have a good reason why you can't attend a meeting, then you should let the Jobcentre know immediately.
But if you fail to turn up to a meeting you'll likely be sanctioned until you visit your next review.
If you've repeatedly missed meetings, the sanctions may be stricter and last longer.
Not updating your information
The amount of Universal Credit you are entitled to depends on many factors surrounding your individual circumstances.
That might be how many hours you work or how many children you have.
But failing to report a change in circumstances, like moving house or getting a new job, could see you sanctioned.
In the worst cases, you may be committing benefit fraud and could even face legal action.
Can I appeal a sanction?
If you think you've been sanctioned unfairly, you can contact the DWP and ask for a "mandatory reconsideration".
You have one month from when you were notified about the sanction to do so.
If you've been sanctioned unfairly, the first thing you must do is check the level of sanction and for how long your money has been reduced.
You'll then need to contact the DWP for a mandatory reconsideration if you think they've made the wrong decision.
Citizens Advice says you should have been told:
Why you've received a sanction
The level of sanction you've been given
How long the sanction will last
How much money will be taken away from your Universal Credit payment
The date the sanction decision was made
It is still worth applying for a mandatory reconsideration if you have missed the one-month deadline for a good reason, such as being in hospital.
You can apply for a mandatory reconsideration in several ways - just remember to include as much supporting evidence as possible.
If you have an online Universal Credit account, you can write a message to the DWP explaining why you disagree with the decision.
You can also print off and fill out the CRMR1 mandatory reconsideration request form on gov.uk, but remember to allow time for your letter to get to the DWP before your deadline window.
You can also call the Universal Credit helpline on 0800 328 5644.
Letters should be sent to DWP Complaints, Post Handling Site B, Wolverhampton, WV99 2GY.
What if I don't agree with the decision?
If you disagree with the decision of your mandatory reconsideration, you can appeal to a First-Tier tribunal.
Claimants have one month to do this, although this is extended to 13 months for exceptional circumstances.
You'll need to download and fill in the SSCS1 form from the HM Courts and Tribunals Service website.
The form will ask for you:
Name and contact details
National Insurance number
Reasons for appealing
HMCTS Appeals Centre, PO Box 1203, Bradford, BD1 9WP.
The DWP will be asked to respond to your appeal within 28 days.
Are you missing out on benefits?
YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to
Charity Turn2Us' benefits calculator works out what you could get.
Entitledto's free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.
MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto's data.
You can use Policy in Practice's calculator to determine which benefits you could receive and how much cash you'll have left over each month after paying for housing costs.
Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.
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