Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment has she made of the potential impact of not providing cost of living payments to Universal Credit claimants who have been sanctioned on levels of (a) poverty and (b) fuel poverty.

Claimants who are sanctioned but still have an entitlement to a payment of Universal Credit (UC) during the qualifying assessment period are eligible to receive a Cost-of-Living Payment. Sanctions are calculated with reference to the standard UC allowance only. If a sanction is applied, claimants continue to receive other elements such as housing or childcare costs.

If a sanction reduces a claimant’s Universal Credit to £0, a ‘nil award’, for the qualifying assessment period they are not entitled to receive a Cost-of-Living Payment. Those with a Universal Credit ‘nil award’ during the qualifying period who weren’t eligible could be entitled retrospectively if a sanction is successfully appealed and could still be entitled to the second Cost of Living payment.

98.9% of sanctions are for failing to attend a mandatory appointment at a Jobcentre and can often be resolved quickly by claimants getting in touch with the Jobcentre and attending their next appointment. Hardship payments are available as a safeguard to claimants who demonstrate that they cannot meet their immediate and most essential needs (including accommodation, heating, food and hygiene) as a result of their sanction.

To support people who need additional help, from October 2022 the Government is providing an additional £500 million to help households with the cost of essentials, bringing the total funding for this support to £1.5 billion. Should people find that they need further support, they may wish to approach their Local Authority to ask about support under the Household Support Fund. For further information please see Cost of Living Payment - GOV.UK (www.gov.uk)