How can I get financial help if I have a Universal Credit sanction?
If you have received a Universal Credit sanction and are struggling financially, you can apply for a hardship payment. We explain what a hardship payment is, how to apply, and how you will pay it back.
What is a hardship payment?
A hardship payment is a loan provided by the Department for Work and Pensions (DWP), which may be available if your Universal Credit payments have been temporarily reduced because of a Universal Credit sanction.
Hardship payments are there to help you cover household expenses like food and bills.
You will have to repay the loan through deductions each month from your Universal Credit when your sanction ends, and the loan is repaid in full.
Am I eligible for a hardship payment?
Each application for Universal Credit will be assessed on an individual basis. To be eligible for a hardship loan, you must meet all of the following criteria:
- You have reduced your non-essential costs
- You have looked into other ways to get support
- You must be able to prove that you need the support
If you're in a couple, both of you must agree to getting a hardship payment.
There are additional rules if you have been sanctioned. You must have been sanctioned at 100% (or 50% or more for a couple) of your standard allowance for any amount of time. You and your partner (if you have one) must also have completed:
- Your work-related requirements in the seven days before applying
- Any activities you were given to end your sanction (sometimes called a "compliance condition")
If you are not eligible for a hardship loan, you should speak to a welfare benefits advisor, as there may be other ways for you to get financial help while living under a sanction.
How to apply for a hardship payment
To apply for a hardship payment, you will need to contact the Universal Credit helpline, contact your work coach, or update your journal in your online account. If you're claiming Universal Credit as a couple, only one of you needs to apply.
A hardship payment will only cover you until your next regular monthly Universal Credit payment. If you are still struggling to meet your basic needs the following month, you will need to make another application.
Providing evidence when you apply for a hardship payment
When applying for a hardship loan, you must provide all evidence the DWP requires. This will include the following:
- Provide proof that you have tried to source other income
- Provide evidence of any other income or savings you may have
- Explain what you have done to reduce non-essential costs
- Show evidence of what living costs you are finding difficult to meet
- Give a breakdown of your current budget with a financial statement that shows your monthly income and living costs — you can use our free budget calculator
How much is a hardship payment?
A hardship payment is approximately 60% of the sanction you received the previous month.
If you are still struggling to meet your basic needs with the addition of a hardship loan, you should speak to a welfare benefits advisor, as there may be other ways for you to get financial help while living on a sanction.
How will I have to pay back a hardship payment?
You will have to repay the loan through deductions each month from your Universal Credit when your sanction ends, and the loan is repaid in full.
The DWP will reduce your Universal Credit payment by 15% of your standard allowance — the basic amount you receive, but not from any elements you claim for.
If you are struggling to meet your basic needs because you're paying back a hardship payment, you should speak to a welfare benefits advisor, as they can ask the DWP to reduce the rate at which you make your repayments.
Appealing a hardship payment decision
If you have been rejected for a hardship payment, you can ask them to reconsider this through a mandatory reconsideration. You should provide any new evidence which is relevant since you first applied.
