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Universal Credit: Sanctions and The Horror of Repayable Hardship Payments

May 3, 2016

Telling it as it is


It took me a while to get my head around the new policy of Repayable Hardship Payments and how it extends  a four week sanction to seven weeks due to these payments being repayable!

Under the current JSA sanction policy Hardship payments do not have to be repaid, so as soon as the sanction period ends claimants go back to receiving their full benefit.

Under Universal Credit hardship payments MUST BE REPAID once the sanction period has been completed. In effect, the sanction period is extended until the hardship loan has been repaid.

I have calculated the figures below as weekly amounts, as it is easier to explain, although Universal Credit is paid monthly.

  • Jobseeker’s Allowance is paid at a rate of £71.30 for adults over 25.
  • Hardship Payments are paid @ 60% or £42.78
  • Hardship Repayments are repaid at a rate of 40% or £28.52
  • Hardship can be…

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