To ask the Secretary of State for Work and Pensions, how many Universal Credit claimants have been made ineligible for the Cost of Living Payments as a result of deductions or sanctions having reduced their award to zero during the qualifying assessment period.
Answered on
22 September 2022
Deductions for advances, third party debts and government debts are not a reason for someone to be ineligible for the Cost of Living Payment.
Between the 14 and 20 July, the department processed over 7.2m cost of living payments worth around £2.4 billion. In total, over eight million families will be eligible for this payment, with around one million eligible because they receive tax credits and no other eligible benefits. These families will receive their first instalment from HMRC in the autumn, and the second instalment in the winter. Further information is available at: 7.2 million Cost of Living payments made to low-income families - GOV.UK (www.gov.uk) and at: Cost of Living Payment - GOV.UK (www.gov.uk)
Universal Credit households can receive a nil award for various reasons. The majority of nil awards are due to household earnings. Other reasons that can cause or contribute to a nil award include capital, other income, other benefits, sanctions and fraud penalties.
12,200 households containing 12,400 UC claimants had a nil Universal Credit award with an amount deducted for a sanction in the qualifying assessment period, that did not receive the cost-of-living payment. Of these households, there were 6,600 households containing 6,600 claimants where the sanction was the only reason for the nil award. In the remaining households the nil award was due to a combination of the sanction and other reasons.