Universal Credit Hardship Payment: Who Qualifies and How to Apply

A hardship payment is emergency money from the Department for Work and Pensions (DWP) for people whose Universal Credit has been reduced by a sanction. It is designed to cover essentials only — food, heating, hygiene and accommodation — while the sanction runs.

It is not a grant. A hardship payment is a recoverable loan: once your sanction ends and you are back on full payments, the DWP takes deductions from your Universal Credit until the amount is repaid.

Under the DWP's hardship rules, you must meet every one of the following conditions on the day you apply.

• You are aged 18 or over.
• Your Universal Credit has been reduced by a sanction, or by a fraud penalty.
• You cannot meet your immediate and most basic needs — accommodation, heating, food or hygiene — or those of a child or protected person in your household.
• You have made every effort to find other sources of money and have stopped all non-essential spending.
• You have met, or agreed to meet, any work-related requirements set in the last seven days.

The DWP will ask what you have already tried — for example, help from family, a local welfare assistance scheme, or a food bank referral — before it agrees the payment. Answer honestly and keep a note of who you contacted and when.

A hardship payment is worth roughly 60% of the amount your Universal Credit was cut by the sanction. It is paid for the period from the date you applied to the end of that assessment period, so you normally need to apply again for each assessment period the sanction covers.

Repayment starts once your payments return to normal. Deductions are capped as part of the overall limit on Universal Credit deductions, so if you are also repaying an advance or rent arrears you can ask your work coach to reduce the rate if it leaves you unable to cope.

1. 1

   Ask on the same day

   Post a message in your Universal Credit online journal saying clearly: 'I have been sanctioned and I want to apply for a hardship payment.' If you cannot use the journal, call the Universal Credit helpline on 0800 328 5644 (free from mobiles and landlines).

2. 2

   Explain your immediate needs

   Set out exactly what you cannot afford — rent, food, gas or electricity, essential travel, medication — and who else in the household is affected, including children or anyone with a health condition.

3. 3

   Show what you have already tried

   List the other help you have asked for: family and friends, your local council's welfare assistance scheme, charitable grants, or a food bank. The DWP expects you to have looked elsewhere first.

4. 4

   Complete the hardship interview

   A work coach or case manager will usually call you to check your circumstances. Answer the questions about spending, savings and other income directly; the decision is normally made straight after the call.

5. 5

   Reapply for the next period if needed

   If the sanction runs beyond the current assessment period, you must apply again. Set a reminder rather than waiting for the DWP to prompt you.

A hardship payment rarely covers everything, so use it alongside other support. Ask your council about its local welfare assistance or Crisis and Resilience Fund scheme, which can provide food or fuel vouchers, and check whether you qualify for Council Tax support or a Discretionary Housing Payment towards rent.

• Local council welfare assistance — food, fuel and white goods vouchers.
• Discretionary Housing Payment — extra help with rent if you claim the housing element.
• Your energy supplier — under Ofgem rules, suppliers must offer an affordable payment plan and can provide emergency credit.
• Charitable grants — one-off awards for household essentials that never need repaying.
• Citizens Advice or a local law centre — free, independent help to challenge the sanction.

If your rent or energy is at risk, tell the landlord or supplier that you have been sanctioned and applied for a hardship payment. Contacting them early usually stops enforcement action while the situation is sorted out.