Author: Quynh Nguyen

For many people claiming Universal Credit, the word “sanction” carries a great deal of anxiety. 

A sanction is a reduction in benefit payments that can be imposed if someone is judged not to have met the conditions attached to their claim. This might include missing a Jobcentre appointment, failing to complete agreed job-search activities, or not meeting other work-related requirements. 

Supporters of sanctions argue that they encourage people to engage with employment support and move into work. Conversely, critics argue that they can also deepen poverty, worsen mental health and leave people struggling to meet their most basic needs. 

As the cost-of-living crisis continues to affect households across the UK, questions about the fairness and effectiveness of sanctions have become increasingly urgent. 

For people already living on a very low income, even a short reduction in benefits can have serious consequences. 

Universal Credit is intended to help cover essentials such as food, heating, transport and housing costs. When a payment is reduced, claimants may be forced to make impossible choices between these necessities. Some may fall behind on bills or rent, while others turn to food banks, borrow from family members or take on debt to get through the sanction period. 

For these households, a sanction is not simply an administrative penalty. It can mean skipping meals, going without heating or falling into rent arrears. 

The main argument for sanctions is that they encourage people to engage with the benefits system and increase their chances of finding employment. 

In 2023, the DWP published a study on the effect of sanctions on employment outcomes for UC claimants, concluding that that people experiencing sanctions were more likely to move off of UC. However, they were also substantially less likely to move into paid employment. 

In other words, people were leaving benefits, but not necessarily because they had found work. 

This distinction matters. Leaving Universal Credit is not the same as achieving financial security. Some people may stop claiming because they become disengaged from the system, struggle to navigate the process, or feel unable to cope with the pressure associated with Universal Credit ‘conditionality.’ 

For charities working directly with claimants, this finding echoes concerns that sanctions can sometimes push people out of support rather than into employment. 

The Human Cost of Sanctions 

The impact of sanctions extends beyond finances. 

Research consistently links sanctions to increased stress, anxiety and poorer mental health. For people already dealing with illness, disability, caring responsibilities or unstable housing, the threat of losing income can be overwhelming. 

Many charities report that fear of sanctions affects claimants even when no sanction is ultimately imposed. The possibility of losing income can create a climate of uncertainty and stress that affects people’s wellbeing and confidence. 

Financial insecurity itself can also become a barrier to employment. When someone is worried about how they will pay for food or keep the lights on, searching for work becomes much more difficult. Attending interviews, accessing transport, maintaining internet access and managing day-to-day responsibilities all become harder when money is scarce. 

People facing multiple disadvantages are often at greater risk of being sanctioned. This can include people with mental health conditions, learning difficulties, caring responsibilities, unstable housing situations or complex personal circumstances. 

Among critics of the sanction regime, there is concern that a system designed to encourage employment may sometimes end up penalising people for challenges beyond their control. Behind every sanction statistic is a person trying to manage everyday life on a limited income. 

For some, sanctions may act as an incentive to engage with employment support. But for many others, the evidence suggests they can increase financial hardship without improving, employment outcomes. 

As politicians continue to debate the future of Universal Credit, one question remains at the heart of the discussion: should a social security system rely on financial penalties when those penalties can leave people unable to afford the essentials? 

The growing body of evidence suggests that helping people into work requires more than sanctions alone. It requires a system that provides stability, security and meaningful support for those facing barriers to employment. 

Society Matters are proud to say we run a full-day CPD-accredited course on Universal Credit Introduction and Advanced Universal Credit, where we discuss in detail how we can provide effective support to people with complex needs claiming UC to enable them to manage their claim effectively