Deductions from universal credit
Guide for professionals
Deductions for sanctions
The DWP deducts money from universal credit if the claimant is being sanctioned.
How sanctions are deducted
The DWP can sanction a claimant if it believes they:
are not doing enough to look for work
failed to attend interviews and appointments
failed to attend employment or training
Most sanctions are 100 percent of the standard allowance. Some sanctions apply a lower rate of 40 percent of the claimant's standard allowance.
The standard allowance is the lump sum of money that all universal claimants receive based on whether they claim as a single person or as a couple. Sanctions are only ever taken off the standard allowance. Other elements of the universal credit claim such as the child element or housing costs element are not reduced by sanctions.
How sanctions are calculated
Sanctions are calculated at a daily rate based on how long the sanction lasts rather than automatically applying to the whole month. If a sanction ends part of the way through an assessment period the amount deducted from the monthly payment will be calculated based on how many days in the period were subject to a sanction.
Daily rates for sanctions
| Claimants | Daily reduction at 100% rate | Daily reduction at 40% rate |
|---|---|---|
| single under age 25 | £11.10 | £4.40 |
| single age 25 or over | £13.90 | £5.50 |
| couple both under age 25 | £8.60 per person | £3.40 per person |
| couple with one or both age 25 or over | £10.90 per person | £4.30 per person |
Hardship payments
If the claimant cannot meet their basic needs while sanctioned, they can apply for an interest free loan called a hardship payment. This is a loan, so this money can be recovered by the DWP. Deductions can be made from future universal credit payments to recover this money.
A hardship payment will always be less than the amount of money that is deducted due to sanctions and is normally capped at 60% of the amount being sanctioned.
More information
Find out more about how sanctions are calculated and guidance on financial assistance available for claimants who have been sanctioned.
Guidance on sanctions
Read the guide to universal credit sanctions on Gov.uk.
Financial assistance if your client is sanctioned
Your client can find out more about money help if your universal credit is sanctioned on the Shelter website.
Last updated: 6 April 2026