DWP Central Freedom of Information Team
Annex A
e-mail: xxxxxxxxxxxxxxxxxxxxxxxxxxxxxx@xxx.xxx.
gov.uk
Our Ref: VTR 277
Date: 27 January 2014
Annex A
Dear Mr Jones,
Thank you for your Freedom of Information request received on 18 January 2014. You asked-
You just released some Hardship Payment Debt Management recovery figures.
Thinking of this, is hardship payment being recovered for people in receipt of sanction
based out of work benefits? More generally are you able to recover Hardship Payments
by imposing a reduction in means tested benefits like income based JSA? How are
recovery rates set, do you have examples with explanations that you can share with
me?
Hardship payments are only recoverable when they are paid as a result of an award of
Universal Credit being reduced by a sanction or a fraud loss-of-benefit penalty. Hardship
payments made to those claiming Jobseeker's Allowance or Employment and Support
Allowance are not currently recoverable.
The recovery of the amount paid as hardship can only start once the single claimant’s, or a
couple’s, award of Universal Credit is no longer subject to a sanction or fraud loss of benefit
penalty reduction. The amount recoverable each month depends on what other deductions
are being made from a person’s Universal Credit. The maximum is 40 per cent of the standard
allowance. For example, a single person aged 25 or over receiving £311.55 a month could
have £124.62 deducted as repayment of hardship provided other deductions are not in place.
The total amount paid as hardship can be recovered from Universal Credit (including any
arrears), or other Social Security benefits they may receive in the future (with the exception of
Child Benefit and Guardian’s Allowance).
If you have any queries about this letter please contact me quoting the reference number
above.
Yours sincerely,
DWP Central FoI Team
------------------------------------------------------------------------------------------------------
Your right to complain under the Freedom of Information Act
If you are not happy with this response you may request an internal review by e-mailing freedom-of-information-
xxxxxxx@xxx.xxx.xxx.xx or by writing to DWP, Central FoI Team, Caxton House, Tothill Street, London, SW1H
9NA. Any review request should be submitted within two months of the date of this letter.
If you are not content with the outcome of the internal review you may apply directly to the Information
Commissioner’s Office for a decision. Generally the Commissioner cannot make a decision unless you have
exhausted our own complaints procedure. The Information Commissioner can be contacted at: The Information
Commissioner’s Office, Wycliffe House, Water Lane, Wilmslow Cheshire SK9 5AF www.ico.gov.uk