This is an HTML version of an attachment to the Freedom of Information request 'Hardship Payment recovery through benefits?'.

 
 
 
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 
 
 
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