C.2 SANCTIONS

Box C2.1 Current JSA sanction regime

The two most common sorts of JSA sanction are those imposed because a claimant is judged to have failed to be actively seeking work (or to have been available for work – although sanctions for not actively seeking work are more frequent) and because a claimant is judged to have failed to participate in a ‘Scheme of Assisting Persons to Obtain Employment’ (e.g. the Work Programme). There are various other things which a JSA claimant can be sanctioned for doing or failing to do, but we concentrate here on the most common reasons for sanction.

It is a requirement of entitlement to JSA that the claimant is ‘actively seeking work’. This requires the claimant to take such steps as they can reasonably be expected to take in a given week to give them the best prospects of securing employment. A claimant who does not meet that test in a particular week is not entitled to JSA. From 22/10/2012, a failure to actively seek work also results in a sanction (e.g. a reduction in JSA for a period even when the claimant is actively seeking work). JSA claimants are also required (although not as a condition of entitlement to JSA) to participate in schemes for assisting persons to obtain employment when correctly notified that they are required to do so. This requirement is enforced through the imposition of sanctions on those who fail, without a good reason, to participate in the schemes.

For both of the above, the length of sanction imposed is four weeks’ reduction of benefit for a first failure, and 13 weeks for a second or subsequent failure within a rolling 52-week period.

The amount of the sanction is 100% of the JSA for single people or a couple with children. Thus, for many JSA claimants who are sanctioned, the effect of the reduction is to leave them with zero income for the sanction period (those who have children will keep Child Tax Credits and

Box C2. 2 Current ESA sanction regime

People claiming ESA must, as a condition of entitlement, have a health problem which means

that it is not reasonable to expect them to work (‘limited capability for work’).14 _{However, unless}

such a claimant is assessed as being in the ‘support group’ (i.e. so disabled by their condition that it is also unreasonable to expect them to perform any activity whatsoever connected to work preparation, etc.), or in one of a very limited number of other exceptional groups (such as having a child aged under three), then they can be required to:

•

•

Failure to participate in either form of activity, without good reason, results in a sanction being

imposed equal to £72.4015 _{per week for each seven-day period in which the claimant does not come}

to an agreement with the Jobcentre to participate in the activity that they are judged to have failed to undertake.

Once such an agreement is reached, the sanction is imposed for a further period of at least 7 days (or 14 days if there has been a previous failure to participate within the last 52-week period, and 28 days if there have been two or more).

The typical weekly payment of ESA for a single claimant in this situation would either be £72.40 or £101.15. In most cases, for a single claimant, that is their only income (other than Housing Benefit). A claimant subject to a sanction must be left with at least £0.10 per week (to preserve entitlement to Housing Benefit and other ‘passported’ benefits). The typical consequence of a sanction, absent without hardship payments (see Box C2.3 below), is therefore that the claimant will be left with either £28.75 or £0.10 per week.

14 _{Sections 1(3)(a) and 8, Welfare Reform Act 2007.} 15 _{For a claimant aged 25 or over.}

Box C2.3 Hardship payments when sanctioned

It is possible to obtain ‘hardship payments’ at 60% of the normal JSA rates. However, unless the claimant is in a ‘vulnerable group’ (e.g. pregnant, responsible for children, has a long term health condition which would get significantly worse within two weeks if hardship payment not made, etc.), no hardship payments are payable for the first two weeks of the sanction period.

The DWP guidance on hardship payments makes it clear that it is an intended effect of sanctions that they will harm the health of some JSA claimants. As stated above, the general rule is that, unless the claimant is in a vulnerable group, they are not entitled to hardship payments for the first 14 days of a sanction period. One of the vulnerable groups is defined in law as someone in a situation where they:

‘suffer […] from a chronic medical condition which results in functional capacity being limited or restricted by physical impairment and the Secretary of State is satisfied that The suffering has already lasted, or is likely to last for not less than 26 weeks; and

Unless a jobseeker’s allowance is paid to the claimant the probability is that the health of the person suffering would, within two weeks of the Secretary of State making his decision,

decline further than that of a normally healthy adult and that person would suffer hardship.’16

DWP guidance makes clear that it is fully expected that a normally healthy adult’s health will deteriorate when they are without food for two weeks:

‘It would be usual for a normal healthy adult to suffer some deterioration in their health if they were without :

1. essential items, such as food, clothing, heating and accommodation or 2. sufficient money to buy essential items for a period of two weeks. […]

The DM [decision maker] must determine if a person with a medical condition would suffer a greater

decline in health than a normal healthy adult and would suffer hardship.’17

The rules provide18 _{that, where a person claiming ESA has been sanctioned and the effect of the}

benefit reduction will be that the claimant experiences ‘hardship’, a hardship payment of £43.45

(60% of the basic amount of £72.40) can be made.19 _{‘Hardship’ is not defined in legislation, but}

factors to be taken into account include other resources available to the person, and whether essential items like food will be completely unavailable or only available at considerably reduced levels if the payment is made.20

16 _{Reg 140(1)(g), Jobseeker’s Allowance Regulations 1996 (SI No. 140).} 17 _{‘Decision Maker’s Guide’, para 35099.}

18 _{Reg 64B, Employment and Support Allowance Regulations 2008 (SI No. 794).} 19 _{Reg 64D, Employment and Support Allowance Regulations 2008 (SI No. 794).} 20 _{Reg 64C, Employment and Support Allowance Regulations 2008 (SI No. 794).}

Box C2. 4 Typical letter sent to claimant about sanction

‘We have looked at your claim again following a recent change. We cannot pay you Jobseeker’s Allowance from X date.

[…]

This is because we recently told you that a decision would be made about a doubt:

On whether you failed to comply with the requirements of the scheme to which you have no longer been referred. We have now decided that this doubt no longer applies.’

From Y date, your allowance will be £72.40 per week. […]