Overview

This bill aims to reform the UK benefits sanctions system by introducing automatic hardship payments for individuals sanctioned and facing financial difficulties. It ensures a timely assessment of hardship and guarantees a minimum payment during the assessment period.

Description

The bill mandates the Secretary of State to assess the eligibility of sanctioned benefit recipients for hardship payments within a reasonable timeframe (Section 1). It establishes a presumption of eligibility for these payments during the assessment process, including appeals (Section 2). Importantly, these payments would not be clawed back even if the recipient is later deemed ineligible (Section 2). The bill amends existing legislation: the Welfare Reform Act 2012 (Sections 3 and 5) and the Jobseekers Act 1995 (Section 4) to integrate the new hardship payment scheme. Specifically, it increases minimum guaranteed hardship payment levels to at least 60% of the total benefit entitlement (Sections 3 and 5) and ensures immediate payment until the hardship assessment is completed (Section 4). The bill also requires parliamentary approval for regulations governing the hardship payment scheme (Section 2).

Government Spending

The bill will lead to increased government spending on welfare benefits. The exact figure is not specified in the bill itself, but it will depend on the number of individuals sanctioned and the length of time they receive hardship payments.

Groups Affected

• Benefit recipients facing sanctions: This bill directly benefits those whose benefits have been sanctioned, providing them with a safety net during the appeals process.
• The Department for Work and Pensions (DWP): The DWP will be responsible for implementing the new assessment and payment system, requiring administrative changes and additional resources.
• UK taxpayers: The increased welfare spending will ultimately be funded by taxpayers.

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