Overview

This bill aims to reform the UK benefits sanctions system by introducing automatic hardship payments for individuals whose benefits are reduced or stopped due to sanctions. It ensures a prompt assessment of hardship and guarantees a minimum payment during the assessment process, preventing individuals from falling into immediate financial crisis.

Description

The bill mandates that the Secretary of State assess everyone sanctioned for benefit reduction or cessation for hardship payments within a reasonable timeframe. It establishes a presumption of eligibility for hardship payments during the assessment period, including appeals. These payments won't be clawed back even if the recipient is later deemed ineligible. The bill amends the Welfare Reform Act 2012 and the Jobseekers Act 1995 to implement these changes, specifically ensuring that hardship payments amount to at least 60% of the total benefit entitlement. Section 28 of the Welfare Reform Act 2012 will be repealed. The bill also includes regulations that need parliamentary approval before enactment.

Government Spending

The bill will lead to increased government spending as it mandates automatic hardship payments. The exact amount is not specified in the provided text, but it will depend on the number of individuals sanctioned and the duration of their appeals processes.

Groups Affected

• Individuals sanctioned for benefit reduction or cessation: This bill would directly benefit them by providing automatic hardship payments during the appeal process, preventing immediate destitution.
• The Department for Work and Pensions (DWP): The DWP will be responsible for implementing the new system, requiring changes to administrative processes and increased expenditure.
• UK Taxpayers: The increased government spending resulting from the bill will be funded through general taxation.

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