Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether he plans to open an alternative cost-of-living fund for people who are eligible for Universal Credit but are sanctioned during the month in question and receive nil award.

The Government understands the pressures people are facing with the cost of living and is taking action to help through the Cost of Living Payments and through a wider package of support.

We will be delivering the up to £900 cost of living payment for eligible means-tested benefit claimants in three separate payments over 2023/24, which reduces the chance of households with fluctuating incomes missing out altogether. The first payment of £301 will be made from spring 2023, the second payment of £300 from autumn 2023 and the third payment of £299 from spring 2024. Individuals in receipt of eligible disability benefits will receive a £150 payment in summer 2023.

Sanctions on UC only apply if claimants fail to meet their agreed requirements without good reason or refuse to take up or stay in employment without good reason. The majority of sanctions can be resolved quickly by claimants rebooking and attending their next appointment. We have a well-established system of hardship payments, available as a safeguard if a claimant demonstrates that they cannot meet their immediate and most essential needs as a result of a sanction. People who are receiving a hardship payment would also qualify for a Cost of Living Payment.

For those who require additional support the Government is providing an additional £1 billion of funding, including Barnett impact, to enable a further extension to the Household Support Fund in England. In England, this will run from 1 April 2023 to 31 March 2024, backed by £842m. Local Authorities use the Fund to help households with the cost of essentials, and they are expected to help households in the most need, particularly those who may not be eligible for the other support the government has recently made available. The guidance makes specific reference to people with fluctuating incomes. It can be found here: 1 April 2023 to 31 March 2024: Household Support Fund guidance for county councils and unitary authorities in England - GOV.UK (www.gov.uk).

It will be for the devolved administrations to decide how to allocate their additional Barnett funding.