BRITS on Universal Credit who have had their benefits stopped won’t get a £326 cost of living payment, it was revealed today.
The lump sum to help millions cope with spiralling prices and soaring inflation started hitting bank accounts last month.
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So far more than seven million low income households have received it.
But anyone with a “nil award” won’t be entitled to the payment.
Nil awards are given to claimants for a number of reasons, including if they receive a bonus or work overtime.
They can also apply if a person has been sanctioned by a Jobcentre for not meeting rules around claiming benefits.
Labour hit out at the government today, accusing ministers of “pushing more people into hardship”.
Shadow Work and Pensions Secretary Jonathan Ashworth said: “Zombie ministers need to reverse this disgraceful decision, pronto.
“There was nothing in the fine print of the government announcement saying those sanctioned would get no help.
“This is a crisis and ministers should be offering real help.”
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New figures show a staggering 100k Brits had their benefits docked by the DWP in May this year.
The number is more than double that of just six months ago, when only 49k Brits were sanctioned.
A Department for Work and Pensions spokesperson said: “It is right that people who can work are encouraged to take up employment and people are only sanctioned if they fail, without good reason, to meet the conditions they agreed to.
“Those with a Universal Credit ‘nil award’ during the (cost of living payment) qualifying period who weren’t eligible could be entitled retrospectively if a sanction is successfully appealed and could still be entitled to the second instalment which is due to be paid in the autumn.”
Why you could miss out on cost of living payment
The first half of the £650 cost of living payment was paid out to most people in July with a second instalment coming in Autumn.
Most people on Universal Credit and certain other benefits will get the cash – with some exceptions.
You need to be getting one of these payments in the qualifying period, which is April 26 – May 25.
But crucially you need to have got a Universal Credit payment of at least a penny in this period.
Unfortunately there are some instances where the benefit can reduce to zero in an assessment period.
This could be the case if you’re sanctioned – when you have money deducted for not fulfilling your claimant commitment, like missing a meeting with your work coach.
But your entitlement to Universal Credit during the qualifying period would have to be zero as a result of sanctions.
You still have an ongoing claim for the benefit, but for one month you get nothing.
Meanwhile, if you get a bonus payment this can push up your earning to an amount where your Universal Credit reduced to zero for the month.
Unfortunately if this happens at the same time that qualifying period for the cost of living payment, it could mean you don’t get the cash.
The same could apply if you have done overtime in the period April 26 – May 25.
A quirk of Universal Credit is that people who get paid every four weeks sometimes find two pay days fall in one monthly assessment period.
That means your UC could fall to zero in that month.
If it’s the same month as the cost of living payment qualifying period, you could miss out.
There is an exception to the rule and some people who get a nil award will get the cost of living cash.
The government guidance says that if it’s reduced to zero because you have deductions like rent or money you owe, then you will get the payment.
