DWP announces new Universal Credit sanction rules under Labour

The Department for Work and Pensions is bringing in NEW sanction rates for Universal Credit next year. The DWP will be able to claw back more cash as it confirmed a shake up to how sanctions will work going forward under the Labour Party.

Sanction rates from April 2025 show the daily sanction rate for those who are single under 25 will be increasing from £10.20 to £10.40 and for those aged 25 or over, it will be increasing from £12.90 to £13.10. Joint claimants both under 25 (per sanctioned claimant) is increasing from £8 to £8.10 and joint claimants, one or both 25 or over and one is sanctioned (per sanctioned claimant)is increasing from £10.10 to £10.30.

The 40% reduced sanction rate is increasing from £4 to £4.10 for singletons aged under 25 and increasing from £5.10 to £5.20 for those 25 and over. Joint claimants both under 25 (per sanctioned claimant) is staying the same at £3.20 and joint claimants, one or both 25 or over (per sanctioned claimant) is staying the same at £4.

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Third-party deductions at 5% of Universal Credit standard allowance (excludes deductions for rent and service charges) is, for single under 25, increasing from £15.58 to £15.85, and for single 25 or over, increasing from £19.67 to £20.01.

Joint claimants both under 25 is increasing from £24.46 to £24.88 and joint claimants, one or both 25 or over is ncreasing from £30.88 to £31.41. Minimum deductions for rent and service charges at 10% of Universal Credit standard allowance, for single under 25, is increasing from £31.17 to £31.70, for single 25 or over is increasing from £39.35 to £40.01, for joint claimants both under 25 is increasing from £48.92 to £49.76 and for joint claimants, one or both 25 or over is increasing from £61.76 to £62.81

Maximum deductions for rent and service charges at 15% of Universal Credit standard allowance (previously 20%) is decreasing, and the overall maximum deduction rate at 15% of Universal Credit standard allowance (previously 25%) is also decreasing.

Single under 25 is decreasing from £77.92 to £47.55. Single 25 or over is decreasing from £98.36 to £60.02. Joint claimants both under 25 is decreasing from £122.31 to £74.63. Joint claimants, one or both 25 or over is decreasing from £154.40 to £94.22

Fraud overpayments, recoverable hardship payments and administrative penalties at 15% of Universal Credit standard allowance (previously 25%) is decreasing from £77.92 to £47.55 for those under 25, and decreasing from £98.36 to £60.02 for those older. Joint claimants both under 25 is decreasing from £122.31 to £74.63. Joint claimants, one or both 25 or over is decreasing from £154.40 to £94.22

Overpayments and civil penalties at 15% of Universal Credit standard allowance is increasing from £46.75 to £47.55 for singletons under 25, and for ingle 25 or over, increasing from £59.02 to £60.02. Joint claimants both under 25 is increasing from £73.38 to £74.63, and joint claimants, one or both 25 or over is increasing from £92.64 to £94.22.