DWP penalises universal credit claimant despite getting new job: ‘Congratulations – you’re sanctioned’

When Beth was offered a job after six months of searching, she was “over the moon”. But her excitement was short-lived.

The 23-year-old from Leicestershire had forgotten to apply for a different role suggested by her Department of Work and Pensions (DWP) job coach – a condition of her universal credit benefit.

Despite watching her receive the new job offer, Beth’s DWP job coach issued a financial sanction.

“They [my new employer] rang me in there, so she [the job coach] saw me get a job, saw the smile on my face,” Beth told Big Issue. “And then decided to be like, ‘Oh, congratulations, yeah, I’m still gonna have to make a report of the other job.’”

The report triggered a 90-day freeze on her universal credit – longer than the two months she’d actually been receiving the benefit.

“I needed literally one more payment just to get me through that month before I started my job,” Beth said. “It made me so anxious, to the point where you feel sick. I was like, ‘How am I going to buy food?’ I was borrowing off my grandma, but she couldn’t afford it and I felt so bad.”

“I had to take a hardship payment… so they [the DWP] force you into that debt.”

Beth’s story is far from uncommon. More than 600,000 universal credit sanctions were imposed in the year to end‑October 2024,the most up‑to‑date rolling 12‑month total that exists.

These financial penalties – issued by the DWP to universal credit claimants who fail to meet certain benefit conditions – are intended to “incentivise” people to look for work. But experts say they do the opposite – pushing vulnerable people deeper into debt, anxiety and crisis.

“It can take a real toll,” says Samuel Thomas, a policy expert at anti-poverty charity Z2K. “They can be damaging.”

“It seems like there is a problem in relation to the way that sanctions are applied. We do often see sanctions that seem to have been applied… somewhat arbitrarily – which sounds like it was the case here [with Beth].”

“There’s not much flexibility for claimants. It’s very much kind of, you know, just apply for any job, tick the box, and show you’ve complied with the rules – which there’s some evidence to suggest does very little, or is even counterproductive to helping people into work.”

In 2023, the government’s own research found that sanctions did not increase the likelihood of claimants leaving benefits for any kind of paid work and reduce the rate of claimants leaving benefits for high paid work.

Beth was grateful for her UC. But said that she was treated like she “didn’t want to find work”.

“[Being on universal credit] can be quite a degrading experience,” Beth told Big Issue. “Like, when you’re someone who really does want to work and stuff, because they kind of treat you as if you don’t.”

Sanctions are increasingly common in the cash-strapped DWP. In February 2025 – the most recent month for which data is available – one-in-20 (5.5%) of UC claimants who were in conditionality regimes were subject to a sanction.

In the same month, 56% of completed sanctions lasted for more than 4 weeks.

Last year, a Big Issue investigation found that claimants were routinely penalised for minor infractions – often without much regard for personal circumstances.

Beth, who has CPTSD and anxiety, says the stress triggered panic attacks and left her struggling with depression.

“It just makes you feel like a piece of crap,” she said.

Despite having a documented mental health condition, Beth says her coach continued to suggest retail jobs and customer-facing roles she felt unable to do and that would “push her back into a mental health spiral”.

This, Thomas says, reflects a broader pattern.

“We did some research… looking at claimant relationships with work coaches,” he said. “One of the themes that came out of that was a low level of trust between claimants and work coaches, and that a significant number of claimants had an experience of being given inappropriate work search conditions — being told to look for work that they couldn’t do, or in ways that were unsuitable.”

The charity polled people with experience of claiming universal credit while having a health condition or disability. One in three people (33%) said benefit sanctions had made it harder for them to look for work.

Similar proportions said sanctions had a negative impact on their physical and mental health (33% and 30%) and their relationship with their work coach (29%).

“I mean, some people have really positive relationships with their work coaches,” Thomas said. “So it’s certainly not all negative, but there are problems.”

Z2K is calling on the government to review how sanctions are applied, particularly as ministers mull over what will replace the controversial work capability assessment.

Rishi Sunak’s government planned changes to the WCA which would have meant lower benefits or higher work-search conditions for around 457,000 people. Chancellor Rachel Reeves said in her autumn budget that Labour would deliver these Conservative plans.

While the WCA is not fit for purpose, it needs to be replaced by something better, not worse, says Thomas.

“There’s a real worry that protections could be lost,” he said. “The previous government proposed abolishing the WCA and just letting work coaches use their discretion… and we’re really worried about how that proposal could interact with the issues that this case highlights.”

A DWP spokesperson said that Beth was in breach of her conditions.

“We agree activities with universal credit claimants – in line with their capability – when they are expected to look for or prepare for work.

“Failure to meet the agreed terms without good reason may result in sanctions, which was the case for this claimant.

“Sanctions are made via an independent process which takes into consideration a person’s circumstances and situation. Claimants can raise an appeal for the sanction decision to be reviewed by an independent tribunal.”

Beth concedes she forgot to apply for the role she was required to, but argues that she was clearly trying to get hired – as her offer of employment elsewhere proves.

She’s held down this job since – working in admin and social media at a local carpet shop – but is still paying back the debt for her hardship payment.

“What angers me is that they force you into that debt,” she said. “It’s like, [my coach] could have just been human for a minute. ‘Oh, she’s got a job. Maybe I won’t report her, and she won’t get a sanction, and she’ll be able to get through the next month.’ But now I’m in debt.”

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