Welfare

DWP accused of ‘operating almost blind’ on jobseeker sanctions

There is no evidence that benefits sanctions succeed in encouraging jobseekers to find work, a new report from the National Audit Office (NAO) has found, leading to accusations that the DWP is “operating almost blind” in helping the vulnerable.

The ‘Benefit sanctions’ report said that 24% of people on Jobseeker’s Allowance have received sanctions –where their benefits are cancelled or reduced if they fail to comply with conditions relating to finding work – at some point.

However, the DWP has no data on how effective a deterrent it is and how people respond to the possibility of receiving a sanction.

The NAO recommended that the DWP improves its understanding of the impact of sanctions on jobseekers’ chances of employment and on the cost of local and national public services, which jobseekers may be more likely to need if they are left without any source of income.

Sir Amyas Morse, chair of the NAO, said: “Sanctions on benefits have a high opportunity cost, not only for those who are dependent on those benefits if sanctions are applied, but for the efficient use of public resources.

“We acknowledge the department's effort to reduce its error rate on sanctions, but we think there is more to do in terms of reducing them further, and in reducing the notable differences in sanctions applications between comparable localities.”

Alison Garnham, chief executive of the Child Poverty Action Group, stated that the NAO report makes clear that “the DWP has little idea what impact sanctions have on individuals and, with some areas imposing twice as many sanctions as others, appears to have little concern for consistency. Sanctions create destitution but the DWP is operating almost blind”.

Changes introduced in 2012 expanded the range of claimants subject to sanctions and increased the maximum length of time from 26 to 156 weeks.

The report found that some providers make more than twice as many sanction referrals as other providers in the same area, with no clear explanation for the variation.

In addition, as the DWP rolls out Universal Credit, the report warned that it already has a large backlog of sanction decisions, with 42% of cases taking longer than 28 working days to decide.

There has been long-standing criticism of flaws in the Universal Credit system. Great Yarmouth Borough Council, one of the areas piloting the scheme’s introduction, called for it to be suspended last week.

A recent report from the Work and Pensions Committee warned that planned DWP reforms to the role of work coaches are “front-loaded for failure”.

Chris Goulden, deputy director of policy and research at the Joseph Rowntree Foundation (JRF), said: “JRF’s research into how benefit sanctions have been impacting people over recent years, including first-hand evidence from people who have experienced the system, supports the NAO’s opinion that the system is in urgent need of review.

“To bring the system in line with the government’s aims, Job Centres should be reformed so that their focus is on higher long-term employment and earnings, rather than on simply moving people off benefits as soon as possible.”

Responding to the report, a DWP spokesperson stated that sanctions are an important part of the benefits system and it is right that there is a system in place for tackling those few who do not fulfil their commitment to find work.

“This report fails to recognise the improvements we have made to sanctions, particularly to help those who are vulnerable,” they added. “The number of sanctions has fallen, and they are only ever used as a last resort after people fail to do what is asked of them in return for benefits.”

(Image c. Rui Vieira from PA Wire)

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