Benefit sanctions have fallen sharply despite rising unemployment, with new figures showing 117,000 people had their payments docked in November 2024.
This marks a significant drop from 137,000 sanctions a year earlier, even as the number of Universal Credit claimants required to seek work increased from 1.89 million to 2.1million.
The decline in sanctions comes as Britain grapples with growing joblessness, according to official Department for Work and Pensions (DWP) data.
Under-30s account for at least half of all sanctions, with men more than twice as likely to face benefit cuts as women. The effective sanctions rate has dropped to 5.5 per cent, down a quarter from 7.5 per cent a year ago.
Just 7,500 people – or 0.4 per cent of unemployment benefit claimants – were sanctioned for refusing a job in November, according to Centre for Social Justice (CSJ) analysis of DWP data.
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Analysis is calling into question the success of the Government’s DWP crackdown
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Claimants can have their benefits cut for missing work placements or Job Centre appointments, or for being late to scheduled meetings.
Youth unemployment has hit alarming levels, with 314,000 people aged 16 to 24 claiming benefits in January 2025.
The figure represents a 4.7 per cent increase from December 2024, marking the highest month-on-month rise since March 2009 outside of the pandemic period.
The surge in young claimants comes as nearly one million young people are currently not in work, employment or training.
Office for National Statistics (ONS) data shows the monthly jump is the most significant since the financial crisis, when figures increased by 5.2 per cent in March 2009.
Work and Pensions Secretary Liz Kendall is set to announce a major overhaul of sickness and disability benefits ahead of the Chancellor’s Spring Statement on March 26.
The reforms will focus on approximately four million claimants who currently qualify for incapacity benefits and are not required to seek work.
Kendall has taken a firm stance on welfare recipients, previously stating that some on benefits “are taking the mickey and that is not good enough.”
She has also warned that young people who refuse work opportunities will face benefit cuts.
Trushar Pandya, the head of data and analysis CSJ, urged the Government to address Britain’s “worklessness crisis,” warning it is “starting to spiral out of control”.
“The CSJ does think sanctioning people on benefits and subject to conditionality but refusing to look for or take work is essential to give taxpayers confidence,” he said.
This contrasts with Labour employment tsar Paul Gregg’s previous position, who signalled he would “ramp down” the use of benefit sanctions, describing them as “part of the problem”.
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Pandya added that if Kendall is serious about tackling those “taking the mickey,” she must “use all tools at her disposal”.
Kendall faces significant challenges in expanding back-to-work programmes, seeking to demonstrate they can be self-funding.
The Work and Pensions Secretary is battling to secure additional funding for these initiatives amid growing unemployment concerns.
Officials have expressed worry that any reforms could trigger legal challenges, following previous Tory changes to assessment rules that were ruled unlawful.
Such legal setbacks could potentially create a £3billion hole in public finances, complicating efforts to overhaul the benefits system.
Universal Credit cases for those seeking work have grown by more than 200,000 since Autumn 2023, adding pressure to implement effective reforms.
A DWP spokesperson said: “We are determined to ensure people can get into and get on at work.
“Our Get Britain Working reforms will transform Jobcentres and guarantee every young person the chance to earn or learn – while we deliver prosperity and growth in every corner of the country through our Plan for Change.
“But, as we shift the department’s focus from welfare to work, it is right that there are obligations to engage with support, look for work and to take jobs when they are offered.”
