JSA Hardship Payments

JCmoschops

Hi,
Would anyone be able to tell me if deductions, for example for Social Fund, are allowed to be taken from JSA Hardship Payments?

Around 2 years ago, a friend of mine received a 13 weeks sanction, and all his deductions stopped while he was on JSA Hardship Payments, and were re-instated shortly after his sanction ended and he went back to full JSA. He told me that deductions were not allowed to be taken from Hardship Payments.

I recently received a 13 week sanction, and my first 2 fortnightly payments were £86.90, which I'm told is correct for a single 42 year old male.
I've just checked my bank account now, and this payment (my 3rd one, so I'm only around halfway through my 13 week sanction) was only for £69.86, obviously £17.04 less than usual.
I've received no letters informing me of any benefit deductions.

Would anyone know if deductions are allowed from JSA Hardship Benefit?

AsknAnswer2

Yes, deductions are allowed to be made from the reduced rate of JSA (hardship claim) in respect of Social Fund loans. They cannot take more than a maximum of 20% of your total weekly benefit though unless there are other deductions and then it goes up to 30%. The percentage rate applies whether or not you are in receipt of full benefit or reduced benefit and can include other benefit coming into your household such as tax credits and carers allowance for example.

Reduced rate JSA (hardship) is paid at a rate of 40% less than your applicable amount. The applicable amount of JSA for a person aged over 25 is £72.40 per week, so it does appear that the amount of JSA you are receiving is correct.

Your weekly deduction is £8.52 which is less than the 20% the Social Fund are allowed to take so they are within their allowance.

You can however ask that the reduce the amount of the deductions due to financial hardship. Ring the social fund and ask for the repayments to be 'rescheduled'. They will take some information from you about other commitments you may have and will make a decision within a couple of weeks (usually within a couple of days though). They do not have to reduce the amount but if they are able to still recover the total social fund debt you owe within 104 weeks at a reduced rate they will probably do it no problem.

JCmoschops

Very helpful information.
Thanks.