This report, funded by Lloyds Bank Foundation for England & Wales, shows the impact of Univesrsal Credit (UC) sanctions on single parents. We worked with our partners Himmah and Home-Start Lambeth to complete desk research and surveys. We also interviewed more than 20 single parents.

Summary

Current statistics show that up to 1.9 million single households with children claimed Universal Credit (UC) in February 2024. The majority of single parents are in work, highlighting just how important UC to help single parents make ends meet.

When UC payments are reduced or stopped because a claimant hadn’t followed a particular rule (i.e. a sanction is used), single parents experience significant financial hardship.

Key Findings

1. Universal Credit (UC) as it stands is insufficient
2. The social security system is confusing and hostile
3. There are specific risks of being sanctioned for single parents
4. The social security system has a significant financial and mental health impact on single parents
5. The system impacts work coach relationships

Recommendations

The DWP must ensure that the basic rate of UC truly reflects the cost of living by:

• Uprating the basic rate annually in line with inflation.
• Introducing an Essentials Guarantee in line with recommendations by the Joseph Rowntree Foundation and Trussell Trust, but ensuring calculations look at the specific needs of single parent households. This would mean enshrining in law that the basic rate of UC at least covers the essentials.

The DWP must publish clear guidance and information so that work coaches, single parents and those providing advice and support services all understand the detail of the UC regime and are very clear about the expectations the system places on claimants.

The government should set a more positive tone in its leadership of the system to help create a less hostile environment and ensure this translates to training of and expectations of staff.

The DWP to include the following as part of their review of UC:

• Abolish the two child limit and benefit cap.
• The benefits of abolishing sanctions entirely.
• Ensuring that, if sanctions are to continue, they are only used in the most exceptional circumstances with forewarning and discussion with the claimant.
• Ensuring any reforms look at the specific challenges of single parents and how these challenges might be compounded due to other factors such as disability, ethnicity and migration status.
• A reversal of the conditionality rules put in place by the last government in 2023 on lead carers.
• Ensure there is clear information available on how to challenge sanctions and clear signposting to any emergency financial support, as well as mental health support.
• The DWP to introduce specialist single parent work coaches as part of the major overhaul of Jobcentre Plus. This should be included in the forthcoming White Paper to Get Britain Working.