Labour is looking at plans to reduce financial penalties for Universal Credit claimants who repeatedly fail to attend job centre appointments.
At the moment, people who are required to look for work can have their benefits stopped for anything from a week to a year if they miss mandatory meetings.
Most sanctions issued this year were for failing to attend appointments, according to government data.
But MPs on the Work and Pensions Committee have raised concerns that the system is not always applied fairly, and warned that cutting payments can sometimes make it harder for claimants to find work.
In response, the Department for Work and Pensions (DWP) is examining whether ‘non-financial’ sanctions – such as requiring additional appointments – could be used instead.
Officials said they are exploring whether the approach would encourage more engagement with work coaches.
However, internal assessments warn the change could unintentionally lead to more sanctions, as increasing the number of compulsory meetings could create more chances for claimants to miss them.
The discussion comes as Labour faces scrutiny over its wider welfare plans.
Labour is looking at plans to reduce financial penalties for Universal Credit claimants who repeatedly fail to attend job centre appointments. Pictured: A stock image of a job centre in east London
Work and Pensions Secretary Pat McFadden (pictured) has previously said the UK is facing a ‘crisis of opportunity’, with concerns about falling productivity and rising youth inactivity
The party recently abandoned proposals to overhaul sickness benefits, and ministers have said a major review of Universal Credit will not be focused on finding savings.
The benefits bill is forecast to rise to £60.7 billion by 2029–30.
Work and Pensions Secretary Pat McFadden has previously said the UK is facing a ‘crisis of opportunity’, with concerns about falling productivity and rising youth inactivity.
The Office for Budget Responsibility has again downgraded growth forecasts ahead of this month’s Budget.
A DWP spokesperson said the government wants to help more people into ‘good, secure jobs’ and is updating job centres while expanding tailored support programmes.
Conservative MPs criticised the possibility of softer sanctions, with Helen Whately, the shadow work and pensions secretary, saying: ‘Labour is making jobs harder to get and benefits easier.
She added: ‘Labour’s plan to relax sanctions for jobseekers who don’t even turn up to appointments is disgraceful.’