The Effects of Benefit Sanctions on Recipients’ Income, Health, and Participation in Employment Services
A Systematic Literature Review
Keywords:
social security, systematic literature review, labour market policy, benefit sanctionsAbstract
Benefit sanctions refer to temporary reductions or interruptions of benefit payments when welfare recipients fail to comply with the conditions for receiving the benefit. So far, the previous research has mainly focused on evaluating the employment effects of the imposed sanctions rather than their broader outcomes. In this systematic review, we provide a thorough analysis and synthesis of evidence from studies examining wider consequences of sanctions, including poverty and material hardship, disengagement from the welfare system, and adverse health outcomes.
Based on the reviewed studies, sanctioning may deepen the risk of poverty and expose benefit claimants to material hardship, such as food insecurity and difficulty in paying bills. Secondly, strict welfare conditionality backed up by tough sanctioning may lead to severe psychosocial problems. Thirdly, sanctioning may damage claimants’ motivation to participate in activation measures aimed at improving their employability. Finally, vulnerable societal groups who have difficulties complying with welfare conditionality requirements seem to face an increased risk of sanctioning.
The evaluation of the wider impacts of benefit sanctions has been entirely absent from the Finnish discussion. In the future, the feasibility of imposing sanctions must be evaluated from the perspective of vulnerable population groups dependent on social benefits and public services.
