From Sunday, February 26, a Department for Work and Pensions (DWP) change will start to impact thousands of low paid workers in the UK. New regulations, which came into force on Monday, January 30, mean more than 120,000 working people on Universal Credit across the UK will receive what the government is calling a job support boost.
The Administrative Earnings Threshold (AET) determines which group a Universal Credit claimant is placed in based on how much they earn. This in turn impacts the level of support they receive to find work and the types of activities they must undertake, such as searching for opportunities, researching new career options and meeting with a work coach.
In just 10 days, an increase to the threshold will mean more Universal Credit claimants will be moved from the ‘Light Touch’ group to the ‘Intensive Work Search’ group, this, according to DWP will help them to get better-paid work and boost their long-term prospects.
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Combined with a previous increase in September, the move will mean around a quarter of a million more people will find themselves in the ‘Intensive Work Search’ group.
Secretary of State for Work and Pensions, Mel Stride MP said: “A hallmark of a compassionate society is giving those on low incomes the tools to progress and earn more. It is important that we continue to deliver targeted support so that those in work have access to the expertise and guidance of our dedicated work coaches.
“By raising the Administrative Earnings Threshold, we are forging a robust labour market building on positive changes we have already made and supporting even more people to progress in the workplace.”
The new AET is the equivalent of an individual working 15 hours per week, or a couple working 24 hours per week between them, at the adult National Living Wage rate.
In 2021 the Universal Credit taper rate was reduced from 63% to 55% and the Work Allowance was increased by £500 per year. The National Living Wage is also increasing from April bringing it to £10.42 an hour.
DWP says that people impacted by the change will be contacted via their Universal Credit journal. Claimants will receive this journal message at the end of their first full assessment period after the 26th of February.
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