Universal Credit claimants could have their benefits reduced even if they are in work under new rules.
UK Chancellor of the Exchequer Kwasi Kwarteng has announced a crackdown that will see part-time workers have their support cut unless they look for further employment. He will raise the number of hours that claimants need to be working before they can stop "actively" looking for work.
Currently, as reported by The Mirror, the threshold for a "light-touch" arrangement to activate is nine hours per week on the national living wage. This will rise to 12 hours starting Monday.
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The UK Government is set increase it again to 15 hours per week from January 15. Those who do not take active steps to increase their income and meet consistently with their work coach risk being sanctioned.
Mr Kwarteng announced the plans in Friday's mini-Budget, in which he set out a tax-cutting blitz that economists have predicted will favour those on a higher income. Approximately 120,000 claimants will be impacted by the new rules.
The Chancellor stated that the policy was a "win-win", and said it would help to fill around 1.2 million job vacancies throughout the UK. However, Shadow Work and Pensions Secretary Jon Ashworth commented: "This announcement reveals Liz Truss has no clue how to genuinely help people move into work, fill vacancies and raise living standards.
"It’s staggering these Tory ministers think we’ve had lacklustre growth on their watch because the low paid aren’t working hard enough and need to be threatened with sanctions but bankers should be handed bumper bonuses. Rather than hammering struggling households, on Friday we need a serious plan to support people to return to work with tailored support not more Tory threats."
As part of the changes, claimants over the age of 50 will receive additional support from work coaches and those who are newly out of work will get nine months of targeted sessions. According to the Treasury, the increasing economic inactivity of those over 50 is contributing to rising inflation and limited growth.
Mr Kwarteng stated: "Our jobs market is remarkably resilient, but it is not perfect. While unemployment is at its lowest rate for nearly 50 years, the high number of vacancies that still exist and inactivity in the labour market is limiting economic growth.
"We must get Britain working again. These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all. It's a win-win. It boosts incomes for families and helps businesses get the domestic workers they need, all while supporting economic growth."
It follows the news that a record number of Universal Credit claimants has their benefits reduced or stopped altogether after the number of sanctions soared from 3,827 in May 2021 to 109,506 in May 2022.
Work and Pensions Secretary Chloe Smith said: "Whether it's increasing their hours in their current role, entering a new sector or switching careers, we want people of all ages and all stages to be able to progress into fulfilling careers. The expertise our dedicated DWP work coaches bring will help to drive this change by removing barriers to progression and opening up opportunities for training and building skills, to increase earnings."
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