A major change to Universal Credit rules has come into force from today which could result in a cut in benefits for claimants.
The change will see people moved from a "light touch" work search group into the "intensive work search" category. This means people could be required to increase their hours at their existing job, or look for better paid work - or risk having their benefits cut.
Under the old rules, those working up to nine hours a week at the National Living Wage are in the "intensive work search” group. This means they need to go to the JobCentre regularly and are required to increase their earnings.
Read More: 15 ways people on Universal Credit can get more financial help to ease cash struggle
Those working above the nine hours a week threshold were previously in the "light touch" work group where they have less contact with the JobCentre. But from today, (Monday, September 26) the threshold for when you’re pushed into the "intensive work search" group has risen to 12 hours at the National Living Wage.
Last week, Chancellor Kwasi Kwarteng confirmed in his Mini-Budget that this will rise again to 15 hours from January 2023. Some 120,000 people will be affected by these changes overall, reports The Mirror.
The change is linked to the Administration Earnings Threshold (AET) - which is a monthly amount that marks if you're in the "intensive work search" category or the "light touch" group. The AET rate has increased from £355 a month to £494 a month, or from £567 a month to £782 a month for joint claims, from September 26.
This is the equivalent of an individual working 12 hours per week, or a couple working 19 hours per week between them, the Government said. If your income is above the AET rates, you will be in the "light touch" work group - but if you earn below these amounts, you will be in the "intensive work search" group.
This could mean you may be pressured into finding better paid work or taking on more hours in your existing job, in order to keep your Universal Credit. Exactly how many more hours you will be expected to take on will vary depending on your circumstances. You can find these details in your “claimant commitment”.
If you fail to meet the targets set in your “claimant commitment” then you could have your benefits stopped. How many hours you are required to spend looking for work depends on your circumstances, including childcare commitments and any health conditions.
Those affected by the change will be contacted by the Department for Work and Pensions. Thérèse Coffey, Work and Pensions Secretary, previously said the rule change will "help claimants get quickly back into the world of work while helping ensure employers get the people they and the economy needs".
She added: "Helping people get any job now, means they can get a better job and progress into a career. Way to Work is a step change in our offer to claimants and employers, making sure our JobCentre network and excellent work coaches can deliver opportunities, jobs and prosperity to all areas of the country."
Some of the work activities that people might be asked to take part in include:
- Carrying out work searches
- Making applications
- Creating and maintaining an online history
- Registering with an employment agency
- Creating and maintaining job profiles – however, you must not be mandated to use particular internet or social media sites (this must be entirely voluntary)
- Seeking references
- Any other actions which reasonably increase the likelihood of obtaining employment
Read Next:
Benefits you may be eligible for if you have a mental health condition - and how to apply
Martin Lewis’ MoneySavingExpert urges people on Universal Credit to check if they’ve been underpaid
Universal Credit claimants can make huge broadband saving with BT, Virgin Media and Sky
How the mini-budget affects you - including benefits, tax cuts and stamp duty
DWP benefit could give pensioners with medical conditions an extra £369 each month
