From Monday, September 26 the UK Government is raising the Administrative Earnings Threshold which will see approximately 114,000 people on Universal Credit move from the ‘Light Touch’ regime where most claimants do not need to engage with the Jobcentre, into regular contact with a dedicated work coach.
Those who are impacted will be contacted by the Department for Work and Pensions (DWP) about what it means for them, at the end of their first full assessment period after September 26. DWP said: “The change aims to help more low-earning households to increase their incomes and improve their pay and prospects.”
The change will see the threshold rise from nine hours a week to 12 hours a week for an individual and 19 hours a week for couples. In monetary terms, the earnings threshold will be increased to £494 per calendar month for individual claimants and £782 for couples, having previously been set at £355 per calendar month for individuals and £567 for couples.
DWP said that people who earn below the new threshold will also have access to training and skills provision.
DWP explained: “It is important to understand that most claimants affected by the Administrative Earnings Threshold rise will already be in work and some may already be working as much as they can, depending on their individual circumstances.
“Initial meetings with work coaches will be to discuss what is reasonable and may include work preparation, to support claimants in preparing to increase their earnings when they are able to.”
DWP added that people will be able to agree an individual claimant commitment which reflects their circumstances.
A further increase to Administrative Earnings Threshold will be implemented from January 2023.
The new Growth Plan sets out how the UK Government is increasing support and incentives for those on Universal Credit across the country by increasing the Administrative Earnings Threshold to 15 hours a week at National Living Wage for an individual claimant, and 24 hours a week for couples from January 2023.
The change means that around 120,000 more Universal Credit claimants who are in work on low earnings will be moved from the Light Touch labour market regime to the Intensive Work Search labour market regime.
The Growth Plan states: “They will be expected to actively search for work and attend weekly or fortnightly appointments at a jobcentre in order to secure more or better paid work, or they could have their benefits reduced.”
Jobseekers over the age of 50 will also be given extra time with jobcentre work coaches, to help them return to the jobs market.
Rising economic inactivity in the over 50s is contributing to shortages in the jobs market, driving up inflation and limiting growth.
The UK Government said that returning to pre-pandemic activity rates in the over 50s could boost the level of GDP by 0.5-1 percentage points.
You can read the full Growth Plan online here.
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