Thousands of people could be at risk of losing their Department for Work and Pensions (DWP) benefits, due to an upcoming Universal Credit change.
A new rule starting on January 30 will mean that some claimants will have to work more hours to continue receiving their full benefit payment, reports Wales Online. The policy, which is known as the administration earnings threshold (AET), determines which work group Universal Credit claimants are placed in.
The AET also influences if the claimant is required to look for more work. Those in the 'light touch' group do not have to look for work in order to continue receiving their benefits.
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This also means that this group generally also has less contact with their local JobCentre. People in the 'intensive' group must spend a specific amount of hours in work-related activities - which means looking for work or actually being employed.
Universal Credit claimants who work 12 hours or less in a week at the national minimum wage must be active in looking for extra hours or better paid work in order to still be eligible for the benefit. They must also meet regularly with a work coach.
However, the January 30 rule change will increase this current requirement to 15 hours or less at minimum wage - meaning an estimated 120,000 people will have to earn more to keep claiming. Those who do not meet the requirements could lose their benefits.
The rate at which people qualify for each group is also set to change. The rate currently stands at £494 a month or £782 a month if you are a joint claimant.
This will now increase to £618 a month or £988 for joint claimants. Those who earn more than these rates in a month will not be required to look for work, and will have less contact with the JobCentre.
However, if you earn below this rate you will be moved to the 'intensive work search' group and will be given a number of hours that you are expected to take part in work search activities each week.
Individual circumstances will decide on the number of hours you will have to work, with childcare commitments and health issues being taken into account.
Work related activities that don't include being employed are suggested below:
Making applications
Creating and maintaining an online history
Registering with an employment agency
Creating and maintaining job profiles
Any mandatory commitments missed without a valid reason could lead to a sanction and your benefits being stopped.
The Government has stated that certain groups will be exempt from sanctions, such as those who cannot work due to a long-term disability or health condition, and those over the State Pension age of 66.
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