Thousands of Universal Credit claimants hit by rule change today – what it means for you

Thousands of people who claim Universal Credit will be affected by a rule change coming into force from today.

Currently, benefit claimants working 12 hours a week at the National Living Wage are not required to meet regularly with their Jobcentre coach.

But this threshold is being increased to 15 hours a week, or 24 hours week if you're in a couple, meaning more people will be pressured into looking for a job or increasing their hours or work.

These regulations will come into force today (January 30) and the change will start impacting claimants from February 26, 2023.

The rule change to the so-called Administrative Earnings Threshold (AET) will affect some 120,000 people claiming Universal Credit.

If you’re told you need to look for work, but you fail to do so, you could risk being sanctioned and your benefits temporarily reduced or stopped.

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This is the second time the AET has been increased in recent months. It was pushed up from nine hours at National Living Wage to 12 hours in September.

The AET rate is currently £494 a month if you’re single or £782 if you’re claiming as a couple.

This is increasing to £617 for single claimants and £988 if you’re in a couple from today.

Those affected by the change will be contacted by the Department for Work and Pensions (DWP).

The AET determines which "work group" you’re placed in – either the “light touch” work group or “intensive work search”.

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If your income is above the AET rate, you will be in the "light touch" work group – this means you’re not required to look for work and have less contact with the JobCentre.

But if you earn below the AET rate, you will be in the "intensive work search" and will have more commitments to fulfil to keep your benefits.

Some of the work activities that you 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

Those who are unable to work due to long-term sickness or a disability are exempt from sanctions.

For example if you have a joint Universal Credit claim and your partner has Limited Capability for Work so they’re not required to find a job.

Another exception is if you are over the state pension age, which is currently 66.

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."

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