Huge change to Universal Credit rules in WEEKS for 180,000 on benefits – how to avoid payments being cut
A MAJOR change to Universal Credit is coming in weeks, and it will affect over 180,000 households on the benefit.
Hundreds of thousands of Universal Credit claimants will have to step up their search for work or face having their benefits cut.
It comes over a year after the Chancellor announced plans to raise the minimum amount that claimants on the benefit must work before having to engage with government jobs coaches.
But, the Department for Work and Pension (DWP) has now confirmed that the Administrative Earnings Threshold will rise from 15 to 18 hours per week in May.
It was confirmed in Rishi Sunak’s speech on Friday, which outlined six major changes to Universal Credit and benefits.
The AET determines how much support an individual will receive to find work based on their current earnings and hours worked.
If someone earns below the AET, they are placed in the Intensive Work Search Group and required to meet regularly with their work coach.
Universal Credit
HERE'S everything to know about Universal Credit:
- What is Universal Credit? Everything you need to know including how to apply
- Universal Credit calculator: How much can I claim and how do I apply?
- Universal Credit login: How do I sign in to my online account?
- How much can I earn before Universal Credit is reduced and do I get a work allowance?
- What is a Universal Credit advance payment? How to apply and pay it back
- Are Universal Credit payments going up and how much more will I get?
- How to claim Universal Credit if you’re self-employed
- How many hours can I work on Universal Credit and will my payment be reduced?
- What is a Universal Credit budgeting advance and how much could I get?
- What is the Universal Credit housing element and how much of your rent does it pay?
Right now this affects those working fewer than 15 hours a week and earning less than £743 per month or £1,189 for couples.
However, in May, the government will increase the AET.
It will mean that anyone working fewer than 18 hours a week and earning less than £892 per month or £1,437 for couples will have fresh requirements to meet with DWP officials to find more work.
Through these changes alone, over 180,000 Universal Credit claimants will be moved into the intensive work search group, from the light touch group, meaning they’ll be forced to look for more work or face having their benefits sanctioned.
This means that your Universal Credit will be reduced or, in some circumstances, could be stopped.
If you earn the individual AET or more, you do not need to look for more or better-paid work actively.
Additionally, if you’re in a couple and your combined earnings are equal to or higher than the couple’s AET, you or your partner do not need to actively look for more or better-paid work.
How much Universal Credit can you get?
TRYING to work out how much Universal Credit you can get can be overwhelming.
There are so many different elements that can affect your claim and it makes the whole process even more complicated.
There are several free calculators that you can use to help you get an estimate, such as Gov.UK, Citizen’s Advice, MoneySavingExpert, StepChange and Turn2Us.
You will need:
- Details of all your income, such as existing benefits, tax credits, earnings from employment and your pensions,
- Details of your partner’s income if you’re married, in a civil partnership or living with someone as a couple. You will be assessed as a couple
- Information on any savings you have,
- How much you pay in council tax per year, and whether you get any discounts, reductions or exemptions,
- Details of your rent or mortgage payments,
- Employment and income information about anyone else living with you, such as grown-up children,
- Details about your carer’s allowance if you receive it.
You’ll need to make sure that the information provided is as accurate as possible to get the truest estimate.