CHANGES TO UNIVERSAL CREDIT
The Somerset Guardian, 19th October 2022
Last week, the Secretary of State for Work and Pensions, Chloe Smith, wrote to all Members of Parliament about the changes that the Department is making to the Universal Credit Administrative Earnings Threshold Level.
On 26th September, regulations came into force that raised the Administrative Earnings Threshold from £355 to £494 for an individual claimant and from £567 to £782 for a couple. It is now equivalent to an individual working twelve hours at the adult National Living Wage per week up from 8.62 hours and a couple working nineteen hours up from 13.77 hours.
This move means that tens of thousands of people in work in receipt of Universal Credit across the country will get extra support and by raising the threshold, the Government is bringing an estimated 114,000 claimants into the group who will receive intensive guidance on how to get into employment.
Those who will be affected by this change will be notified by the Department for Work and Pensions in advance of an appointment with a Jobcentre Plus work coach. Together, they will review what steps they could take to increase their earnings, whether that is through upskilling, switching job or sector, taking on more hours or seeking a promotion with their current employer.
The Government understands that people could be at least £6,000 better off in full time work than out of work on benefits and the recent reforms to the welfare system have been designed to reflect this by encouraging thousands to boost their earnings and improve their prospects.
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