The Department for Work and Pensions (DWP) has confirmed that it will start expanding the Additional Jobcentre Support pilot scheme following testing in Partick, Coalville, Crawley and Pontefract jobcentres. DWP boss Mel Stride confirmed on Monday that the current pilot will continue to test how enhanced daily work-focused support, across two weeks, can help eligible Universal Credit claimants into employment in 60 jobcentres across Central Scotland, Surrey and Sussex, West Yorkshire, Leicestershire and Northamptonshire.
The new regulations could see more than 120,000 working people on Universal Credit across Great Britain receive a job support boost from the DWP. From this week, an increase to the Administrative Earnings Threshold (AET) means that more Universal Credit claimants will be moved from the ‘Light Touch’ group to the ‘Intensive Work Search’ group.
Mr Stride said that claimants in the Intensive Work Search regime will receive “prior notice of the requirements they will be expected to fulfil”. However, he added that not everyone will be included in the pilot scheme.
Claimants who will not be in scope for the pilot are those:
- Awaiting a Work Capability Assessment
- Required to undertake less than 20 hours a week of work search activity
- Who are Gainfully Self-Employed
- Who have no work related requirements
- With an easement in place
- On a full-time provision offer
The DWP boss explained that the additional support will increase a claimant’s employability through provision of additional one to one work search conversations with work coaches and through work search support sessions to help them overcome any challenges they may be experiencing.
The Claimant Commitment, which sets out each claimant’s agreed work-related activities, will be regularly reviewed and activity will be focused on specific steps to support people to move into work.
He said: “Evidence shows that the longer a person is out of work the harder it is for them to return. A claimant’s likelihood of securing employment declines after 13 weeks, so we will focus this support on those who remain unemployed or with low earnings after 13 and 26-weeks of claiming Universal Credit.”
He also said that within the pilot, DWP will test a scheme to “recognise and reward jobcentre teams who furthest exceed their aspirational targets”.
Mr Stride said: “The reward scheme will be rolled out to 30 of the 60 jobcentres testing enhanced daily support and an additional 30 jobcentres.”
This means, in addition to a control group, 90 jobcentres will now be involved in the pilot scheme:
- 30 sites will test enhanced daily support only
- 30 sites will test enhanced daily support and the rewards scheme
- 30 sites will test the rewards scheme only
Who will be affected by the threshold change?
The new AET is the equivalent of:
- an individual working 15 hours per week (£617 in an assessment period)
- a couple working 24 hours per week between them, at the adult National Living Wage rate (£988 in an assessment period)
People impacted by the change will be contacted with more details through their Universal Credit journal at the end of their first full assessment period (after February 26, 2023).
This year, the UK Government will also be driving forward an agenda to ensure the labour market remains robust, reviewing workforce participation to understand what action can be taken to drive down economic inactivity.
In 2021 the Universal Credit taper rate was reduced from 63 per cent to 55 per cent and the Work Allowance was increased by £500 per year so claimants can keep more of what they earn. The National Living Wage is also increasing by 9.7 per cent, bringing it to £10.42 an hour from April.
This rise to the AET will build on this work to ensure work pays and will be complemented by a new In Work Progression offer which will be rolled out to all jobcentres by the end of March, focused on helping claimants in the ‘Light Touch’ work group to progress.
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