A new Universal Credits rule change could see more than 100,000 claimants lose out on their benefits. The Department of Work and Pensions (DWP) has announced that claimants could be required to increase how many hours they work at their existing job, look for better paid work, or risk having their payments reduced.
Former Chancellor Kwasi Kwarteng announced that around 114,000 claimants in part-time work could face a benefit cut if they fail to properly look for more work. Among a range of measures introduced was a significant shake-up of the welfare system, with claimants working up to 15 hours a week on the National Living Wage required to meet regularly with a work coach and to take “active steps” to increase earnings.
The change is linked to the Administration Earnings Threshold (AET). This is a monthly amount that marks if you're in the "intensive work search" category or the "light touch" group. Billed by the Treasury as a gradual expansion, the move will be an increase from the 12-hour threshold for a more intensive work search regime and will take effect from January as part of the Universal Credit system, the Liverpool Echo reports.
