Thousands of people could lose their benefits because of an upcoming change to universal credit. A new rule starting from January 30 will mean some claimants will have to work more hours in order to continue receiving their full benefits.
Known as the administration earnings threshold (AET), the policy determines which work group universal credit claimants are placed in and influences if you are required to look for more work. Those in the 'light touch' group do not have to look for work in order to continue receiving their benefits and generally have less contact with the JobCentre.
Those in the 'intensive' group must spend a specified number of hours in work-related activities, such as working or looking for work, in order to receive their payments. To get all the latest money-saving news straight to your inbox twice a week sign up here.
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Universal credit claimants working 12 or less hours a week at the national minimum wage must actively look for extra hours or better paid work to continue to be eligible for the cash. They must also meet regularly with a work coach.
However, the new rule set to come into force on January 30 will increase this to 15 hours or less at minimum wage, meaning an estimated 120,000 people will have to earn more to be exempt. If they do not meet the requirements they could lose their payments.
The rate at which you qualify for either group is also changing. The rate currently stands at £494 a month or £782 a month if you are a joint claimant. However, this is increasing to £618 a month or £988 for joint claimants. If you earn more than these rates each month you will not be required to look for work and will have less contact with the JobCentre. However, if you earn below this rate you will be moved to the 'intensive work search' group and will be given a number of hours that you are expected to take part in work search activities each week.
Your individual circumstances will decide how many hours that is, with childcare commitments and health conditions being considered. Activities you might be asked to do include making applications, creating and maintaining an online history, registering with an employment agency and creating and maintaining job profiles.
Any mandatory commitments missed without a valid reason could lead to a sanction and your benefits being stopped. The government has said certain groups will be exempt from sanctions such as those who cannot work due to long-term illness or a disability and those over the state pension age of 66.
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