This week sees new Department for Work and Pensions (DWP) regulations come into effect. The change could see more than 120,000 working people on Universal Credit across the UK receive a job support boost.
Changes, which came into force on Sunday, February 26, mean thousands of low-paid workers will be moved from the ‘Light Touch’ group to the ‘Intensive Work Search’ group under the DWP Administrative Earnings Threshold (AET). The earnings threshold determines which group a Universal Credit claimant is placed in and impacts the level of support they receive to find work and develop a career.
Depending upon which AET group a person falls into will dictate the type of activities they must undertake on their job search pathway. For instance, researching new career options or allowing them to access opportunities to increase their earnings, whether that is developing their skills, progressing in their current sector, or by starting a new role. DWP said the change will help boost people's long-term prospects in the workplace following more face-to-face time with a work coach.
Commenting on the threshold change, Secretary of State for Work and Pensions, Mel Stride MP, recently said: “A hallmark of a compassionate society is giving those on low incomes the tools to progress and earn more. It is important we continue to deliver targeted support so that those in work have access to the expertise and guidance of our dedicated work coaches.
“By raising the Administrative Earnings Threshold, we are forging a robust labour market building on positive changes we have already made and supporting even more people to progress in the workplace.”
DWP said new claimant commitments will be tailored to individual circumstances and will consider caring responsibilities and any health conditions.
According to a report in Daily Record, the move, when combined with a previous increase in September, will mean around a quarter of a million more people have been moved into ‘Intensive Work Search’.
Those affected by the threshold 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). However, as a guide, those impacted include:
- 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)
In 2021 the Universal Credit taper rate was reduced from 63 percent to 55 percent 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 percent, 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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