More than 100,000 people in part-time employment could face a benefit cut if they fail to properly look for more work, the Chancellor is set to announce in his mini-budget on Friday. Among a range of measures set to be revealed by Kwasi Kwarteng is a significant shake-up of the welfare system.
He is expected to announce that claimants working up to 15 hours a week on the National Living Wage will be required to meet regularly with a work coach and to take “active steps” to increase their earnings. If they fail to do so, under the plan, their benefits could be reduced.
Billed by the Treasury as a gradual expansion, the move will be an increase from the incoming 12-hour threshold for a more intensive work search regime and is expected to take effect from January as part of the Universal Credit system.