Universal Credit claimants will be subjected to a major change following the Chancellor's Spring Budget.
Jeremy Hunt revealed the government's intentions to get more people on Universal Credit back into the workforce. However, instead of providing positive incentives, the government will apply stricter sanctions.
Furthermore, the Administrative Earnings Threshold for those working low hours will increase from the equivalent of 15 hours on National Living Wage to 18 hours. This means that anyone working below that level will be encouraged to receive more support from their work coach.
Read more: Energy price guarantee to be extended at £2,500 - what the change means for you
Introducing the new policy in the House of Commons, Mr Hunt said: "There are more than two million jobseekers in this group, more than enough to fill every single vacancy in the economy.” He added: "Sanctions will be applied more rigorously to those who fail to meet strict work-search requirements or choose not to take up a reasonable job offer.
“For those working low hours, we will increase the Administrative Earnings Threshold from the equivalent of 15 hours to 18 hours at National Living Wage for an individual claimant, meaning that anyone working below this level will receive more work coach support alongside a more intensive conditionality regime.”
The move has received criticism, however, with some pointing out how unfair it is for benefit claimants. Caroline Lucas of the Green Party wrote on Twitter: "Chancellor totally out of touch with so many public sector workers struggling to make ends meet.
"It comes down to political choices - he could have chosen a Wealth Tax on richest 1% to raise up to £70bn to fund proper pay rises, increases in Universal Credit & more."
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