New changes to universal credit this month could see thousands of claimants face increasing pressure to find a job or improve their income. Around six million people are estimated to be claiming universal credit in the UK as experts warn the cost of living crisis could plunge 45 million people in Britain into fuel poverty.
And new changes being introduced this month could lead to more pressure for those on low incomes to find a job or find another way to boost their income. Under the administration earnings threshold (AET) claimants with no earnings or with earnings below that threshold are placed in the intensive work search regime which normally involves attending mandatory, face to face work search reviews.
Claimants in this category face more pressure to get a job, apply for jobs, register with employment agencies, get references, prepare business plans or increase their existing earnings in order to keep their universal credit than those in the 'light-touch' system "light touch" system who receive payments to top up income while working.
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But from September 26 the threshold for the AET will increase from £355 to £494 a month for a single claimant and from £567 to £782 a month for a couple. It's thought this will take around 114,000 people out of the 'light touch' system and onto the stricter set of rules around finding work, meaning they could risk losing out on benefits if they don't satisfy the AET rules.
According to the Liverpool Echo, work and pensions secretary Thérèse Coffey said the government's new approach will "help claimants get quickly back into the world of work while helping ensure employers get the people they and the economy needs." A DWP spokesperson said: "Since its introduction in 2013, the AET has not kept pace with the increases in the National Living Wage, with the result that the number of hours needed to work to earn the AET has fallen over time.
"The adjustment will bring the AET back to its original ‘parity’ with the National Living Wage." To get the latest money news straight to your inbox subscribe to our dedicated newsletter here.
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