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Manchester Evening News
Manchester Evening News
Business
Kieran Isgin

Universal Credit rule change could see thousands losing benefits

Tougher rules surrounding new work search for those claiming Universal Credit will be enforced next week.

It will be introduced thanks to a planned increase in the Administration Earning Threshold (AET) which helps determine the "work group" a claimant is placed in. From September 26, the AET rate will go from £355 a month to £494 a month - or from £567 a month to £782 a month for joint claims.

This is the equivalent of an individual working 12 hours a week, or a couple working 19 hours a week between them, according to the government. If a claimant's income is above the AET rates, they will be placed in the "light touch" work group, meaning they will not be required to look for work and will have less contact with the JobCentre, the Mirror reports.

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However, if a claimant earns less than these amounts, they will be placed in the "intensive work search" group, meaning they may be pressured into finding work or taking on more hours at their current job in order to keep their Universal Credit. People in this group will be provided with a number of hours they must take part in work search activities every week.

The hours will vary depending on a claimant's unique circumstances, with childcare commitments and any health conditions being taken into account. If a claimant fails to take part in any mandatory activities without a good reason could receive a sanction and have their benefits stopped.

Work and Pensions Secretary Thérèse Coffey noted that the new approach will "help claimants get quickly back into the world of work while helping ensure employers get the people and the economy needs". She added: "Helping people get any job now, means they can get a better job and progress into a career.

"Way to Work is a step change in our offer to claimants and employers, making sure our JobCentre network and excellent work coaches can deliver opportunities, jobs and prosperity to all areas of the country."

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