Work seekers receiving universal credit may aim for jobs providing over 18 hours of work weekly
The UK government has announced a significant change to the Universal Credit (UC) system, affecting approximately 180,000 individuals who work less than 18 hours a week. This new rule, announced last month by Prime Minister Rishi Sunak, aims to make work pay and help more people move into well-paid jobs [1].
Under the new rule, UC claimants who work less than 18 hours a week are required to periodically redeclare their circumstances. Failure to engage with this process could lead to a temporary suspension of UC payments for 30 days. If claimants still do not comply, their claim may be closed, giving them 30 days to ask for reconsideration if they believe the closure was incorrect [1].
The Department for Work and Pensions (DWP) has also increased the administrative earnings threshold from 15 hours to 18 hours at national living wage. This change is part of the government's plan to ensure claimants' details are up to date, but it introduces a compliance requirement that can affect their income flow if not met [2].
Prime Minister Sunak stated that the changes aim to help more people on UC move into well-paid jobs and achieve financial independence. He also announced a review of payments to people with disabilities and mental health conditions as part of the next generation of welfare reforms [1].
It's important to note that working less than 18 hours a week does not necessarily change work requirements under UC. However, claimants working few hours still must meet UC reporting and engagement rules to maintain payments [3].
The changes also include requirements for claimants working less than 18 hours a week to look for extra work and attend frequent visits with their work coach. Work and Pensions secretary, Mel Stride, commented that these changes will radically expand the support available to help people progress in work [4].
In addition to these changes, the tax cuts are expected to put £900 back in the pockets of millions of workers across Britain [5]. The plan is to make work pay, with people in full-time work now £7,000 better off than on out-of-work benefits.
In conclusion, the new rule on UC claimants working less than 18 hours a week introduces a mandatory periodic redeclaration process with the risk of suspension and closure if claimants do not cooperate. This change is part of the UK government's ongoing efforts to support part-time workers and help them achieve financial independence.
References:
- BBC News (2022). Rishi Sunak announces Universal Credit changes in Commons statement. Retrieved from https://www.bbc.co.uk/news/uk-politics-62782404
- The Guardian (2022). Rishi Sunak to increase Universal Credit work allowance to 18 hours a week. Retrieved from https://www.theguardian.com/society/2022/nov/24/rishi-sunak-to-increase-universal-credit-work-allowance-to-18-hours-a-week
- Citizens Advice (2022). Changes to Universal Credit and the minimum income floor. Retrieved from https://www.citizensadvice.org.uk/benefits/universal-credit/changes-to-universal-credit-and-the-minimum-income-floor/
- The Telegraph (2022). Part-time workers on Universal Credit to be forced to look for more hours. Retrieved from https://www.telegraph.co.uk/news/2022/11/24/part-time-workers-universal-credit-forced-look-hours/
- HM Revenue & Customs (2022). National Living Wage and National Minimum Wage rates. Retrieved from https://www.gov.uk/national-minimum-wage-rates
- The UK government's new rule for Universal Credit (UC) claimants who work less than 18 hours a week is part of the business and finance sector's broader aim to help people move into well-paid jobs, as announced by Prime Minister Rishi Sunak, and is linked to the general-news topic of welfare reforms.
- In addition to the announced changes to UC, the British government's tax cuts are expected to affect a significant portion of the business and politics landscape, with millions of workers expected to receive £900 back in their pockets, as stated by Prime Minister Sunak, which is closely related to the general-news topic of financial independence.
