- More working people on income-related benefit will receive
additional help from the end of February to boost their earnings,
helping families improve their prospects and finances
- Over 120,000 more low-income workers will receive tailored
support and be supported to earn more
New regulations which come into force on Monday (30 January) mean
more than 120,000 working people on Universal Credit across Great
Britain will receive a job support boost this spring.
The Administrative Earnings Threshold (AET) determines which
group a Universal Credit claimant is placed in based on how much
they earn. This in turn impacts the level of support they receive
to find work and develop a career, and the types of activities
they must undertake, such as searching for opportunities to take
up more or better paid work or researching new career options.
From the end of February, an increase to the threshold will mean
more Universal Credit claimants will be moved from the ‘Light
Touch’ group to the ‘Intensive Work Search’ group, helping them
to get better-paid work and boost their long-term prospects.
Combined with a previous increase in September, this will mean
around a quarter of a million more people will have been moved
into ‘Intensive Work Search’.
New claimant commitments will be tailored to individual
circumstances and will consider caring responsibilities and any
health conditions.
Secretary of State for Work and Pensions, MP said:
A hallmark of a compassionate society is giving those on low
incomes the tools to progress and earn more. It is important that
we continue to deliver targeted support so that those in work
have access to the expertise and guidance of our dedicated work
coaches.
By raising the Administrative Earnings Threshold, we are forging
a robust labour market building on positive changes we have
already made and supporting even more people to progress in the
workplace.
Additional claimants will benefit from more face-to-face time
with a work coach, allowing them to access opportunities to
increase their earnings, whether that is developing their skills,
progressing in their current sector, or by starting a new role.
The new AET is the equivalent
of an individual working 15 hours per week, or a couple working
24 hours per week between them, at the adult National Living Wage
rate.
This year, the Government will also be driving forward an agenda
to ensure the labour market remains robust, reviewing workforce
participation at pace to understand what action can be taken to
drive down economic inactivity.
In 2021 the Universal Credit taper rate was reduced from 63% to
55% and the Work Allowance was increased by £500 per year so
claimants can keep more of what they earn. The National Living
Wage is also increasing by 9.7%, bringing it to £10.42 an hour
from April.
This rise to the AET will build on this
work to ensure work pays and will be complemented by a new In
Work Progression offer which will be rolled out to all Jobcentres
by the end of March, focused on helping claimants in the ‘Light
Touch’ work group to progress.
People impacted by the change will be contacted with more details
via their Universal Credit journal. Claimants will receive this
journal message at the end of their first full assessment period
after Sunday 26 February.
Further Information
- The Government has laid regulations to amend Regulation 99
(6) of the Universal Credit Regulations 2013 to raise the
Administrative Earnings Threshold to £617 for individual
claimants and £988 for couples from 30 January 2023.
- These regulations will come into force on 30 January 2023 and
the change will start impacting claimants from the 26 February
2023 as their assessment periods end. It builds on the
change which took place on 26 September 2022.
- A claimant in the Light Touch group still has a claimant
commitment but at present they are not tailored or reviewed
regularly.
- The Administrative Earnings Threshold or AET determines
which group a person is placed in based on how much they earn,
and therefore how much support they receive to find work.
- If someone earns below the AET, they are placed
in the Intensive Work Search Group and are required to regularly
meet with their work coach.
- If someone earns above the AET they are placed in
the Light Touch Group and while they will still have a claimant
commitment) these are not tailored or reviewed regularly.
Claimants in the Light Touch group can volunteer for work coach
support as part of the new In Work Progression offer, which will
be live in all jobcentres by the end of March 2023. From
September 2023 the In Work Progression support will become
mandatory for claimants in the Light Touch group, in a
phased approach.
