Work Longer or Lose Benefits: New UC Rules Hit 120,000 Claimants from January 30
UC Earnings Threshold Ramps Up
From January 30, hundreds of thousands of Universal Credit (UC) claimants will face tougher rules to keep their full payments. The government is raising the administration earnings threshold (AET), which decides who must hunt for more work and who gets a lighter touch from the JobCentre.
Who’s Exempt, Who’s Under Pressure
The ‘light touch’ group doesn’t have to look for work and enjoys less JobCentre contact. But the ‘intensive group’ must work or actively search for jobs to continue receiving benefits. Currently, claimants working up to 12 hours at minimum wage need to meet with a work coach.
Under the new rule, this threshold jumps to 15 hours or less, pushing 120,000 more people into the ‘intensive’ category. Fail to meet the increased demands, and you risk losing your benefits.
New Earnings Limits and Work Requirements
If you work more than 12 hours now, you’ll have to clock over 15 hours weekly to keep your UC. Meanwhile, qualifying earnings are rising too. The monthly cut-off is increasing from £494 to £618 (or from £782 to £988 for joint claimants).
Earn above that? No job search needed. Earn less? You’ll be put into the ‘intensive work search’ group and given strict weekly job-hunting quotas tailored to your circumstances.
Strict Job-Hunting Rules and Exemptions
The Department for Work and Pensions (DWP) sets your weekly job application targets based on childcare, health, and other needs. You may need to send out applications, create an online job history, register with agencies, or maintain a job profile. Miss mandatory commitments without a good reason, and benefits could be cut.
Thankfully, some groups get a break — those with long-term illness, disability, or over state pension age (66) won’t face sanctions.
