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Universal Credit changes this month and 1000’s could see payments stopped | Personal Finance | Finance


The brand new rule raises the minimum amount of hours claimants need to work as a way to receive their full profit. Individuals who work part-time could have to begin on the lookout for more or higher paid jobs in the event that they wish to proceed receiving Universal Credit.

Currently, Universal Credit claimants working 12 or less hours every week on the national minimum wage must actively search for extra hours or higher paid work to proceed to be eligible for the money. They have to also meet usually with a piece coach.

Nevertheless, a recent rule set to come back into force on January 30, will increase this to fifteen hours or less at minimum wage, meaning an estimated 120,000 people could have to earn more to be exempt.

In the event that they don’t meet the necessities they might lose their Universal Credit payments.

The Government has said certain groups will remain exempt from sanctions, including people who find themselves unable to work due to long-term sickness or a disability and people over the state pension age of 66.

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An individual’s earnings threshold is exclusive to them based on their specific circumstances.

The Administration Earnings Threshold (AET) decides which group individuals are placed in, and this then impacts what number of requirements they need to meet as a way to keep their advantages.

In the meanwhile, if someone is single, employed and has household earnings of greater than £494 month they’d not be required to search for work.

The identical applies if they are a couple and earning greater than £782 jointly – but these amounts will rise to £618 and £988 respectively.


Nevertheless, if someone earns below this rate they can be moved to “intensive work search” and can be given a variety of hours that they’re expected to participate in work search activities each week.

Their individual circumstances will determine what number of hours that’s, with childcare commitments and health conditions being considered.

These are a few of the other activities they might be asked to participate in:

  • Making applications
  • Creating and maintaining an internet history
  • Registering with an employment agency
  • Creating and maintaining job profiles

Any mandatory commitments missed with out a valid reason could lead on to a sanction and their advantages being stopped.

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The brand new £900 money boost for over eight million eligible means-tested advantages claimants, including those on Universal Credit, Pension Credit and tax credits, starts in Spring and can go direct to bank accounts in three payments over the course of the financial yr.

Exact payment windows can be announced closer to the time but are spread across an extended period to make sure a consistent support offering all year long.

They can be broadly as follows:

  • First cost of living payment – £301 – Spring 2023
  • Second cost of living payment – £300 – Autumn 2023
  • Third cost of living payment – £299 – Spring 2024.

If individuals are eligible, they can be paid routinely, and there can be no must apply.

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