Universal Credit shake-up next month to hit 180,000 people claiming benefits

The DWP has confirmed new changes to Universal Credit

More than 180,000 households claiming Universal Credit will be affected by a rule change coming into force next month.

The Administrative Earnings Threshold (AET) will rise from 15 to 18 hours a week at the National Living Wage from May 13. It means anyone working less than 18 hours a week and earning less than £892 per month, or 29 hours a week and £1,437 for couples, will have to increase their search for work.

The AET determines which “work group” you’re placed in. If you earn above the AET rate, you’ll be in the “light touch” work group, which means you’re not required to look for work. But if you earn below the AET rate, you will be in the “intensive work search” and will be forced to look for more work to keep your benefits.

If you fail to meet your Universal Credit commitments, then your benefits can be cut or stopped altogether. These changes, which were confirmed by Prime Minister Rishi Sunak last week, mean over 180,000 Universal Credit claimants will be moved from the “light touch” work group to “intensive work search”.

Anyone who is affected will receive a message in their Universal Credit journal. It marks the second increase to the AET. The threshold was previous 12 hours a week but was raised to 15 hours a week, or 24 hours week if you’re in a couple, in January 2023.

Work and Pensions Secretary Mel Stride said: “I believe our welfare system is about far more than benefit payments; it is about changing lives for the better. That is why we’re bringing forward the next generation of welfare reforms. We’ve already overhauled the outdated benefit system by introducing Universal Credit, and now we are building a new welfare settlement for Britain – one where no one gets left behind.

Health and Social Care Secretary, Victoria Atkins MP, said: “We are seeking the advice of those who understand the system best so we can break down these unnecessary barriers to work. Through tailored care and reasonable adjustments, we can build a healthier workforce for a healthier economy.”