Changes are unfolding within Universal Credit, impacting numerous individuals across the UK starting today.
Prime Minister Rishi Sunak has stated that these adjustments are geared towards fostering “progress towards financial independence, which is better for them and for economic growth” for Universal Credit recipients.
But what exactly has altered in Universal Credit, who does it affect, and what has been the reaction?
What’s Different with Universal Credit? In light of welfare system adjustments, individuals claiming Universal Credit, working less than 18 hours per week, are now expected to actively seek additional employment opportunities.
Previously, claimants were only required to work 15 hours. This new regulation is part of broader welfare system reforms introduced by the government last month.
Who Will Feel the Impact? According to the Department for Work and Pensions (DWP), around 180,000 Universal Credit claimants will be affected.
This change applies to minimum wage earners on Universal Credit. Those whose total earnings surpass the government-set Administrative Earnings Threshold (AET) are permitted to work fewer hours.
Effective today, the new AET stands at £892, equivalent to the earnings for 18 hours of work per week at the minimum wage. If a claimant’s income falls below this threshold, they’ll be encouraged to seek additional employment opportunities with higher pay. For couples, efforts to increase their combined income will be expected if it falls below £1,437.
DWP states that claimants failing to meet the criteria may receive more “intensive” support from JobCentres, including frequent appointments with a work coach. Refusal to comply with the process or accept the new criteria may result in a reduction of benefits.
What’s the Reaction Been? Turn2Us, a charitable organization, has called for a reassessment of the policy, citing potential “drastic impact” on caregivers, individuals with long-term health issues, or those with irregular incomes.
Michael Clarke from Turn2Us expressed “serious concern” regarding the change, emphasizing the need for a support system that genuinely aids those in need.
Disability charities have similarly criticized the plans, labeling them as “a full-on assault on disabled people.”
James Taylor, director of strategy at Scope, described the proposals as “dangerous” and warned of potential destitution among disabled individuals. He emphasized the need for policies that don’t exacerbate financial instability and mental stress.
The British Medical Association called for a shift away from a “hostile rhetoric on ‘sicknote culture'”, urging the prime minister to focus on ensuring access to necessary healthcare for individuals to return to work.