Date: May 24, 202Today marks the enforcement of major changes to Universal Credit, with thousands of households facing stricter criteria to access their benefits. The Department for Work and Pensions (DWP) has implemented modifications to the “Administrative Earnings Threshold” (AET), affecting the level of support provided to claimants and their job search obligations.
The Administrative Earnings Threshold (AET) determines the level of support from job coaches and the intensity of job search requirements for Universal Credit recipients. Failure to meet these stringent requirements could lead to sanctions or, in severe cases, a complete loss of Universal Credit payments.
This decision to increase the AET for the third time was announced during the Spring Budget 2023, following previous increments on September 26, 2022, and January 30, 2023. The DWP estimates that these three adjustments have resulted in approximately 400,000 individuals facing more rigorous job search obligations.
So, how does the Administrative Earnings Threshold work? Individuals earning below the AET are automatically placed into the intensive work search group, requiring them to engage more actively with job coaches and demonstrate commitment to finding employment. Meanwhile, those earning equal to or above the AET level are placed in the light-touch regime, with fewer job search obligations.
Today’s change sees the AET rise significantly. Previously set at £677 per calendar month for individuals and £1,083 per month for couples, it now stands at £892 for individuals and £1,437 for couples. This means individuals must work approximately 18 hours per week, while couples must work around 29 hours per week at the National Minimum Wage rates to avoid being placed in the intensive work search group.
The government emphasizes that the AET increase is not designed to force individuals to work longer hours but rather to encourage them to seek higher-paying employment opportunities. Claimants affected by the changes will be contacted by their Work Coach through the Universal Credit journal and are required to attend a Claimant Commitment Review interview. Failure to comply may result in sanctions.
While the government argues that these changes will encourage individuals to seek better employment opportunities and reduce dependency on benefits, critics express concerns about the potential impact on vulnerable claimants. As the new Universal Credit regulations come into effect, many households will face heightened scrutiny and stricter job search obligations.
Claimants are advised to stay informed about these changes and ensure compliance with their updated Claimant Commitments to avoid disruptions to their Universal Credit payments.
