Yahoo News DWP Universal Credit: Everything you need to know about new working rules
This week, the Department for Work and Pensions (DWP) has introduced new working regulations for Universal Credit that will impact around 180,000 people. Universal Credit is among the most common benefits in the UK, with over six million claimants.
If you are jobless or on a low income despite being employed, you can apply for Universal Credit from the DWP. However, certain rules must be adhered to; failing to do so can result in lost benefit payments, reports the Mirror.
The latest set of rules mean roughly 180,000 people need to work more hours to retain their benefits. Notably, this is the second such change in working rules introduced by the Government this year. Here is everything you need to know about the changes
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How much does Universal Credit offer?
The monthly amount you receive isn't fixed - it hinges on your personal situation, accounting factors like age, whether you're in a relationship, and if you have children. Nevertheless, there's a basic rate for Universal Credit known as the "standard allowance". If eligible, you could receive additional payments above this base rate to cover other expenses.
These all contribute to your total figure before deductions, based on elements like your employment status, savings, amongst others. As of April 2024, the standard allowance sits at:
Single under 25: £311.68 per month
Single 25 or over: £393.45 per month
Joint claimants both under 25: £489.23 per month
Joint claimants, one or both 25 or over: £617.60 per month
If you have children, the amount you can claim increases and varies depending on the number of children you have. If you have a disabled child, you are also eligible for additional support.
Can you work while claiming Universal Credit?
You can apply for Universal Credit from the DWP if your income is low or if you're unemployed. This means you can work and claim Universal Credit simultaneously. However, the more you earn, the less Universal Credit you will receive. The reduction in your benefit is determined by the taper rate.
The current taper rate is 55 percent, meaning that 55p is deducted from your maximum Universal Credit payment for every £1 you earn.
Some Universal Credit claimants may be granted a work allowance, which sets the amount they can earn before their Universal Credit is reduced. This is typically only available to those who are responsible for a child or have a disability or health condition that affects their ability to work.
As usual, the Universal Credit payment is reduced by 55p for every £1 earned above the work allowance. There are two rates, and the one you receive depends on whether you get help with housing costs, either as part of your Universal Credit payment or through Housing Benefits:
Higher work allowance - no housing amount - with one or more dependent children or limited capability for work: £673 - up from £631
Lower work allowance - who have help with housing costs - with one or more dependent children or limited capability for work: £404 - up from £379
What are the Universal Credit work rules?
When it comes to employment, your Universal Credit claim is categorised into one of four work-related activity groups, which dictate the actions you need to take to maintain your benefits. Citizens Advice outlines these as follows:.
For individuals who are able to work, the Department for Work and Pensions (DWP) assigns claimants to either the "Light Touch" or "Intensive Work Search" group. The placement depends on the Government's Administrative Earnings Threshold (AET), which is based on monthly earnings.
Those earning above the threshold are placed in the light touch group, while those below are in the intensive work search group, where they must work more to retain their benefits.
This month has seen an increase in the AET threshold by the Government, meaning that those under the limit now need to seek additional work. As of May 13, the AET was set at 18 hours per week, a rise from the previous 15 hours, equating to half of a standard working week or £892 per month.
For couples, the updated AET increased to 29 hours weekly, or an equivalent monthly income of £1,437. Failure to meet these requirements could result in a reduction or cessation of benefits.
