DWP's new Universal Credit rule means more people risk losing benefits

Universal Credit claimants who earn less than £892 a month will be required to actively seek additional employment from today (Monday, May 13). This move is part of the Government's major overhaul of the welfare system, with ministers increasing the administrative earnings threshold (AET) from the equivalent of 15 hours at the national living wage to 18 hours for a single claimant.

This comes out to just under £900 for individuals or £1,437 for couples. This is up from the previous figures of £617 for individuals and £988 for couples, according to the DWP, reports Wales Online.

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This adjustment means that more people will have to engage more frequently with their Jobcentre work coach to increase their earnings, explained the Department for Work and Pensions (DWP). If claimants do not do this, they risk losing their benefits.

An estimated 180,000 individuals will be affected by this policy change, with those capable of working expected to use the support offered by Jobcentre or risk having their benefits cut.

Prime Minister Rishi Sunak said: "Today's changes will help more people on Universal Credit move into well-paid jobs and progress towards financial independence, which is better for them and for economic growth."

He added that 'welfare should always be a safety net and not a lifestyle choice'.

What happens if I earn below the DWP threshold?

You must show that you are actively looking for more or better-paid work, and that you are available for work. This applies to couples below the threshold too.

If you earn above the threshold, you do not need to actively look for more or better paid work.

If you earn below the threshold and don't prove you are looking to earn more, you could have your benefits cut.

For any questions, contact the Universal Credit team here.