Everything you need to know about new DWP Universal Credit working rules

The Department for Work and Pensions (DWP) has rolled out new working rules for Universal Credit this week, impacting approximately 180,000 claimants.

Universal Credit is one of the most widely claimed benefits in the UK, supporting over six million individuals. Eligibility for Universal Credit through the DWP extends to those who are out of work or on a low income. However, claimants must adhere to certain conditions, and failure to comply can result in the suspension of their benefits, reports The Mirror.

This week, new working rules were introduced which will see around 180,000 people have to work more to keep their benefits. It is also the second working rule change to be introduced by the Government this year. To help, here we explain everything you need to know about Universal Credit and it's new working rules.

READ MORE: Testing to start at North Wales beach that has become nation's latest official bathing site

READ MORE: Inside £1m house with its own boat house and slipway into the Menai Strait

How much does Universal Credit pay?

There is no set level for how much money you get every month - what you get is dependent on your personal circumstances which include things like age, whether you live in a couple, and whether you have children.

However, there is a base rate for Universal Credit and that's called the "standard allowance". Then if you're eligible, you can get additional payments on top of this to support other costs. These are all applied to give your total figure before any deductions are then made based on whether you work, have savings, and other measures. 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, you can claim more and the rate varies depending on how many children you have - if you have a disabled child then you are also eligible for added support.

Can you work when claiming Universal Credit?

You can claim Universal Credit from the DWP if you are on a low income or unemployed. This means you can be working and claim Universal Credit at the same time. However, the more you earn through work, the less Universal Credit you receive. How much your benefit is reduced is down to the taper rate. The taper rate is currently 55% which means 55p is deducted from your maximum Universal Credit payment for every £1 you earn.

However, some Universal Credit claimants can be given a work allowance which sets how much they can earn through work before their Universal Credit is cut. However, it is normally only available to those who have responsibility for a child or have a disability or health condition that affects their ability to work.

In the same vein as normal, the Universal Credit payment is cut by 55p for every £1 earned over the work allowance. There are two rates and which one you get depends on whether you receive 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?

In regard to working, your Universal Credit claim will be placed into either one of four work activity groups and this highlights what you should be doing to keep your Universal Credit claim. According to Citizens Advice, these include:

• No work-related requirements group - You don’t have to do anything to prepare or look for work

• Work-focused interview group - You have to go to regular meetings with your work coach

• Work preparation group - You have to meet your work coach regularly and also prepare for work. This includes things like writing a CV and going on training or work experience

• All work-related activity group- You have to do all you can to find a job or earn more. This includes looking for jobs, applying for jobs and going to interviews

For people who are fit to work, the DWP places claimants into groups known as "Light Touch" and "Intensive Work Search" and the Government's Administrative Earnings Threshold (AET) determines which group a person is placed into. It is based on how much they earn per calendar month with those above the threshold falling within the light touch group and those below into the intensive work group. If you fall into the latter, you need to work more to keep your benefits.

This month, the Government increased the AET threshold, meaning those who fall below the limit will have to look for more work. From May 13, the AET stood at 18 hours a week, up from 15 hours, which is equal to half of a full-time week and equivalent to £892 a month. For couples, the new AET rose to 29 hours a week, or the equivalent of earning £1,437 a month. If you don't, then your benefits can be cut or stopped altogether.

Sign up now for the latest news on the North Wales Live Whatsapp community

See what's happening in your area: