THOUSANDS on Universal Credit are to be hit with a big change from today.
The Administrative Earnings Threshold (AET) is increasing, impacting roughly 120,000 on the benefit.
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The change means you will have to look for or prepare for work if you want to carry on receiving help.
Previously, households on Universal Credit had to earn the equivalent of 12 hours pay a week, at the National Living Wage, to not have to meet certain requirements.
These included having to look for more work or preparing for more work.
But from today, the 12 hour threshold has increased to 15, thrusting roughly 120,000 people into having to earn more to be exempt from the requirements.
Those that don’t meet them could be sanctioned – when payments are temporarily stopped or reduced for a set period.
Who will be impacted by the change?
Every person has their own unique earnings threshold depending on their circumstances.
But, as a rough example, before, if you were single, employed and had household earnings of more than £494 per month you were not expected to look for or be available for work.
This was £782 per month joint income if you are part of a couple.
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But these figures were up to £617 and £988 respectively from today.
If you earn under these amounts you will have to look for or be available for work.
But there are some exceptions, for example if you have a joint Universal Credit claim and your partner is not expected to work because they have a Limited Capability for Work.
Another exception is if you are over the state pension age, which is currently 66.
The rules can be complicated so it’s worth talking to your work coach who can help guide you on the change.
Charities like Turn2Us are useful for advice too. You can call them for free on 0808 802 2000.
What help is there for people on Universal Credit?
There’s plenty of extra help on offer if you’re on Universal Credit.
The Department for Work and Pensions has announced millions will get a £900 cost of living payment over the next two years, including those on Universal Credit.
The payment is going to be split into three instalments.
You don’t have to apply for the payments as they will be made automatically into bank accounts.
There’s a host of freebies you can get if you receive Universal Credit as well.
This includes free or cheap broadband, through so-called social tariffs.
Plus, you can get free school meals, a discount on your council tax, cold weather payments and help with rent.
For the full list, you can read our guide here.
In other Universal Credit news, consumer expert Martin Lewis has warned how millions are missing out on £1,000 in free cash.
Plus, stay-at-home mums will be wooed back into the office, under plans being considered by ministers.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]
