In the realm of welfare reforms and economic shifts, today marks a significant change for around 180,000 part-time workers in the UK. The alteration in the Universal Credit system, initiated by Prime Minister Rishi Sunak, aims to reorient the focus toward employment opportunities. Let’s delve into the details of these changes and understand their implications.
Encouraging Work Over Welfare
The Government’s stance on these changes is clear: the aim is to shift the narrative from a “sick note culture” to a proactive approach toward employment. With over 900,000 job vacancies in the economy, there’s a strong push to incentivise more individuals to transition from Universal Credit to gainful employment.
Radical Expansion of Support
Mel Stride, the Work and Pensions Secretary, emphasises the significance of these changes. The adjustments in Universal Credit thresholds are envisioned as a means to expand support and facilitate the journey toward financial independence for thousands of individuals.
Understanding the Changes
Effective May 13, 2024, the Administrative Earnings Threshold (AET) will rise from 15 to 18 hours per week at the National Living Wage. This means that part-time workers claiming Universal Credit, earning less than £892 per month working fewer than 18 hours a week, or £1,437 for couples working less than 29 hours a week, will need to intensify their job search efforts.
Work Groups and Requirements
Universal Credit claimants are categorised into different “work groups” based on their earnings under the AET. Those working above the new 18-hour threshold will be placed in the “light touch” work group, exempt from the requirement to actively seek work. However, individuals earning below this threshold will be placed in the “intensive work search” group, necessitating more regular meetings with work coaches to demonstrate their job-seeking efforts.
How We Can Help
At Infinity Group, we understand the challenges these changes may present, particularly in managing payroll and navigating financial transitions. Our team is here to offer assistance and support to businesses and individuals alike. Whether you need guidance on payroll management or want to stay updated on all financial updates in the UK, we’ve got you covered.
Stay Connected
To stay informed and receive expert assistance, reach out to us today. Let’s navigate these changes together and empower you on your journey toward financial stability and independence.