Universal Credit Administrative Earnings Threshold Level

Monday 15th April 2024 Written Statements

[The Minister for Employment (Jo Churchill)]

Since September 2022, the Government have increased the administrative earnings threshold on 26 September 2022 and 30 January 2023.

As a result, individuals with low incomes impacted by the changes have received direct one-to-one support from Department of Work and Pensions work coaches to access opportunities and agree steps to increase their earnings such as developing their skills, progressing in their current role or sector, or by changing their job.

These changes have helped achieve a better balance of the responsibilities asked of individuals in return for their benefits. They have ensured that there is a clear expectation that individuals receiving universal credit alongside their income should be taking every appropriate step to increase their earnings, subject to full conditionality and with the support of their local Jobcentre Plus.

Moving into better work boosts both the economy and the individual, improving life prospects and mental and physical health, and providing the opportunity to develop new skills. This is why the Government intend to lay regulations to amend Regulation 99(6) of the Universal Credit Regulations 2013 in the coming weeks to raise the administrative earnings threshold level further, delivering on a commitment made in last year’s Spring Budget.

Individuals impacted by the upcoming rise in the administrative earnings threshold level will be contacted by the DWP through their universal credit journal. Our work coaches will review and agree new claimant commitments with each individual, providing support and setting appropriate requirements to help them access opportunities to increase their earnings. They will help identify barriers such as childcare, transport and skills and will support the customer with solutions.

This is part of our next generation of welfare reforms and mission to ensure work always pays and is backed up by our Back to Work plan which will help over a million people find, stay and succeed in employment.

The Department for Communities in Northern Ireland is aware of the upcoming administrative earnings threshold increase in Great Britian. While social security policy is a transferred matter and policy decisions rest with the devolved Northern Ireland legislature, Northern Ireland generally maintains parity with DWP on social security matters.

We will confirm further details on the threshold increase in due course.

[HCWS405]