Universal Credit

(asked on 13th July 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of (a) the potential merits of excluding mandatory travel to work expenditure from income for universal credit purposes and (b) the effect of the inclusion of that expenditure as income for universal credit purposes on the ability of claimants to seek further employment.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 21st July 2021

No such assessment has been done.

Universal Credit provides support for everyday living expenses. Any earnings an employee receives would normally be expected to cover the costs of travel to and from work, irrespective of whether or not the employee was also claiming Universal Credit.

To keep Universal Credit as simple as possible, the definition of earnings aligns very closely to the rules in tax legislation (Income Tax (Earnings and Pensions) Act 2003 (ITEPA)), so that rules across tax and benefits are aligned where possible. Any allowable expenses which are wholly, necessarily and exclusively incurred as part of the duties of employment are not counted as employed earnings and would be excluded from the calculation of a Universal Credit Award. Travel from home to a permanent workplace is not an allowable expense for tax purposes.

The Flexible Support Fund is a discretionary fund and can be used by staff to remove barriers when a claimant is starting work for example it can cover the first 3 months travel costs. Where there are difficulties with public transport work coaches can consider funding for pedal cycles and e bikes to allow people to get to their place of employment. Discussion s should be held with their work coach in the first instance around this type of support.

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