Universal Credit

(asked on 13th September 2021) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to her comment on BBC Breakfast on 13 September 2021 that £20 a week is about 2 hours' extra work every week, how that calculation was made.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 16th September 2021

Universal Credit is a benefit where the amount received by claimants and the way this fluctuates in line with earnings will depend on individual household circumstances. This range of circumstances will affect how increased earnings for entering or progressing in work will translate into a rise in net income.

The National Living Wage is currently £8.91 an hour for workers aged over 23, where 2 hours in work should mean gross earnings of nearly £20; many individuals will receive an hourly pay rate greater than this.

In Universal Credit, those with children or limited capability for work are entitled to a Work Allowance of either £293 or £515 a month. This means that the taper rate does not apply to their earnings below this level and they do not see any reduction in their Universal Credit award As a consequence, many claimants can keep all their earnings from their first several hours of work.

Through our Plan for Jobs, we are targeting tailored support schemes of people of all ages to help them prepare for, get into and progress in work. These include: Kickstart, delivering tens of thousands of six-month work placements for UC claimants aged 16-24 at risk of unemployment; Restart, which provides 12 months’ intensive employment support to UC claimants who are unemployed for a year; and JETS, which provides light touch employment support for people who are claiming either Universal Credit or New Style Jobseekers Allowance, for up to 6 months, helping participants effectively re-engage with the labour market and focus their job search. We have also recruited an additional 13,500 work coaches to provide more intensive support to find a job. In total, our Plan for Jobs interventions will support more than two million people.

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