UC - AET

calcotti

KCJA1989 said:

As it's a joint claim, am I right in thinking it's £541/month - is this still the case though my wife is looking after a newborn, am I still expected to earn over the joint AET (£541) or because of that am I only expected to earn over the single AET (£338). I expect that I am expected to earn the joint total by myself but just thought I would clarify, if somebody could.

I wondered about that and did some hunting around yesterday. On the one hand it might appear logical for the AET to be as for a single person if the partner has no work requirements (for whatever reason). However because you are claiming as a couple your UC entitlement is higher and, as far as I can tell, the higher AET therefore applies.

KCJA1989 said:

What I do find frustrating is that if I were to be paid monthly, even on my base contract of 15 hours per week I would be nigh on the threshold (i.e. 15h/week * hourly rate * 4.333333), whereas being paid weekly on a "four week month" (i.e. 15h/week * hourly rate * 4) would inevitably leave us slightly under, and the "five week months" (i.e. 15h/week * hourly rate * 5) would inevitably take us well over. Do you think they would take that into consideration? 

The impact of 4 weekly payment cycles is well known and documented on government's own UC guide here https://www.gov.uk/government/publications/universal-credit-different-earning-patterns-and-your-payments/universal-credit-different-earning-patterns-and-your-payments-payment-cycles
Your UC will be based on what you receive within each assessment period.
You will just have to see how it works out in practice.

NedS

calcotti said:

KCJA1989 said:

As it's a joint claim, am I right in thinking it's £541/month - is this still the case though my wife is looking after a newborn, am I still expected to earn over the joint AET (£541) or because of that am I only expected to earn over the single AET (£338). I expect that I am expected to earn the joint total by myself but just thought I would clarify, if somebody could.

I wondered about that and did some hunting around yesterday. On the one hand it might appear logical for the AET to be as for a single person if the partner has no work requirements (for whatever reason). However because you are claiming as a couple your UC entitlement is higher and, as far as I can tell, the higher AET therefore applies.

I'm not 100% sure either. I thought the single AET threshold of £338 would apply to you putting you into "Light Touch - in work", and if you also met the £541 couple threshold, that would also move a partner (if they has work related requirements - yours doesn't) into "Light Touch - out of work". But I could be wrong

Alice_Holt

This may be worth reading:
https://revenuebenefits.org.uk/universal-credit/guidance/entitlement-to-uc/calculating-universal-credit/

calcotti

NedS said:

I'm not 100% sure either. I thought the single AET threshold of £338 would apply to you putting you into "Light Touch - in work", and if you also met the £541 couple threshold, that would also move a partner (if they has work related requirements - yours doesn't) into "Light Touch - out of work". But I could be wrong

I hadn’t thought of it like that. However guidance at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864944/admj3.pdf paragraph J3233 reads as if the AET applies to the couple rather than the individual.
i confess I find the whole AET/CET arrangement quite challenging to understand. If requirements cannot be imposed above AET it seems to make the CET redundant.

KCJA1989

Thanks for the replies. 

From all that I have read through my own research and the links provided, I think £541/week will be the figure because at the end of the day it is still a joint claim. This is part of my trouble with UC as a whole - a lot of it seems quite vague. 

Thanks for the help. 

NedS

calcotti said:

NedS said:

I'm not 100% sure either. I thought the single AET threshold of £338 would apply to you putting you into "Light Touch - in work", and if you also met the £541 couple threshold, that would also move a partner (if they has work related requirements - yours doesn't) into "Light Touch - out of work". But I could be wrong

I hadn’t thought of it like that. However guidance at https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/864944/admj3.pdf paragraph J3233 reads as if the AET applies to the couple rather than the individual.
i confess I find the whole AET/CET arrangement quite challenging to understand. If requirements cannot be imposed above AET it seems to make the CET redundant.

I think you are right. ADM J2093, example 4 also reads the same way.

AFAIK, not imposing work requirements above the AET (but below CET) is a legal requirement to ensure those on UC are treated the same as those on JSA. So it's kind of a fudge that makes the CET a bit meaningless. The initial intention was probably for the CET to be the meaningful threshold but then the legal folks got hold of it and the AET was conceived to align UC to JSA legislation.

Under Live Service there was a pilot study (can't remember the name) whereby some people in Light Touch were still seen but I don't recall what type of commitments they had.

calcotti

NedS said: 

 So it's kind of a fudge that makes the CET a bit meaningless.

That makes sense!

atlantis187

What are the AET rates for 20/21

NedS

atlantis187 said:

What are the AET rates for 20/21

I have not heard if the AET rates will rise for 2020/21, but if they do then they will likely rise at 1.7% in line with other benefit rises. The AET is the amount a person on JSA would have to earn to no longer qualify for JSA and thus no longer have work related requirements. JSA rates will rise by 1.7% in April 2020.

Galloglass

but if they do then they will likely rise at 1.7% in line with other benefit rises.

This poses the question of whether the AET is indexed and to what? NMW is going up by 6.2% so another difference between those that can work and those that can't (I'm ignoring those that have the choice to work or not)

This Freedom of Information answer seems to suggest the indexing is variable. 
https://www.whatdotheyknow.com/request/298186/response/730120/attach/3/Attachment%201%20Universal%20Credit%20Earnings%20policy.pdf

The Administrative Earnings Threshold (AET) has been introduced to ensure that only claimants on no income or very low income will receive intensive support. The current AET has been set at £338 per month for a single person and £541 for couple based on gross taxable pay. From February 2015 the AET is likely to be defined in the Universal Credit regulations and be linked to the Jobseeker's Allowance (JSA) rate. Unlike the CET, the individual/household AET are static amounts that are not variable. The AET will need to be increased each April in line with JSA rates (where the JSA rate has been uprated).