WHAT IS AET and who does it effect?

Whitebeast

"In Universal Credit, the Administration Earnings Threshold ( AET ) demarcates the Intensive Work Search ( IWS ) labour market regime from the Light Touch labour market regime. From 26 September 2022, the AET will be raised: from £355 to £494 a month for a single claimant. from £567 to £782 a month for a couple"

over 100,000 people will be effected out of several Millions out of work and on UC.

Been looking can not find anything what make sence to me. Can someone explain this to me who exactly is this targted to ?

Thanks x

calcotti

If an individual or couple have earnings that exceed the AET then their UC commitments are reduced such that they do not have to carry out full work search requirements or be available for work. This is known as the ‘Light Touch Regime’.

https://data.parliament.uk/DepositedPapers/Files/DEP2022-0452/088-Light_Touch_regime_V9.0.pdf
https://data.parliament.uk/DepositedPapers/Files/DEP2022-0452/175-Work_related_activities_and_the_Labour_Market_regimes_V6.0.pdf

There is no requirement for the claimant to undertake work search activities, be available for work or carry out mandatory work preparation. These claimants may undertake work preparation activity on a voluntary basis.

Note that AET is based on gross employed earnings. Other income is not included. Self employed earnings are also not excluded.

The change in the AET threshold means that some claimants who were in the Light Touch Regime will now be subject to full work search conditionality.

The AET is currently set by reference to the amount of JSA payable to an income based JSA claimant. From 26th September the AET is set as 12 hours at NMW per week for a single claimant and 19 hours of NMW per week for a couple. 

I admit that I am not clear what actual interaction takes place between the Job Centre and a claimant who meets the AET.

NedS

calcotti said:

I admit that I am not clear what actual interaction takes place between the Job Centre and a claimant who meets the AET.

Currently, there are no requirements for claimants in Light Touch (i.e, with earnings above the AET) to attend mandatory appointments. There are no requirements for them to try to increase their earnings.

There have been pilot studies in the past where appointments were conducted with claimants in Light Touch, but the current focus appears to be more on those in Intensive Work Search regime who do not yet have earnings above the AET. By raising the AET, and bringing more claimants into the Intensive Work Search regime, I am not then expecting that to change.

calcotti

NedS said: Currently, there are no requirements for claimants in Light Touch (i.e, with earnings above the AET) to attend mandatory appointments. 

That's what I thought - I'm grateful to you for confirming. It is quite an odd regime.

NedS

calcotti said:

NedS said: Currently, there are no requirements for claimants in Light Touch (i.e, with earnings above the AET) to attend mandatory appointments. 

That's what I thought - I'm grateful to you for confirming. It is quite an odd regime.

Oddly named, yes. I guess the original intention when they came up with the names was that there would be scope to have "light touch" contact with those claimants, and as mentioned previously there was a randomised pilot study (I forget what it was called) on UC Live Service back around 2017/18 or so. I don't recall any clear outcome on whether having "light touch" appointments gave rise to those claimants increasing their earnings, or not.

tinalouise69

Hi there and thanks in advance for any replies. This is my first post so apologies for jumping straight in but I have a question.

With the new AET amounts coming in I am paid every four weeks. If they go on the amount I get paid I will be below the new AET amount. If my earnings are worked out over a year then I won't be below. Hope this makes sense.

calcotti

tinalouise69 said: With the new AET amounts coming in I am paid every four weeks. If they go on the amount I get paid I will be below the new AET amount.

Unfortunately UC will look at what you receive in each UC assessment period. That means that you will be below AET in 11 out of 12 months.

tinalouise69

Thought that may have been the case x thank you x

calcotti

tinalouise69 said:

Thought that may have been the case x thank you x

It is a bit tough on those who are actually doing the required hours of work.

tinalouise69

I am only a about £30 below but I suppose below is below x

NedS

tinalouise69 said:

I am only a about £30 below but I suppose below is below x

Then unfortunately you will be attending regular appointments at the jobcentre.