Universal Credit AET January 2023 6 November 2022 at 5:22PM in Benefits & tax credits 30 replies 2.4K views

atlantis187

Can someone please clarify for me what the AET will be for couples from Jan 2023 and will this based on gross pay or net pay?

calcotti

As explained in this thread on which you also asked about whether gross or net pay is used the thresholds be assessed against averaged gross earnings.
https://forums.moneysavingexpert.com/discussion/6399933/administrative-earnings-threshold-to-rise-for-universal-credit-help-please/p1

calcotti said:

I would refer the JobCentre to the guidance.

Refer also to

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1046459/adm-j2.pdf
Paragraph J2092.

and
https://www.legislation.gov.uk/uksi/2013/376/regulation/90
Regulation 90(6) makes clear that for earnings thresholds the gross amount applies.

Here is the text of the regulation (also quoted in that previous thread).

Claimants subject to no work-related requirements - the earnings thresholds

90. (6) A person’s monthly earnings are  -

(a) the person’s earned income calculated or estimated in relation to the current assessment period before any deduction for income tax, national insurance contributions or relievable pension contributions; or

(b) in a case where the person's earned income fluctuates (or is likely to fluctuate) the amount of that income calculated or estimated before any deduction for income tax, national insurance contributions or relievable pension contributions, taken as a monthly average -

(i) where there is an identifiable cycle, over the duration of one such cycle, or

(ii)where there is no identifiable cycle, over three months or such other period as may, in the particular case, enable the monthly average to be determined more accurately and the Secretary of State may, in order to enable monthly earnings to be determined more accurately, disregard earned income received in respect of an employment which has ceased.

I don’t understand why you are asking again a question fully answered in that other thread.

As regards the amounts, it was announced in  Kwasi Kwarteng‘s ill fated Growth Plan that the thresholds will rise again in January to 15 hours/week x NMW for individuals and to 24 hours/week for couples (currently 12 and 19 respectively). However that Growth Plan has largely been reversed so I don’t know what will actually happen. Nothing has been regulated for yet so the answer to your question is that we don’t know what amounts will apply - the statement on 17th November may provide information.

atlantis187

sorry i couldnt find the other thread

Yes, I know most of the mini budget has been reversed but this bit hasn't and the govt may still let it go ahead because it's not been in the news and there hasn't been a fuss made about it.
If it did go to the 24 hours for couple's then what will the AET be?

kaMelo

24 hours per week at NMW (£9.50) is £228 p/w so £988 p/m

calcotti

Note too, that following the September regulations, regardless of any changes to the hours used as a base requirement the earnings thresholds will automatically rise with any rise in NMW which one would normally expect in April.

tifo

atlantis187 said:

sorry i couldnt find the other thread

1.3K posts and you can't remember asking questions in other threads even a day or so earlier? Or even checking in your profile which posts you've made?

poppy12345

tifo said:

atlantis187 said:

sorry i couldnt find the other thread

1.3K posts and you can't remember asking questions in other threads even a day or so earlier?

They didn't say they couldn't remember asking the question. They said they couldn't find the other thread.

calcotti

atlantis187 said:

sorry i couldnt find the other thread

Atlantis, if you go to your profile you can see all the posts you have previously made. If you have recently made a post it is easy to see that post and that will then take you to the thread in which you made it.

atlantis187

tifo said:

atlantis187 said:

sorry i couldnt find the other thread

1.3K posts and you can't remember asking questions in other threads even a day or so earlier? Or even checking in your profile which posts you've made?

lol - sorry possible explanation 'time of month' even though i'm a bloke hahaha

tifo

atlantis187 said:

lol - sorry possible explanation 'time of month' even though i'm a bloke hahaha

Or a blank moment 

KCJA1989

Hi all,

Sorry to bump an old thread, just thought it would be better than creating new for a similar query.

Has there been any update on whether the "Growth Plan" changes will go ahead in January? We are currently still in the light touch category, but we would go below the proposed AET if pushed through in January. Worrying times.

Thanks a lot!