Dropping work hours 6 March at 4:34PM edited 6 March at 4:58PM in Benefits & tax credits 9 replies 465 views

Johnm2019

Hello,

I currently work 8 hours a day, 5 days a week. I have had a lot going on lately and have spoken to my manager and I have been offered to drop an hour a day, so would make it 35 hours a week.

Is there a minimum amount of hours I would be expected to do from Universal Credits side? As my work are also offering 32 hours a week. I earn £9.90 an hour.

Will this affect my Universal credit claim, me and my partner claim together, we have a 3 year old Son.

Thanks

ElwoodBlues

35 hours a week is the minimum hours that DWP expect a full time worker to be doing, so you can drop down to that with no problem at all. If you go below that they'll put you in their 'light touch' group, as long as your earnings as a couple stay above £988 a month (23hrs a week). Your UC is likely to get increased, but not by as much as the drop in your wages.

Johnm2019

Hi Elwood Blues.  So if I accept the change of hours to 30 hours, I would be earning about £1200 from my employer. So Universal Credit won't expect me to be searching for more work etc? I have worked it out to be about £400 less a month from work, which after Universal credit take their 55 percent I will be looking at being about £180 down a month. Just want to make sure I won't be sanctioned for going from 40 hours to 30.

Alice_Holt

ElwoodBlues said:

35 hours a week is the minimum hours that DWP expect a full time worker to be doing, so you can drop down to that with no problem at all. If you go below that they'll put you in their 'light touch' group, as long as your earnings as a couple stay above £988 a month (23hrs a week). Your UC is likely to get increased, but not by as much as the drop in your wages.

     AFAIK the CET is based on weekly earnings not hours.
    Earnings above the equivalent of 35 hrs at the NMW (currently £9.5) place you in the CET group.

   https://www.uc-advice.co.uk/further-universal-credit-information/conditionality-regime

https://www.whatdotheyknow.com/request/298186/response/730120/attach/4/Attachment 2 Universal Credit Conditionality Earnings Threshold polic....pdf

ElwoodBlues

Alice_Holt said:

ElwoodBlues said:

35 hours a week is the minimum hours that DWP expect a full time worker to be doing, so you can drop down to that with no problem at all. If you go below that they'll put you in their 'light touch' group, as long as your earnings as a couple stay above £988 a month (23hrs a week). Your UC is likely to get increased, but not by as much as the drop in your wages.

     AFAIK the CET is based on weekly earnings not hours.
    Earnings above the equivalent of 35 hrs at the NMW (currently £9.5) place you in the CET group.

   https://www.uc-advice.co.uk/further-universal-credit-information/conditionality-regime

https://www.whatdotheyknow.com/request/298186/response/730120/attach/4/Attachment 2 Universal Credit Conditionality Earnings Threshold polic....pdf

Yes, that's correct, although OP is only earning 30p above min wage, so it still works out to nearly 34 hours/week. Note that min wage increases to £10.42 in a couple of weeks, so OP will be getting an hourly rate pay rise, but might find themselves earning the new min wage.

Below that and it means that you're not earning what they expect of you, but as long as you stay above the AET of £988, you'll be put into the 'light touch' group, which appears to not involve much at all:

The light-touch regime motivates and encourages claimants to increase their earnings as quickly as possible. This helps claimants to reach their Conditionality Earnings Threshold (CET) giving them the best chance of becoming financially independent from Universal Credit. Claimants in the light-touch regime are required to participate in two Work Search Interviews (by telephone, only re-arranged as face-to-face when phone contact is unsuccessful) at day one and week 8 in the regime. There are no further mandatory requirements. Claimants are not required to attend further Work Search Reviews, and all other work-related activity is agreed as part of a voluntary action plan.

ElwoodBlues

Also, the £988 is as a couple, so if your partner works then their income is counted together with yours. 

atlantis187

is the AET likely to go up again this year from £988
Is it changing again in september, I read somewhere

ElwoodBlues

They have increased the AET twice recently last Sept and January. Before last September it was £355 single, £567 couple. Currently it's £618 single and £988 couple.

It's almost certainly going up in April, but they I think they'll keep inflating it until it hits 35 hours/week @min wage. Guessing they want to bring it inline with the MIF for self employed as quickly as they can get away with. It goes under the radar a bit because it's not a headline alteration to UC rates, but it looks like it'll negatively affect quite a lot of people, as they'll get pulled into "intensive work search" and treated as though they're unemployed and forced to look for a higher income job/more hours. 

Spoonie_Turtle

I seem to recall it was something to do with correlating to the number of hours you could work before being kicked off JSA? Not sure on that though, as the earnings would be well over the amount.

Interestingly the current AET amounts are higher than a claimant or couple receiving just the standard allowance could earn before nil entitlement.

calcotti

atlantis187 said:

is the AET likely to go up again this year from £988
Is it changing again in september, I read somewhere

The AET will increase in April because it is calculated by reference to the NMW which is increasing.

The AEA is 15 hours/week x NMW for a single claimant and 24 hours/week for a couple.

At the moment
15 x £9.50 x 52 / 12 = £617.50 rounded down to £617
24 x £9.50 x 52 / 12 = £988

From April it will be
15 x £10.42 x 52 / 12 = £677.30 rounded down to £677
24 x £10.42 x 52 / 12 = £1083.68 rounded down to £1083

Spoonie_Turtle said:

I seem to recall it was something to do with correlating to the number of hours you could work before being kicked off JSA? Not sure on that though, as the earnings would be well over the amount.

AET was calculated by reference to JSA but is no longer done that way.

Initially UC Regs 2013 regulation 99(6) simply said “ This paragraph applies where the claimant’s weekly earnings or, if the claimant is a member of a couple, the couple’s combined weekly earnings are at a level where the Secretary of State is satisfied that a work search requirement or work availability requirement should not be imposed at the present time.” The SoS test was linked to income based JSA allowance for a single person plus £5 for a single person or the allowance for a couple plus £10 for a couple (but I can’t recall where that was set out,)

Universal Credit (Administrative Earnings Threshold) (Amendment) Regulations 2022 changed the calculation to be calculated with reference to NMW with 12 and 19 hours for single claimants and couples.

Universal Credit (Administrative Earnings Threshold) (Amendment) Regulations 2023 Changed the number of hours to 15 and 24.