www.cpag.org.uk

Universal Credit work-related requirements

Jon ShawJune 2013

Universal Credit (UC)Key changes:• Replaces six different

benefits with one payment• Claims normally online• Real-time earnings

information from HMRC• Single monthly household

payment (may be exceptions)

• Rent paid direct to claimant• Overpayments recoverable

Basic conditions• aged 18 or over (some

exceptions)• under pension credit

age• resident in Great Britain• not full-time student

(some exceptions)• accepted a ‘claimant

commitment’Financial conditions • income low enough• capital under £16,000

The UC claimant commitment• Key features:

− Sets out the ‘work-related requirements’ for a particular claimant− Sets out amount and duration of benefit sanctions if

requirements not met− Sets out duty to notify changes of circumstances,

consequences of failure to do so, etc.• Acceptance of the commitment (online or face to face) is

a condition of entitlement, unless:− Claimant lacks capacity (normally if has an appointee)− Exceptional circumstances prevent acceptance

• Both partners in a couple need to accept, or no UC paid (a ‘cooling off’ period may be allowed)

• Can be updated by DWP as required

UC work-related requirementsEach claimant is placed in one of these groups:• No work-related requirements• Work-focused interviews only• Work preparation• All work requirements (default group)

Current system Universal credit systemConditionality largely applies to claimant only

Conditionality applies to both members of a couple

Little in-work conditionality In-work conditionality

Actively seeking work defined by actions, not hours spent

Work search means spending a set number of hours looking for work

Detailed rules on exceptions Exceptions largely discretionary

No work-related requirements – who • Carers (discretionary if don’t get carer element)• ESA support group• Heavily pregnant or recently given birth• Lone parent or main carer of a baby under 1• Over pension credit age• Adopted within the past year• Student with grant/loan income• Young FE student without parental support• Victim of domestic violence

− For 13 weeks, only once a year, must have moved out• Earning above the ‘earnings threshold’:

− Different level for single/couples; and depending on other circumstances (complicated for self-employed people)

Work-focused interviews – who/what• Main carer of a child under 5• Become a main kinship carer in the past year• Main foster carer of a child under 16 (and for 8

weeks after placement ends)• If accepted as reasonable:

− Foster carer of a child over 16 with additional needs− Both foster carers of a child with additional needs

Must ‘participate’ in work-focused interviews when asked. Purpose includes:• Discussing skills, experience, barriers to work• Discussing support to move towards work

Work preparation – who/what• People with limited capability for work (but not in

the support group)Work preparation can include a set amount of time:• doing training• participating in the Work Programme• doing work experience or work placements• developing a business plan• a work-focused health-related assessment• having a skills assessment• improving personal presentationClaimant can also be required to take part in work-focused interviews.

All requirements – who/what• Anyone not in one of the other three groups has

all of the work-related requirements• Includes those in part-time work• This is the default group – everyone is in it until it

is determined that they shouldn’t be

Must meet a ‘work search’ and a ‘work availability’ requirement, and can be asked to prepare for work or take part in a WFI as well. Requirements can be waived in some circumstances

Work search and work availabilityWork availability: • Standard definition of ‘ready and willing to take

up all paid work immediately’Work search:• Taking ‘all reasonable action’ to obtain work, and

can include specific actions• Normally need to search for all full-time work

paying minimum wage within 90 minutes of home

Some flexibilities in regulations if already working, caring responsibilities or health problems

Work Search requirement waived• Attending a court/tribunal or in prison• Outside GB for medical treatment• Partner, child or disabled person cared for has

died within the last 6 months• In drug/alcohol recovery (up to 6 months)• In witness protection (up to 3 months)• If unfit for work (up to 14 days, twice a year)• Discretionary if:

− longer periods of sickness, temporary childcare problems, public duty, work preparation, temp. change of circs.

Sanctions• A sanction can be applied if the claimant fails to meet

work-related requirements, in most cases ‘without good reason’

• The length of a sanction depends on the failure, and which work-related requirements the claimant has

• The amount of a sanction is normally the adult personal allowance, or half the couple rate if one person is sanctioned

• Calculated at a daily rate – eg, £10.20 per day for a single claimant over 25

• Sanctions run one after another and continue if UC ends and is later reclaimed

Hardship payments• Payable only if a claimant over 18 has been

sanctioned• Must comply with work-related requirements now• Must claim hardship payments• Must be unable to meet basic and essential needs

for accommodation, heating, food or hygiene• Paid at 60% of sanctioned amount• Must re-apply every month• Hardship payments are recoverable from UC once

sanction ends – must accept this to get one• Recovery suspended if working over earnings

threshold (ends after 26 weeks)

CPAG publications• New edition of Universal

Credit: What you need to know expected next month

• Welfare Benefits and Tax Credits Handbook redesigned to include information about the universal credit system

• New basic publications about other welfare reforms later in 2013…

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