Major change to Universal Credit rules set to hit 120,000 people – are you one of them?

HUNDREDS of thousands of people claiming Universal Credit are set to be hit by new rules in a fresh shake-up to the benefit system.

The change is set to be revealed by Chancellor Kwasi Kwarteng in his min-budget on Friday.

Alamy

A major change to Universal Credit will impact around 120,000 people[/caption]

People on Universal Credit working up to 15 hours a week at the National Living Wage will be required to meet regularly with a work coach and to take “active steps” to boost their pay.

Currently it’s set at 12 hours and the increase will bring around 120,000 more people into the intensive work search regime.

Universal Credit is based on how much you earn rather than the hours you work.

But the minimum wage for those aged over 25 – currently £9.50 – is used to calculate the equivalent hours worked.

Working fewer than these hours a week, means you’re expected to go to the job centre and meet with work coaches to increase your earnings.

The increase in hours from 12 to 15 is expected to take effect from January.

Claimants aged over 50 will also get extra support from work coaches, while the newly unemployed will receive nine months of targeted sessions.

Chancellor Kwarteng said: “We must get Britain working again.

“These gradual changes focus on getting people back into work and maximising the hours people take on to help grow the economy and raise living standards for all. It’s a win-win.”

Universal Credit can be claimed if you’re in work and on a low income and around 2.3 million people on the benefit have a job.

Payments can be cut or stopped altogether for failing to turn up to meetings.

If you repeatedly miss meetings the sanctions may be stricter and last longer.

Sanctions are when claimants can lose some or all of their benefits if they don’t follow the rules set out in their claimants commitment, but the most severe consequences are for repeat offenders.

Payments can be slashed for a number of reasons, like turning down a job offer or failing to update information like moving house or how many hours you work.

The exact terms of looking for work or increasing hours depends on your circumstances and is detailed in your claimant commitment.

This is a document where you agree to certain terms when making a claim for Universal Credit.

For instance those looking after children or with caring responsibilities are not expected to have to work, or look for work, for as many hours.

Here we list five mistakes that could see your Universal Credit payments stopped and tell you how to challenge a sanction.

The latest announcement comes ahead of tomorrow’s mini-budget.

Mr Kwarteng is due to set out details of the Government’s plans to boost growth and attract investment, including how it will pay for the energy price guarantee for households and businesses.

As well as reversing the hike in national insurance contributions and scrapping a planned increase in corporation tax, which Prime Minister Liz Truss has promised, it has been reported that the Chancellor will cut stamp duty in a further attempt to drive growth.

The Sun has put together a guide on what you can expect to see in tomorrow’s mini budget.