HUNDREDS of thousands of people claiming Universal Credit face seeing their payments reduced under new government plans.
The changes are set to be revealed by Chancellor Kwasi Kwarteng this week in a huge shake-up of the benefit system.
Claimants working up to 15 hours a week on the National Living Wage will be required to meet regularly with a work coach and to take “active steps” to increase earnings.
If they fail to do so, under the plan, their benefits could be reduced.
The government says it will bring around 120,000 people into the intensive work search regime.
Currently anyone on Universal Credit and working nine hours or more does not need to attend regular appointments at the Job Centre.
READ MORE IN MONEY
Urgent warning as benefit payments could be DELAYED
Major rule change next week for thousands on Universal Credit– how to avoid
This threshold was set to rise to 12-hours, but the new plans would see the threshold for a more intensive work search regime rise even further.
It 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.
Most read in Money
Families to get extra £100 to tackle Cost of Living – plus more help in October
Petrol prices fall below 166p a litre – knocking £14 off a tank
Thousands to get new £400 energy bill payment including renters
Three new measures for families and businesses revealed amid cost of living crisis
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.
Read More on The Sun
I got Primark’s £20 Bottega boot dupes…they’re £990 cheaper & look identical
Three mind-blowing new iPhone tricks you MUST learn
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.
Source: Read Full Article
