25 October 2023 , 08:48
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Thousands of parents on Universal Credit will face benefit cuts under major changes being introduced today.
The shake-up will affect claimants with children aged three to 12. These people previously had to spend between 16 and 25 hours a week either in work, with job coaches or searching for work.
But under new rules being brought in today, this will increase to a maximum of 30 hours a week. If claimants don’t stick to their benefit commitments without good reason, they risk their Universal Credit being cut.
Eligible claimants will have to agree new commitments - such as agreeing to increase their hours, search and apply for jobs, update their CV or attend workshops - at their next scheduled meeting with their work coach. The Department for Work and Pensions (DWP) said the number of hours parents will be expected to spend in work or applying for jobs will depend on their individual circumstances, including childcare.
Self-employed parents of three to 12-year-olds will not be affected by the rule change. The change was first announced in the Spring Budget by Chancellor Jeremy Hunt and comes after new rules were introduced in July which increased the frequency of work coach appointments for parents of one and two year olds from every six to every three months.
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Together, both measures affect more than 500,000 parents in total. The DWP says it has increased its childcare support for eligible parents who increase their working hours - currently, those are in work can claim back up to 85% of their childcare costs, up to a maximum of £950.92 a month for one child, or £1,630.15 for two or more.
Secretary of State for Work and Pensions, Mel Stride MP said: “We are pulling down barriers that stop parents working and fulfilling their potential, because we know full time work not only benefits mum and dad but the whole family too. These changes will support thousands on their back to work journey. We’re backing working families, and as they step up for their careers, we are taking action to halve inflation, grow the economy and make everyone’s money go further.”