Universal Credit claimants could lose over £1,000 thanks to new DWP trial

13 February 2023 , 11:26

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Those who refuse to adhere to these new rules could have their standard allowance revoked for up to three months (Image: Getty Images)

Universal Credit claimants would risk losing over £1,000 under plans being trialled by the Department for Work and Pensions (DWP).

Currently, those claiming the benefit usually meet work coaches once a week for the first three months, then every two weeks after this point.

But the new plans would see Universal Credit claimants have to attend an intensive two week programme to try and get them back into work to get them back into work, according to The Times.

This would impact people claiming the benefit and who have been unemployed for more than three months.

Those who refuse to adhere to these new rules could lose their standard allowance for up to three months.

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This could potentially cost someone £334.91 a month, or around £1,004.73 in total.

However, as of right now this new rule has not been rolled out across the UK and is only being trialled in four areas.

These include Crawley in West Sussex, Pontefract in West Yorkshire, Partick in Glasgow and Coalville in Leicestershire.

The Work and Pensions secretary Mel Stride has written letters to MPs in each area being trialled.

According to The Times, he said: "Evidence shows that the longer a person is out of work the harder it is for them to return, and it is at this 13-week point that a claimant’s likelihood of securing employment begins to decrease."

Mel Stride also said certain people on Universal Credit were exempt from the programme.

This includes those who are waiting for work-capability assessments, those required to do less than 35 hours a week of work search activity and those already exempt from searching for jobs.

It's not yet clear whether the programme will be rolled out nationwide following the current trial.

In the UK there are currently 1.2 million people who are unemployed. With another 9 million neither in a job or looking for one.

The Government believes that the scheme could form part of a "carrot and stick" approach to encouraging people back to work.

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The DWP said it was always looking at "new" and "innovative" ways to support people with different needs to "find and succeed" in employment.

On this story, a DWP spokesperson said: "In the first half of 2022 we supported half a million benefit claimants into work and our recent changes to Universal Credit will build on this by providing hundreds of thousands more with intensive support to get better-paid work and boost long-term prospects.”

Ruby Flanagan