Universal Credit

Department for Work and Pensions written question – answered on 3rd April 2017.

Alert me about debates like this

Photo of Baroness Lister of Burtersett Baroness Lister of Burtersett Labour

To ask Her Majesty’s Government what is the rationale for setting a single benefit cap earnings exception threshold in Universal Credit linked to the National Living Wage; and whether this will require under-25s receiving the lower National Minimum Wage, including young lone parents, to work a longer number of hours before qualifying for the exception.

Photo of Lord Henley Lord Henley Lord in Waiting (HM Household) (Whip), The Parliamentary Under-Secretary of State for Work and Pensions

A threshold linked to the national living wage ensures the work incentive provided by the benefit cap is maintained. The new threshold is consistent with the original intention of the earnings exception threshold by excepting from the cap any household that earns the monthly equivalent of working 16 hours per week at the highest minimum wage rate in force.

The Government has fully considered the position of people who may have to work more than 16 hours to qualify for the exception. More information is in the impact assessment and equality analysis published with the Universal Credit (Benefit Cap Earnings Exception) Amendment Regulations 2017 (SI No: 2017/138). The Government also published a statement in response to comments made by the Social Security Advisory Committee on the amendments.

These documents can be found on: the ‘legislation.gov.uk’ website by searching for year 2017 number 138

And on the ‘gov.uk’ website by searching ‘universal credit benefit cap earnings exception amendment regulations 2017 ssac report’

Does this answer the above question?

Yes1 person thinks so

No0 people think not

Would you like to ask a question like this yourself? Use our Freedom of Information site.