Recent rule changes around Universal Credit payments mean that recipients may be required to apply for jobs that are less tied to their previous experience. With non-compliance posing a risk of payments being reduced or halted altogether for claimants, IncomeMax founder Lee Healey has provided advice on how to avoid being penalised.
The new rules
First announced in January, the new rules entered force from February 8. Prior to the changes, Universal Credit claimants had up to three months to look for work in the area they were trained in or were working in before. This window has now been reduced to four weeks.
Speaking to the Sun, Healey said: “Someone previously would have been able to claim Universal Credit and get a little bit longer to look for a job within their own sector or profession. Now you're only going to have four weeks.
“The government wants to get 500,000 people into work by the end of June in order to - as they have said - turbocharge the national recovery from Covid. The idea of Way to Work as it’s called, is to rapidly fill vacancies, and there are a lot of jobs going at the moment, and a lot of skill shortages.”
The Sun reports that there are some 400,000 job vacancies within hospitality businesses such as pubs, restaurants and bars, while a shortage of HGV drivers has culminated in stock shortages in supermarkets. Meanwhile, other sectors hit by labour shortages include construction, social care, digital and technology.
These new Universal Credit rules mean that individuals skilled in a particular profession have just four months to find a role in their area of expertise, or potentially have to move into a new industry.
Healey explained: “After that, you're really going to have to take any job that the Department for Work & Pensions [DWP] deems to be suitable for you. That will be laid out within your claimant commitment.”
The government is not expecting claimants to move into roles that are too far removed from their skillset, but the DWP has said that they will have to “broaden [their] search activity more quickly into suitable jobs in any sector that they are capable of doing.”
How are claimants affected and what can they do?
Healey has advised claimants to speak to their work coaches and look at their claimant commitments to better understand how the changes may affect them more specifically. If individuals believe their claimant commitment to be wrong, they ought to speak to their work coach.
Healey said: “The claimant commitment has always been there, that’s not new and it details what steps people need to take to move into work. What those commitments are will depend on your situation and your circumstances.
“You need to make sure that the claimant commitment that you're signing up to, which is effectively your responsibilities for claiming Universal Credit and receiving financial support, that you're absolutely okay with it. Check that it covers your own personal situation, in line with the rules and get some independent advice if you feel like you're struggling with the commitments that DWP are asking of you.
“So, for example, we do sometimes meet people that are really unwell, and are having problems with all of these commitments, but actually, it's because we need to stop them having such a strict regime and we need to help them undertake the limited capability for work assessment.”
Although claimants will need to look for work in different industries sooner than previously, other aspects of one’s job search should not be affected. This means that those with childcare responsibilities or can only work part-time will not be expected to seek out full-time work.
Healey elaborated: “Not everyone is actually governed by the same time and commitment or have the same responsibilities. So obviously things like disabilities and health issues could mean that you have limited capability for work.
“Really, this affects people that have a claimant commitment to look for work and take on more work.”
What will happen if claimants do not find a job in four weeks?
In the event that claimants are unable to find another job within the four-week window, should they then asked to take a role outside their usual area of expertise which is within their claimant commitment, then Healey advised them to accept it or risk having Universal Credit payments reduced or stopped.
“There’s always been this rule, but they’ve just reduced the time. If you were out of work long term, you would have been hit by this eventually.
“The Job Centre is able to sanction you, which is reducing or stopping your benefits if they feel that you're not meeting all of the responsibilities that you've signed up for in your claimant commitment.”
Sanctions apply to the standard allowance of the claim concerned. Any housing or childcare elements of benefits received will not be affected.
There are four bands of sanction, ranging from lowest level to low level, medium level and high level. The length of the sanction depends on the category as well as the number of previous sanctions handed out against the claimant. Further information on the nature of sanctions can be found here.
What can claimants do if they take a job in another sector and do not like it?
Healey recommends that claimants speak with their work coach about the types of jobs they are willing to take in other industries when arranging claimant commitments. With this in place, Job Centre staff can then help guide claimants toward more appropriate roles for them.
He said: “For some people, it could potentially be quite upsetting or stressful to be asked to take on a job outside your normal profession if you've spent years training or studying or working in a particular sector.
“But it doesn't stop someone working with a job coach to get into the job that they really want or accelerating their search.”
Healey also emphasised that just because claimants are having to accept a less than ideal job, it does not necessarily mean that they will be in that role long-term. It is possible to continue looking for a better-suited role and complete training, or even try to move roles within the company.
Healey said: “DWP are really committed to providing support around this. They have just extended their programme offering intensive training and while staying on benefits as well.
“If you are in a job, ask what the progression, training and qualification opportunities are as well from your employer.”
What can applicants do when the job they are ushered into pays less than they are accustomed to?
Healey outlined that in these circumstances, people can be eligible for other forms of help.
“Don't forget Universal Credit can continue to be paid. If you move into a job that's perhaps a little bit lower paid than it was previously, Universal Credit is able to adjust in order to top you up.
“People shouldn't necessarily always feel like they will be worse off by taking on a job because DWP can still pay you Universal Credit, which can include help for rent too, and council tax help is also available separately from local councils.
“Then Personal Independence Payment or claiming the limited capability for work element with Universal Credit can also make a huge difference to people. It always helps to get benefits advice so you don’t miss out on help like this you might be entitled to.”
It is estimated that millions of UK residents are missing out on free cash because they are not claiming benefits that they are entitled to.
Turn2us, Policy in Practice and entitledto are useful benefit tools to help people check their eligibility.
