Individual earnings threshold for main carers of children aged 3 to 12 based on 30 hours a week

From 25 October 2023, the individual earnings threshold used in Universal Credit for the main carer of a child aged between 3 and 12 is based on 30 hours a week rather than 35 hours¹. The threshold is the level of earnings at which a claimant is treated as meeting their work-related requirements, and it is measured in earnings rather than hours¹.

The threshold sits within the fourth conditionality group, which covers claimants subject to all work-related requirements. The expectation for most people in that group is that when in work as an employee they will earn at least the equivalent of 35 hours at National Minimum or Living Wage, which is the individual earnings threshold¹. Because the threshold is measured in earnings, a claimant paid above the minimum wage can be lifted above it while working fewer than 35 hours¹.

Before the change, main carers in this group could ask for reasonable adjustments to their claimant commitment, including the expected number of work hours. Those adjustments were 16 hours a week for main carers of 3 and 4 year olds and 25 hours a week for main carers of 5 to 12 year olds¹.

The claimant commitment sets out the conditions for claiming Universal Credit, and most people have to accept one at the start of a claim. Couples each have a separate claimant commitment, which may differ from each other's¹. Some people may not need to accept a commitment, including those who lack capacity and those with exceptional circumstances where it would be unreasonable to expect them to agree one, decided by the work coach case by case¹. People with a terminal illness and less than 6 months to live were excluded from 15 February 2022, and from 4 April 2023 this was extended to 12 months¹.

There are four conditionality groups¹:

Sanctions can apply where a claimant fails to meet a requirement. For failing to attend an appointment in group 2, a sanction may be imposed until the compliance condition is met, or for up to 26 weeks¹. In group 4, a higher level sanction for failure without good reason to prepare or apply for work, take up an offer of paid work, or ceasing work voluntarily or through misconduct can reduce the Universal Credit award for up to a maximum of 26 weeks, a timeframe that dropped from 3 years for new and existing sanctions from 27 November 2019¹.

Why it matters for households

The change affects main carers of a child aged between 3 and 12 who are in the group subject to all work-related requirements, and it applies from 25 October 2023¹. Their individual earnings threshold is now calculated on 30 hours a week rather than 35, so the earnings level at which they are treated as meeting the threshold is lower than before. Because the threshold is measured in earnings and not hours, the number of hours actually worked is not the test; gross earnings above the appropriate minimum wage rate multiplied by the agreed number of hours are what count¹. Claimants in this position who were previously able to seek reasonable adjustments to their expected hours, at 16 hours for main carers of 3 and 4 year olds and 25 hours for main carers of 5 to 12 year olds, are now covered by the 30 hour basis¹.

What happens next

The change took effect on 25 October 2023¹. No further dates are given in the source. Entitledto states that those affected should discuss the change with their work coach¹.