Mandatory work placements for Universal Credit claimants in England and Wales from late 2024

People in England and Wales who have not found work after 18 months on Universal Credit will have to take mandatory work placements from late 2024, or risk their claim being closed.

People in England and Wales who have not found a job after 18 months will need to take mandatory work placements from late 2024, under plans set out in the government's Back to Work programme. If they refuse, their benefit claim may be closed1.

The measure was announced as part of a wider set of changes to encourage people on Universal Credit to work, which the government said would focus on people with long-term health conditions and the long-term unemployed over the next five years1. Claims may also be closed where people have not engaged with their jobcentre for more than six months, provided they receive only the standard allowance of Universal Credit1.

The same programme includes expanded schemes for people with mental health problems, specialised help for people who have had fit notes after a period of illness, and intensive help for people who have been receiving Universal Credit for seven weeks, with further help after 13 and 26 weeks1.

From 2025, there are also plans to change the "activities and descriptors" needed to pass a Work Capability Assessment for new claimants of new style Employment and Support Allowance and some elements of Universal Credit1. The government said the changes "will better reflect the greater flexibility and reasonable adjustments now available in the world of work", such as increased opportunities to work from home, while various charities are worried the changes will be highly damaging to people with serious health conditions1.

"From late 2024, people in England and Wales will also need to take mandatory work placements if they have not found a job after 18 months."
entitledto, Autumn statement update November 20231

The work placement requirement sits alongside other changes to work-related conditions. From January 2024, the level of the Minimum Income Floor for parents of 3 to 12-year-olds who are self-employed was set to match the new rules for employees, after the date of implementation was changed from April 2024 to January 2024 on 30 November 20231. Main carers of children of that age are expected to work or look for work for up to 30 hours a week, up from 16 hours for parents of 3 and 4-year-olds and 25 hours for parents of 5 to 12-year-olds, while most other people in the group have 35 hours a week as their expected number of work hours1.

Why it matters for households

The placement requirement applies to people in England and Wales who reach 18 months without finding a job, and it takes effect from late 20241. The consequence attached to refusing is the possible closure of the claim, rather than a reduction in payment1. The same closure applies to people who have not engaged with their jobcentre for over six months, but only where they receive the standard allowance of Universal Credit alone1.

Separately, the changes to the Minimum Income Floor affect self-employed claimants with children aged 3 to 12, because the hours they are expected to work increased, which entitledto said causes large losses for some claimants and saves the government £80 million on projected Universal Credit spending1. The interaction with Universal Credit also affects how pay changes feed through: entitledto's director Phil Agulnik said the 2% cut in National Insurance contributions for employees would be of least help to low earners who claim Universal Credit, because when net earnings go up Universal Credit goes down, with 55% of the gain clawed back by the taper1.

What happens next

The work placement requirement is due from late 2024 in England and Wales1. The changes to Work Capability Assessment activities and descriptors are planned from 2025 for new claimants of new style Employment and Support Allowance and some elements of Universal Credit1. No further dates for the placement scheme have been reported.

Sources1 cited
  1. Autumn statement update November 2023 entitledto.co.uk