Part-time workers claiming Universal Credit face punitive in-work benefit sanctions, it has been reported today.
Universal Credit claimants in part-time employment could see their Housing Benefit slashed, if they fail to increase their working hours to 35 hours per week on the minimum wage, reports Inside Housing.
The trial, quietly introduced through secondary legislation, will affect around 15,000 new Universal credit claimants earning less than £12,000 a year.
Sanctions currently only affect unemployed people in receipt of Jobseeker’s Allowance (JSA) or Employment and Support Allowance (ESA).
If the trial is rolled out across the country, thousands of hard-working people could see their in-work benefits docked for the very first time.
> From one point of view this could be a good thing – because it will bring home to people who previously didn’t give a damn about, or even supported, benefit sanctions for the unemployed, just what is going on.
Universal Credit merges a number of existing benefits into one single monthly payment. This includes Housing Benefit, Working Tax Credit, Child Tax Credit, Income Support, JSA and ESA.
However, the Government’s flagship project has been beset by delays and problems with its IT systems. Official figures show 26,940 people were claiming Universal Credit by 11 December 2014.
The DWP is speeding up the roll-out of Universal Credit across Britain, in an apparent bid to prevent Labour from calling a halt to its introduction if they win the next general election.
> Labour could – and should – still scrap it if they win… but will they ?
Under the new mandatory pilot, which launches in April 2015, in-work Universal Credit claimants face the prospect of weekly sanctions – starting at around £29 per person.
Those affected by the trial will be offered ‘support’ from Jobcentre Plus to increase their pay and working hours. Failure to comply could result in sanctions.
> So just how do you increase your hours (unless you’re the boss) ? And its not much incentive to take a job like that if you know you’ll still be at the mercy of Jobcentre work coaches.
Source – Welfare Weekly, 11 Feb 2015