Universal Credit will mean that some claimants already in work will face conditionality requirements, and expected to seek work to increase their income.
Out of work claimants will fall into four broad conditionality categories under Universal Credit.
- No conditionality
Claimants unable to work because of disability or caring responsibilities, and claimants earning above prescribed income thresholds.
- Keep in touch
Primarily for lone parents with a child over the age of one, but under the age of five.
- Prepare for work (WRAG)
Claimants with limited capability for work because of ill-health or disability, many will be former incapacity benefit claimants.
- Full conditionality
Jobseekers, claimants without restrictions on their ability to work.
- In-work conditionality group
Claimants will face a personalised conditionality threshold based on the hours they are expected to work and the national minimum wage. In general, claimants will be expected to work full time (35 hours) at the £6.08 per hour, or £212.80. However, some claimants will only be expected to work part time (i.e. those with young children) and the minimum wage may vary for claimants under the age of 21. Couples will be expected to have a combined income greater than the sum of their conditionality thresholds.
- No work related requirements
Claimants with gross earnings above their conditionality threshold will not have any further work related requirements. They will be able to increase their take home income by increasing their earnings through employment.
Claimants facing in-work conditionality will be expected to seek additional work, however search requirements should be compatible with their current employment.
Example of how claimants may increase their earnings include
- Increasing their hours or their hourly wage with their current employer
- Finding one or more additional jobs that they can do alongside their current job
- Finding a new job with a higher income
It is expected that there will be a degree of advisor discretion applied, and claimants will be able to choose an approach that works best for them. In-work conditionality should not jeapordise their current employment and take into account their household circumstances. For further details click here.