The Universal Credit (Administrative Earnings Threshold) (Amendment) Regulations (Northern Ireland) 2022 - screening

It is the policy intent of Universal Credit (UC) to not only support out of work claimants to move into employment, but also to support working claimants who are in receipt of UC to progress and increase their wages thus reducing their reliance on UC.

There are two earnings thresholds within UC, namely, the “Administrative Earnings Threshold” (AET) and the “Conditionality Earnings Threshold” (CET).

The AET is based around the Jobseekers Allowance (JSA) rates of benefit. When introduced it was equivalent to the earnings of a single claimant working 11.71 hours per week at the National Minimum Wage (NMW), and a couple working 18.64 hours between them. This link to the JSA rates has not kept pace with increases in the NMW or the introduction of the National Living Wage (NLW). As a result, the number of hours of work at the NWM/NLW that is needed to move above the AET has declined over time.