Work requirements

Universal credit and work

You do not have to work a certain number of hours to qualify for universal credit. Instead, the rules about the universal credit work conditions look at earnings and whether they meet your personal earnings threshold. Earnings levels in the system are set according to the number of hours of work ,paid at the relevant national minimum wage rate, the individual is required to work.

Work-related requirements

There are four basic types of work related requirements that you can be asked to do depending on which work -related group you have been placed in. These are:

Work-focused interviews

Attend periodic interviews with your work coach to discuss plans and opportunities for returning to work (immediately or in the future).

Work preparation

You have to meet your work coach regularly and take actions to prepare for work – such as attending training courses, preparing a curriculum vitae (CV) or taking part in a work programme.

Work search

Take all reasonable action and any particular specific actions to find work or earn more– such as applying for suggested vacancies, attending interviews or registering with a recruitment agency.

Work availability

Be available and willing to immediately take up work.

Work-related groups

The requirements that are imposed on you will depend on your own individual circumstances and what can be reasonably expected of you. To do this, you will be placed into one of the work related groups below which then sets which of the work related requirements above can (and cannot) be imposed.

If you have made a joint claim, you and your partner will each have your own requirements. You may be placed into different groups. The groups are:

No work-related requirements group

If you are in this group you will have no requirements to prepare for work or look for work and so will not have any work-related requirements imposed on you. You will be placed into this group either because you meet certain criteria (for example if you have limited capability for work and work-related activity or certain caring responsibilities) or because you have reached your individual earnings threshold (called the conditionality earnings threshold CET). See the heading further down the page for more information about earnings thresholds.

Work-focused interviews group

If you are in this group you are only expected to stay in touch with the labour market and begin thinking about a move into work, more work, or better paid work.

Work-preparation group 

If you are in this group, you are expected to prepare for a move into work, more work or better paid work by, for example, participating in the work programme. You are not expected to look for work.

All work-related requirements 

If you are in this group you are expected to look and move into work, more work or better paid work until you are earning above certain earnings thresholds. 

Earnings thresholds

There are two earnings thresholds that you need to be aware of – the administrative earnings threshold (AET) and the conditionality earnings threshold (CET). The administrative earnings threshold is used to decide whether work-search requirements apply to someone who is in the all-work requirements group. The conditionality earnings threshold is used to decide if someone can move into the no-work requirements group.

Administrative earnings threshold (AET)

If you are in the all work-related requirements group, you’ll usually need to show your work coach that you’re actively looking for work, more work or better paid work. However, if you earn above the AET threshold, you will have less intensive work requirements placed on you and will not have to have regular meetings with your work coach. If you earn under the AET you will have to show you’re actively looking or more or better paid work and be available for work and meet with your work coach regularly:

• If you are a single claimant, the AET is currently £952.38 for each assessment period. The threshold is set based on 18 hours x current national living wage.
• If you are part of a couple, the AET is currently £1,534.39 combined for each assessment period. The threshold set based on 29 hours x current national living wage. If you as an individual earn below the AET, but as a couple you earn above the couple’s AET, you will be treated as if you both meet the AET.

Self-employed earnings do not count towards the AET. You should also be aware that the AET is based on the national living wage for everyone, even if you are under 21.

DWP say that the AET is based on gross earnings before any deductions.

Conditionality earnings threshold (CET)

To be placed into the no work-related requirements group you need to meet your individual threshold – this is also called the conditionality earnings threshold (CET). This is calculated based on the national minimum wage rate for your age x the number of hours you are required to work. This will be up t o 35 hours a week depending on your circumstances. For couples, you will meet the CET if your combined monthly earnings are greater than the sum of your individual thresholds.

The earnings that are taken into account for the conditionality earnings threshold is your earned income for the assessment period before any deduction for tax, national insurance or pension contributions.

Where your earned income fluctuates (or is likely to fluctuate) the amount of that income can be averaged over any identifiable cycle. If there is no identifiable cycle, over three months or any other such period that may allow your monthly average to be determined more accurately.

DWP can disregard earned income in respect of an employment which has ceased for the purposes of working out if the CET applies.

Self-employed earnings can count towards the CET, but as explained above they do not count towards the AET.

If you are gainfully self-employed and have the minimum income floor applied, you will be treated as having monthly earnings at a level equal to your individual threshold. This means you will have no work-related requirements placed on you.

If you earn between the AET and CET then you will be placed in the light touch regime which means you can receive support from a work coach to help you increase your earnings to meet the CET.