16 March 2023 , 14:58
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The changes announced in the Spring Budget will affect millions of people claiming Universal Credit and other benefits.
Chancellor Jeremy Hunt confirmed a raft of updates with some coming into play soon and some to be introduced gradually.
Mr Hunt told parliament on Wednesday that he was delivering a budget for "growth" and a lot of measures aimed to get people back into work.
Specifically, the Chancellor will target parents, older people and those off work with disabilities.
The Chancellor also announced changes to pensions, petrol, childcare and pubs.
8 money changes coming in February including Universal Credit and passport fees
Mirror Money has compiled a list of the five Universal Credit and other benefit changes which were announced in the Spring Budget.
Universal Credit sanctions to get tougher
The Government has confirmed it will be tightening Universal Credit sanctions.
The Chancellor said that going forward, sanctions will be applied "more rigorously" to those who fail to meet strict work-search requirements or choose not to take up a reasonable job offer.
The move will also see Job Centre staff given extra training to "ensure they are applying sanctions effectively".
Changes to Administrative Earnings Threshold
The Chancellor will be raising the minimum amount people must work before having to engage with Government jobs coaches.
Those working low hours will now have the Administrative Earnings Threshold (AET) increased from the equivalent of 15 hours to 18 hours at the national living wage.
Anyone working below could be required to meet up with Job Centre work coaches more often alongside a "more intensive conditionality regime".
Over 100,000 Universal Credit claimants will be affected by this measure and will have to step up their search for work or face having their benefits cut.
The Chancellor shared his 2023 Spring Budget on Wednesday (UK PARLIAMENT/AFP via Getty Imag)Changes to childcare allowance
Alongside his announcing that all children under five would be offered 30 free hours of childcare, the Chancellor also announced extra childcare support for those claiming Universal Credit.
Universal Credit claimants previously received £636 a month towards childcare for one child and £1,108 for two children.
Warning as millions on Universal Credit could miss out on hundreds of pounds
this has now been raised to £950 for one child and £1,630 for two children.
If you were eligible to get this money, initially you had to pay the childcare first and then claim the money back.
This has now changed with Jeremy Hunt announcing that the payments would now be made upfront.
He told the House of Commons that this would benefit 700,000 parents on Universal Credit.
Work Capability Assessment (WCA) scrapped
The "Back to Work" Budget also included scrapping the Work Capability Assessment (WCA).
Instead, people will face an assessment that asks them what sort of work they think they could do.
The change will impact those claiming both Universal Credit and Personal Independent Payment (PIP).
Jeremy Hunt says the move allows more disabled people to try to work without fear of losing their benefits.
Alongside this, the Chancellor announced that he was to replace the Limited Capability for Work (LCW) and the Universal Credit Limited Capability for Work and Work Related Activity (LCWRA) groups.
If you are placed in the LCW workgroup the DWP believes you to be able, with support, of preparing for work at some point in the future.
If you are placed in the LCWRA group you won't have to work or do anything to get ready for work as the DWP doesn't think you can work.
This will instead be replaced with the new "Universal Credit Health Element".
New work support programme for disabled people
The Government has also launched the "Universal Support" Scheme.
This voluntary employment scheme will match disabled people with jobs and provide funding for training to help them find work.
The Government said it would be providing £4,000 worth of funding for each person who signs up for the scheme a year.
Jeremy Hunt said 50,000 disabled people a year will be supported with this new scheme.