The benefit
cap earnings threshold is to be based on the level of the national living wage
that was in force during the claimant’s period of employment, rather than the
current rate. This is significant, because claimants of UC are exempt from the
benefits cap for a nine-month ‘grace period’ if their previous employment was
paid at the national living wage. The Universal Credit (Miscellaneous
Amendments) Regulations, SI 2020/611 amend the Universal Credit Regulations, SI 2013/376 to effect the
change. The Regulations come into force on 13 July
2020.
The benefit
cap earnings threshold is to be based on the level of the national living wage
that was in force during the claimant’s period of employment, rather than the
current rate. This is significant, because claimants of UC are exempt from the
benefits cap for a nine-month ‘grace period’ if their previous employment was
paid at the national living wage. The Universal Credit (Miscellaneous
Amendments) Regulations, SI 2020/611 amend the Universal Credit Regulations, SI 2013/376 to effect the
change. The Regulations come into force on 13 July
2020.
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