Universal credit

Friends group

01 / 5 / 2015 8.30am

Universal credit is a new single monthly payment for people who are on a low income or out of work. It ends the 16-hours-a-week rule that may have led people to restrict the hours they work to avoid losing their benefits. 

How this benefits you as an employer?

Universal credit is expected to have a positive effect on employer organisations, you will find that:
  • It is easier to fill your vacancies as more jobseekers will be willing to consider short-term or irregular work.
  • You are able to identify opportunities for flexible working using your existing part-time employees for overtime and extra shifts at peak periods, without the overheads associated with recruiting and training new staff.  
  • There is a reduction in red tape - using the pay as you earn (PAYE) real-time information you send to HM Revenue and Customs to calculate universal credit will mean you get fewer wage enquiries.

The following documents from the Department of Work and Pensions (DWP) provide further information:

Universal credit aims to ensure that people will be better off in work than on benefits. This means claimants won’t lose all their benefits at once if they are on a low income as their universal credit payment will reduce gradually as their take home pay increases.

You can find out more about universal credit on the GOV.UK website, where you can access information about the reform, and the opportunities it brings for employers. On these pages you will also find detailed guides for recruitment teams, an FAQ document and other guides you might want to share within your organisation.

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