Work and Pensions

I can today announce that we will amend regulations to smooth the transition from universal credit to pensioner benefits and remove any potential gap in support.

All those who reach state pension age while claiming universal credit will receive a run-on, meaning that they can receive a payment for the entire assessment period in which they reach state pension age. Entitlement to pensioner benefits and state pension is unaffected and continues as usual. This ensures there is no gap in benefit provision as people approach state pension age. This will benefit approximately 200,000 pensioners who will benefit by an average of £350 from this run-on at a cost of around £70 million over the next five years.

This process is already in operation on an extra statutory basis, ensuring that nobody loses out upon reaching state pension age, and legislation will be amended accordingly later this year.

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The surplus earnings policy was introduced to prevent people who are paid large amounts of earnings on an irregular basis from receiving a greater amount of benefit and earnings than claimants who for example earn the same annual salary but are paid over 12 regular salary payments.

This means that where a claimant receives a large payment of earnings within an assessment period which is sufficient to end their universal credit award, and then reclaims universal credit within six months of that award ending, earnings above the de minimis level will be taken into account as earnings for the new award.

I will sign a determination to extend the current £2,500 universal credit surplus earnings de minimis level from 1 April 2020 to 31 March 2021 and will place a copy in the Library. This will safeguard the efficient administration of universal credit by not reducing the de minimis to £300 as provided by the Universal Credit Regulations 2013.

This measure will cost £70 million in 2020-21 and will mean around 500,000 fewer people will see their universal credit award reduced by surplus earnings.

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