Dear Department for Work and Pensions,

The Universal Credit (Administrative Earnings Threshold) (Amendment) Regulations 2022, which come into force on 26.9.22, provides for an increase to the level of the AET.

There is a significant difference to the structure of the amended regulations as compared to the regulations prior to the amendments.

The new structure seemingly allows for one member of a couple to be placed in the Light Touch Regime if s/he is earning £494/month, even though the couple between them earn below the new couple threshold of £782.

However, the regulations prior to the amendment always required a couple to have earnings (between them) of at least the couple threshold in order for either one of them to be placed in the Light Touch Regime.
This meant that if one claimant had earnings equivalent to the single claimant threshold, but the couple between them earned below the couple threshold, NEITHER claimant would be put in the Light Touch Regime.

1) Please provide any documents or information held by the Department which either confirms or refutes the above analysis.

2) Transitional protection for claimants who migrate to UC ends if the claimant has a sustained drop in earnings to below the AET if they were earning at least the AET in the first AP of their UC claim.

Please provide any documents or information held by the Department regarding the following scenarios:

(a) A claimant's earnings have stayed static, but are now below the AET due to the increase in the AET levels. Will Transitional Protection end?

(b) In their first AP, one member of a couple has earnings equivalent to the single claimant threshold (and is therefore placed in the Light Touch Regime), but the couple between them were earning below the couple threshold. Will Transitional Protection end if that member's earnings fall below the single claimant threshold?

Yours faithfully,

Charles Ellinson