Universal credit: benefits cap

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.