29 March 2021

Universal Credit - surplus earnings

The DWP has made a determination that the 'relevant threshold' for the purposes of calculating surplus earnings under universal credit will stay at £2,500 until 31 March 2022.

The determination, dated 23 March 2021, states that -

'The Secretary of State for Work and Pensions considers it necessary, to safeguard the efficient administration of universal credit, to extend the temporary de minimis period in accordance with regulation 5(2) of the Universal Credit (Surpluses and Self-employed Losses) (Digital Service) Amendment Regulations 2015.

The ‘temporary de minimus period’ is the period during which ‘the relevant threshold’ for the purposes of calculating surplus earnings under regulation 54A of the Universal Credit Regulations 2013 is £2,500 rather than £300.

Therefore, in exercise of the power conferred by paragraph (2) of regulation 5 of the Universal Credit (Surpluses and Self-employed Losses) (Digital Service) Amendment Regulations 2015, the Secretary of State determines that the temporary de minimis period is extended and will end on 31 March 2022.'

The 'relevant threshold' was increased from £300 to £2,500 for a period of 12 months from 11 April 2018 by the Universal Credit (Miscellaneous Amendments, Saving and Transitional Provision) Regulations 2018 (SI.No.65/2018) and in Budget 2018 it was announced that the £2,500 'relevant threshold' would be extended until April 2020. It was then further extended by a Determination issued on 5 March 2020 for a further 12 months to 31 March 2021.

The Secretary of State's Determination is available from the parliament.uk website.