Universal Credit warning to tens of thousands of people as government announces major change

The government has announced some major changes for people receiving Universal Credit.

Today, Chancellor Kwasi Kwarteng revealed that new measures will be introduced which he says will 'help people on low incomes secure more and better paid work'. But he also said Universal Credit claimants who earn less than the equivalent of 15 hours a week at the National Living Wage will be at risk of having their benefits reduced if they do not take steps to increase their earning.

The new measure will make around 120,000 claimants take active steps to seek more and better-paid work or face having their benefits reduced. Meanwhile, jobseekers over the age of 50 will be given extra time with their work coaches, supposedly combating the "rising economic inactivity in the over 50s" which "is contributing to shortages in the jobs market, driving up inflation and limiting growth".

Read more: Eight key announcements Kwasi Kwarteng made in today's mini-budget

Speaking in the House of Commons, Mr Kwarteng said: "For too long in this country, we have indulged in a fight over redistribution. Now, we need to focus on growth, not just how we tax and spend.

“We won’t apologise for managing the economy in a way that increases prosperity and living standards. Our entire focus is on making Britain more globally competitive – not losing out to our competitors abroad.

“The Prime Minister promised we would be a tax-cutting government. Today, we have cut stamp duty, we have allowed businesses to keep more of their own money to invest, to innovate, and to grow, we have cut income tax and national insurance for millions of workers, we are securing our place in a fiercely competitive global economy with lower rates of corporation tax and lower rates