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Surplus Earnings

05 March 2020

Proposing MP
Colchester
Type
Written Ministerial Statement
Department
Department for Work and Pensions

At a Glance

Issue Summary

The statement addresses the extension of the current £2,500 de minimis level for Universal Credit surplus earnings.

Action Requested

I will sign a Determination to extend the £2,500 threshold from April 1, 2020, to March 31, 2021, costing £70m and affecting around 500,000 people.

Key Facts

  • The current de minimis level for Universal Credit surplus earnings is £2,500.
  • This Determination will extend the threshold from 1 April 2020 to 31 March 2021.
  • Extending the £2,500 threshold avoids reducing it to £300 as per the Universal Credit Regulations 2013.
  • The cost of this measure is £70m in 2020/21.
  • Around 500,000 fewer people will have their Universal Credit award reduced due to surplus earnings.
Assessment & feedback
Summary accuracy