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Universal Credit

Universal Credit and employers

  1. What Universal Credit means for employers
  2. How Universal Credit helps employers
  3. How Universal Credit works
  4. For HR and payroll staff
  5. Other help for employers

2. How Universal Credit helps employers

Universal Credit is designed to ensure that people are better off in work. By making it easier for people to vary the number of hours they work each week or take a temporary job, Universal Credit can help provide your business with a more flexible workforce:

  • Universal Credit claimants will be more open to short-term work or flexible hours because they won’t have to worry about what it means for their claim.
  • Universal Credit removes the old ‘16 hour’ rule as payments are based on earnings rather than the number of hours worked.

Graphic of clock with text: No 16 hour rule means staff claiming Universal Credit can increase their hours without worrying about their claim

  • Claimants can even accept full-time seasonal work for up to 6 months without needing to close their Universal Credit claim.
  • Universal Credit payments adjust automatically as earnings change, so people can take on temporary, part-time or additional work without needing to work out what it means for their benefits.

Graphic of computer with text: Universal Credit claims stay open, meaning jobseekers can take short term work, giving employers more flexibility

  • Entry-level jobs, which are often crucial to starting a working life, will be more attractive to a broader range of candidates. Claimants can take a chance on a new career because Universal Credit supports them as they take their first steps into work.
  • Universal Credit provides more generous childcare support, providing families with greater confidence to change their hours or take up job offers they may have previously thought not possible due to childcare commitments.

Graphic of children at nursery with text: Universal Credit's more generous childcare support helps parents move into work and increase their hours

People claiming Universal Credit also receive tailored help that could benefit your organisation, such as training in digital and budgeting skills. And Universal Credit encourages people to progress in work and make the most of their potential.

Because Universal Credit uses the existing PAYE real-time information that you already send to HMRC, Universal Credit payments adjust automatically without claimants needing to do anything. And it won’t add to your business costs.

Visit Universal Credit: how it helps your business to find out more.

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