£2,500 threshold for calculating surplus earnings under UC has been extended until 31 March 2026

The £2,500 threshold for calculating surplus earnings under Universal Credit has been extended until 31 March 2026, as announced by Stephen Timms MP on 26 February 2025.

This means that earnings exceeding £2,500 above the Universal Credit cut-off point will continue to be carried forward to the next month’s assessment.

Additionally, from 13 May 2024, the Administrative Earnings Threshold (AET) was increased to £892 per month for individuals and £1,437 for couples, bringing around 400,000 more claimants into a higher level of job support from Work Coaches.

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