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<p>Universal Credit (UC) radically transforms the welfare system by seeking to ensure
not only that claimants are better off in work, but that they are better off working
more hours and earning more money, helping them ultimately to become financially independent.
Their UC payments adjust automatically depending on the amount they earn, so that
they are financially supported and do not need to switch their benefit claim.</p><p>UC
claimants may be required to look for and accept jobs with a zero hours contract.
Such contracts can be a beneficial and positive way for claimants to boost their income
and gain valuable work experience.</p><p> </p><p>UC claimants are expected to take
responsibility for meeting any mandatory conditionality requirements they have agreed
and will be supported by their Work Coach throughout. If there is no reason why a
claimant should not take a zero hours contract job and they refuse, they may be sanctioned.
However, sanctions are only used in a minority of cases and that is when claimants
fail to meet their conditionality requirements without good reason.</p><p> </p><p>Jobseeker's
Allowance claimants are not required to apply for zero hours contract jobs.</p><p>This
is because of the impact that fluctuating earnings and hours may have on a claim –
entitlement will end when a claimant earns more than a certain amount or works more
than 16 hours in a week. This means they would then need to reclaim when lower, or
no hours are offered, posing a real risk of gaps in income. This disincentive to take
on flexible work, or work more hours, has been designed out of UC to ensure support
for people whose hours fluctuate.</p>
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