Dataset: People on Universal Credit

Field: Employment Indicator

Description

Universal Credit can be claimed by people who are either in or out of employment or self-employment.

An individual on Universal Credit at the count date will be recorded as:

They may not be actively engaged in employment or self-employment precisely on the count date.

Employment for this measure is defined as being employed as an employee and being paid through PAYE.

Self-employment for this measure is defined as someone who must report their earnings from self-employed activity to DWP.

Classification

The employment indicator for claimants can take the following values:

Total number of categories: 5

A venn diagram showing the combinations of employment status

Quality Statement

Information on the employment status of people on Universal Credit is not available prior to November 2013 for those in employment and January 2016 for those in self-employment due to the limitations of the data recorded at the time and issues with data linkage.

Employment status of a claimant on the count date is derived from His Majesty's Revenue and Customs (HMRC) Real Time Information (RTI) system at the count date. Self-employment status is based on whether someone on whether someone is required to report earnings from self-employed work to the DWP. This information comes from complete scans of Universal Credit data systems The employment and self-employment indicators for the latest month are subject to revision in future releases.

A claimant's employment/self-employment status and conditionality regime may not always match due to differences in how the data is recorded. Therefore, care should be taken when interpreting any tables created by cross-tabulating these variables.

Conditionality Regime is based on an individual's circumstances on the count date.

It is possible for an individual to be 'In Work' using one measure and 'Not in Work' using the other as shown in the example below.

A diagram showing an example for the Employment Indicator

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