This is the minimum amount a person is able to earn without being asked to meet with their Work Coach – rising from 15 to 18 hours of earning at the National Living Wage per individual.
The AET for couples, where a second member of a household may not be asked to look for work if their partner is working, will be removed entirely.
The Chancellor is expected to say this will ask over 100,000 additional claimants to meet more regularly with their Work Coach, and take further steps to moving into work, or increasing their earnings.
Mr Hunt said: “Those who can work, should work because independence is always better than dependence. Already we’re seeing near record levels of employment in Britain, but we need to go further to build a country that rewards work and gives everyone the chance of a better future.
“I want this back-to-work Budget to break down these barriers and help people find jobs that are right for them. We need to plug the skills gaps and give people the qualifications, support and incentives they need to get into work.