Universal Credit: Self-employed

(asked on 11th January 2022) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of replacing the Universal Credit Minimum Income Floor for creative freelancers with an alternative policy that is tailored for workforces with unpredictable incomes.


Answered by
Mims Davies Portrait
Mims Davies
Shadow Minister (Women)
This question was answered on 19th January 2022

The Minimum Income Floor aims to encourage individuals to increase their earnings through developing their self-employment. It also helps deter under declaration of earnings and as such provides fairness to the taxpayer.

In Universal Credit no sector is treated more, or less favourably than another and all claimants have the same rights and obligations. We are aware that for many who are self-employed, particularly those with seasonal businesses, earnings often fluctuate from month to month, and they need to budget and plan for this. Self-employed Universal Credit claimants are no different in this regard. UC seeks to assist viable self-employment, and support people in self-employment, where this is the best route for them to become financially self-sufficient.

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