Universal Credit: Coronavirus

(asked on 14th December 2020) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of extending support for former business owners during the covid-19 outbreak by not including monies paid out by former business owners for business closure costs in their universal credit calculations after a company liquidates.


Answered by
Will Quince Portrait
Will Quince
This question was answered on 13th January 2021

Universal Credit treats company directors in the same way as self-employed people who do not choose to structure their business that way and, where someone is treated as self-employed in UC, permitted expenses are deducted from any earnings before UC is calculated. If a person has ceased to carry on a business within the last 6 months, and is taking reasonable steps to dispose of assets which were used wholly or mainly in that business, those business assets can be disregarded from the calculation of that person’s capital when entitlement to Universal Credit is calculated.

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