Question to the Department for Work and Pensions:

To ask His Majesty's Government what assessment they have made of the impact of the Minimum Income Floor on claimants with fluctuating incomes.

Universal Credit for self-employed individuals aims to encourage sustainable work choices and support self-employment where it is a realistic route to financial self-sufficiency.

If a self-employed Universal Credit customer reports a loss to the Department, the value of the loss is offset against future earnings so it will be considered in the calculation of the Universal Credit award. Losses can also be carried forward and will be offset against earnings until the loss is used up or until the customer ceases self-employment.

The Minimum Income Floor (MIF) is designed to encourage low-earning customers to increase their earnings and grow their business. The level of the Minimum Income Floor is equivalent to what a person in employed work in similar circumstances to the self-employed individual could expect to earn at the National Minimum Wage for their age. The MIF can be tailored specifically for customers’ individual circumstances, including for health conditions and caring responsibilities. It is set using the number of hours the customer can reasonably be expected to work which is a maximum of 35 hours for individuals with no limitations on their expected working hours.

The Department’s review of Universal Credit is currently considering how effectively the benefit supports self-employed people.