Despite the Government announcement of a different Job Support Scheme to follow the furlough scheme, Advice NI remains concerned that thousands of employees across Northern Ireland could see their jobs under threat, and will face the prospect of claiming Universal Credit.
Advice NI is calling on officials and Ministers both in the Department for Communities in Northern Ireland, and the Department for Work and Pensions in Great Britain, to clarify when people who lose their job should claim Universal Credit, in order to ensure they receive a payment for their first Assessment Period, and are not left penniless at Christmas.
In addition, Advice NI says the reinstatement of the Minimum Income Floor for self-employed claimants in November is likely to deprive many people of much needed financial support. The organisation is calling for the current suspension of the Minimum Income Floor to be extended for the entire 2020/21 financial year, and for an extension to other COVID-19 measures within Universal Credit, for example the £20 uplift.
Kevin Higgins, Head of Policy at Advice NI, said; “I am deeply concerned about the poverty and destitution that could potentially face many people this Christmas. Firstly, if we take the end of furlough, many thousands of people may find their jobs at risk and face a redundancy situation. They will have to turn to the social security system for support, and for many, this will mean having to claim Universal Credit which is based on a monthly Assessment Period, hence the much-publicised concerns about the five week wait for the first payment. However, the biggest fear is associated with when these people claim Universal Credit.
“For example, if they claim Universal Credit and then afterwards receive their final furlough payment, this will be counted as income in their first Assessment Period and will likely mean that they will receive little or no Universal Credit payment for the first Assessment Period and have to wait until after the second Assessment Period to receive a full Universal Credit payment, which will most likely be after Christmas.
“Secondly, if we take the ‘Minimum Income Floor’ – during the COVID-19 pandemic self-employed people have been able to claim and get paid Universal Credit, as this assumed level of earnings has not been taken into account in the calculations. However, this measure is due to end in November, meaning that self-employed people, regardless of their actual income, will be treated as having an assumed level of earnings equivalent to the National Minimum Wage, depending on the age of the claimant. For someone 25 or over this would be £305.20 per week or £1,220.80 for the monthly Assessment Period. There is no doubt that this will significantly reduce or even eliminate any Universal Credit payment for self-employed claimants.
“Advice NI therefore urges both the Department for Communities and the Department for Work and Pensions in Great Britain to provide clarity on both the timing for a Universal Credit claim and an extension to the suspension of the Minimum Income Floor, so that people are not left penniless during the holiday period.”
* Anyone in Northern Ireland worried about Universal Credit or any social security issue can contact Advice NI on 0800 915 4604 or visit the website.
* Advice NI is the umbrella body for the Independent Advice Network in Northern Ireland https://www.adviceni.net/
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