Decision on Universal Credit for self-employed workers welcomed

The Secretary of State for Work and Pensions, Therese Coffey, has released a statement on the suspension of the Universal Credit Minimum Income Floor (MIF) for self-employed workers, which was due to end on 13 November. (http://www.ekklesia.co.uk/node/30110)

The MIF assumes self-employed claimants are earning the equivalent of the National Minimum Wage or National Living Wage, thus reducing their Universal Credit payments. In reality, many are earning significantly less, particularly in sectors where the COVID-19 pandemic has hit the hardest.

In the written statement to Parliament, Ms Coffey announced:  "After careful consideration of the ongoing public health situation and the national working environment, the current easement of the suspension of the Minimum Income Floor in Universal Credit that was due to expire on 12 November 2020 will be extended to the end of April 2021. Regulations will be laid and made prior to 12 November 2020."

Many organisations, including the TUC and the Federation of Small Businesses had campaigned for the suspension to be extended. The Institute for Fiscal Studies estimated that around 450,000 self-employed workers would be negatively affected, losing an average of £3,200 a year each.

In response to the announcement Alistair Cromwell, Acting Chief Executive of Citizens Advice, said: “We’re pleased the government has taken this common-sense approach and listened to concerns we’ve raised.

“Many self-employed workers have viable businesses but are grappling with ongoing restrictions to trading. With more uncertainty in the months ahead, it’s only right to continue this support and avoid long term damage to livelihoods and the economy. We’d now urge the government to build on this by reassuring claimants that they won’t see their Universal Credit or Working Tax Credit cut by £20 a week in the spring.”

[Ekk/6]