Universal Credit: Self-employed

(asked on 20th November 2018) - View Source

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to people who are in seasonal self-employment and are also employed, whether the minimum income floor will apply to their self employed income when they are not in employment even if their average income is over the minimum income floor when their employed income is included.


Answered by
Alok Sharma Portrait
Alok Sharma
COP26 President (Cabinet Office)
This question was answered on 28th November 2018

Universal Credit supports people in self-employment. For those claimants in established gainful self-employment, we apply an assumed level of monthly earnings, the Minimum Income Floor.

Where a claimant’s combined self-employment and employment income is above the Minimum Income Floor, Universal Credit is based on their actual earnings. If claimants are not gainfully self-employed then the Minimum Income Floor does not apply.

Autumn Budget 2018 extended the 12-month grace period before the Minimum Income Floor applies to all gainfully self-employed people, giving claimants time to grow their businesses to a sustainable level. This will be introduced from July 2019 and implemented fully from September 2020.

Reticulating Splines