Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what additional support is available for self-employed workers in receipt of Universal Credit that experience a short-term fall in their earnings.

Customers who are new to gainful self-employment are eligible for a 12-month 'start-up period’, during which the Minimum Income Floor does not apply. This means that if a customer experiences a drop in their earnings, their Universal Credit award will increase. This gives customers the opportunity to adjust to the characteristics of the sector in which they work, such as seasonal or fluctuating earnings patterns.

Where a customer reports a loss from their self-employment, the value of the loss is considered when assessing earnings in future assessment periods. If the sum of any unused losses exceeds the amount of earnings in the subsequent monthly assessment period, the remaining value of the loss is carried forward to be offset against future earnings, until the loss is used up or the customer ceases self-employment. This may result in a customer receiving a higher Universal Credit award in the future.

Work Coaches can signpost customers in the start-up period to national and local support where available, such as business advice, mentoring or training. This may also include connecting self-employed customers with other government support including:

• The Start Up Loans scheme, run by the British Business Bank

• The Business Support Helpline

Local Growth Hubs in England, Business Wales and Find Business Support and Business Gateway in Scotland, which offer support, advice and guidance to new and existing businesses.

If a self-employed customer has earnings below £2,600 (or £3,600 if in a couple) in the six months prior to an application, they may be eligible for a budgeting advance to help finance intermittent/ unforeseen expenses or expenses. This ensures low-income families that have an emergency financial need and do not have access to adequate savings or affordable loans can access funding to meet the emergency.