Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Government has made of the equity of means testing new applicants for universal credit against partner income and the absence of that requirement for applications for the Coronavirus Job Retention Scheme and Self-Employment Income Support Scheme.

Means-tested benefits such as Universal Credit (UC) act as a safety net for people who need extra support. They assess families’ different sources of income, such as earnings and capital, including from a claimant’s partner, with the aim of ensuring that help which comes from taxpayers is targeted at those who need it most.

UC is not an alternative as such to the CJRS or the SEISS, as it supports low income people whether they are employed, self-employed, unemployed or furloughed. The eligibility rules for the different sources of support cannot be compared directly.

The CJRS is designed to help employers whose operations have been severely affected by coronavirus (COVID-19) to retain their employees and protect the UK economy.

The Self-Employment Income Support Scheme (SEISS) is based on Self Assessment tax returns. Since 1990, the UK's income tax system has been based on the principle of independent taxation. This provides that each individual is taxed on their personal income, has their own tax-free personal allowance, and set of tax thresholds. This fundamental principle provides everyone with absolute confidentiality for their personal tax affairs. It also means that it is not possible to take household income into account in the SEISS.