Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what criteria her Department uses to categorise universal credit applicants as gainfully self-employed.
Answered by Alok Sharma - COP26 President (Cabinet Office)
The Department provides tailored support to our claimants who are in self-employment through our work coaches to help them to increase their productivity and earnings. Work coaches can refer low-earning claimants to mentoring support from New Enterprise Allowance providers and sign-post claimants to the other extensive business support which is already funded by the Government.
All claimants with earnings from self-employment, whether gainfully self-employed or not, are required to self-report these each month to ensure that any Universal Credit (UC) payments take into account all household earnings. Monthly reporting allows UC to be adjusted monthly. Claimants are required to report the total of actual payments into and out of their business in each month, minus any Income Tax, National Insurance, permitted business expenses and relievable pension contributions actually paid. This gives a net profit figure, which is treated as the self-employed earnings total in the UC calculation. Any drawings from business to personal accounts or, where a claimant has incorporated their business, payment of salary from their company to their personal account, is disregarded in this calculation to avoid double counting.
When a claim is made to Universal Credit the Department will, on the basis of the information provided by the claimant, assess whether the claimant may reasonably be expected to work. If a claimant is in a group expected to work, the number of hours they may be expected to work is a maximum of 35 but may be lower, for example to take account of caring responsibilities or a health condition.
If a claimant is self-employed and in a group expected to work, the Department then considers a number of factors to establish whether someone is gainfully self-employed. A claimant is considered to be in gainful self-employment where all of the following apply:
If all of the above are satisfied, then the claimant is considered gainfully self-employed. A Minimum Income Floor (MIF) is calculated by multiplying the number of hours the gainfully self-employed claimant is expected to work by the relevant National Minimum Wage for their age, minus notional deductions for Income Tax and National Insurance Contributions. Gainfully self-employed claimants with a MIF applied to their claim are free from requirements to seek other work and are free to undertake those activities that they consider will maximise their profit including decisions about when and how to work most effectively.
As we announced in the Autumn Budget 2018, we are extending the 12-month start-up period where claimants are exempt from the Minimum Income Floor to all gainfully self-employed claimants who are new to Universal Credit. This start-up period will provide time for self-employed claimants to establish and grow their business, or to adjust to Universal Credit.
On average earnings from self-employment are lower than from employment and the self-employed make up a significant proportion of those in in-work poverty. The Government believes the MIF, by incentivising claimants to earn more from self-employment, or alternatively enter employment, offers the most effective way of tackling in-work poverty for the self-employed.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what criteria her Department use to assess whether a self-employed universal credit applicant is working 35 hours per week or more in paid employment.
Answered by Alok Sharma - COP26 President (Cabinet Office)
The Department provides tailored support to our claimants who are in self-employment through our work coaches to help them to increase their productivity and earnings. Work coaches can refer low-earning claimants to mentoring support from New Enterprise Allowance providers and sign-post claimants to the other extensive business support which is already funded by the Government.
All claimants with earnings from self-employment, whether gainfully self-employed or not, are required to self-report these each month to ensure that any Universal Credit (UC) payments take into account all household earnings. Monthly reporting allows UC to be adjusted monthly. Claimants are required to report the total of actual payments into and out of their business in each month, minus any Income Tax, National Insurance, permitted business expenses and relievable pension contributions actually paid. This gives a net profit figure, which is treated as the self-employed earnings total in the UC calculation. Any drawings from business to personal accounts or, where a claimant has incorporated their business, payment of salary from their company to their personal account, is disregarded in this calculation to avoid double counting.
When a claim is made to Universal Credit the Department will, on the basis of the information provided by the claimant, assess whether the claimant may reasonably be expected to work. If a claimant is in a group expected to work, the number of hours they may be expected to work is a maximum of 35 but may be lower, for example to take account of caring responsibilities or a health condition.
If a claimant is self-employed and in a group expected to work, the Department then considers a number of factors to establish whether someone is gainfully self-employed. A claimant is considered to be in gainful self-employment where all of the following apply:
If all of the above are satisfied, then the claimant is considered gainfully self-employed. A Minimum Income Floor (MIF) is calculated by multiplying the number of hours the gainfully self-employed claimant is expected to work by the relevant National Minimum Wage for their age, minus notional deductions for Income Tax and National Insurance Contributions. Gainfully self-employed claimants with a MIF applied to their claim are free from requirements to seek other work and are free to undertake those activities that they consider will maximise their profit including decisions about when and how to work most effectively.
As we announced in the Autumn Budget 2018, we are extending the 12-month start-up period where claimants are exempt from the Minimum Income Floor to all gainfully self-employed claimants who are new to Universal Credit. This start-up period will provide time for self-employed claimants to establish and grow their business, or to adjust to Universal Credit.
On average earnings from self-employment are lower than from employment and the self-employed make up a significant proportion of those in in-work poverty. The Government believes the MIF, by incentivising claimants to earn more from self-employment, or alternatively enter employment, offers the most effective way of tackling in-work poverty for the self-employed.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, whether her Department differentiates between annual turnover and salary when assessing the incomes of self-employed applicants of universal credit.
Answered by Alok Sharma - COP26 President (Cabinet Office)
The Department provides tailored support to our claimants who are in self-employment through our work coaches to help them to increase their productivity and earnings. Work coaches can refer low-earning claimants to mentoring support from New Enterprise Allowance providers and sign-post claimants to the other extensive business support which is already funded by the Government.
All claimants with earnings from self-employment, whether gainfully self-employed or not, are required to self-report these each month to ensure that any Universal Credit (UC) payments take into account all household earnings. Monthly reporting allows UC to be adjusted monthly. Claimants are required to report the total of actual payments into and out of their business in each month, minus any Income Tax, National Insurance, permitted business expenses and relievable pension contributions actually paid. This gives a net profit figure, which is treated as the self-employed earnings total in the UC calculation. Any drawings from business to personal accounts or, where a claimant has incorporated their business, payment of salary from their company to their personal account, is disregarded in this calculation to avoid double counting.
When a claim is made to Universal Credit the Department will, on the basis of the information provided by the claimant, assess whether the claimant may reasonably be expected to work. If a claimant is in a group expected to work, the number of hours they may be expected to work is a maximum of 35 but may be lower, for example to take account of caring responsibilities or a health condition.
If a claimant is self-employed and in a group expected to work, the Department then considers a number of factors to establish whether someone is gainfully self-employed. A claimant is considered to be in gainful self-employment where all of the following apply:
If all of the above are satisfied, then the claimant is considered gainfully self-employed. A Minimum Income Floor (MIF) is calculated by multiplying the number of hours the gainfully self-employed claimant is expected to work by the relevant National Minimum Wage for their age, minus notional deductions for Income Tax and National Insurance Contributions. Gainfully self-employed claimants with a MIF applied to their claim are free from requirements to seek other work and are free to undertake those activities that they consider will maximise their profit including decisions about when and how to work most effectively.
As we announced in the Autumn Budget 2018, we are extending the 12-month start-up period where claimants are exempt from the Minimum Income Floor to all gainfully self-employed claimants who are new to Universal Credit. This start-up period will provide time for self-employed claimants to establish and grow their business, or to adjust to Universal Credit.
On average earnings from self-employment are lower than from employment and the self-employed make up a significant proportion of those in in-work poverty. The Government believes the MIF, by incentivising claimants to earn more from self-employment, or alternatively enter employment, offers the most effective way of tackling in-work poverty for the self-employed.
Asked by: Paul Farrelly (Labour - Newcastle-under-Lyme)
Question to the Department for Environment, Food and Rural Affairs:
To ask the Secretary of State for Environment, Food and Rural Affairs, what steps his Department is taking to ensure that the UK’s carbon footprint is not exported to countries with weaker targets in place.
Answered by Thérèse Coffey
The Government publishes annual estimates of the UK’s carbon footprint on a consumption basis. The latest statistics were published on 11 April and show the footprint for years 1997 to 2016: www.gov.uk/government/statistics/uks-carbon-footprint. Carbon footprint measured in this way refers to emissions that are associated with the consumption spending of UK residents on goods and services, wherever in the world these emissions arise along the supply chain, and those which are directly generated by UK households through private motoring etc. These emissions are often referred to as ‘consumption emissions’ to distinguish them from estimates relating to the emissions ‘produced’ within a country’s territory or economic sphere.
As stated in the Resources and Waste Strategy, the Government’s goal is to maximise the value of the resources we use, minimise the waste we create, cut emissions and help create a cleaner, greener, healthier planet. In the Strategy we have committed to measures that will improve resource efficiency, prevent waste and cut carbon consumption emissions.
Climate change is a global challenge. The UK is a world leader in cutting emissions while creating wealth. Between 1990 and 2017, the UK reduced its emissions by over 40 per cent while growing the economy by more than two thirds. We have met our first two Carbon Budgets and are on track to meet the third. In addition, our consumption emissions are falling. Greenhouse gas emissions on a consumption basis fell by 6% between 2015 and 2016; and by 21% between 2007 and 2016.
UK International Climate Finance (ICF) plays a crucial role in addressing this global challenge. Three government Departments (DFID, BEIS and Defra) have responsibility for investing the UK’s £5.8bn of ICF between 2016 and 2021. These investments aim to support international poverty eradication now and in the future, by helping developing countries to manage risk, adapt to and build resilience to the impacts of climate change; promoting low carbon development at scale; and supporting sustainable management of natural resources and reducing deforestation. Between 2011/12 and 2017/18, it is estimated that ICF programmes have reduced or avoided 10.4 million tonnes of greenhouse gas (GHG) emissions (tCO2e).
Energy and trade intensive businesses create particular challenges, where ambitious climate change targets could risk carbon leakage. As the Clean Growth Strategy sets out, we remain committed to carbon pricing as an emissions reduction tool whilst ensuring energy and trade intensive businesses are appropriately protected from any detrimental impacts on competitiveness.
During Phase IV negotiations on the EU Emissions Trading System the UK supported the provision of free allocation as a precaution against the risk of carbon leakage; as the UK leaves the EU our preferred position is to have a UK ETS that is linked to the EU ETS and in that scenario, as set-out in our recent consultation on the future of carbon pricing, we propose to continue the provision of free allocation to industry to help ensure a smooth transition and continued protection against carbon leakage.
Asked by: Lord German (Liberal Democrat - Life peer)
Question to the Department for International Trade:
To ask Her Majesty's Government what actions they are taking to increase the amount of trade between the UK and The Gambia.
Answered by Viscount Younger of Leckie - Parliamentary Under-Secretary (Department for Work and Pensions)
As the Prime Minister set out during her visit to Africa last Summer, the Government is committed to seeing a step change in our relationship with Africa in order to drive forward trade and investment. The Africa Trade Services Unit was set up to act as the single point of contact for UK companies exporting to Africa. The Unit responds to all Africa trade enquiries, including those related to Gambia, and can support UK companies through the delivery of trade services.
The UK remains committed to ensuring developing countries can reduce poverty through trading opportunities. The Taxation (Cross-Border Trade) Act 2018 enables the UK to put in place a trade preferences scheme for developing countries that maintains the same level of access as the EU's Generalised Scheme of Preferences, which will grant duty-free, quota-free access to Least Developed Countries, including The Gambia.
Asked by: Andrew Rosindell (Conservative - Romford)
Question to the Department for International Trade:
To ask the Secretary of State for International Trade, what recent steps he has taken to promote free trade with Swaziland after the UK leaves the EU.
Answered by George Hollingbery
As the UK exits the EU, we are seeking to replicate the effects of the EU’s Economic Partnership Agreement (EPA) with the Southern African Customs Union and Mozambique (SACU+M), which includes Eswatini (Swaziland), as soon as possible. EPAs aim to promote increased trade and investment, supporting sustainable growth and poverty reduction.
As the Prime Minister set out during her visit to Africa last Summer, the Government is committed to seeing a step change in our relationship with Africa in order to drive forward trade and investment.
The Prime Minister also announced that the UK will launch a new Prosperity Fund programme of up to £8 million that will support implementation of the transitioned EPA.
The funding will aim to increase trade with and within Southern Africa by helping to remove barriers to trade, and in doing so expand import and export opportunities for UK and African businesses. Officials are consulting with the Government of the Kingdom of Eswatini and other countries in the region about the design of the programme.
Asked by: Jim Shannon (Democratic Unionist Party - Strangford)
Question to the Department for International Development:
To ask the Secretary of State for International Development, what support her Department provides to Fair Trade companies as part of its work to tackle human and labour rights abuses in the global supply chains of UK supermarkets.
Answered by Harriett Baldwin
The UK government is a strong supporter of the Fairtrade movement, which plays an important role in helping producers around the world improve their lives through receiving fair prices for their products. Between 2010 and 2018, the Department for International Development invested over £20.2m into Fairtrade and the UK was the first country to produce a National Action Plan for the implementation of the UN Guiding Principles on Business and Human Rights.
DFID has funded the development of Fairtrace, a technology-based supply chain mapping tool which has helped Fairtrade to broaden their commercial customer base. The tool has been used by major UK businesses such as The Co-op and Ben & Jerry’s. In 2017, Fairtrace helped 7 major brands to map their supply chains; illustrating journeys from over 191 producer groups in over 23 countries.
The UK government will continue to champion this agenda as part of our commitment to improving the lives of smallholder farmers and to a free, fair and transparent trade system that helps lifts developing countries out of poverty.
Asked by: Stephen Morgan (Labour - Portsmouth South)
Question to the Department for International Development:
To ask the Secretary of State for International Development, what steps her Department is taking to encourage businesses throughout the UK to purchase Fairtrade products.
Answered by Harriett Baldwin
The UK government is a strong supporter of the Fairtrade movement, which plays an important role in helping producers around the world improve their lives through receiving fair prices for their products. Between 2010 and 2018, the Department for International Development invested over £20.2m into Fairtrade.
DFID has funded the development of Fairtrace, a technology-based supply chain mapping tool which has helped Fairtrade to broaden their commercial customer base. The tool has been used by major UK businesses such as The Co-op and Ben & Jerry’s. In 2017, Fairtrace helped 7 major brands to map their supply chains; illustrating journeys from over 191 producer groups in over 23 countries.
The UK government will continue to champion this agenda as part of our commitment to improving the lives of smallholder farmers and to a free, fair and transparent trade system that helps lifts developing countries out of poverty.
Asked by: Preet Kaur Gill (Labour (Co-op) - Birmingham, Edgbaston)
Question to the Department for International Development:
To ask the Secretary of State for International Development, what assessment her Department has made of the effect of the Government’s strategic shift on UK aid on poverty reduction in Africa.
Answered by Harriett Baldwin
During her recent visit to Africa, the Prime Minister set out plans for a new long-term UK partnership with African nations. She announced a number of measures to increase the impact and effectiveness of UK aid across Africa, including to help our partners meet the poverty challenges of the future by: harnessing the power of trade, investment and business to create jobs; tackling the causes of extremism, instability and poverty; and addressing opportunities and challenges brought about by climate change and demographic shifts.
Asked by: Preet Kaur Gill (Labour (Co-op) - Birmingham, Edgbaston)
Question to the Department for International Development:
To ask the Secretary of State for International Development, what assessment her Department has made of the potential for trade policies after the UK has left the EU to support communities in developing countries.
Answered by Harriett Baldwin
Trade is a key driver of economic growth.
The UK is committed to ensuring developing countries can reduce poverty through trading opportunities. The Department for International Development and the Department for International Trade are working together to ensure development and global prosperity are at the heart of UK trade and investment policy.
The evidence indicates that when countries have the right resources, trade can help bring wider benefits to the community, allowing them to lift themselves out of poverty and become our trading partners of the future.