Universal Credit alert: Self-employed claimants set to face two cuts as MIF is reinstated
UNIVERSAL Credit rules are set to change over the Autumn months as the £20 uplift offered during the pandemic is removed. Today, Ministers also confirmed Minimum Income Floor (MIF) rules will also be reinstated which could leave self-employed claimants being hit twice come September.
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Universal Credit claimants saw their payments boosted in 2020, as the Government increased weekly rates by £20 as coronavirus wreaked havoc on the economy. Ever since this increase was introduced, the Government has been urged to make it permanent but recently, Thérèse Coffey, the Secretary of State at the Department for Work and Pensions, confirmed the top-up will be withdrawn by the end of September and claimants will see an "adjustment in their payments".
This means claimants across the board will see their payments lower as October arrives, regardless of their circumstances.
On top of this, it also emerged today the Government will be reversing other temporary changes and self-employed claimants specifically will be hit by this.
Ministers confirmed the MIF, a measure used to determine how much self-employed claimants receive, will change from August 1 following a period in which the rules were relaxed.
MIF caps will be reinstated from August and this means some self-employed claimants may see their payments reduced from September, during the same period in which the uplift is removed.
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As such, struggling freelancers on state support could face two payment cuts in one month as the economy reopens.
In light of this news, the DWP confirmed self-employed claimants will be given a month's notice before the MIF hits them, with many not expected to be affected until next year.
Additionally, Jobcentre work coaches will be given new powers to suspend the MIF for up to two months at a time on a case-by-case basis.
However, these MIF deferrals can only be exercised for up to six months in total.
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To be eligible for Universal Credit initially, self-employed claimants will need to be able to show that:
- Self-employment is their main job or your main source of income
- They get regular work from self-employment
- Their work is organised – which means they have invoices and receipts, or accounts
- They expect to make a profit
So long as a claimant can show all of these elements, they'll be considered "gainfully self-employed" and be eligible for Universal Credit.
Initial claims for Universal Credit are made online through the Government's website.
When applying, claimants will need to provide the following details:
- Their bank, building society or credit union account details
- An email address
- Information about their housing costs
- Details of their income
- Details of savings and any investments
- Details of how much they pay for childcare if they’re applying for help with childcare costs
Following a claim, initial payments will come through in around five weeks.
Beyond this, payments will arrive once a month into a bank, building society or credit union account.
Payment dates will fall on the same date of every month following the initial pay out.
Full details on Universal Credit rules can be found on the Government's website and impartial guidance can be sought from the likes of Citizens Advice or Money Helper.