Written question asked by Catherine West (Labour) on Wednesday, 22 September 2021, in the House of Commons. It was due for an answer on Monday, 18 October 2021. It was answered by Mims Davies (Conservative) on Friday, 22 October 2021 on behalf of the Department for Work and Pensions.

Universal Credit: Self-employed

Question: To ask the Secretary of State for Work and Pensions, if she will commit to permanently removing the minimum income floor when assessing self-employed workers for universal credit.

Answer: Universal Credit supports people into self-employment where self-employment is the best route for them to become financially self-sufficient. The Minimum Income Floor encourages individuals to increase their earnings and make a success of their business through developing their self-employment. It also addresses flaws in the previous Tax Credit system which allowed self-employed claimants to receive full State support while continuing to declare very low earnings and to prevent people from under-declaring earnings in the future. This restores fairness for the taxpayer.

Secondary information