Home Accountants Thousands of self-employed workers could see Universal Credit cut

Thousands of self-employed workers could see Universal Credit cut

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London UK, January 19 2021, Government Website Homepage Screenshot For Universal Credit Financial Assistance

Thousands of self-employed workers who claim Universal Credit could have their payments cut from August.

The warning comes after the government announced that it is planning to reintroduce the Universal Credit minimum income floor, which will end a benefits boost for many freelance workers who were earning less than minimum wage.

The minimum income floor was temporarily removed in March 2020 as part of the emergency coronavirus budget in a bid to aid any self-employed workers who had lost income as a result of self-isolation or other restrictions imposed as a direct result of the pandemic.

According to charity Turn2us, the reversal of the move could result in self-employed workers losing around £3,200 in credit. Sara Willcocks, head of external affairs at Turn2us, added: Sara Willcocks, head of external affairs at Turn2us, said: “Self-employed people have been hit hard by the pandemic, and the suspension of the minimum income floor was a small but vital step in helping this group of workers stay afloat.”

She added: “Now is not the time to be cutting people’s income. We urge the government to keep the minimum income floor suspension, otherwise we risk seeing an increase in poverty this winter.”

In addition to the changes to the income floor, the government is also continuing with plans to end a £20 per week Universal Credit uplift and furlough in September.

A Government spokesperson said: “We are committed to supporting those most in need, spending billions more on welfare, including support for the self-employed.

“We will continue to assess how to best provide support as we build back better.”

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