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Minimum Wage

Work and Pensions written question – answered on 9th February 2011.

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Photo of Kate Green Kate Green Labour, Stretford and Urmston

To ask the Secretary of State for Work and Pensions what assessment he has made of the effects on the self-employed of assuming income at the national minimum wage for the purposes of assessing entitlement to universal credit.

Photo of Chris Grayling Chris Grayling The Minister of State, Department for Work and Pensions

The self-employed, like other employees, will benefit from improved incentives in universal credit to increase their working hours and earnings. At the same time, once established in work, we would expect them to see a reasonable income from their activity and become less reliant on benefits.

The impact of a minimum floor of assumed income in universal credit will depend on the manner and circumstances in which it is applied. We are still exploring these issues and are therefore unable to provide an assessment of its likely effects at this stage.

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