Universal Credit: Self-employed

Department for Work and Pensions written question – answered on 21 June 2023.

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Photo of Caroline Lucas Caroline Lucas Green, Brighton, Pavilion

To ask the Secretary of State for Work and Pensions, pursuant to the Answer of 24 May 2023 to Question 185575 Universal Credit: Self-employed, how many and what proportion of (a) households with a self-employed Universal Credit claimant and (b) people living in households with a self-employed Universal Credit claimant were subject to the Minimum Income Floor from March 2022 to February 2023 in Brighton and Hove in the same period; what assessment he has made of the impact of the Minimum Income Floor on the ability of self-employed people whose earnings fall below that level to afford essential costs of living; if he will make it his policy to remove the Minimum Income Floor; and if he will make a statement.

Photo of Guy Opperman Guy Opperman The Minister of State, Department for Work and Pensions

No assessment of this issue, as raised, has been made.

There is no intention to reconsider this policy to remove the Minimum Income Floor. The Minimum Income Floor plays an important role in encouraging self-employed claimants to increase their earnings to a sustainable level through developing their self-employment, or to consider other ways to achieve financial self-sufficiency such as through paid employment.

The table below shows the number and proportion of (a) households with a self-employed Universal Credit claimant and (b) people living in households with a self-employed Universal Credit claimant subject to the Minimum Income Floor in Brighton and Hove from March 2022 to February 2023.

Households with one or more self-employed claimants

Individuals in households with one or more self-employed claimants

Number subject to the MIF

Proportion subject to the MIF

Number subject to the MIF

Proportion subject to the MIF

Mar-22

170

5%

250

6%

Apr-22

210

6%

300

7%

May-22

220

7%

320

8%

Jun-22

220

7%

320

8%

Jul-22

240

7%

340

8%

Aug-22

250

7%

350

8%

Sep-22

260

8%

360

8%

Oct-22

290

9%

410

10%

Nov-22

330

10%

460

11%

Dec-22

350

10%

490

12%

Jan-23

400

12%

570

13%

Feb-23

450

14%

640

15%

Notes:

1. Numbers of households and individuals are rounded to the nearest 10.

2. Households with a UC award of zero but whose claims have not yet closed are not included.

3. Claimants are counted as subject to the Minimum Income Floor if they are gainfully self-employed, not in a start-up period, and do not have temporary easement under which the MIF is not applied.

4. During the period shown there has been a large increase in numbers and proportions subject to the Minimum Income Floor as 12 month start-up periods come to an end for the large volume of claimants assessed in the period following the re-introduction of the MIF in August 2021.

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