LCWRA, PIP AND SELF EMPLOYED

Angel212

Hi everyone 

I currently receive Universal credit LCWRA and PIP due to my disability and mental health. 

I have recently been thinking about starting my own small business from home in beauty and becoming self employed. 
Due to my health and disability this would be a good option for me to achieve something in life, because my health affects me on my good and bad days and I never know how one day will be from the next so atleast I could have some form of control and work if I am able too. 
I would like to know if anyone has been in a similar position as myself? 
I would also like to know if I do decide to go ahead and become self employed and I inform DWP will I still be allowed to keep my LCWRA AND PIP AND UC housing benefits. 

Also I have heard of something called minimum income floor, but I have read somewhere this does not apply to you if you are in receipt of LCWRA is this correct?
I am scared of making a wrong decision and being stuck or left with nothing. 
As this is a small business from home there are no clients so no money would be earned to begin with. 
Any help or advice would be great appreciated thank you. 

Hannah_Alumni

Hello @Angel212

Welcome to the community!

Starting your own business sounds so exciting! I would reach out on your Universal Credit Journal as they do have advisers and grants available to help you. 

Angel212

Hi @Hannah_Scope thank you 😊 

do you know which grants are available in particular? as I was unaware any grants are available your help is greatly appreciated thank you. 

I just wanted to know from anyone on here that may have been or is in a similar situation to myself.

At the moment it has just been an idea regarding the home beauty business, I am not 100% certain. 

Thank you X 

Hannah_Alumni

Hello @Angel212

I know of the Access To Work Scheme and then based on whether you are in England or Wales there may be other funding options available to you. It is worth asking on your journal to have a call with an adviser. Hopefully others who enquired too will be able to tell you their experience  

Angel212

Hi @Hannah_Scope

thank you so much for this information, I appreciate it 😊

I would just like to know if I were to go ahead with the self employed business idea,

would I still be able to keep my LCWRA, PIP and UC benefits? 

Also I have heard people are being asked to attend a gateway interview to see if they’re gainfully self employed once reporting self employment on their UC journals. 

am I correct in thinking that because I have LCWRA I would not be considered to be gainfully self employed and I would not need to attend a gateway interview as I have no work coach or work commitments. Also the MIF would not apply to me because I have LCWRA? 

Just trying to get as much information as possible to think about it before deciding to do anything as I suffer with a lot of anxiety so I tend to over think and over stress. 

Thank you once again for your help X 

Hannah_Alumni

Hello @Angel212

There are a few different ways it could go depending on how well your business takes off. Basically as you start to earn from your business, you'll be asked to input those earnings and each month they will top up any difference from your Universal Credit with LCWRA element. This will be monitored month by month.

It happens similarly with getting back into work if you were to be employed by someone else. For example. I was on universal credit with LCWRA and when I started working I had a lower amount to top up the first months paycheck but that went down to 0 the following months as I was working full time.

Your PIP will stay the same until your next assessment or if your report any changes of circumstance. 

It's no problem, I am unsure on the gateway interview that is one of those questions for the adviser if you reach out. 

poppy123456

PIP won't be affected. When you start work you will need to report the changes on your journal and tell then that you'll be self employed. As newly self employed you will still need to attend your local job centre for 1 appointment to speak to a work coach.

You will need to report your earnings and expenses on your journal on the last day of each assessment period. As you've been found to have LCWRA then the MIF will not apply to you.

You also mention claiming housing benefit. Unless you're living in either supported or temporary housing then your rent will be included in your UC known as housing element, not housing benefit.

You will have the work allowance, which means £379/month of earnings will be ignored  before the 55% deductions apply.

Angel212

Hi Hannah and Poppy thank you both for your advice, I really appreciate it thank you 😊 

Angel212

Hi just a quick question sorry to bother you both! X 

if I go ahead in the near future and decide to go as self employed and start a business, if once I report this as a change of circumstance on my UC Journal, there would be a Gateway interview for me to attend with a work coach to assess if I am gainfully self employed or not. 

Do you have any idea or know What happens if they find that I’m not gainfully self employed. As I have LCWRA I would not be expected to have or look for work commitments? 

If they would find me as gainfully self employed then what would happen after this, I would just need to report my income and expenses each month on my UC journal and my Benefits I receive remain the same. 

Would I be made to attend any further appointments at job centre? I would think not because I don’t have any work commitments but I’m not sure how it works. 

And just to confirm the 12 month start up period or MIF would not apply to me due to being LCWRA group. 

Thank you both xx 

poppy123456

You will not be found gainfully self employed because having LCWRA the Minimum income floor will not apply to you, even after the 12 month period. Assuming you will still be entitled to the LCWRA or LCW at that time.

Being self employed you will always need to report your earnings and expenses on the last day of your assessment period. This is nothing to with the MIF because it won't apply, even after the 12 months.

What your UC entitlement will be once you're working will depend on your earnings. Any earnings received after the work allowance will reduce your UC by 55%.

Angel212

Hi Poppy, 

thank you for your reply all noted. 

This may sound silly but what would happen if I am not found gainfully self employed does this mean I can not be self employed or start self employment work??

 Or is this just a decision they make based on my LCWRA circumstances and i can still be self employed whilst receiving my LCWRA benefit. 

And if I am found as not gainfully self employed but in receipt of LCWRA benefit would I be then made to look for other work or be made to attend the job centre for work search appointments? 

I just don’t want to make a big decision and regret it later on or let my decision make my health any worser than it already is. 

Just want to know this if you have any idea or know please advise me thank you X 

poppy123456

You are completely misunderstanding the point I’m trying to make. You can’t be found not to be gainfully self employed because you’ve been found to have LCWRA. 

The minimum income floor will not apply. 

The only thing you need to be aware of is, if the work you do contradicts the reasons why you were found to have LCWRA. If it does then it may go against you when you’re next reviewed. 

Only you can decide whether you want to work or not. If you try it and decide you can’t then you can just stop. 

Angel212

Hi Poppy, 

ok thank you very much I think I can make sense of that. 

I’m not sure why the DWP would ask people who decide to go self employed and have LCWRA to attend a gateway interview appointment for self employment then. 

The whole thing is super confusing. 

Thank you x

calcotti

Angel212 said:

I’m not sure why the DWP would ask people who decide to go self employed and have LCWRA to attend a gateway interview appointment for self employment then.

They still need to confirm if you are doing any self employment because they need to administer your claim appropriately.

poppy123456

It's standard procedure for those starting self employed work to attend an appointment at their local JC.

Angel212

Thank you, I understand now. 

I was not sure before as this is all new to me.

but thank you all for reassuring me and answering my questions much appreciated 😊

sai87

@Angel212 I am in the same boat as yourself receiving PIP and LCWRA and wanting to go into self-employment but due to ill health I have a few good days and bad days.

Yes, like yourself I think my self-employment would be slow and difficult and would require financial help from UC. 

I am also scared of making a wrong decision and being stuck or left with nothing. 

Kimberleynight

Hey Angel just wondering how you got on in the end as I am thinking of doing the exact same thing !!

Let me know :)

poppy123456

https://forum.scope.org.uk/discussion/comment/983694#Comment_983694

This thread is from June 2023 so you may not have a response.