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UC Income Floor To Be Removed ???

pianoworldstage
pianoworldstage Member Posts: 4 Listener
Hi

Regarding Universal Credit, is the (Minimum Income Floor) applied only to those who are gainfully self employed?

As the DWP have recently announced that the UC (Minimum Income Floor) is to be removed as of 13th November.

Does that mean claimants who are not gainfully self employed who are receiving the standard allowance £409 per mth, will also be affected?

I suppose this would justify the claimant as being unemployed.

Comments

  • poppy123456
    poppy123456 Member Posts: 29,697 Disability Gamechanger
    HI and welcome,

    At the moment it's suspended and has been since lockdown began. They haven't yet made any annoucements whether it will come back in November or whether it will still be suspended.

    When it comes back the minimum income floor will only apply if you’re in both: 
    • ‘gainful self-employment’ - this means being self-employed is your main job, you work regularly and expect to make a profit

    • the 'all-work-related requirements group' - this means you're expected to work or look for work
    The MIF is how much you're expected to earn each month. The DWP multiply the national minimum wage with the number of hours you agreed to work when you first met your work coach. This is in your written agreement called a 'claimant commitment'.

    If you earn less than your minimum income floor

    Your payment will be worked out as if you'd earned the minimum income floor amount.

    This means that although your earnings are low, your Universal Credit payment won't be topped up. You might have to find other work to increase your income.

    More information here with some good examples https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/





  • pianoworldstage
    pianoworldstage Member Posts: 4 Listener
    edited October 2020
    Therefore if your officially unemployed, the standard UC allowance of £409 per mth will still be effected by the MIF?


  • poppy123456
    poppy123456 Member Posts: 29,697 Disability Gamechanger
    Therefore if your officially unemployed, the standard UC allowance of £409 per mth will still be effected by the MIF?



    You can't be unemployed and self employed at the same time. If you're self employed and affected by the MIF then it will affect the amount of UC you're entitled to, which reduces the whole of your award, including the standard allowance.
  • pianoworldstage
    pianoworldstage Member Posts: 4 Listener
    My question is, if someome is not affiliated with self employment at all, but are genuinely unemployed seeking work, and are already claiming UC £409 mth, will their allowance be effected? when the MIF returns.
  • poppy123456
    poppy123456 Member Posts: 29,697 Disability Gamechanger
    The MIF can't affect a person that is unemployed. The MIF affects people that are self employed only. It would really make no sense if the MIF affected unemployed people, i'm not sure why you think it would.
  • pianoworldstage
    pianoworldstage Member Posts: 4 Listener
    You've answered my question, thanks for your support poppy.
  • poppy123456
    poppy123456 Member Posts: 29,697 Disability Gamechanger
    You're welcome :)

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