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TOPIC: Universal Credit to cost self-employed up to £3,000 a year in lost income

Universal Credit to cost self-employed up to £3,000 a year in lost income 20 Sep 2018 04:36 #10235

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Universal Credit does not take into account how the income self-employed people can vary widely from month to month.

by Steven Preece

The Government’s flagship Universal Credit scheme could cost many self-employed people in the UK up to £3,000 each year in lost income, according to a new report fromThe Association of Independent Professionals and the Self-Employed (IPSE).

The warning comes after the National Audit Office (NAO) highlighted how the widely criticised system, which replaces ten existing social security benefits including tax credits and housing benefit, is causing widespread “difficulties and hardship” for claimants and is failing to deliver value for money.

“The widespread condemnation of Universal Credit is clear and damning evidence of how damaging the policy has been”, said Imogen Farhan, IPSE’s Policy and External Affairs Officer.

“Nowhere is Universal Credit’s damaging impact felt more clearly than on the self-employed. The self-employed lose out due to monthly reporting because it does not take into account of the fact the income of the self-employed varies hugely from month to month.

“This means a self-employed person can end up £3,000 worse off each year under UC compared with an employee earning the same amount. That is a significant amount of money.

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