Benefits when off work and self employed

mellyc

My partner has been off work for a week now in isolation because of suspected coronavirus and awaiting results from our tests we had on Friday. No idea when we get results but NHS have told us to self isolate until we know the results. He’s self employed so not entitled to any sick pay. We are going to be short with this months rent payment which we solely rely on his wages to pay. 

Is there any more help we can get? Do I need to notify universal credit about his health issue causing him to be unable to work? What happens when I do this???

Galloglass

The simple answer is no-one knows. You will have to ask the DWP for their latest guidance. 

https://www.gov.uk/government/news/sick-pay-from-day-one-for-those-affected-by-coronavirus

According to this statement there are instructions to the DWP being prepared.

There is a range of support in place for those who do not receive Statutory Sick Pay, including Universal Credit and contributory Employment and Support Allowance. The move will be included in emergency legislation to deal with coronavirus.

mellyc

We are currently claiming universal credit with my partner as self employed. But he’s had a week off work unable to work because nhs have told us to self isolate awaiting results from coronavirus tests. He’s not entitled to statutory sick pay as self employed so can someone tell me if I need to inform universal credit about being temporarily unable to work due to a temporary sickness and how that affects our payments if at all?? His wages pay the rent so we won’t have enough this month? 

calcotti

He will be reporting income and expenditure on a monthly basis. 

If he is in the start up period the difference will be the ‘earnings’ used for UC. If he has not been able to work his earnings will be down and the UC payment will automatically be higher as a result.

if he has been self employed for more than 12 months the Minimum Income Floor would normally apply which means that he would be treated as earning a certain amount even if he earns less. Normally the view is that short periods of illness in which work cannot be done are part of being self employed.

Unfortunately, as Galloglass has said, we don’t know how DWP are going to deal with this. I think the sensible thing would be to report the situation to UC so that it is on record and to update with more information as it becomes available. That way you will have put a marker down that you need special treatment if that is what the government are proposing. Logically if the government want people to self-isolate they need to provide for the suspension of the MIF.

pmlindyloo

If you are subject to the minimum floor level then according to this link it can be 'switched off'.
https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/
You do need to inform the DWP on Monday about the circumstances.  They may need some evidence but, presumably, since he is awaiting test results this would be available.
If not subject to the minimum floor level as regards earnings then you should see an increase in your benefits after you have reported the low income.
Possible alternatives if needed:
Discretionary Housing Payment
Grant from Flexible Support Fund
Budgeting Advance

calcotti

pmlindyloo said:

If you are subject to the minimum floor level then according to this link it can be 'switched off'.
https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/

Would be interested to know quite how Citizens Advice think this could apply. Advice to Decision Makers is clear
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787442/admh4.pdf

H4057  A S/E claimant will experience occasional minor illnesses like anyone else. The DM should regard periods of minor illness as part of the normal pattern of self employment.

I think that, generally, the MIF would only be turned off for longer periods of illness (for which LCW might be established anyway).

However we are obviously in unusual times and I would hope government will allow a relaxation of MIF - but we simply don't know.

pmlindyloo

calcotti said:

pmlindyloo said:

If you are subject to the minimum floor level then according to this link it can be 'switched off'.
https://www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/

Would be interested to know quite how Citizens Advice think this could apply. Advice to Decision Makers is clear
https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/787442/admh4.pdf

H4057  A S/E claimant will experience occasional minor illnesses like anyone else. The DM should regard periods of minor illness as part of the normal pattern of self employment.

I think that, generally, the MIF would only be turned off for longer periods of illness (for which LCW might be established anyway).

However we are obviously in unusual times and I would hope government will allow a relaxation of MIF - but we simply don't know.

Not sure I agree, sorry.  I believe your link is talking about continuing to maintain 'gainful employment' during short periods of sickness and is not necessarily to do with the minimum floor level. (although obviously, not gainfully employed = no minimum floor level)
Hope the OP returns after she has contacted the DWP with an update although I suspect no one at the DWP will know yet.
Should have added that missing one month's rent need not necessarily be a disaster unbless there is a history of late/non payment.  If you have a good relationship with your landlord then let them know what is happening.  Borrowing from friends/relatives could be an option.

calcotti

pmlindyloo said: Not sure I agree, sorry.  I believe your link is talking about continuing to maintain 'gainful employment' during short periods of sickness and is not necessarily to do with the minimum floor level. (although obviously, not gainfully employed = no minimum floor level)

No need to apologise for not agreeing. The forum allows us to explore the issues. I was working on the basis that (if outside the start up period) anyone in gainful employment would be subject to the MIF. If short periods of illness are treated as part of self employment and therefore claimant is still treated as gainfully self-employed it follows, to my mind, that the MIF applies.

H4060 The minimum income floor is an amount of earnings which a person treated as having in an assessment period. The minimum income floor applies where the claimant
1. has been determined to be in gainful self-employment (see ADM H4020 et seq) and
2. would normally but for the minimum income floor be subject to all work- related requirements.
The application of the minimum income floor means the claimant is, or joint claimants are, treated as having a certain minimum level of income for conditionality purposes so that no work-related requirements apply.

tomtom256

If it's a short term illness they would be expected to have/be earning sufficient to cover any periods of sickness.

If it's a long term sickenss, backed up with a fit note and/or has an LCW, then the MIF could be reduced to take this into account or though if in work prep i.e. LCW or NWRR i.e. LCWRA I didn't think the where GSE or had a MIF, but without checking guidance, couldn't say for sure.

So unless they give up self-employment totally, they would still be GSE with the MIF, during these short periods of sickness, if there are no other relevant changes, as the original decision would remain unchanged during these periods.

Spoonie_Turtle

The ADM talks about short periods of minor illness. Most minor illnesses don't come with official advice to self-isolate, and especially not before they're even sure what the illness is. Considering self-isolation is not a choice, one would hope DWP will take this into account with all cases like this.

(Of course, with all contagious illnesses self-isolation is preferable and good sense, but the work culture favours pushing through, spreading it, and taking far longer to recover than if you just took time off until you'd recovered. Still, it is what it is.)

mellyc

My partner told me today that I declared the incorrect amount of earnings he received from self employed work in the month of March. This error of mine has had drastic consequences and by incorrectly declaring his earnings to be £300 less than they were has led to our April entitlement being dramatically reduced due to the benefit cap being applied. 

I entered the correct info into entitledto calculator and that missing £300 makes a huge difference. If I had declared the right amount we would not have had such a reduction and wouldn’t be in the situation we find ourselves in. 

Has this happened to anyone else and how do I correct it??