Is the minimum income floor being scrapped for coronavirus or not?

seatbeltnoob2

I was under the impression the minimum income floor is abolished.

Based on rishi sunak's speech in parliament it made it seem so, but the publicaton on the gov.uk website says differently

"self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected"
Source: link not postable, do a google searcg for coronavirus support for employees benefit claimants and businesses

There are a number of websites that are reporting that MIF is suspended entirely during the coronavirus, this is what I heard too, but gov website is saying something different, is this a backpeddle or a mistake by rishi sunak who didn't understand the policy?

The gov.uk page suggests that it only applies for people directly affected [i.e have] coronavirus. How will DWP assess whether you have coronavirus or not if they're not event testing you?

I had a profitable business in the events AV, all events are cancelled and I've had to refund quite a lot of customers. I am not expecting any sort of income for at least 3 months. I am looking for gig economy jobs - as you can imagine all those taxi drivers, people who are unemployed due to the current economic situation etc are also looking for gig economy jobs.

Imposing a MIF will make things a struggle for me. Can I declare myself unemployed for the sake of universal credit while I am a director of a limited company that has 0 income? I am actually willing to find work - but dont want to put my business under dormant status.

calcotti

As I understand it the MIF is being suspended for Coronavirus cases. There has been no suggestion that it will be abolished.

The detail of how this works is still to be clarified and whether there is any allowance for the secondary impact of what is happening, as in your case, I have no idea. However I haven’t seen any suggestion that this has been considered.

if the suspension is only for people in isolation due to Coronavirus or suspected coronavirus it would seem likely that in most cases it would only cover one assessment period.

https://www.moneyadviceservice.org.uk/en/articles/coronavirus-what-it-means-for-you says “If you’re self-employed and need to claim Universal Credit, the rules around the minimum income floor will be relaxed for the duration of the outbreak of coronavirus.” However I don’t think is what the government website says.

https://www.gov.uk/government/news/coronavirus-support-for-employees-benefit-claimants-and-businesses says “self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected.” That doesn’t to be to be the same thing.

huckster

Phone the Service Centre on 0800 328 5644 to book a self employment review appointment.  Try to get to see a Work Coach before the end of the current assessment period.  Take with you details of your cancelled events, your current business accounts etc.
They can switch off the MIF for a period and just take into account your actual income/expenses details.
If you just reported that you were now unemployed, you would still have to attend a self employment review appointment to close your self employment down.  And you would then have a work search claimant commitment.
It is easier to just switch off or reduce the MIF for hopefully temporary issues such as this. They can then review it again in say 3 months.

huckster

It would not be practical or make sense for UC to switch off or do something with MIF's on every claimants self employed persons claim.
Government statement says "  self-employed claimants on Universal Credit who are required to stay at home or are ill as a result of coronavirus will not have a Minimum Income Floor (an assumed level of income) applied for a period of time while affected"
They have not advised  the actual process.
I guess a phone call appointment would be required, where you could not actually attend the Job Centre and if they are satisfied they will switch off the MIF.

seatbeltnoob2

I didn't realise you could ask them to temporarily lower/suspend the MIF.

I will ask that, it will be extremely difficult to pick up jobs in the gig economy, and while I am prepared to take temp jobs working in a supermarket/delivery I can't shut down the ltd company or chnage the status to dormant while I undertake a temp job.

I have my frist interview scheduled for Tuesday, I'll prepare all the accounts etc and take it in with me to the job search. It's a little bit furstrating because being on UC you have to reproduce so much documentation to prove certain things. I can't pull the P&L from my business account software. I have to supply them a p&l that is complaint to their requirements, which is doubling up on work.

NedS

As far as I'm aware, no official guidance has been issued to Jobcentre staff as to how to interpret or implement this policy, so it's probably being done on a case by case basis, and may vary from jobcentre to jobcentre, at the moment. Hopefully some guidance and clarity might materialise soon

tomtom256

From what I have seen and it's very little, the MIF will only be reduced for those self-employed people who are told to self-isolate, but we are still waiting on official guidance about this, as the first we staff knew about it was when it was annouced as part of the budget.

calcotti

The regulations have now been published https://www.legislation.gov.uk/uksi/2020/289/contents/made

"Treating a person as having limited capability for work

3.—(1)This regulation applies to a person who makes a claim for universal credit or employment and support allowance or who has an existing award of universal credit or employment and support allowance.

(2) Where this regulation applies the person is to be treated as having limited capability for work(a) if the person is—

1. (a)  infected or contaminated with Coronavirus disease;

2. (b)  in isolation; or

3. (c)  caring for a child or qualifying young person who is a member of the person’s household and who falls within sub-paragraph (a) or (b),

where the Secretary of State is satisfied that the person should be treated as having limited capability for work."

Under normal UC rules the MIF does not apply to people treated as having LCW. The Regulations go on to say

"Suspension of the Minimum Income Floor

4. Where a person ceases to be treated as having limited capability for work under regulation 3, the Secretary of State may determine that regulation 62 of the Universal Credit Regulations 2013(e) does not apply to the person for the assessment period in which they cease to be treated as having limited capability for work and the Secretary of State may further extend the period during which regulation 62 does not apply if the Secretary of State considers such an extension to be appropriate."

Nothing in here about relaxing MIF due to consequential economic consequences of coronavirus.