Universal Credit - Minimum Income Floor

matt_matt_matthew

At the moment the minimum income floor for universal credit has been lifted meaning gainfully self employed people can apply for it, I noticed a new regulation coming into force on the 23rd sept which would give gainfully self employed people a 12 month grace period before the minimum income floor is applied to them, i'm unsure if this was planned before the coronavirus, if it's still in place to happen and is totally separate to the ongoing situation or if it's been scrapped, does anyone have any info about this and if once the MIF is back in place will there be a grace period for people applying after the 23rd?

calcotti

The 12 month MIF exemption for all self-employed claimants maling new UC claims from 23rd September was legislated for in July 2019 and has nothing to do with coronavirus. (The Universal Credit (Managed Migration Pilot and Miscellaneous Amendments) Regulations 2019. It's a mystery to me why legislators decide measures are necessary and the delay introducing them for such long periods
The current suspension of the MIF for self employed claimants in response to coronavirus is due to end on 13th November 2020.

matt_matt_matthew said: At the moment the minimum income floor for universal credit has been lifted meaning gainfully self employed people can apply for it,

This sentence doesn't actually make sense. All self employed people can apply for UC but if their income falls below their threshold they will get hit by the MIF if applicable. 

So any existing self employed UC claimant can expect to see the MIF reintroduced in November (unless they are still within their 12 month start up period) and any new claimant from 23rd September will get a 12 month grace period regardless of how long they have been self employed.

Obviously the government has the power to extend the current MIF suspension should they choose to do so.

matt_matt_matthew

calcotti said:

So any existing self employed UC claimant can expect to see the MIF reintroduced in November (unless they are still within their 12 month start up period) and any new claimant from 23rd September will get a 12 month grace period regardless of how long they have been self employed.

If a self employed person (self employed for over a year) whose earnings don't meet the minimum income floor were to apply for universal credit right now they would only get it until November? but if they were to wait until after the 23rd sept they would get it for a year no matter what their earnings? am i correct in thinking this?

calcotti

matt_matt_matthew said:

If a self employed person (self employed for over a year) whose earnings don't meet the minimum income floor were to apply for universal credit right now they would only get it until November?

That would depend on what their maximum UC entitlement is and what their MIF is set at. They might get something or nothing.

matt_matt_matthew said:... if they were to wait until after the 23rd sept they would get it for a year no matter what their earnings? am i correct in thinking this?

They would get 12 months without the MIF being applied. Whether or not they get any UC depends on their household circumstances.