£0 self employed UC award

janeboo65

Hi I'm hoping someone can clear up my confusion that UC don't seem to understand/explain!
Myself and my partner have been running our own business for a couple of years, we hit a financial issue in December. I won't go into detail but we're currently not making any money, it's very much a temporary situation but we thought applying for universal credit would help us out in the short term.
At our initial appointments we were asked about the turnover of the business, and were told that we are definitely gainfully employed and should definitely receive an award.
However the first two months we have received zero. Income has been very low these two months, and after business rent and other costs we are negatively £1000-1500 per month.
One of our sources of income is a small pension I receive £627, and when we have queried why we've received zero we've been told repeatedly it's because of my pension. 
We have asked why we are declaring all our expenses if they are just ignored but that question has never been answered, and the replies have been slow, minimal, and unhelpful.
We have appointments next month so obviously we can ask them in person, but I have been trying to find the answer online, and it's very confusing!
We were told of a minimum income floor of £1,542.70 and I'm now starting to wonder if we are not earning ENOUGH to qualify for benefit!!!
I'd be grateful for any advice thanks 🙂

KxMx

Your pension is classed as unearned income, and will reduce your UC award by £627.

Which elements apart from Standard Allowance do you qualify for? 

peteuk

As above your pension will be deducted £1 for £1.  

If youve only just applied for UC (or within the last 12 months) the Minimum floor does not apply, if your over the start up period/ 12 months of claims then the minimum floor applies.

If the minimum floor is applied, although you’re declaring £0 from your self employment, they will apply the income as the minimum floor.  This with the £627 pension means (if it applies) your income is £2K.

Time to get a job thats pays is what UC would say, this is to stop people from becoming self employed not doing much, if any business and claiming UC.  In your case you've had a successful business which has failed to protect its future.  How long can you run at a negative of £1000 - £1500 per month.  How long is this temporary situation?  what are you doing to change this… UC isn’t there to prop up a business, sorry if that seems harsh but its the sad fact.    

Spoonie_Turtle

janeboo65 said:

One of our sources of income is a small pension I receive £627, and when we have queried why we've received zero we've been told repeatedly it's because of my pension. 
We have asked why we are declaring all our expenses if they are just ignored …

The pension is unearned income and your earnings (which is self-employed income minus expenses) are completely separate, a loss in your business income does not affect the unearned income amount. 

And any profit would be deducted from your award at a rate of 55%, on top of the deduction of the full amount of your pension.

Can you give us a breakdown of your UC?  You can either screenshot your statement or copy and paste what it says, redacting any identifying information of course.

Is it just you and your partner?  Any children?  Any caring responsibilities or debilitating health issues?  Do you rent or own your home?  - these questions are to see whether you should be getting any of the other UC elements (or potentially entitled to, for the health one) and then we can compare with what your UC statement says, check it's all as it should be.

[The Minimum Income Floor should definitely not apply for the first 12 months of your claim.]

itsthelittlethings

Do you get housing allowance? Basic UC is about £300/ per person without house, hard to believe it but it is, so your pension might be counted in full and zero that out. Have you applied for council tax benefit?

born_again

itsthelittlethings said:

Do you get housing allowance? Basic UC is about £300/ per person without house, hard to believe it but it is, so your pension might be counted in full and zero that out. Have you applied for council tax benefit?

Basic for a couple is currently £617.60, so as mentioned. Unless there are other factors leading to further qualifying amounts.
Then OP's £627 more than cancels out UC payment. 

So Op is receiving UC, just negated by the pension payment.

As a aside, when running a business, Op really should have built up a emergency fund over the last couple of years to cover such events 🤷‍♀️