Northern Ireland

Government grants reprieve to self-employed a week before benefits cut due to hit

November 13 was to have seen it return with claimants being assessed as if they earned the minimum wage for at least 35 hours a week - a drastic fall in income for many
November 13 was to have seen it return with claimants being assessed as if they earned the minimum wage for at least 35 hours a week - a drastic fall in income for many November 13 was to have seen it return with claimants being assessed as if they earned the minimum wage for at least 35 hours a week - a drastic fall in income for many

Thousands of self-employed workers who were facing a cut next week to benefits payments have been granted a reprieve by the British government.

`Minimum Income Floor' (MIF) was suspended earlier this year following coronavirus restrictions to allow self-employed people to claim Universal Credit based on their previous income up to a certain threshold.

Fluctuating incomes for sole traders had previously hindered access Universal Credit, but the temporary halting of MIF saw a 341 per cent increase in the number of self-employed people claiming the benefit during the pandemic.

The suspension allowed workers unable to access other Covid-19 financial support schemes to get the full rate of Universal Credit, with their payment calculated on their actual earnings.

Read More: Clarity needed from ministers so people not 'left penniless at Christmas'

November 13 was to have seen it return with claimants being assessed as if they earned the minimum wage for at least 35 hours a week - a drastic fall in income for many.

Work and Pensions Secretary Therese Coffey yesterday confirmed the reintroduction of the cap on benefits for these sole traders will be delayed until the end of April following the announcement of a second national lockdown for England.

She said the extension to the cut-off date came "after careful consideration of the ongoing public health situation and the national working environment".

Advice NI had warned without the extension extension to the suspension of the Minimum Income Floor" is essential so people "are not left penniless during the holiday period".

It had pressed for an extension to the suspension of the Minimum Income Floor until the end of the 2020/21 financial year in line with other Covid-19 measures within Universal Credit.

Head of Policy, Kevin Higgins said without the move "poverty and destitution... could potentially face many people this Christmas".

South Belfast MP Claire Hanna had told Westminster: "Many self-employed people are now facing a financial cliff edge", branding government inaction "Tory anti-social security policy (of) removing support from the self-employed when needed most".

While business is still being restricted and parts of the economy are in lockdown it is imperative the DWP & Treasury continue to suspend the Minimum Income Floor on UC"

The SDLP politician said yesterday she was "delighted at the result on this".

"This will bring some relief for self employed people who have seen their livelihoods hugely damaged during the pandemic."

Advice NI described it as ""an enormous relief for self employed people who have seen their livelihoods destroyed during the pandemic".