Uk News today – Up to date News, NHS, Health, Sport, Science

For the very latest UK news, with sport, health, science, covid

Quiet DWP modification fuels fears ‘as much as 450,000’ face Universal Credit cut in weeks

Quiet DWP modification fuels fears ‘as much as 450,000’ face Universal Credit cut in weeks
When you subscribe we will use the information you provide to send you these newsletters. Sometimes they’ll include recommendations for other related newsletters or services we offer. OurPrivacy Noticeexplains more about how we use your data, and your rights. You can unsubscribe at any time.Invalid Email A quiet change to the DWP's website may signal…
< type data-json =" article22799338 ece" data-mod =" skinnySignup" >

When you subscribe we will utilize the info you supply to send you these newsletters. Often they’ll consist of recommendations for other associated newsletters or services we offer. Our Personal Privacy Notice explains more about how we use your data, and your rights. You can unsubscribe at any time.

Invalid Email

A quiet modification to the DWP’s website might signify countless individuals face a Universal Credit cut within weeks, MPs fear.

Speculation is mounting that a little-known benefit cap for the self-employed will be renewed on November13

The’ Minimum Earnings Floor'( MIF)- which affects an approximated450,000 self-employed UC plaintiffs -was suspended for eight months due to Covid -19

But that reprieve is currently set to expire on November 12, and ministers still haven’t confirmed if it will be extended.

Authorities have now sustained speculation that the MIF will reboot in simply two weeks’ time by tweaking the phrasing of an essential site.

Previously a federal government site stated the suspension “will last throughout of the break out.”

However eventually between August and this week that wording was changed, and now says: “You will be informed prior to the Minimum Income Floor is reinstated for you.”

Work and Pensions Committee chairman Stephen Timms, who spotted the change, required urgent responses from ministers.

In a letter to them last night the Labour MP asked: “Should we comprehend from this that it is no longer the Government’s policy that the Minimum Income Floor will be suspended throughout of the outbreak?

” If so, when did you make that choice, and on what grounds?”

The MIF is developed to stop taxpayers propping up failed companies for self-employed people who make a loss.

Usually, for every ₤ 1 of revenues a low-paid worker loses in a pay cut, they get 63 p back in Universal Credit.

But under the MIF, people who are “gainfully self-employed” are treated as though they earn minimum wage – even if they don’t actually earn that much.

.


The MIF is designed to stop taxpayers propping up failed companies for self-employed people

As soon as a person’s revenues dip below the minimum wage “floor”, their Universal Credit is capped and can’t rise any further.

The IFS think tank approximates the MIF affects 450,000 low-income homes to the tune of ₤ 3,200 a year.

DWP authorities have firmly insisted not every self-employed claimant will be struck by the MIF.

Universal Credit director Neil Couling stated it only strikes those who are defined as “gainfully self-employed” – suggesting those who have no earnings are “likely” to be spared.

He tweeted: “Position on MIF constantly more nuanced than headlines recommend.”

There are likewise other exemptions – for instance, it doesn’t apply to firms in their very first 12 months.

.


Work and Pensions Secretary Therese Coffey faces immediate calls to correct the circumstance

A DWP representative stated the MIF policy was still under evaluation today.

How the Minimum Income Floor works

Say, for example, a 30- year-old self-employed plumbing technician is approximately presumed by the MIF to make about ₤ 1,200 a month.

If that plumbing technician makes ₤ 1,300 in January, they would get whatever Universal Credit they were due, since the MIF doesn’t require to kick in.