The Chancellor has announced that the Self-Employed can now access Universal Credit basic allowance at a rate equivalent to statutory sick pay for employees.
What is it?
If you are on a low income or are out of work, the payment is intended to help with living costs.
- You’re on a low income or out of work
- You’re 18 or over (there are some exceptions if the claimant is 16 to 17)
- You’re under state pension age (or your partner is)
- You and your partner have £16,000 or less in savings between you
- You live in the UK.
How much will I receive and when?
- Universal Credit is made up of a standard allowance of £94.25 a week, and some people may be able to get additional amounts, due to their circumstances. This can include if they have children, or if they have a disability or health condition which prevents them from working, or need help in paying rent.
- The payment is usually made monthly – although this may be more frequent in Scotland.
What additional allowances are available in addition to the basic allowance?
- It’s possible to access independent benefits calculators online, in order to see how much you can get.
- Your circumstances are assessed each month, and changes in circumstances can affect how much you are paid for the whole assessment period – not just from the date that the changes are reported.
Universal Credit basic allowance has been increased by £1,000 per year (£19.23 per week).
Working Tax Credit has been increased by £1,000 per year (£19.23 per week).
The British government is considering ways to extend its new wage support scheme to the self-employed. Please keep checking this page for the latest news.
Who will qualify?
- Individuals who completed a 2019 self-assessment tax return, whose majority of income was self-employed profits.For those who missed the 31 January 2020 submission deadline, you will have four weeks to submit your return to HM Revenue and Customs (HMRC).
- Individuals with self-employed profits of less than £50,000.
- The self-employed profits need to be the individual’s main source of income i.e. being more than 50% of their total income for the year.