Payments will fall significantly on November 13 if the temporary suspension of the “minimum income limit” by Covid-19 is not extended.
Martin Lewis has warned that a major cut in universal credit for many self-employed people is imminent.
There will be a big change in the universal credit on November 13.
It was suspended for eight months because of Covid-19, but this suspension is expected to end on November 13.
The minimum income limit is based on the assumption that you are earning a wage that you may not receive if you are being considered for universal credit, based on a person in similar paid employment with minimum wage.
Martin warned of a possible “sinkhole” and urged those affected to write to their MP.
He tweeted: “On November 13, when @RishiSunak’s Covid suspension of the university credit minimum income limit by @RishiSunak ends, a huge hole awaits many self-employed people. This means that it is assumed that the self-employed have an income for UC calc, even if they do not have it. I would suggest that self-employed people get in touch with their MP as soon as possible.
“Eligible persons for universal credit who were subject to the minimum income limit before the pandemic will be given the opportunity to review their status and activity as self-employed persons to ensure that their current situation is reflected and their business remains viable before the minimum income limit is reintroduced.
Labour Minister Mims Davies told the House of Commons: “Applicants will always be contacted before the minimum income limit is applied to them.
“The regulations to relax the minimum income limit will remain in place until November, and I will keep the House informed of any further regulations in due course.
However, she and the Secretary of State for Employment and Pensions, Ms. Coffey, gave no guarantee that the MIF would be delayed beyond November 13.
Ms. Coffey said that all new regulations would preferably apply nationwide, despite the system of local barriers.
Mrs. Coffey told MEPs: “This policy is still under review. It is clear that this is a matter for discussion, because the regulations are expiring”.
The full explanation in Martin’s warning can be found here.
She added: “We trust our work coaches and empower them to make the best decisions for the applicants they help”.