Nowhere is Universal Credit’s impact felt harder than self-employment - IPSE

Posted On: 
15th June 2018

IPSE has today responded to National Audit office report which paints a damning picture of the government’s Universal Credit.

IPSE’s Policy Development manager Jordan Marshall commented: “Although in theory Universal Credit (UC) is a good idea, it has now become crystal clear that Universal Credit is not working.

“Today’s report from the National Audit Office highlights the ballooning costs of the scheme, as well as the “difficulties and hardship” individuals are experiencing as UC is rolled out

“Nowhere is this clearer than its impact on the self-employed. The report reiterates that the self-employed ‘lose out due to monthly reporting’.

“This is a huge problem as it does not take into account of the fact the income of the self-employed varies hugely from month to month – meaning a self-employed person can end up £3,000 worse off each year under UC compared with an employee earning the same amount.

“Why, for example, should a farmer, who sells or produce crops only at a particular time of year, be penalised?

“The government urgently needs to address the problem of monthly reporting by considering self-employed earnings over a more reflective annual basis.

“It may be too late to turn back on Universal Credit, but that doesn’t mean we should go full steam ahead without first addressing some of the most pernicious faults in the system.”