Universal Credit and being a self employed single parent of a disabled child - how the bleep will this work?

[NigelYerABawbag]

Trying to get my head round this in advance of being moved onto UC.

I've got an 8 yr old with autism, currently in mainstream primary but this may change in the near future. I also have a 16 yr old.

I get DLA for my 8 yr old - middle rate care and low rate mobility. This means I could claim Carers Allowance but I've chosen not to because of the earnings limit being a strict £120 a week and some weeks I earn more than this.

I'm self employed and my income fluctuates a lot. I work every hour I can, but some weeks I am hardly able to work at all (ie last week when I my child was excluded for 2 days following a violent meltdown in school, plus I had to go to a hospital appointment on another day) and other weeks I manage 30 hours. I am also completely unable to work during school holidays as there is no childcare that can manage my child's challenging behaviour .

I try and build up some reserves of stock and money throughout the year to see me through the holidays. This has always worked reasonably well but means that I have weeks where I earn a lot and weeks where I earn nothing. Tax credits have made this possible as they are worked out on an annual average income but UC will not allow for this and I'm very worried about what to do.

The way I am able to earn means that about 8 months of the year I will earn enough to seriously reduce my UC award, but the other 4 months I will not hit my minimum income floor and will not be eligible for UC as I will be deemed to have not been working. This will be disastrous for me financially!

So.... Will I need to claim Carers Allowance and stop earning enough to save to see me through times when I can't work? Or is there a way to get some sort of carer status to accommodate fluctuations in earning capability, but without actually claiming the extra money so not being bound by the strict earnings rule? What is the best way for me to go about it, and should I be doing anything now to prepare for when I do get moved over to UC?

(PS, obviously I will ask the jobcentre all these questions when the time comes but tbh I have more faith in Mumsnet to give me accurate answers!)

I mean I'm trying to reduce my reliance on benefits and claim as little as possible, but it looks like the only way will be for me to claim extra money in the form of carers allowance and reduce what I earn to below the allowed amount per week. I'm probably only just over it if my earnings are averaged throughout the year (as they are for tax credits) but carers allowance is done on a strict week by week basis so as things stand I can't claim it.

That's quite the set of circumstances. Without wanting to sound glib, your best approach is to work out the details of your claimant commitment with your work coach.
UC is quite adaptable to fluctuating income (despite the scare stories of nulled months, etc) and you may be eligible for carers element (element, not allowance), child element, child care element, etc. Your work coach will need (legally) to be sure that your self-employment is a viable source of income for you when compared to employment, but to the best of my memory they are able to look at this across assessment periods - not just a handful where MIF wasn't met, when it's exceeded in others. This may be an easier sell if child care issues prevent gainful employment in other arenas.

I don't have a work coach yet as I'm not yet being migrated to UC. I'm just trying to get my head round how it will work and how best to try and adapt my working pattern in advance so I'm prepared for what UC throws at me!

My self employment is considered gainful and viable by tax credits at the moment - I was audited just last year to check and they were quite happy with what I'm doing. On average I earn NMW for 20 hours a week, but this is when averaged over 12 months which UC doesn't allow for. It's so worrying. I don't want to give up my business as I've worked hard to build it and I hope that it will support me fully when my DC leave home - I don't want to rely solely on benefits and then face a cliff edge in 10 years time!

According to the cab the minimum income floor doesn’t apply if you’re a carer? Maybe get some specialist advice? www.citizensadvice.org.uk/benefits/universal-credit/on-universal-credit/how-the-minimum-income-floor-works-if-youre-self-employed/

Under UC, I believe you can get a carer element if you provide 35 hours of care (to a PIP or DLA recipient getting the appropriate level of award) irrespective of whether you claim CA or not. I don't believe you'll be put in work conditions or assigned a work coach in that situation, either.

The self employment is another layer of complication under UC, as they treat you as though you're making the equivalent of FT NMW every month. There's a special arrangement for your first year of self employment, but I doubt you'll qualify for that purely on the basis of migrating, IYSWIM.

It might be a good moment to retrain or pursue PT work, if you've been harbouring any thoughts in that direction.

Good luck - it really is a labyrinthe

According to the cab the minimum income floor doesn’t apply if you’re a carer? Maybe get some specialist advice?

Oh that's a result. I missed that.

I can't advise you but I just wanted to say I think you're doing an amazing job in really difficult circumstances. Running a business whilst still dealing with your caring commitments (which sound far more complex than parenting "normal" children) is a fantastic achievement.

I bet your children are so proud of you if not now when they are older.

Wish i could help with your original question though :(

I can't work in an employed job. I just can't. I'd get the sack for being unreliable! At least once a week I have to collect my child early from school, at least once a fortnight I have a meeting with either the medical or education team working with my child, I have to take time off for appointments for my child, I can't work at all in holidays as there is no childcare that will take my child. And I mean, no childcare. He needs 2 to 1 adult support at times, he can be extremely challenging and the childcare just doesn't exist for him.

So it's self employment or not working. And I'm choosing self employment and trying really hard to make it work - at the moment, it does work and it does pay. But under UC I fear it will no longer be viable

Thanks for the CAB link, it would solve some of my problems if carers are exempt from the MIF. Now I need to find out more about how they class carers in that case - at the moment you only count as a carer if you claim Carers Allowance, which I don't want to have to do!

Now I need to find out more about how they class carers in that case - at the moment you only count as a carer if you claim Carers Allowance, which I don't want to have to do!

https://www.turn2us.org.uk/Benefit-guides/Universal-Credit/Additional-Elements-of-Universal-Credit#guide-content

It does look as though you might just about be okay under UC.

One other thing to be aware of - that they introduced last year - is the "Surplus income rule". Proper training on it hasn't been rolled out yet, but google it. I think the important thing there is to avoid ever receiving a nil assessment in any month.

Have you asked for a social care family needs assessment ? I know in our area the availability for respite/childcare improves after 8 and tehre are some schemes that are accesible only with a referral by social services ....if he has an EHCP then you can ask for that to be looked at as well...

He has an EHCP but we were point blank refused a social care assessment. Told we don't meet the threshold, that I can spend his DLA on childcare or a 1-1 for activities, and that if I pushed for the assessment I would be at risk of a child in need plan being started! I dropped it as I didn't think I could take the potential hassle.

ColeHawlins that is a big relief to see that in writing, let's see how it actually pans out!

SS arent above a bit of blackmail then.

Nope, they certainly aren't. I'm not the only person I know of who has had a very similar threat issued (and yes, I consider it a threat!). But there's only so many battles one exhausted single parent can face. Which of course is why they do it

OP i think you are doing amazingly well You should be proud of yourself

You may find more childcare options as he gets older - dd was invited to a council run scheme who provided 1:1 from 8, not all day but means you could do some work in the summer. Uc does seem to work for some people, there's definitely winners and losers hopefully you will be the former

Is there a way if only bringing some of your income in certain months? I do some freelance through a website and I can choose to not draw my earnings out in certain months, or only draw out a proportion, into my bank account.

Could you do something similar through PayPal, or wherever you get paid through?

I'm not on UC though, so can't verify whether that is within the rules. I save it up up for that leaner months, it helps knowing that I have a few hundred sitting there.

Is there a way if only bringing some of your income in certain months? I do some freelance through a website and I can choose to not draw my earnings out in certain months, or only draw out a proportion, into my bank account.

That's exactly the practice that the Surplus Income Rules were introduced to combat. Do not risk it.

policyinpractice.co.uk/three-significant-but-little-known-welfare-changes-live-from-april-2018/

I don't know, I do my expenses as a simple in and out every month so if more has come in than gone out that's my profit for the month and that's what is taken as my earnings by tax credits and housing benefit.

I'm self employed and also a carer and I do claim carers allowance. You can now earn £126 a week before it affects your allowance and they take the average over a year!
I had to send rough accounts for the first 6 months.
I don't work over summer and Christmas so it meant I could earn more during the other weeks.
It's really worth claiming carers allowance as they give you NI credits too.

Oh! I was told it was strictly week by week and if you went over the earnings limit it disqualified you for the week in question!

No. For self employed people they take the average over the year

See this is why I consider Mumsnet more use than any official channels. It was a supposed "benefits adviser" who gave me that advice about Carers Allowance FFS. Off to to a weekly average for the last 12 months!