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Original poster

UC minimum floor help

14 replies

babiesof2022 · 11/01/2022 15:43

Can someone please help me with this. U understand what the minimum floor is but how does it work? My hubby is self employed so it applies to him. Im not working yet

So his minimum floor is £1,227.50 a period. If he earns less than this how will they calculate our money

OP posts:

CorrBlimeyGG · 11/01/2022 15:48

If he earns less, your benefit will be calculated as if he had earned that amount.

Original poster

babiesof2022 · 11/01/2022 17:48

What amount? The less amount or the £1,200 minimum floor amount?

Are you on UC yourself?

OP posts:

Prawn9910 · 11/01/2022 17:55

They will use the minimum income floor amount to calculate the benefit.

ThreeFeetTall · 11/01/2022 18:02

If your partner earns more than 1,227.50 then they will use the actual amount of their earnings to calculate the amount of benefit you will get (like normal)
If your partner earns less than 1,227.50 they will calculate the amount you will receive as if they had earned 1,227.50

Does that make sense?

Original poster

babiesof2022 · 11/01/2022 18:04

Hi yes that makes sense but it seems a bit unfair that if he earns say £800 then still use a higher amount to deduct? Surely that's not very fair? They should use his actual earnings

OP posts:

Babyroobs · 11/01/2022 18:16

@babiesof2022

Hi yes that makes sense but it seems a bit unfair that if he earns say £800 then still use a higher amount to deduct? Surely that's not very fair? They should use his actual earnings

That is what the minimum income floor is all about though. It is to make sure that the business of self employed people is viable. If earning less than the minimum income floor then they will question whether it is a viable business. If he is in his first year of setting up his business then the minimum income floor does not apply.

popcorndiva · 11/01/2022 18:18

I think its to encourage one partner to work as otherwise why would you work more hours

ThreeFeetTall · 11/01/2022 20:42

It's a blanket rule across everyone so can't take into account all individual circumstances.
It's to stop people taking the piss- doing a couple of hours work, saying it took 35 hours, earning £100 and then getting higher amount of benefit. But that means it does work out a bit unfair sometimes.

BarbaraofSeville · 12/01/2022 06:17

@babiesof2022

Hi yes that makes sense but it seems a bit unfair that if he earns say £800 then still use a higher amount to deduct? Surely that's not very fair? They should use his actual earnings

It may not seem fair, but there has been a spate of 'self employed' people who earn £30 a week from being a mobile beautician, but in reality they just do nails for a couple of their mates, or they run an 'online shop' but what they're really doing is just reselling a few pound shop or car boot sale finds. But they then got topped up with hundreds of pounds a month in benefits.

So now the rule is that your business must actually pay you NMW for the amount of hours you are required to work, after a set up period. If you can't achieve that, it's not a viable business and shouldn't be subsidised by the tax payer.

How much does his income vary and is there anything he can do to average the income out by a longer period, eg take deposits, staged payments and/or delay some of his invoicing so he doesn't get paid a large amount one month and then nothing in the next month? Look at the UC guidance to see if there is any advice on variable incomes.

jay55 · 12/01/2022 07:38

If someone can earn more in a minimum wage job, it's a hobby not a viable business.

miahenry · 13/01/2022 06:29

If you're in gainful self-employment, the minimal income floor may apply to you. This implies that being self-employed is your primary occupation, that you work on a regular basis, and that you anticipate to make a profit. You must also be in the 'all work-related requirements category,' which means you must work or look for work.

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PaulaTrilloe · 13/01/2022 06:37

At the moment the UC Minimum income floor has been suspended (since March 2020) because of COVID not sure when it's being reinstated.

Original poster

babiesof2022 · 13/01/2022 11:38

@PaulaTrilloe mine has been reinstated this month

OP posts:

PaulaTrilloe · 14/01/2022 05:49

Thanks for heads up. I thought it was a blanket approach for all UC self employed claimants due to COVID so it might be about to change. The Jobcentre advisor didn't know when asked in June 2021 about it as it was meant to kick in July 2021.There was a mention of it in the Payments section then it said it would inform of any change. Might be worth asking on Specialist UC Essentials Facebook page?

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