Help with minimum income floor

MonicaBingaling · 2023-01-05T18:37:05+00:00

I’m struggling to understand the minimum income floor, please can someone help? I am self employed and on benefits, but in February the minimum income floor will start. normally my benefits are £1,300 if my self employed earnings go anything above £300 they start deducting my benefits. in February the minimum income floor will start, it is £600. so how does this work?

DancingDonkeys · 05/01/2023 23:17

Hopefully someone with more experience will be along soon to help but as I understand it, the minimum income floor is the minimum they expect your earnings to be, so they won't top it up to account for you earning less than that one month.

E.g. if in march you earn £800 then they do the calculations for UC using that, but if in April you earn £500, as this is below the minimum income floor, they would calculate your UC entitlement as if you'd earned £600 that month.
It means your max monthly UC entitlement will be as if you'd earned £600- therefore you will always be worse off if you earn less than £600 and effectively you won't get UC deducted for earning over £300 as you'd never have got that top up anyway.

DancingDonkeys · 05/01/2023 23:18

Sorry if that's confusing! With some more details I might be able to help more.
When you say "normally", what level of earnings is that accounting for?

Ohheckethump · 06/01/2023 08:32

If your maximum UC award is £1300pm and your minimum income floor is £800pm & you earn that in a month ( this is determined by the NMW & your previously agreed weekly hours) you would get £500 UC payment.
However if you only earn £500 in January they will only pay you UC as if you had earned the £800 as this is the minimum income they will accept from you so you will still only get £500 UC despite earning less than than the £800 MIF.

Original poster

MonicaBingaling · 06/01/2023 09:09

Ohheckethump · 06/01/2023 08:32

If your maximum UC award is £1300pm and your minimum income floor is £800pm & you earn that in a month ( this is determined by the NMW & your previously agreed weekly hours) you would get £500 UC payment.
However if you only earn £500 in January they will only pay you UC as if you had earned the £800 as this is the minimum income they will accept from you so you will still only get £500 UC despite earning less than than the £800 MIF.

Thanks I think I understand now.

My MIF is £645

What happens if I earn over the £645? Do they start deducting?

OP posts:

Original poster

MonicaBingaling · 06/01/2023 09:36

Ohheckethump · 06/01/2023 08:32

If your maximum UC award is £1300pm and your minimum income floor is £800pm & you earn that in a month ( this is determined by the NMW & your previously agreed weekly hours) you would get £500 UC payment.
However if you only earn £500 in January they will only pay you UC as if you had earned the £800 as this is the minimum income they will accept from you so you will still only get £500 UC despite earning less than than the £800 MIF.

I'm still confused as when I've entered my info on the entitled to calculator it tells me different

OP posts:

Ohheckethump · 06/01/2023 09:55

What are your agreed weekly hours if work?
It will tell you on your client commitment.

Ohheckethump · 06/01/2023 09:56

Yes if you earn over £645 they will deduct from your UC award.

Original poster

MonicaBingaling · 06/01/2023 10:09

Ohheckethump · 06/01/2023 09:55

What are your agreed weekly hours if work?
It will tell you on your client commitment.

16

They told me my MIF will be 645

OP posts:

Babyroobs · 06/01/2023 12:47

Ohheckethump · 06/01/2023 09:56

Yes if you earn over £645 they will deduct from your UC award.

If op has a child on the claim and claims help with rent then any earnings over £344 work allowance will reduce her UC. If not claiming rent element then any earnings over £573 per month will reduce her Uc.

DancingDonkeys · 06/01/2023 14:29

If you earn above your MIF, you won't see any changes to your UC entitlement. It's only if you earn less than the MIF that you'd see a difference in what you'd get once the MIF is introduced.