Government urged to stop Universal Credit rollout

(2 minutes to read)

Jaime Thorpe

By Published on 28th September 2018

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The IPSE has called on the government to urgently halt the Universal Credit rollout and address its flaws before it causes any more damage.

With Universal Credit (UC) already causing a negative impact, the Association of Independent Professionals and the Self-Employed (IPSE) are advising government to stop the rollout.

IPSE’s Policy and External Affairs Officer, Imogen Farhan, commented, “Nowhere is Universal Credit’s damaging impact felt more clearly than on the self-employed. The self-employed lose out due to monthly reporting because it does not take into account of the fact the income of the self-employed varies hugely from month to month.

“This means a self-employed person can end up £3,000 worse off each year under UC compared with an employee earning the same amount. That is a significant amount of money.

“Why, for example, should a farmer who sells or produce crops only at a particular time of year, be penalised? The Government must address the problem of monthly reporting by considering self-employed earnings over a more reflective annual basis.

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“The latest criticisms come just three months after a particularly disparaging report by the National Audit Office (NAO) which clearly highlighted the ballooning costs of the scheme, as well as the “difficulties and hardship” individuals are experiencing as UC is rolled out.

“The growing warnings of not just the NAO but the many other independent bodies must be heeded. The reforms damage entrepreneurship and cost self-employed people thousands of pounds a year. The Government cannot bury its head in the sand about Universal Credit’s failures any longer. It must urgently rectify the problems rather than pretending they do not exist.”

To find out more about contracting please contact Sophie on 01442 795 100 or email sophie.lewis@dolanaccountancy.com

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

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  • Free use of ContractorUmbrella – With changes in Public Sector IR35 Legislation we understand that sometimes you are required to contract via an umbrella company. We will keep your limited company ticking over, while you work margin free via our sister company, ContractorUmbrella.
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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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