Universal Credit roll-out delayed

(2 minutes to read)

At the end of 2018, the IPSE urged the government to tackle Universal Credit’s structural bias against the self-employed, saying that UC has a negative impact on the sector, disincentivising workers and employees.

The self-employed will be breathing a sigh of relief in learning that the roll-out of Universal Credit is being delayed.

The IPSE has welcomed the decision to halt the UC roll-out, while at the same time urging the government to reform the parts of the policy that punish the self-employed.

At the end of last year, the IPSE told the London Assembly Economic Committee that an extended period is needed in order to fix a ‘creaking system that unfairly punishes the self-employed and disincentivises people from striking out on their own’.

For example, a self-employed individual can find themselves up to £3,000 worse off a year compared to employees because the MIF does not account for the fluctuating nature of self-employed earnings.

To address this structural bias, IPSE wants to see the MIF’s exemption period extended from 12 months to three years and – to accurately account for fluctuating self-employed earnings – calculated on a quarterly or annual basis.

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IPSE’s Policy Development Manager Jordan Marshall commented, “Self-employed people can be thousands of pounds worse-off each year under Universal Credit compared to full-time employees making a similar amount.

“This is because Universal Credit calculations don’t account for monthly fluctuations in self-employed income.

“IPSE is calling on the Government to use the delay in the roll-out to fix these flaws which punish the self-employed.

“Unless the system is reformed, Universal Credit will continue to sap the incentive to run your own self-employed business.”

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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, Contractor Umbrella, 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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