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.