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Universal Credit, Self Employment and the Minimum Wage

November 21, 2013

the void

The new rules for self-employed people on Universal Credit are to set to be some of most complex ever designed and will prove devastating for the lowest earning workers.  Self-employed people could find business ideas rejected by panels of government busy-bodies or face having to cancel organised work to attend workfare, all whilst attempting to battle unprecedented levels of red tape.

Under current rules, low paid self-employed people who work 30 hours a week can claim Working Tax Credit.  This is a lower amount of benefit than Jobseekers Allowance and is removed at a lower rate when wages increase.  Housing Benefit can also still be claimed, at a reduced rate dependent on earnings.  This has meant that self employed workers can take work, or develop a business, without being forced to sign on and off unemployment benefits everytime they earn anything.  Much like Working and Child Tax Credits, which are…

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