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<p>The legacy system serves to prop up unsustainable enterprises indefinitely and
trap claimants in welfare dependency. We want to support people to be self-employed
when it is the right thing for them to do to be financially self-sufficient. Key to
this is continuing to support people in, or considering, self-employment to progress
to a level of sustained financial self-sufficiency.</p><p> </p><p>We recognise that
it takes time for new businesses to grow and that even established businesses can
experience difficulties. Last month’s Autumn Budget announced a 12-month exemption
period from the Universal Credit Minimum Income Floor (MIF) for all new gainfully
self-employed claimants, and an extension of the New Enterprise Allowance programme
for a further two years beyond its current expiry date of March 2019.</p><p> </p><p>We
already provide a 12-month start-up period where the MIF is not applied for newly
created businesses. The new 12-month exemption period will include new claims, such
as from those running a long-standing business and those moving from legacy benefits
to Universal Credit, whether following a change of circumstances or moved by DWP.
This also includes those existing Universal Credit claimants who become gainfully
self-employed.</p><p> </p><p>These changes will provide all gainfully self-employed
claimants with an equal chance, and support from specially trained work coaches, to
grow their earnings, prepare and adjust for the application of the MIF. Currently,
we forecast that, in 2023/24 130,000 self-employed people will have the space to grow
a successful business when moving on to Universal Credit</p>
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