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<p>The Minimum Income Floor is expected to encourage those reporting very low self-employed
income to increase their earnings. Some people will respond to this by increasing
their earnings from self-employment, others will look for other employment to increase
their income and it is applied equally across all sectors of self-employment.</p><p>
</p><p>The Minimum Income Floor is modelled using the Policy Simulation Model and
Integrated Microsimulation Model (INFORM) where we apply it to the Universal Credit
award calculation for the projected population of Universal Credit self-employed claimants.</p><p>The
Minimum Income Floor is calculated, as per policy, based on claimants characteristics
i.e. National Minimum Wage/National Living Wage (which is a function of age), tax
bracket and maximum work search requirement for a given claimant type.</p><p>A more
detailed modelling methodology of Universal Credit forecasts is likely to be published
by Office for Budget Responsibility in 2018 as a part of their Welfare Trends Report
series.</p>
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