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<p>The aim of the Minimum Income Floor (MIF) is to encourage gainfully self-employed
claimants to grow their business. It addresses flaws in Working Tax Credits and Housing
Benefit that provided full support to claimants reporting persistently low (or zero)
earnings from self-employment. Only Universal Credit claimants with a work expectation
will have a MIF applied to their Universal Credit. A claimant’s expected hours of
work depends on their circumstances. Where a claimant has limitations on the hours
they can reasonably be expected to work, their MIF level is reduced. This ensures
the level of the MIF matches the work expectations of other claimants in similar circumstances.</p><p>
</p><p>One of the announcements in Autumn Budget 2018 was that the 12-month start-up
period, where claimants are exempt from the MIF, will be extended to all gainfully
self-employed claimants, new to Universal Credit, or new to self-employment. We plan
to introduce this from July 2019 with full implementation from September 2020. This
will provide time for self-employed claimants to establish and grow their business,
and strikes a balance between support for new business, not trapping claimants in
poverty, and protecting public funds.</p><p> </p><p>Plans are in place for an evaluation
of the MIF and a large-scale tracking survey of self-employed Universal Credit claimants
with a MIF applied to their claim</p><p> </p><p>Universal Credit encourages all claimants
with a work expectation to find and progress in work. To support those already in,
or considering self-employment, we are also extending the New Enterprise Allowance
(NEA) scheme from April 2019 onwards. The NEA provides support and mentoring for claimants
who are looking to start or develop their business.</p>
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