WIREDGOV

Citizens Advice has responded to the Work and Pensions Select Committee’s new report into the impact of Universal Credit on self-employed people.

Citizens Advice research from April 2018 finds that a self-employed worker on Universal Credit could be worse off by £630 a year compared with an employee on the benefit - even if their year-end earnings are identical.

Gillian Guy, Chief Executive of Citizens Advice, said:

“This report reinforces Citizens Advice research which shows the design of Universal Credit has not kept pace with the changing job market and surge in self-employment.

“Citizens Advice finds that the Minimum Income Floor could leave self-employed people hundred of pounds worse off each year, compared to employees.  

“The government has already taken some action to improve Universal Credit, but now it needs to look at the design of the benefit and review the Minimum Income Floor. Otherwise, it risks putting people’s financial stability at risk.”

Notes to editors

1. The Citizens Advice service comprises a network of local Citizens Advice, all of which are independent charities, the Citizens Advice consumer service and national charity Citizens Advice. Together we help people resolve their money, legal and other problems by providing information and advice and by influencing policymakers. For more see the Citizens Advice website.
2. The advice provided by the Citizens Advice service is free, independent, confidential and impartial, and available to everyone regardless of race, gender, disability, sexual orientation, religion, age or nationality.
3. To get advice online or find your local Citizens Advice in England and Wales, visit citizensadvice.org.uk
4. You can get consumer advice from the Citizens Advice consumer service on 03454 04 05 06 or 03454 04 05 05 for Welsh language speakers.
5. Local Citizens Advice in England and Wales advised 2.5 million clients on 6.2 million problems in 2014/15. For full service statistics see our publication Advice trends.
6. Citizens Advice service staff are supported by more than 21,000 trained volunteers, working at over 2,500 service outlets across England and Wales.