Citizens Advice responds to Work and Pensions Select Committee report on Universal Credit

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.”