Thousands of self-employed workers who claim Universal Credit could see their payments cut from this weekend as the minimum income floor is reintroduced.
The minimum income floor is an assumed level of earnings used by the Department for Work and Pensions (DWP) if you’re self-employed.
It had been suspended during the coronavirus crisis to help those struggling due to the pandemic, but it is due to come back in August.
This means anyone who is self-employed could see their income change once the minimum income floor is reintroduced from this Sunday, August 1.
Or they could also be faced with having to work extra hours to top up their money.
Are you worried about the minimum income floor returning? Let us know: mirror.money.saving@mirror.co.uk
Poverty charity Turn2us said the average cut to a self-employed worker's Universal Credit could be around £3,200 a year.
It estimates that up to 450,000 households could be affected by the change from August.
Turn2us head of external affairs Sara Willcocks said: "Now is not the time to be cutting people's income.
"We urge the government to keep the minimum income floor suspension, otherwise we risk seeing an increase in poverty this winter."
What is the minimum income floor?
As self-employed workers don't have a set salary, the DWP calculates a minimum income floor to create an assumed level of earnings
The minimum income floor is calculated using the national minimum wage for your age group and is based on someone working full-time.
For many people this will be 35 hours per week but it can be less if you have a disability, have caring responsibilities, or look after children.
If you earn more than the minimum income floor, your Universal Credit will be based on your actual earnings.
But if you earn below this level, your welfare payments won't be topped up - meaning your Universal Credit may be smaller.
People this could affect include those who are unable to work due to having to self-isolate, or if your business is affected by restrictions.
If you're worried about the change, you should speak to your work coach as soon as possible.
This is because they may be able to use wiggle room to allow the minimum income level to apply even after the old rules come back.
The minimum income floor applies if you are working or looking for work, but not within the first 12 months of you working for yourself.
You need to be in the "all work-related requirements group" for the minimum income floor to apply to you.
Find out what Universal Credit work-related activity group you're in by checking your account online.
In more news for benefit claimants, the £20 uplift to Universal Credit will come to an end this autumn.
Pensions Secretary Therese Coffey has confirmed claimants will "start to see an adjustment in their payments" from late September onwards, although the changes will "largely" happen in October.
It comes despite six former Work and Pensions Secretaries have called for it to be axed, warning that failing to do so would "damage living standards, health and opportunities”.
