Universal Credit will see £1,000 added to the standard allowance as part of a £6bn welfare package announced as the Government fights the coronavirus crisis.
These measures will benefit just over four million households across the country.
It came following increasing calls to offer additional financial support to the most needy.
Chancellor Rishi Sunak said self-employed people can now access Universal Credit at the same rate as Statutory Sick Pay for employees, the Chancellor said.
Mr Sunak said: “I’m strengthening the safety net for self-employed people too by suspending the minimum income floor for everyone affected by the economic impact of coronavirus.
“That means that self-employed people can now access, in full, Universal Credit at a rate equivalent to statutory sick pay for employees.
“Taken together, I’m announcing nearly £7 billion of extra support through the welfare system to strengthen the safety net and protect people’s incomes.
Former Labour leader Ed Miliband was among the first to respond.
He tweeted: “This is a very welcome announcement for employed workers. I am afraid it appears inadequate for the millions of self-employed, gig economy workers. £92 per week UC (universal credit) I make it.”
