How George Osborne’s Minimum Wage Rise Will Mean Brutal Benefit Cuts For The Self-Employed

Another excellent article by the good Mr Void, showing that whenever the Tories claim to be generous, they’re actually finding another way to take something away from the poor by cutting benefits. In this case, it’s using the assumption that self-employed people will be paying themselves the new minimum wage, even when they can’t, because they’re simply not making enough. The assumed income will then be used to cut any further benefits, that would otherwise be available to them based on the real amount they have earned.

Forget all the populist rubbish the Tories have been spouting about how they represent the small businessman since Maggie Thatcher. They are the party of big business, who have nothing but Victorian contempt and condescension for artisans and tradesmen, let alone the labouring poor.

the void

gideon-osbornePlans to raise the minimum wage will mean a brutal benefit cut for the lowest earning self-employed workers due to complex changes to in-work benefits.

When Universal Credit is fully introduced (stop laughing) then anybody who is self-employed will be subject to the ‘Minimum Income Floor’.  What this means is that when calculating in-work benefits, such as Tax Credits and Housing Benefit, the DWP will assume a level of income regardless of how much the self-employed worker is actually earning.  For most people this means that the rate of benefits they receive will be based on them earning the equivalent of the minimum wage for 35 hours a week.  This will apply even if they earnt nothing at all that month, potentially plunging people hundreds of pounds into rent arrears just because they’ve had a bit of a slow period.

So, as George Osborne is well aware, any rise…

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