Source · Select Committees · Welsh Affairs Committee
Recommendation 7
7
Paragraph: 83
We welcome the swift changes to the financial support many claimants received during the pandemic,...
Conclusion
We welcome the swift changes to the financial support many claimants received during the pandemic, as well as to the operation of the overall system. We received evidence of the significant difference that the temporary £20 uplift made to those eligible claimants, as well as other support measures such as the increase in the Local Housing Allowance percentile. However, we received evidence of concerns about the impact of these temporary measures coming to an end.
Paragraph Reference:
83
Government Response
Acknowledged
HM Government
Acknowledged
There were various support mechanisms available to the self-employed, though eligibility will have varied according to how their enterprises were structured. As for the Department for Work and Pensions, its support included the easement on the Minimum Income Floor. The report highlights that there is a misunderstanding about how Universal Credit capital limits apply to self-employed people. If someone has money in their account that is to be used for business purposes (including a forthcoming tax bill), it is already the case that Universal Credit does not count this towards their capital, although they may be asked to prove that the money is for business purposes. The Department for Work and Pensions will seek to make this clearer for claimants in the future. Sadly, the Department for Work and Pensions has also experienced a considerable increase in fraud.