Source · Select Committees · Welsh Affairs Committee
Recommendation 15
15
Not Addressed
We welcome the extent of support that the UK Government provided during the pandemic, but...
Conclusion
We welcome the extent of support that the UK Government provided during the pandemic, but we note that not all self-employed people were eligible. We welcome 44 The Benefits System in Wales the UK Government’s acknowledgement that it has “learned more” about the issues with capital limits and we would welcome more details from the DWP about the lessons it has learned. (Paragraph 108) Intergovernmental relations
Government response summary AI-generated
The Department for Work and Pensions has advised the Welsh Government how Universal Credit would be affected by payments under the proposed basic income pilot and HMRC has similarly advised about the treatment of taxation, not providing more details about the lessons it has learned regarding capital limits and self-employed people.
Summary of the government's response below — read the verbatim text to verify.
Government Response
Not Addressed
HM Government · verbatim extract
Not Addressed
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.
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