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I'm a bit confused as to why I have just been awarded Universal Credit. I'm self employed and as a result of covid-19 my income started to shrivel very quickly and by mid-march had stopped with me not able to invoice. it coincided with Boris announcing that if you were self employed you could use the universal credit system.
Now, my wife is employed by the NHS and still working from home with no impact on her income whatsoever (about 40k). Regardless I decided to apply for universal credit to see if there would be any possibility of help for me. I had to apply as a couple and did the online application etc etc. In the meantime the announcement that the government would now be paying self-employed 80% of their income was made so I sort of forgot about the universal credit thing knowing I would be in a position to get the 80% income from the government in June.
yesterday universal credit called me to advise I (we) would be getting an advance payment of just shy of £800 (couples standard allowance plus 1 child for 1 month) to keep us going during this period of time. I explained that I was surprised by that and that I intended to apply for the 80% income support in June and he said that wouldn't make any difference and I was entitled to the advance and any subsequent UC payment.
I just can't quite understand how they have worked it out. My wife is working and earning her normal salary. I am at home with no work currently but also looking after my 5 yr old but how am I (we) entitled to anything? Surely this is the department being absolutely snowed under and making mistakes?
(incidentally the payment is definitely useful as it means I can keep my business alive for another 6 weeks by being able to pay my bills/invoices)
The advance payment might be clawed back later? If they are using whatever system they can to help you through short term cash flow issues, then that sounds like a wise thing to be doing at this time.
Yes, it is repayable out of future Universal Credit payments or future earnings when you start earning again. But I didn't realise that this was part of the official help for the self employed - small interest free cash advances as part of the universal credit advance system.
Take it and worry about any consequences later - you said it would help you keep going for another few weeks.
Can you defer any bills which will be due soon? Consider offering to make part payments on account - if that's possible.
There will be some UC payments which are correct and others which are either over or under.
small interest free cash advances as part of the universal credit advance system
It is literally the only help they can get sorted at the moment. Everyone self employed who has seen work stop is being pointed to UC as the only point of help available before June. Well, that and asking for a mortgage payment holiday.
You wouldn't get the advance payment normally without asking.
I've only claimed as a single person so I don't know much about claiming as a couple. But I very much doubt that given what your wife earns you would normally get full rate. If anything.
It's also normal for 63 percent of any 'earnings' such as your final wage, tax rebate, SSP etc. Paid to you in the last 30 days to be deducted from your first payment.
I can more or less guarantee that won't happen either. Due to public opinion.
I'm guessing that most of the normal rules have been scrapped. Universal Credit is just being used as the easiest system to give people money until something else is set up.