Sunday 01 August, 2021

SNP slam re-introduction of Universal Credit ‘minimum income floor’

Self-employed face a double whammy of cuts to Universal Credit payments.

The SNP has slammed the UK government for its decision to reinstate the Minimum Income Floor (MIF) – a move that could see thousands of Scottish families pushed into poverty.

Tory Ministers have confirmed that the benefit cap for the self-employed will be reinstated from August 1 – followed closely by the removal of the £20-a-week Universal Credit uplift.

Scottish Government analysis estimates that by removing the £20-a-week uplift and reinstating the MIF would reduce spending on reserved benefits in Scotland by £476 million per year.

The cuts are estimated to push 60,000 more Scots into relative poverty after housing costs, including 20,000 children, compared to if they were reinstated.

Photo: Pixabay

Commenting, SNP Work and Pensions spokesperson David Linden MP said: “The callous decision to reinstate the Minimum Income Floor is a kick in the teeth to thousands of families across the UK – especially at a time where the £20-a-week uplift is set to be cut.

“Despite the overwhelming evidence that these austerity cuts push thousands of self-employed workers into poverty, Tory ministers continue to stick their head in the sand and ignore all reasoning.

“The analysis conducted by the Scottish Government found that many self-employed workers on Universal Credit and Working Tax Credit will see their annual income drop by over £1,000.

“While the SNP welcomed the temporary suspension of the MIF within Universal Credit, we have been clear that this sticking plaster does not go far enough to provide the support required for self-employed workers.

“U-turning on this decision while still in the middle of a pandemic, and at a time where Universal Credit is being cut, could have disastrous consequences.

“The only way to keep Scotland safe from the long-term damage of Tory austerity is to become an independent country – with the full powers needed to build a strong, fair and more equal country.”

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