‘Move to UC’ will see payments for those who rely on working tax credits and child tax credits no longer based on annual income.
Concerns have been expressed that the ‘Move to UC’ will have a significant impact on the 134,000 self-employed people across Northern Ireland including many farming families.
From 16 October, the Department for Communities has confirmed it will begin issuing migration notice letters to those in Northern Ireland receiving working tax credits and child tax credits. “There are some transitional provisions which will help ease the move for self-employed people from tax credits to Universal Credit, such as the 12-month exemption from the minimum income floor and the transitional capital disregard. However, these provisions are temporary and fall away after 12 months.”
“No longer is this payment based on annual income, instead figures must be submitted on a monthly basis, with no allowance being made for seasonal income such as lamb sales or Single Farm Payments which has the potential to eliminate any benefit income for several months. William Irvine, Ulster President of the Ulster Farmer’s Union also expressed grave concern over the new approach, and the impact it will have for farm families across Northern Ireland.
“The change to Universal Credit completely dismisses the pattern of income and expenditure for most self-employed businesses, especially farms. A pattern which farmers do not have the ability to change.
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