Minimum Income Floor - Health Condition

Your help please:

I have a client who is in self-employment. There has been a downturn in business – which may improve over time – but currently his net profit is significantly less than in the past. He has been in receipt of UC and the MIF was not applied until about 2 months ago after he exhausted his 12 month period and is having difficulty meeting his rent etc. going forward. He has some health issues and has a MED3 from his GP which he has not submitted to UC yet. Am I correct in saying that if he does submit the sick note and switches his UC claim to one based on the WCA and limited capability for work then if the DWP no longer apply the “all work-related requirements” to his claim the MIF cannot apply? He will continue to do some self-employed work (see below).
And when will the DWP remove the “all work-related requirements”?
Will they do this when he makes the claim for UC based on a health condition or only following a WCA?

Other points of note is that downturn in business means that he works about 12 hours per week and he earns – or his net profit is – less than 16 hours x NMW per week.

Hi Hammer,

The automatic exemption from the MIF follows the granting of LCW or LCWRA after a WCA.
You say that his business may improve over time which suggests he does not wish to challenge his ” gainfully self employed status “. If he gave up self employment he would be obliged to look for salaried work ( until a favourable WCA ) and the MIF would not apply.
If he informs his Work Coach that his current health condition is long term, he can make a request for a reduction in his expected hours of work whilst remaining self employed. The reduction in the expected hours of work would translate into a proportional reduction in the MIF.
Please let me know if I haven’t explained this adequately.

I’m pretty sure DWP would agree to backdate the removal of the MIF once he is found to have LCW/LCWRA. Similar to how they agree to backdate the work allowance.

Thanks UB40 and Charles for your replies which are both really helpful.

To be clear if he continues in self-employment but asks for a reduction in the number of hours of work due to a long-term health condition this will translate to pro rata reduction in the MIF if i understand you correctly.

And if he is then found to have LCW/LCWRA then the MIF can also be backdated. Does the backdate apply only from the end of the assessment period?

Thanks again both for your explanations.

Removal of MIF should be removed from start of continuous period of evidenced sickness. I had a successful WCA appeal earlier this year where self-employed person was awarded LCW status - DWP backdated underpayment to start of sickness period, no problem.

That’s great.

Thanks Kelly.

Hammer - 05 June 2024 08:48 AM

Thanks UB40 and Charles for your replies which are both really helpful.

To be clear if he continues in self-employment but asks for a reduction in the number of hours of work due to a long-term health condition this will translate to pro rata reduction in the MIF if i understand you correctly.

And if he is then found to have LCW/LCWRA then the MIF can also be backdated. Does the backdate apply only from the end of the assessment period?

Thanks again both for your explanations.

Yes, reduction in the expected hours of work translates to a proportional reduction in the MIF. Claimants who are self employed are also entitled to a work allowance if they meet the normal criterion.