How will Universal Credit be affected by self-employed losses as coronavirus hits income?

Universal Credit is designed to support those who have fallen on hard times and may need support. However, it can also be utilised by self-employed people who are trying to secure relatively stable income.


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The amount paid can factor in earnings or losses that arise from the business.

As the government details, if a person has an online Universal Credit account and they’re self-employed, the earnings or losses from one month can be taken into account for calculations for the following month.

There is an upper limit in place that affect how much Universal Credit is paid.

A person will be assigned a monthly amount that can be received before payments are affected.

If the person earns more than £2,500 over this amount they are said to have “surplus earnings”

This could reduce the Universal Credit payment for the corresponding period or in some cases, remove it entirely.

However, these reductions can be offset by potential losses.

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If the person makes a loss in one month, the loss will be noted and taken into account in separate months when profits are made.

If the profits in question are not high enough to fully cover a loss, the remaining loss will be carried forward to the next month when a profit occurs.

These rules will likely be very important for self-employed people over the coming months.

Coronavirus is expected to get worse before it gets better and there will likely be repurcusions for the economy.


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Many within the government, including Rishi Sunak and Boris Johnson, have predicted that coronavirus will negatively impact the economy over the coming months.

This will likely be only a temporary occurrence but this will make it hard for many people’s personal finances.

Thankfully, the government is committed to supporting those who are hit by the virus as much as possible.

In the recent budget, the Chancellor of the Exchequer provided details on a £500million boost to the welfare system.

On top of this, he also announced today that over £300billion in loans will be provided to struggling businesses.

More support expected to be announced in the coming weeks.

This support will be aimed not only for individuals but also public institutions like the NHS. It is an unprecedented situatino as it is officially the biggest offering of support money in the history of peacetime. 

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