Minimum Income Floor

The minimum income floor was suspended in April 2020 and is being reintroduced from August 2021.

If you are self-employed and your earnings are low, your benefit may be worked out on higher earnings than you have. This is called the ‘minimum income floor’. The minimum income floor is set at the level of the national minimum wage at the number of hours you would be expected to work. How many hours this is depends on your circumstances. For many people it will be 35 hours per week but if you have a disability, have caring responsibilities, or look after children, it might be less. 

The minimum income floor only applies to Universal Credit and to some Council Tax Support schemes, not to other benefits.  

How it works: If your earnings are below the minimum income floor, the minimum income floor figure will be used to work out your benefit instead of your earnings figure.

If you earn above the minimum income floor, your actual earnings will be used to work out your benefit.

Read more about the minimum income floor in our guide on self-employed income and Universal Credit.

Updated: July 2021