MP urges DWP Secretary to support farmers unable to access Universal Credit

On the floor of the House of Commons, Cumbrian MP Tim Farron asked the Secretary of State for Work and Pensions, Mel Stride, to urgently review the rules which are hampering farmers being able to access Universal Credit.

Last month, Farmers’ Weekly reported that the process was a “nightmare” for farmers because the rules for self-employed claimants don’t reflect how the farming industry operates.

Universal Credit is calculated based on monthly income and expenses. However this does not account for the fact that farmers’ incomes can fluctuate widely depending on the season, and there will be a number of months where expenses will be incurred but there will be virtually no income until grain or stock is sold.

To make matters worse, for self-employed people wanting to claim Universal Credit there is ‘Minimum Income Floor’ which means that they have to prove they are earning the national minimum wage every month.

As a result, this means in some months farmers may not qualify for a payment.

According to Farmers’ Weekly, some farmers are reporting that when they have been called into meetings with a DWP “work coach”, it has been suggested they get another job because they earn less than the minimum wage.

Speaking during Work and Pensions Oral Questions in Parliament, Tim said: “Some of the poorest people I know in my constituency work for themselves.

“Hill farmers have seen a 41% drop in their income over the last four years. The welfare system does not work for them, because they are paid less than the minimum wage. Access to Universal Credit is less for them, because of the Minimum Income Floor.

“Will the Secretary of State urgently look at that, so that small business owners - especially hill farmers in my constituency - are not made even poorer because of the Government’s rules?”

Responding, Mel Stride said: “The honourable gentleman is right inasmuch as Universal Credit for the self-employed has to recognise the fact that sometimes there are inconsistent levels of income month to month.

“That is why we have a Minimum Income Floor and the arrangements around that. I know he has a rural, agricultural constituency; I recognise some of those issues, and I am looking closely at them.”