MP uses Parliamentary debate to slam Universal Credit ‘hidden clause’ which could see local small business owners lose thousands of pounds

South Lakes MP Tim Farron used a debate in Parliament this afternoon to slam a 'hidden clause' in Universal Credit to which could see local small business owners lose thousands of pounds.

The Minimum Income Floor requires the self-employed to prove they earn at least the National Living Wage consistently in order to receive get Universal Credit each month.

Unlike the previous tax credit system, Universal Credit is not calculated over a year but instead every month.

It means one bad month of earnings could suddenly see a small business owner lose their Universal Credit for the following four weeks.

Last month Universal Credit was rolled out in South Lakeland with South Lakes Citizens Advice suggesting that 6000 families locally will be receiving Universal Credit by 2022.

Tim said: "The simple fact is that for small businesses, especially those that are just starting out, there can be no guarantee that the employer will be able to earn the National Living Wage every month.

"Small business owners are absolutely crucial to our local economy - we should be trying to encourage them, not punish them.

"They deserve better than this from the Conservative Government and I will continue to demand better for them."