The move to Universal Credit is proving difficult for many, with self-employed people, particularly farmers, struggling with the transition.
According to a Welfare Rights Specialist, the often seasonal and volatile nature of the business exacerbates these difficulties.
Samantha Gallagher, the Assistant Manager of Community Advice Fermanagh, says farmers and the self-employed, such as tradespeople, builders, and mechanics, are finding the transition to Universal Credit challenging.
She said: “All work seasonally and contribute significantly to our economy, our housing, and our food industry but are not receiving the support under Universal Credit that they used to receive under Tax Credits.
“There is still a lot to understand and interpret when it comes to navigating Universal Credit as a self-employed person. The requirement to report income and expenditure monthly—what is income and what is expenditure?
“Monthly reporting instead of yearly just does not work for farmers as their earnings fluctuate. They receive a single farm payment in September, which means high income, but then have no income from October to February.
"As the Single Farm Payment was so high, it added surplus earnings to Universal Credit, and we had a number of farmers who received no Universal Credit as well as no income from September through to March because of this.”
Ms. Gallagher spoke at Maynooth University as part of the All Island Social Security Conference earlier this year.
She detailed how, in the rural village of Kinawley, when Community Advice Fermanagh hosted an outreach clinic, she carried out 27 benefit entitlement checks. Of these, 25 were seeking advice on the move to Universal Credit, and 23 of those families were self-employed, mainly in farming.
Of those 25, she noted that eight of them did not have the digital skills needed to set up and maintain the claim. She said of those 25, six decided not to proceed with the move to Universal Credit, and of the remainder, only four families stayed on Universal Credit past three appointments.
Ms. Gallagher said: “They [those who did not continue in the system] cited a variety of reasons. Some had surplus earnings due to selling livestock or receiving Single Farm Payment. Others simply found the system unbearable to work or too overwhelming, others said they were not supported enough and so gave up, and others cited the monthly reporting as too much work in addition to their farming commitments.”
Ms. Gallagher alleged: “There is also a lot of incorrect advice being provided about Universal Credit for self-employed people, and this incorrect advice is by Department for Communities staff.
"We have even seen errors in advice being provided by accountants.”
Another complexity highlighted by Ms. Gallagher was the difficulties for those who work and live on different sides of the border.
“The border region has always had its difficulties in trying to navigate two social security systems, and there are very few experts on social security on both sides of the border because it is so complex.”
Other issues include the claimant commitment that must be signed to claim the benefit. Ms. Gallagher explained: “The commitment has work-related requirements, and depending on your circumstances, you will be required to look for work, and it may not always make sense.
“We have an example of a single farmer living alone. Despite him working 40 hours on average per week, he has been told because he does not earn enough, he is required to look for more work.”
Ms Gallagher concluded: “Universal Credit itself does not understand or accommodate a rural way of life.”
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