§ Mr. HargreavesTo ask the Secretary of State for Social Security, in the light of the recent report by the National Audit Office on income support for the self-employed, what conditions apply to people who claim income support and are engaged in self-employment.
§ Mr. LilleyA person claiming income support may carry out some part time work, but this must generally be for less than 16 hours per week. This is regardless of whether the person is an employee or self-employed. In general, however, they must be registered as unemployed and available for and actively seeking work as an employed earner. In addition, earnings above £5 per week (£15 for lone parents) reduce income support entitlement pound for pound. Some of the coverage of the national audit report in the news media did not sufficiently emphasise these conditions and may therefore have created a misleading impression of the extent to which support for those conducting their own business is available from income support.
The principal benefit for people with children and who are working for 16 hours or more per week is family credit. Family credit is currently paid to 70,000 self-employed people, who receive an average of £55 per week each.