Claiming Benefits

Claiming Benefits | Savvy Mums Business

Welfare benefits are in place as a safety net, to support those on a low income. You might traditionally view benefits as being for the unemployed, so here are a couple of facts you might not know;

  • Less than 3% of the tax credit and social security budget goes on benefits for those who are unemployed
  • More than 90% of new housing benefit claimants in the last few years were from households with someone in work or self-employed

Tax Credits have been a huge help to families, especially those who are self-employed. They help by topping-up your income and mean more people have been able to try out self-employment without the risk of losing the roof over their heads if the business doesn’t do as well as they’d hoped, or if it takes a while to get going.

Tax Credits provide vital top-up support to self-employed mums. Click To Tweet

Universal Credit will eventually replace Tax Credits to provide this top-up support, and things are getting tighter.

Having a baby? As a self-employed mum you may find yourself needing to claim Maternity Allowance if you’re expanding your family.

Sick? If you become unwell you may need to claim Employment Support Allowance (ESA) to provide some income while you’re unable to work.

Other benefits, such as Disability Living Allowance, or Personal Independence Payment, can be claimed regardless of whether you work or are self-employed, or not. They are purely about recognising the extra difficulties you have due to a disability and are not an earnings replacement or top-up.