Assessment of self‐employed earnings for family credit

Abstract

Self‐employment grew rapidly in the UK during the 1980s, but many of those involved have relatively low earnings. Self‐employed people can apply for the main in‐work means‐tested benefits, but they may have special problems claiming their entitlement. This article discusses the conceptual and administrative complexities involved in assessing self‐employed earnings for social security adjudication, concentrating on family credit. The requirements of adjudication for family credit are demanding: they include consistency of treatment in a highly heterogeneous sector with information obtained only through postal applications, equity between self‐employed people and wage‐earners, speedy responses and minimal opportunities for manipulation.