Farmers and Universal Credit

neilo

Member
Mixed Farmer
Location
Montgomeryshire
This seems to be what the problem is, tax credits were paid out on the average monthly income worked out from the year before.
It seems that universal credit is worked out on the actual monthly income as they go along ? which is fine for someone with a stable income,
say you are a farmer that only sells anything once per year, say crop off the combine or livestock at the autumn sales you are going to have a couple months where they say you have far to much income to claim UC and the rest of the year told to get a proper job as your farming is a hobby ?

Now if the above is correct [and I don't know that it is] then it makes no odds if anyone thinks that the farmer shouldn't get UT or not and it is nothing to do with cash flow, the fact is the government provides it to people with a low income and the farmer shouldn't be penalised because of irregular income

^this. Most farmer’s complaint, in every article I’ve read, isn’t about the payment particularly, but the way it’s worked out not being much use when income isn’t regular.
 

Henarar

Member
Livestock Farmer
Location
Somerset
Quite clear that the Gov do not want people working for themselves thus why they are introducing things like UC/ 3 monthly full tax returns etc etc.
say this is a tenant farmer, I spose some of the Gits saying the farmer shouldn't get anything would rather they be slung out so some big knob farmer with already to much land could rent it sow it with flowers and claim off the fecking government for it FFS
 

Lamb's Orchard

Member
Horticulture
Location
High Weald AONB
Quite clear that the Gov do not want people working for themselves thus why they are introducing things like UC/ 3 monthly full tax returns etc etc.

The Gov don't want people running unprofitable businesses which don't earn them a living wage and relying on benefits to top up their income. Unemployment levels are quite low at the moment so it is easy for them to argue that someone in that situation should stop what they're doing and go and get a minimum wage job if it pays more than they can earn from their business.
 
Location
Devon
say this is a tenant farmer, I spose some of the Gits saying the farmer shouldn't get anything would rather they be slung out so some big knob farmer with already to much land could rent it sow it with flowers and claim off the fecking government for it FFS
Yes it is quite funny that the ones on here that seem so vocal about this familly struggling to get UC and saying that their business is a hobby farm if he is working 80 hours a week are people who have either retired/ still farming but getting state pension or very large arable farmers who's parents etc built up the business and they just walked into it that are getting massive sub payments now under SFI for things that they were already doing/ putting large areas of their land into high paying non food producing options who are saying everyone else should not get any help from the taxpayer!
 

Cowabunga

Member
Location
Ceredigion,Wales
Alot round here dont , but not many farm workers left anyway.
Lots around here what with relief milkers, contractors, herds people and so on. A proportion do get accommodation but these are mainly, though not always, foreign migrant workers. Mostly on dairy farms but also sheep handlers and shepherds. Farmers themselves commute more and more between their farms… what I call ‘tarmac farmers’.
 
Location
Devon
The Gov don't want people running unprofitable businesses which don't earn them a living wage and relying on benefits to top up their income. Unemployment levels are quite low at the moment so it is easy for them to argue that someone in that situation should stop what they're doing and go and get a minimum wage job if it pays more than they can earn from their business.
So where does that leave Tesco etc who's staff have to claim UC due to such low wages that they pay??

MIn wage is far too low anyway in the real world even at £11.42 hour!

For example in the SW you could easily be paying 12k a year in rent then 3.5k a year in CT just for starters!
 

Henarar

Member
Livestock Farmer
Location
Somerset
The Gov don't want people running unprofitable businesses which don't earn them a living wage and relying on benefits to top up their income. Unemployment levels are quite low at the moment so it is easy for them to argue that someone in that situation should stop what they're doing and go and get a minimum wage job if it pays more than they can earn from their business.
Why do they pay UC then ?
 

Cowabunga

Member
Location
Ceredigion,Wales
The Gov don't want people running unprofitable businesses which don't earn them a living wage and relying on benefits to top up their income. Unemployment levels are quite low at the moment so it is easy for them to argue that someone in that situation should stop what they're doing and go and get a minimum wage job if it pays more than they can earn from their business.
That is indeed the reality. Always has been. Always will be. Some do and some are too lazy or incapable of doing so.
For unrelated reasons [because I wanted freedom from the cow’s tail while young enough essentially], I took a flexible job as well as farm for a decade. Still did the management and worked at peak periods and a few hours most days at home but hired a skilled cowman, who I paid give or take as much as I earned sometimes, rather than cheaper less skilled part time reliefs.
The problem with employing someone, apart from the cost, is that they are forever having days off, Bank Holidays and holidays. Not like family slaves, I mean labour.
 
This seems to be a very loaded article, for the purpose of discussing/clouding judgement on a specific topic that has always been controversial - it’s no secret that people have very opposing views on the benefits system and it’s claimants - Yet, I don’t believe enough clarity is given on the topic. I also think vitriol and outdated opinions help even less; especially for those who claim. Frankly, it is a legal and human right in this country, we have a welfare state that allows it’s citizens to claim what the state deems acceptable, it is an entitlement and it goes to every person in this country.

The main issue discussed in this article is the ‘minimum income floor’ and that has recently been increased. This means that monthly earnings need to be over and above a certain amount (national minimum wage in relation to hours working) before the government work out the subsidies. So, if the farmer is working 60 hours a week and still isn’t meeting the national minimum wage, the minimum income floor comes into play. The government have a base rate (35 hours) and that is used in order to calculate the farmers claim, yet, if his earnings are over and above the minimum wage in relation to the minimum income floor then they work out his entitlement from those earnings instead. This means the amount of benefits the farmers is entitled will change throughout his time of need, reflecting the peaks and troff’s of his business.

What it seems to me is that this family have had a bad experience when it comes to discussing their claim with an overworked and incompetent advisor at the job centre and instead of this being reflected in this individuals situation, instead someone has complained and this article has then set about bowing up this situation and casting a light on something that isn’t actually there. It’s emotive language and daft title is essentially saying the benefits systems is entirely against farmers, when It is not! It’s just unfortunate that on this occasion, the gentleman and his family have had a somewhat bad experience and the issues within his business aren’t allowing for him to claim the amount he believes he should be entitled to. The benefit system has never been appealing to it’s claimants, it is deliberately evoking, frustrating and demeaning in it’s nature, it’s designed that way, with a vast amount of demands and sanctions, so to come up a cropper with some jumped up advisor who doesn’t care about this farmer situation and is only repeating what it says on the screen then it makes sense. When you have to become reliant on benefits to help your situation, it’s no different to hour balls being clenched and only slightly squeezed, just enough for the belly ache to set in but not enough to actually cause you any detriment. Frankly it’s crippling, but that’s the very point.

This outdated idea that people claiming are just taking from the tax payer and living a lavish lifestyle is wrong. Especially when you consider that the UK has one of the lowest paid welfare systems throughout all high income countries.
 

Jackov Altraids

Member
Livestock Farmer
Location
Devon
You'd be surprised

Commuting times are frequently 6am onwards, return home times commonly 6pm onwards

Many are "on call" with emails, WhatsApp messages and often preparation at home for work activities . NHS on-going qualifications a prime example with study and preparation in your own time (and many work 12 hour shifts with irregular rostas )

It's a strange one.
It is the most well payed that commute the furthest.
And studies have shown many are happy/expect to commute for at least about 1.5 hours [each way].
Improved transport links and reduced journey times just leads people to live further from their work.

Except the lowest paid, who need to live as close as possible to work to avoid the commuting cost taking a large proportion of their wage.

A manager that lives on site of a business deserves a lot higher wage to reward/ compensate always being the first point of call.
 

steveR

Member
Mixed Farmer
Seems to me the main issue the Benefits people have is lack of regular monthly income. Why not just let the value of sales go into the farm account as usual, then draw out a monthly amount into a personal account? You can then show regular monthly personal income. All they want to see is regular income being received because that’s all they understand. If there isn’t enough money going into the farm account to do that then they need to change things, get a part time job or whatever
I am unfamiliar with the minute details of the UTC, but 20 odd yrs ago, we claimed WFTC with 3 kids here.

It took some work by the accountant to get the business details right for a successful application, no funny business, just structured correctly as you @Aspiring Peasants suggest.

We claimed for a few years, and at the end, were left owing a bit back which was paid of off the following tax year.
 

Kiwi Pete

Member
Livestock Farmer
the same tax payers pot
The government has no money: it's all your money: it's tax money.
Ever seen a diesel runaway, the idea is to block the inlet. Money from the government is as good as ether to a runaway

The hope here is to possess one of those calculators that says more turnover is better than a healthier or more prosperous entity as the other gimmick is the more you get the more everything can cost.

Jack the minimum wage and you can increase minimum costs of things across the board and increase the VAT take.

The key here is that if you're in a position to better support your monthly costs but then have very very important but unprofitable other things to do for 11 hours a day ... then, removing the need to choose differently gives a lot of control for very little extra money (remembering it's your money, like the covid loan was)

So you can either please have a little more less money thanks to an irregular income or you can please have a little more less money doing nothing much differently or you can have a nice wee hobby where you make a mint growing flowers and birdfood and still keep all the nice things.. until that quarter dries off.

If you need the money you'll do what has to be done to get the money and that's a bloody great game if you think about it. Some players even pretend they like it
 

Goweresque

Member
Location
North Wilts
A point that I have not seen raised yet is that in one years time after the changeover from WTC to UC if you have more than £16000 in assets you will not be eligible for any payment!

Thats assets as in cash, property (excluding your own house) and stock and shares etc. UC disregards business assets, so its is entirely possible that a person who owns their own farm lock stock and barrel, worth millions, can claim UC, because the farm, the farmhouse and all the machinery would count as business assets, not financial ones. That is wrong IMO. I think there was someone on here on the last thread on this issue that stated he had done exactly that - run the business at a loss or small profit by ploughing everything back into the business, buying machinery etc etc, and used UC to provide living expenses. We all know how easy it is for a farm to declare no accounting profits, just go out and buy a new tractor, or reroof a barn, or refence the farm.

IMO there should be an upper limit to the disregard of business assets, above which you don't qualify for welfare payments. The welfare system is not (or rather should not be) there to pay the living expenses of people who are asset rich but cash poor.
 

SFI - What % were you taking out of production?

  • 0 %

    Votes: 107 39.5%
  • Up to 25%

    Votes: 101 37.3%
  • 25-50%

    Votes: 40 14.8%
  • 50-75%

    Votes: 5 1.8%
  • 75-100%

    Votes: 4 1.5%
  • 100% I’ve had enough of farming!

    Votes: 14 5.2%

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