Financial Support for Self-Employed Disabled Individuals in the UK

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Financial Help For Disabled Entrepreneurs

Running a business while managing a disability can be challenging, but there are various government support schemes available in the UK to help self-employed disabled individuals. Below is an overview of financial assistance that may be available to you.

1. Personal Independence Payment (PIP)

PIP is a benefit for people with long-term health conditions or disabilities. It is designed to help with extra costs associated with daily living and mobility needs. The amount received depends on the severity of the condition and how it affects daily activities.

• Eligibility: Must be aged 16 to State Pension age, with a long-term disability or health condition that impacts daily life or mobility.
• Amount: Between £26.90 and £172.75 per week (as of 2024), depending on the level of need.

2. Employment and Support Allowance (ESA) – (Replaced By Universal Credit)

ESA was provided as financial support if you had a disability or health condition that affected your ability to work, however, this legacy payment is being replaced by Universal Credit. Employment and Support Allowance (ESA) has not been completely replaced by Universal Credit (UC), but there is a significant shift happening. The UK government is in the process of migrating ESA claimants to Universal Credit. This is part of a broader effort to simplify the benefits system and encourage more people to return to work.

If you’re currently receiving ESA, you should have received a Migration Notice letter informing you of the need to switch to Universal Credit. It’s important to act on this notice to ensure you continue receiving financial support.

References:

• DWP to send Universal Credit letters to 660,000 people from next week | Personal Finance | Finance | Express.co.uk
• Move to Universal Credit if you get a Migration Notice letter – GOV.UK
• PIP, ESA and Universal Credit claimants to be encouraged into work in benefits update

• Eligibility: Could be claimed if your condition affected your ability to earn income. Contributions-based ESA is available if you have paid enough National Insurance contributions.
• Amount: Up to £129.50 per week, depending on circumstances and assessment.

3. Universal Credit (UC)

Universal Credit is a means-tested benefit designed to support low-income individuals, including the self-employed.

• Eligibility: If your earnings are low due to disability, you may be eligible for additional elements within Universal Credit.
• Additional Support: If found to have limited capability for work and work-related activity (LCWRA), an extra £390.06 per month (as of 2024) can be added to your UC.

4. Access to Work Grant

The Access To Work Grant helps cover additional costs of working with a disability that are not covered by other benefits.

• What it Covers: Special equipment, support workers, travel costs, and mental health support.
• Eligibility: You must be in paid work (including self-employment) and require support related to your disability.
• Amount: Up to £66,000 per year depending on needs and business type.

5. Self-Employment Income Support Scheme (SEISS) and Other Grants

While SEISS has ended, self-employed individuals with disabilities may qualify for other government-backed grants and funding opportunities, including:

• New Enterprise Allowance (NEA) (Withdrawn): Previously supported disabled entrepreneurs in starting businesses; alternative funding is available through local business support schemes.
• Local Authority Grants: Some councils provide discretionary funding for disabled business owners.

6. Working Tax Credit (If Already Claimed Before UC Rollout)

If you were already receiving ‘Working Tax Credit’ before ‘Universal Credit‘ replaced it, you may still receive additional support if you have a disability.

7. Council Tax Reduction

If you are disabled and on a low income, you may be eligible for a Council Tax reduction & Housing Benefit through your local council, however, please note Universal Credit is paying for all your entitlements in one easy payment once a month after you send them your income and expenses for the month.

8. Business Support Schemes for Disabled Entrepreneurs

Several organisations and charities offer business grants and mentorship for disabled individuals, including:

• The King’s Trust (for young entrepreneurs)
• The Stelios Awards for Disabled Entrepreneurs
• Local Enterprise Partnerships (LEPs) for regional business support

Final Thoughts

Navigating financial support options can be complex, but these schemes can provide much-needed help for self-employed disabled individuals in the UK. It’s advisable to consult with the Citizens Advice Bureau, Turn2Us, or Disability Rights UK for tailored guidance on eligibility and application processes.

For further assistance, visit GOV.UK or contact local disability employment advisors to explore all available options.

Sources:

• Full report: Understanding self-employment for people with disabilities and health conditions – GOV.UK
• Reporting self-employed earnings – Citizens Advice
• Universal Credit and self employment | Turn2us
• Permitted work | Disability Rights UK
• Self-employment and benefits | Disability charity Scope UK
• Guidance for Local Enterprise Partnerships (LEPs) and local and combined authorities: integration of LEP functions into local democratic institutions – GOV.UK
• The King’s Trust | Confidence, courses, careers
• Stelios Awards for Disabled Entrepreneurs Relaunched for 2024 – Conwy Business Centre
• New Enterprise Allowance: start your own business – GOV.UK (Withdrawn)
• Find government grants – GOV.UK
• Access to Work: get support if you have a disability or health condition: What Access to Work is – GOV.UK
• Personal Independence Payment (PIP): Eligibility – GOV.UK
• https://disabledentrepreneur.uk/?s=PIP+Eligibility (Search Your Disability & Eligibility)