Over the years I've met hundreds of self-employed people who are in debt as a result of poverty pay. Their plight has been lessened by tax credits. Thousands of publicans, hair-dressers, taxi-drivers, and trades people of every kind are in low-paid self-employment propped up by tax credits. Self employed people also get no sick pay or holiday pay.
Now the Government is imposing Universal Credit on self-employed people with low incomes. And with it comes the "Minimum Income Floor" (MIF). The MIF means that self-employed earnings will not be calculated on actual earnings, but by assuming full time minimum wage earnings. So now you know one of the reasons the minimum wage was increased!
The Minister responsible, working for Secretary of State Esther McVey, has declared that this policy will be good for low-paid self-employed people and says that low income is a "life style choice". Here's his letter to Frank Field.