Dear Constituent,
Many of you have contacted me over the past few weeks with regards to help for the self-employed during the current outbreak. I welcomed the bold commitment by the Chancellor to guarantee cover of up to 80% of an employee’s wages but, as I have previously mentioned, I agreed that a model of support was also required for the over 5 million workers who are self-employed or are freelancers.
For this reason, I was pleased to hear last night that the Chancellor unveiled a substantial help package to assist self-employed and freelance workers through the Self-Employed Income Support Scheme. This scheme has been set up to ensure that people who work for themselves are getting the financial support they need.
The Government will pay self-employed people across the whole UK who have been adversely affected by coronavirus, a taxable grant worth 80 per cent of their average monthly profits over the last three years, up to £2,500 a month, for three months – and it will extend it for longer if necessary.
The scheme will be open to those with trading profits up to £50,000, leaving 95 per cent of people who are majority self-employed eligible for the scheme. The level of support offered to self-employed workers is unlike almost any other country and it makes this scheme one of the most generous in the world.
This announcement builds on the support that is already available for self-employed people. For those who are struggling now, the Government has made sure that many will be able to access loans through the Coronavirus Business Interruption Loans Scheme. This scheme provides loans of up to £5 million, which will be interest free for twelve months.
In addition to this, the Government has made it quicker and easier to access benefits. Those on contributory ESA will be able to claim from day 1, instead of day 8. And it has relaxed the requirement for anyone to physically attend a jobcentre – everything can be done by phone or online. The minimum income floor has been suspended for twelve months too – meaning self-employed people can now access, in full, Universal Credit at a rate that is equivalent to Statutory Sick Pay for employees.
Finally, income tax self-assessment payments for July have been deferred until the end of January 2021.
I am fully aware, that the Self-Employed Income Support Scheme will not be available until June and that this will cause great frustration to many. As I have mentioned before, the scale and pace of change having to be implemented by Government is unheard of in peacetime and as such these solutions will take some time to finalise. HMRC are working day and night to get this scheme up and running. Hard-pressed public servants doing their best and rest assured that I am aware of the impact of this delay and I will continue to press the Government to ensure this help reaches constituents who need is as quickly as physically possible.
To learn more about the wider measures that the Government has taken regarding Coronavirus, please look at my earlier article, which can be found at:
• https://www.blunt4reigate.com/news/covid-19-coronavirus-update-crispin
I have posted several national and local updates so far on my website, and am endeavouring to keep this, and my social media, updated as often as required. Please keep monitoring the following link for further information:
• https://www.blunt4reigate.com/covid-19-coronavirus-updates
Thank you for reading and I hope this update is of assistance,
Crispin