MARTIN Lewis has pointed out a massive gap in Chancellor Rishi Sunak’s new coronavirus support plan, which will hit 3million people.
Mr Sunak today confirmed that the self-employed grant will double – from £1,875 to £3,750 – to help workers even further during the pandemic.
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The Treasury previously said it would cover 20% of average monthly profits, covering November to January next year under the self-employment income support scheme (SEISS).
But it will now increase this amount to 40%, meaning the maximum grant is worth £3,750.
An additional second grant will also be available for self-employed workers to cover February 2021 to the end of April, although the government is yet to confirm how much this will cover.
Businesses can claim if they were eligible for the previous SEISS support, even if they didn’t apply for the first two grants.
Today, the chancellor announced:
- Job Support Scheme (JSS) made more generous
- Workers must work minimum of 20% of hours to get JSS
- Businesses will pay 5% of wages of non-worked hours
- Grants for self-employed doubled up to £3,750
- New grants for businesses in high-alert area
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Who can apply for the self-employed grant?
TO apply for the scheme you must meet the following criteria:
- Eligible for SEISS under the old schemes – although, you don’t have to have applied for previous grants
- Still be actively trading and intend to continue to trade
- Experienced reduced demand business due to Covid from November 1 until date of claim (for third grant)
The grant is non-repayable but it is subject to income tax and national insurance contributions.
The government hasn’t said when applications will open for the new set of SEISS grants but HMRC will provide updates on the gov.uk website.
But Martin has pointed out that any self-employed people who weren’t eligible for the previous grants have missed out on help yet again.
This 3million-strong group includes those who run their businesses as limited companies, company directors and those who have set up new businesses.
Last month, The Sun spoke to self-employed worker Hazel Walsh who’s been left unable to afford food after being excluded from any support.
Meanwhile, single mum Kimberley Palmer has been pushed into debt and forced to apply for Universal Credit for the same reason.
Martin said on Twitter today: “Very sorry to report, but on a cursory look, it seems the new Self Employment Grant 3 will still only be “available to all those eligible for SEISS 1 and 2”.
“Sorry to all the #ExcludedUK.”
Mr Sunak was repeatedly asked about the issue by other MPs in the House of Commons today, but he instead pointed out other support available.
Dave Doogan, MP for Angus, questioned the Chancellor and said: “The nature of the government’s interventions in this crisis are reactionary and with significant gaps in that support.
“A principal casualty in this support are the 3million excluded, who’ve had a devastating summer. What support will he give to the excluded?”
What help is out there for businesses and self-employed workers?
THE government has introduced the following measures to help self-employed workers and businesses during the coronavirus outbreak:
Income-tax deferrals: Self-assessment income tax payments, that were due in July, can be deferred to the end of January next year.
Rent support: Businesses who are struggling to pay their rents are protected from eviction until the end of June.
Coronavirus business interruption loan scheme: SMEs can get loans and overdrafts of up to £5million for up to six years and the government will guarantee up to 80 per of these.
Grants of up to £10,000: Small firms can get grants of up to £10,000 to help with ongoing business costs.
VAT payments: VAT payments can be deferred for three months.
Tax bill help: SMEs that cannot afford their tax bills can ask HMRC for a “time to pay” arrangement so any debt collection is suspended.
Business rates holiday: A 12-month business rates holiday has been introduced for many businesses.
Mr Sunak replied: “Everyone who’s self-employed circumstances will be different.
“It may well be that they own a business premises, which will benefit from business rates relief – or indeed a cash grant.
“It may well be that they’ve used the bounce back loan scheme, as over a million small businesses have.
“It may well be that they’re benefiting from the enhanced welfare system and improvements to the Universal Credit local housing allowance.”
He added that the package for the self-employed was “one of the most comprehensive packages of support for those that are self-employed anywhere in the world”.
Meanwhile, Anneka Hicks, founder of ExcludedUK, told The Sun: “We are extremely disappointed yet again that the Chancellor continues to ignore the three million people who are still, seven months on, left without access to the financial support schemes.
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She added: “It’s yet another crushing blow for the community, as the mental health crisis among our 45,000 members worsens every day for those who, by their very nature are inherently self sufficient, hard working entrepreneurs.
“They are left with no other option but increased debt and state benefits (if they can get it and can wait!), and an even more uncertain future.”
The Sun has contacted The Treasury for comment.
Rishi Sunak announces more money for self-employed during coronavirus pandemic
