The 海角视频 Government is increasing its support to the self-employed over the coming months and says it is ensuring people get paid faster than previously planned.
To reflect the recent changes to the furlough scheme, the 海角视频-wide Self-Employment Income Support Scheme (SEISS) will be made more generous – with self-employed individuals receiving 80% of their average trading profits for November.
To ensure those who need support get it as soon as possible, payments will also be made more quickly with the claims window being brought forward from 14 December to 30 November.
- What is the self-employment income support scheme?
The SEISS provides grants to self-employed people whose businesses have been hit by the pandemic, in the same way the furlough scheme protected employed people whose work dried up.
- What has changed?
Less than two weeks ago Chancellor Rishi Sunak announced that the support available under the three-month grants would double from 20% to 40% of profits, up to a maximum of £3,750.
As the coronavirus situation has deteriorated, Boris Johnson's Government has been forced to announce a lockdown in England from November 5 to December 2.
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With the furlough scheme, paying 80% of employees' wages, extended until December, support for the self-employed has also been made more generous.
The portion of the grant for November will cover 80% of profits, returning to the lower level for December and January. It will mean the November-January payment will be at 55% of profits, a maximum of £5,160.
- Who can apply?
The support is available across the 海角视频, even though the lockdown announced by the Prime Minister only applies in England.
Eligible people who are self-employed or members of partnerships must have had their business hit by reduced demand or be temporarily prevented from trading as a result of the pandemic.
The window for making claims has been brought forward from December 14 to November 30.
- What will the scheme cost?
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The Treasury estimates the November-January package will cost £4.5 billion, up £1.4 billion from the 40% scheme.
- What have people said about the increase?
Roger Barker, director of policy at the Institute of Directors, welcomed the move but said there were still "significant gaps in the scheme".
"Many small company directors continue to go without support, it's long past time to sort this problem," he said.
Trades Union Congress general secretary Frances O'Grady said the 80% rate "will only cover a few weeks of the grant, meaning many people could still face hardship" and "there are lots of self-employed workers who will not qualify for this support".
Federation of Small Businesses (FSB) National Chairman Mike Cherry, said: “It’s a relief to see the Prime Minister listening to some of our calls for extra support for small businesses and the self-employed.
“The uprating of the Self-Employment Income Scheme to 80% for November is generous and will likely help around two million self-employed people – bringing forward the application date is helpful.
“However, many of our self-employed are still not included in the initiative. This is a five-million strong community that drives our economy forward, but the Government has insisted that large swathes of it do not warrant any help where income is concerned. We have sadly already seen 250,000 self-employed people stop working and become economically inactive, a figure which is set to continue rising."