'Serious Fixes Needed' for Self Employed Worker Support

Hundreds of those excluded from scheme have contacted Ruth Cadbury

Ruth Cadbury MP

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Ruth Cadbury MP for Brentford & Isleworth has said that the government’s support scheme for self-employed workers is in need of ‘serious fixes’.

She made the claim following the announcement of the extension of the Self-Employed Income Support Scheme (SEISS) until August for those who are already eligible for the program.

Ms Cadbury points out that a number of self-employed workers remain ineligible, including those whose businesses started after April 2019, those who get paid solely through a limited company and those who earn more than £50,000 in profits.

She said, ‘I’ve had hundreds of self-employed workers across our constituency get in touch with me about the need for urgent support; everybody from driving instructors to music teachers are deeply concerned about the little support that they can access during this difficult time.

“While I welcome the Government extending the scheme it’s clear that they still need to make major fixes to this program. I know that so many local self-employed workers still can’t get support; either because they’re a new business, or because they earn their money through a limited company.

“It’s through no fault of their own that they’ve been cut out and I know how difficult it has been for them; I have been constantly raising this with Government Ministers but sadly we’ve yet to see any major changes to this program.”

Those eligible are now able to claim a second and final grant capped at £6,570 under the SEISS. Individuals can continue to apply for the first SEISS grant until 13 July. Under the first grant, eligible individuals can claim a taxable grant worth 80% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total. Those eligible have the money paid into their bank account within six working days of completing a claim.
Applications for the second grant will open in August. Individuals will be able to claim a second taxable grant worth 70% of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

Derek Cribb, CEO of the Association of Independent Professionals and the Self-Employed (IPSE), said, “It will be an overwhelming relief to self-employed people who are eligible for SEISS that their support has been extended. It is very welcome that the Chancellor has once again heeded our calls and taken steps to get many of the self-employed, who are particularly struggling in the Coronavirus crisis, the income support they so badly need.”

But Ms Cadbury added, “With many industries, especially our ever growing digital and creative sectors facing uncertainty about when they can return to work, it’s crucial that the Government steps up and make sure those excluded get the support they need.”

June 2, 2020

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