The U.K. government announced increased grants for self-employed people dealing with the economic impact of the coronavirus pandemic but continued to defy calls for new measures to fill gaps in the support schemes.
The self-employment income support scheme (SEISS) will be “made more generous” for November, with self-employed individuals receiving 80 percent of their average trading profits, HM Treasury said in a November 2 release. The increase will provide the self-employed with support that is broadly equivalent to that provided for November to employees under the coronavirus job retention scheme (CJRS), Treasury said. That scheme was extended for a month, with furloughed employees set to receive 80 percent of salary for hours not worked, just a few hours before it was due to end on October 31.
These latest changes to the U.K.-wide coronavirus support schemes follow the October 31 announcement of a second lockdown in England, with tighter public health restrictions and the closure of nonessential retail businesses, leisure and entertainment facilities, and hospitality venues.
The national restrictions will apply to England, replacing a complex system of regional restrictions, from November 5 to December 2. They were expected to be approved by members of Parliament on November 4. Public health is a devolved matter and different rules apply in Scotland, Wales, and Northern Ireland.
“Employers small or large, charitable or nonprofit, are eligible for the extended [CJRS], which will continue for a further month,” Treasury said. “Businesses will have flexibility to bring furloughed employees back to work on a part-time basis or furlough them full-time, and will only be asked to cover National Insurance and employer pension contributions which, for the average claim, accounts for just 5 percent of total employment costs.”
The job support scheme was scheduled to replace the CJRS on November 1 but has been “postponed until the furlough scheme ends,” Treasury said, adding that additional guidance will be published shortly.
The changes to the SEISS will “ensure that self-employed individuals who temporarily cannot carry out their business or have suffered reduced demand due to the outbreak are supported over winter,” Treasury said. “The SEISS continues to be just one element of a comprehensive package of support for the self-employed. In addition to this, they can also access other elements of the package, which includes bounce back loans, tax deferrals, rental support, mortgage holidays, and other business support grants.”
“The government will continue to do everything possible to support jobs and livelihoods in the next four weeks as we have throughout,” Prime Minister Boris Johnson told MPs on November 2. “We have protected almost 10 million jobs with furlough, and we are now extending this scheme throughout November. We have already paid out £13.7 billion to help the self-employed.”
But Labour Party leader Keir Starmer, echoing the views of several business groups, called on the government to “close the gaping holes in support for the self-employed.”
Labour MP Bill Esterson noted that since the start of the first lockdown "one in 20 people who are part of the working population have had no work, but have been ineligible for furlough, self-employed financial support, and business grants and loans." But Johnson said the government had "put another £9 billion into the welfare system, principally by uprating universal credit."
“Many small company directors continue to go without support, [and] it’s long past time to sort this problem. Local authority grants could provide a quick fix,” Roger Barker, director of policy at the Institute of Directors, said in a statement.
“The uprating of the [SEISS] to 80 percent for November is generous and will likely help around 2 million self-employed people,” Federation of Small Businesses National Chair Mike Cherry said.
“However, many of our self-employed are still not included in the initiative. This is a 5 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,” Cherry argued.
The Association of Independent Professionals and the Self-Employed welcomed the increase in the grant but said there are still “devastating gaps” in the support package.