London Daily

Focus on the big picture.
Monday, Oct 27, 2025

'Left in lurch': Sunak under fire for lack of self-employed support

'Left in lurch': Sunak under fire for lack of self-employed support

Labour says hundreds of thousands of people will be left struggling under new scheme

Almost half a million self-employed workers have been “left in the lurch” by government support covering just two-fifths of their normal income despite the launch of tougher coronavirus restrictions, Labour has warned.

In an attack on the chancellor, Rishi Sunak, for offering thousands of people less support than was available during the first national lockdown, the party said hundreds of thousands of people would be left struggling through a difficult winter.

According to the Labour research, an average self-employed worker in the arts or hospitality sector will get just £450 a month from the Treasury’s self-employed income support scheme (SEISS). This is half the level during the first lockdown.

The party estimates half a million self-employed people work in sectors of the economy that are either shut or struggling under the weight of new Covid-19 restrictions.

The Labour criticisms came after Sunak announced a multibillion-pound expansion of job support for businesses, employees and the self-employed on Thursday amid mounting pressure on the government to act.

As much as £3.1bn is being made available to self-employed workers, increasing the value of the grants they can access to cover lost income from 20% to 40% of average monthly profits. However, this is half the level available during the first lockdown, when 80% of average profits could be claimed.

Ed Miliband, the shadow business secretary, said: “The promise of doing ‘whatever it takes’ to protect workers is a distant memory. Despite public health restrictions tightening and many sectors being shut, ministers are leaving self-employed people in the lurch.”

The Labour analysis comes after figures from the New Economics Foundation showed 450,000 jobs would still be at risk of redundancy this winter, despite Sunak’s latest support measures.

Experts warned millions more would also slip through the gaps in the government safety net. They include:

The self-employed


More than 5 million people in Britain were self-employed before Covid-19 struck. The campaign group ExcludedUK estimates more than 3 million people, who are mainly self-employed, will miss out on support because they do not meet eligibility criteria. This includes people who are newly self-employed, sole directors of limited companies, those earning less than half of their income from self-employment and people who earn more than £50,000 a year.

Derek Cribb, the chief executive of the Association of Independent Professionals and the Self-Employed, said a record 250,000 self-employed people had fallen out of work since the start of 2020. “With large parts of the country locking down again, this is only set to worsen as many forgotten freelancers face financial devastation. Government must act now and open up SEISS or other targeted support to these groups,” he said.

Hospitality, arts and culture


Labour estimates 177,000 self-employed people work in the creative, arts and entertainment activities – including theatres, festivals, live music and events, which are predominantly closed.

Operators of pubs, music venues, conference centres and other social hubs – as well as their suppliers – which have not been forcibly closed by the state, will be ineligible for the “job support scheme: closed,” which pays two-thirds of wages. They may also struggle to keep staff on for the minimum 20% of hours to benefit from the new “job support scheme: open”.

As many as 1 million people work in the leisure, food and drink sectors outside tier 2 and 3 areas that could fall into this category, according to Dan Tomlinson, senior economist at the Resolution Foundation. “Even in areas where restrictions are light, you’re still going to be struggling to do some of these things like open your conference centre or music venue,” he said.

Michael Kill, chief executive of the Night Time Industries Association, said 700,000 jobs could be lost at pubs, bars, restaurants, nightclubs and other venues by the end of the year despite the new support package. “Yes the job support scheme expansion will help to a point, but the key thing is whether companies can backtrack on redundancies, because of the late timing of the announcement. It’s two or three weeks too late,” he said.

Furloughed workers


The original furlough scheme paid 80% of normal wages, however, the new job support schemes will only cover two-thirds. While some firms will top up pay, many won’t. Alex Chapman, a consultant at the New Economics Foundation, said moving from the furlough scheme to the JSS could lose a worker on average pay about £87 a month.

Frances O’Grady, general secretary of the TUC, said: “The chancellor should have increased support for all workers to at least 80%. And we still need decent sick pay for people forced to self-isolate.”

The unemployed


Sunak has been criticised for waiting too long to announce the new package of support. Official figures show redundancies increased at the fastest rate on record this summer as the furlough scheme was wound down.

The number of people claiming unemployment-related benefits has risen by 120% to more than 2.7 million. Although Sunak raised the value of universal credit by £1,000 at the start of the crisis to help those falling out of work, the measure is temporary.

Critics said the chancellor could have guaranteed a higher level of benefit support would be continued next year. Carys Roberts, director of the IPPR thinktank, said: “Fixing this would address a huge social challenge but also help stabilise the economy during the recovery.”

Newsletter

Related Articles

0:00
0:00
Close
UK Announces £1.08 Billion Budget for Offshore Wind Auction to Boost 2030 Capacity
UK Seeks Steel Alliance with EU and US to Counter China’s Over-Capacity
UK Struggles to Balance China as Both Strategic Threat and Valued Trading Partner
Argentina’s Markets Surge as Milei’s Party Secures Major Win
British Journalist Sami Hamdi Detained by U.S. Authorities After Visa Revocation Amid Israel-Gaza Commentary
King Charles Unveils UK’s First LGBT+ Armed Forces Memorial at National Memorial Arboretum
At ninety-two and re-elected: Paul Biya secures eighth term in Cameroon amid unrest
Racist Incidents Against UK Nurses Surge by 55%
UK Chancellor Rachel Reeves Cites Shared Concerns With Trump Administration as Foundation for Early US-UK Trade Deal
Essentra plc: A Closer Look at a UK ‘Penny Stock’ Opportunity Amid Market Weakness
U.S. and China Near Deal to Avert Rare-Earth Export Controls Ahead of Trump-Xi Summit
Justin time: Justin Herbert Shields Madison Beer with Impressive Reflex at Lakers Game
Russia’s President Putin Declares Burevestnik Nuclear Cruise Missile Ready for Deployment
Giuffre’s Memoir Alleges Maxwell Claimed Sexual Act with Clooney
House Republicans Move to Strip NYC Mayoral Front-Runner Zohran Mamdani of U.S. Citizenship
Record-High Spoiled Ballots Signal Voter Discontent in Ireland’s 2025 Presidential Election
Philippines’ Taal Volcano Erupts Overnight with 2.4 km Ash Plume
Albania’s Virtual AI 'Minister' Diella Set to 'Birth' Eighty-Three Digital Assistants for MPs
Tesla Unveils Vision for Optimus V3 as ‘Biggest Product of All Time’, Including Surgical Capabilities
Francis Ford Coppola Auctions Luxury Watches After Self-Financed Film Flop
Convicted Sex Offender Mistakenly Freed by UK Prison Service Arrested in London
United States and China Begin Constructive Trade Negotiations Ahead of Trump–Xi Summit
U.S. Treasury Sanctions Colombia’s President Gustavo Petro over Drug-Trafficking Allegations
Miss USA Crowns Nebraska’s Audrey Eckert Amid Leadership Overhaul
‘I Am Not Done’: Kamala Harris Signals Possible 2028 White House Run
NBA Faces Integrity Crisis After Mass Arrests in Gambling Scandal
Swift Heist at the Louvre Sees Eight French Crown Jewels Stolen in Under Seven Minutes
U.S. Halts Trade Talks with Canada After Ontario Ad Using Reagan Voice Triggers Diplomatic Fallout
Microsoft AI CEO: ‘We’re making an AI that you can trust your kids to use’ — but can Microsoft rebuild its own trust before fixing the industry’s?
China and Russia Deploy Seductive Espionage Networks to Infiltrate U.S. Tech Sector
Apple’s ‘iPhone Air’ Collapses After One Month — Another Major Misstep for the Tech Giant
Graham Potter Begins New Chapter as Sweden Head Coach on Short-Term Deal
Ecuadorian President Daniel Noboa Alleges Poison Plot via Chocolate and Jam
Lakestar to Halt External Fundraising as Investor in Revolut and Spotify
U.S. Innovation Ranking Under Scrutiny as China Leads Output Outputs but Ranks 10th
Three Men Arrested in London on Suspicion of Spying for Russia
Porsche Reverses EV Strategy as New CEO Bets on Petrol and Hybrids
Singapore’s Prime Minister Warns of ‘Messy’ Transition to Post-American Global Order
Andreessen Horowitz Sets Sights on Ten-Billion-Dollar Fund for Tech Surge
US Administration Under President Donald Trump Reportedly Lifts Ban on Ukraine’s Use of Storm Shadow Missiles Against Russia
‘Frightening’ First Night in Prison for Sarkozy: Inmates Riot and Shout ‘Little Nicolas’
White House Announces No Imminent Summit Between Trump and Putin
US and Qatar Warn EU of Trade and Energy Risks from Tough Climate Regulation
Apple Challenges EU Digital Markets Act Crackdown in Landmark Court Battle
Nicolas Sarkozy begins five-year prison term at La Santé in Paris
Japan stocks surge to record as Sanae Takaichi becomes Prime Minister
This Is How the 'Heist of the Century' Was Carried Out at the Louvre in Seven Minutes: France Humiliated as Crown with 2,000 Diamonds Vanishes
China Warns UK of ‘Consequences’ After Delay to London Embassy Approval
France’s Wealthy Shift Billions to Luxembourg and Switzerland Amid Tax and Political Turmoil
"Sniper Position": Observation Post Targeting 'Air Force One' Found Before Trump’s Arrival in Florida
×