London Daily

Focus on the big picture.
Saturday, May 31, 2025

Self-employed to get more financial help

Self-employed to get more financial help

The self-employed will be able to claim state aid of up to 80% of profits during the month-long lockdown, Chancellor Rishi Sunak has announced.

The rise is up from the current 40%, and will mean £4.5bn of government support for the self-employed between November and January, he said.

Prime Minister Boris Johnson has faced a backlash from within his own party over the new lockdown.

That criticism included not doing enough to help the self-employed.

It was also announced that businesses will continue to be able to apply to banks for government-backed support loans until 31 January, compared with a previous 30 November deadline for some of the programmes.

England will enter a second lockdown on Thursday, which will close restaurants, pubs and non-essential shops until at least 2 December, although unlike the first lockdown in late March and April, schools will stay open for all pupils.


Freelancers excluded


Under the Self-Employed Income Support Scheme (SEISS), eligible workers can currently claim support covering 40% of their average earnings from last year to cover a period of three months, capped at £3,750.

The new enhanced scheme will open for applications from the end of November, and cover 80% of trading profits for that month. Including the new higher November grant, it means the November-January payment will be at 55% of profits, up to a maximum of £5,160.

However, as eligibility criteria will be the same as for previous grants, critics said it still meant as many as 2.9 million freelancers, contractors and newly self employed people would remain excluded.

The Association of Independent Professionals and the Self-Employed (IPSE) said the new measures will give "vital support" to some, but accused the government of still "wilfully ignoring a third of self-employed".

Derek Cribb, the group's chief executive, said it was important to note the enhanced 80% rate only covered November, mirroring the extended furlough scheme. "It is vital that if the furlough scheme is extended, and SEISS should be adjusted accordingly," he said.


Support gaps


"It is deeply troubling that the government has still not fixed the devastating gaps in SEISS, despite urgent recommendations from the Treasury Select Committee. After so many calls to resolve the problems, it now looks as if the government is wilfully ignoring a third of the self-employed.

"The first lockdown drastically undermined self-employed incomes, and the gaps in government support led to the biggest drop in self-employed numbers on record.

"Unless government wakes up to the problem and supports all the self-employed, the second lockdown will accelerate the decline and hollow out swathes of this vital sector."


Small businesses have urged Chancellor Rishi Sunak to go even further than Mondays announcement


The Federation of Small Businesses (FSB) also warned that too many self-employed people remain excluded. FSB chairman Mike Cherry said: "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.

"Fundamentally, the business support landscape still remains too much of a mixed picture - a fact made all the more concerning given that this fresh lockdown in England is taking effect during the critical festive season."



Monday's announcement increases help for many people - but, then again, many people still say it is not nearly enough.

The National Audit Office said last week up to 2.9 million people have been excluded from both the Coronavirus Job Retention Scheme and the Self-Employed Income Support Scheme since March - some newly self-employed, others set up as limited companies and still others denied furlough.

NAO head Gareth Davies said it was "clear that many people have lost earnings and have not been able to access support". Some have had little or no income for months, ineligible even for benefits. Yet they've paid their taxes and say they deserve the same level of support as everyone else.

According to the ExcludedUK Facebook group, of 2,400 members in a recent poll, 79% described themselves as having trouble sleeping, 81% as being anxious or stressed, 58% had low self-esteem, 48% were depressed; and 14% had had suicidal thoughts - over three times the norm in the wider population.

The cross-party Treasury Committee said in June these exclusions "cannot be right" and Sir Keir Starmer told the CBI conference today the chancellor must close the gaps in support. But so far those gaps remain wide open.

Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×