London Daily

Focus on the big picture.
Monday, Dec 08, 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
"The Great Filtering": Australia Blocks Hundreds of Thousands of Minors From Social Networks
Mark Zuckerberg Pulls Back From Metaverse After $70 Billion Loss as Meta Shifts Priorities to AI
Nvidia CEO Says U.S. Data-Center Builds Take Years while China ‘Builds a Hospital in a Weekend’
Indian Airports in Turmoil as IndiGo Cancels Over a Thousand Flights, Stranding Thousands
Hollywood Industry on Edge as Netflix Secures Near-$60 Bln Loan for Warner Bros Takeover
Drugs and Assassinations: The Connection Between the Italian Mafia and Football Ultras
Hollywood megadeal: Netflix acquires Warner Bros. Discovery for 83 billion dollars
The Disregard for a Europe ‘in Danger of Erasure,’ the Shift Toward Russia: Trump’s Strategic Policy Document
Two and a Half Weeks After the Major Outage: A Cloudflare Malfunction Brings Down Multiple Sites
UK data-regulator demands urgent clarity on racial bias in police facial-recognition systems
Labour Uses Biscuits to Explain UK Debt — MPs Lean Into Social Media to Reach New Audiences
German President Lays Wreath at Coventry as UK-Germany Reaffirm Unity Against Russia’s Threat
UK Inquiry Finds Putin ‘Morally Responsible’ for 2018 Novichok Death — London Imposes Broad Sanctions on GRU
India backs down on plan to mandate government “Sanchar Saathi” app on all smartphones
King Charles Welcomes German President Steinmeier to UK in First State Visit by Berlin in 27 Years
UK Plans Major Cutback to Jury Trials as Crown Court Backlog Nears 80,000
UK Government to Significantly Limit Jury Trials in England and Wales
U.S. and U.K. Seal Drug-Pricing Deal: Britain Agrees to Pay More, U.S. Lifts Tariffs
UK Postpones Decision Yet Again on China’s Proposed Mega-Embassy in London
Head of UK Budget Watchdog Resigns After Premature Leak of Reeves’ Budget Report
Car-sharing giant Zipcar to exit UK market by end of 2025
Reports of Widespread Drone Deployment Raise Privacy and Security Questions in the UK
UK Signals Security Concerns Over China While Pursuing Stronger Trade Links
Google warns of AI “irrationality” just as Gemini 3 launch rattles markets
Top Consultancies Freeze Starting Salaries as AI Threatens ‘Pyramid’ Model
Macron Says Washington Pressuring EU to Delay Enforcement of Digital-Regulation Probes Against Meta, TikTok and X
UK’s DragonFire Laser Downs High-Speed Drones as £316m Deal Speeds Naval Deployment
UK Chancellor Rejects Claims She Misled Public on Fiscal Outlook Ahead of Budget
Starmer Defends Autumn Budget as Finance Chief Faces Accusations of Misleading Public Finances
EU Firms Struggle with 3,000-Hour Paperwork Load — While Automakers Fear De Facto 2030 Petrol Car Ban
White House launches ‘Hall of Shame’ site to publicly condemn media outlets for alleged bias
UK Budget’s New EV Mileage Tax Undercuts Case for Plug-In Hybrids
UK Government Launches National Inquiry into ‘Grooming Gangs’ After US Warning and Rising Public Outcry
Taylor Swift Extends U.K. Chart Reign as ‘The Fate of Ophelia’ Hits Six Weeks at No. 1
250 Still Missing in the Massive Fire, 94 Killed. One Day After the Disaster: Survivor Rescued on the 16th Floor
Trump: National Guard Soldier Who Was Shot in Washington Has Died; Second Soldier Fighting for His Life
UK Chancellor Reeves Defends Tax Rises as Essential to Reduce Child Poverty and Stabilise Public Finances
No Evidence Found for Claim That UK Schools Are Shifting to Teaching American English
European Powers Urge Israel to Halt West Bank Settler Violence Amid Surge in Attacks
"I Would Have Given Her a Kidney": She Lent Bezos’s Ex-Wife $1,000 — and Received Millions in Return
European States Approve First-ever Military-Grade Surveillance Network via ESA
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
×