London Daily

Focus on the big picture.
Sunday, Aug 16, 2026

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
Reform UK Unveils Plan to Cut Welfare Spending by More Than £50 Billion a Year
Prime Minister Andy Burnham Praised Extinction Rebellion for Doing a 'Great Service'
UK Wildfire Phone Alert Triggers Backlash as Users Switch Off Emergency Warnings
Heathrow Roads Reopen After Burst Water Main Floods Access to Terminals 2 and 3
Former NBA Players Enes Kanter Freedom and Royce White Say They Will Enter 2027 WNBA Draft
Italian Speed Camera Issues Nearly 32,000 Fines in 10 Weeks, Worth More Than €3 Million
Former Cambridge Professor Jason Arday Found Dead Days After Resigning Amid Plagiarism Row
US Appeals Court Rules AI Agent's Website Actions Are Legally Attributed to the User
France's Constitutional Council Blocks Social Media Ban for Children Under 15
Liechtenstein Changes Royal Succession Rules to Allow Women to Inherit the Throne
Women Allege Rape and Sexual Abuse at British Army College for Teenage Recruits
Minnesota: Two independent investigators posed as Muslims (one wearing a burqa) and showed how they could vote in elections without identification.
UK Prime Minister Andy Burnham Takes Regional Tour to Highlight Local Infrastructure and Environmental Problems
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
Bank of England Warns Rising Inflation Could Squeeze UK Household Incomes
UK Government Announces £65 Million Aid Package for Farmers Hit by Severe Drought
UK Economy Grows 0.4% in Second Quarter Despite Energy Market Pressures
UK Issues Emergency Alert as Severe Wildfires Spread Across England and Wales
UK and Finland Discuss European Defence and Continued Support for Ukraine
Nigel Farage Wins Clacton By-Election to Return to the House of Commons
UK Government Deploys Military to Help Fight Wildfires and Bans Disposable Barbecues
UK Records Hottest Day of the Year as Fifth Summer Heatwave Peaks in Southern England
UK Condemns Houthi Actions and Warns of Red Sea Threat to Global Trade
UK and Solomon Islands Open Wildlife Photography Exhibition in Honiara
UK Small Businesses Face Continued Cash Flow and Tax Pressures
Greatham Marsh Restoration Restores Tidal Wetland in Hartlepool After More Than 200 Years
UK Health Regulator Urges University Students to Check Meningitis and Measles Vaccination Status
Mining Remediation Authority Completes Major Ground Stabilization Works in Scottish Community
UK Food Crime Investigators Seize 33 Tonnes of Illegal Food in Multi-Agency Operation
Technical Qualification Uptake Hits Record High as Advanced Mathematics Results Improve
UK Summer Temperatures on Course to Challenge Long-Standing Records, Met Office Says
UK Farmers Bring Forward Cereal Harvests as Drought Threatens Yields
Wildfires Surge Across England and Wales as Fire Chiefs Report Record July
UK Nurses Warn of Heat Risks as Hospital Staff Struggle With Extreme Temperatures
Southern Water Seeks Drought Order for Hampshire and Isle of Wight Amid Water Shortages
UK Heatwave Pushes West London Temperature to 38.1 Degrees as Health Alerts Continue
UK Economy Grows 0.4% in Second Quarter Despite Global Uncertainty
China’s Kimi Launches AI-Focused Credit Card With Agricultural Bank of China and American Express
UK Residents Gather to Watch Rare Partial Solar Eclipse
Reform UK Deputy Leader Richard Tice Faces Criticism Over Legal Threat Against Guardian Journalist
Michael Forsyth Elected Speaker of the House of Lords
Cambridge Researchers Launch £20 Million Human Organoid Drug Testing Programme
Heathrow Loses European Passenger Traffic Lead to Istanbul Airport
Households Near New UK Electricity Pylons to Receive £250 Annual Energy Bill Discount
UK Government Estimates Zero-Hours Contract Ban Could Cost Employers Up to £3 Billion a Year
Robert Jenrick Leaves Conservatives for Reform UK in Major Parliamentary Defection
UK Police Chiefs Urge Government to Block Early Release of Andrew Harper Killers
UK Government Holds Emergency Cobra Meeting as Drought and Heatwave Raise Wildfire Risks
Former Labour Adviser Arrested on Suspicion of Spying for China Held Privileged Access as Top Party Donor
Turkish Parliament Passes Landmark Bill Granting Conditional Amnesty to Disarmed PKK Members
×