Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will introduce additional specific measures to compensate for directors' of limited companies loss of earnings during the covid-19 outbreak.
Answered by Jesse Norman
The Government has provided substantial levels of support throughout this crisis to support people’s jobs and livelihoods, and to support businesses and public services across the UK, spending over £280 billion over the last year.
Directors who pay themselves a salary through a PAYE scheme are eligible for the Coronavirus Job Retention Scheme (CJRS). However, some directors pay themselves in large part through dividends, while taking a small salary. Dividends are not covered by this scheme nor by the Self-Employment Income Support Scheme (SEISS). This is because income from dividends is a return on investment in the company, rather than wages. Under HMRC’s current reporting mechanisms it is not possible to distinguish between dividends derived from an individual’s own company and dividends from other sources.
The Government continues to work closely with stakeholders to explore how it can support different groups. The Government has engaged with various proposals put forward by stakeholder groups to assess if any are viable, and it continues to review these proposals to ensure they overcome the fundamental issues of protecting taxpayer money and safeguarding against fraud and abuse from organised criminals and others who would seek to exploit these schemes.
Individuals who are not eligible for the CJRS or SEISS may be eligible for other Government support. The Government has boosted the generosity of the welfare system through a temporary £20 a week increase in the Universal Credit standard allowance and Working Tax Credit basic element. The Government has also increased the Local Housing Allowance rates for Housing Benefit and Universal Credit. Other support measures include rental support, mortgage holidays, enhanced Statutory Sick Pay and council tax support through local authorities.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment he has made of the potential effect on confidence among high street businesses and shoppers of extending business rates relief for the hospitality, retail, and leisure sector for an additional year.
Answered by Jesse Norman
The Government has taken the unprecedented step of providing over £10 billion in business rates relief this year for eligible retail, hospitality and leisure properties.
As announced at the Spending Review, to support businesses the Government will freeze the business rates multipliers for one year and will announce any decisions on future rate reliefs in the New Year.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to tackle the effect of covid-19 outbreak on levels of household debt in (a) Wolverhampton South West constituency and (b) the UK.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
The Government has delivered unprecedented support for living standards during this challenging time, protecting livelihoods with the Self-Employment Income Support Scheme, the Coronavirus Job Retention Scheme, and temporary welfare measures.
The Government has extended the Coronavirus Jobs Retention Scheme until 31 March 2021. Eligible employees will continue to receive 80% of their usual salary for hours not worked, up to a maximum of £2,500 per month. The Government has increased the overall level of the third grant under the Self-Employment Income Support Scheme to 80 per cent of average trading profits, meaning that the maximum grant available has now increased to £7,500.
The Government has provided Local Authorities with £500 million to support people who may struggle to meet their council tax payments this year. The Government expects that this will provide all recipients of working age local council tax support with a further reduction in their annual council tax bill of £150 this financial year.
These measures are in addition to the changes this Government has made to make the welfare system more generous, worth over £7 billion according to recent OBR estimates. This includes a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to Local Housing Allowance rates.
We have also worked with mortgage lenders, credit providers and the Financial Conduct Authority to ensure the financial sector provides support for people across the UK to manage their finances by providing payment holidays on mortgages and consumer credit products.
The Government has also provided unprecedented support for businesses impacted by the COVID-19 pandemic. This support includes the Coronavirus Business Interruption Scheme, Coronavirus Large Business Interruption Scheme, Bounce Back Loan Scheme and the Future Fund which, as of 15 November, have collectively supported over 1.4 million businesses with facilities worth in excess of £65bn. The Chancellor has announced that the Government has extended the application deadline for these schemes to a single date, 31 January 2020, meaning that even more businesses will have access to financial support.
To help people in problem debt get their finances back on track, an extra £37.8 million support package is being made available to debt advice providers this financial year, bringing this year's budget for free debt advice in England to over £100 million.
In May, the Government also announced the immediate release of £65 million dormant assets funding to Fair4All Finance, an independent organisation that has been founded to support the financial wellbeing of people in vulnerable circumstances. The funding is used to increase access to fair, affordable and appropriate financial products and services for those in financial difficulties.
From May 2021 the Breathing Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement action, interest, fees and charges, and will encourage them to seek professional debt advice.
Data on levels of over-indebtedness in Wolverhampton South West was last published in 2018 by the Money and Pensions Service (MaPS), who continue to fund local delivery of debt advice through Wolverhampton Citizens Advice. MaPS will be publishing updated figures in 2021.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support is available for self-employed people who have taken out business loans and are continuing to experience financial hardship as a result of the covid-19 outbreak.
Answered by Jesse Norman
The Government recognises the impact that the changing path of the virus has had on the self-employed and has taken action to increase the level of assistance available.
The Government has confirmed that it will provide further taxable grants through the SEISS Grant Extension. The Chancellor of the Exchequer announced today that the third grant will cover 80% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits for 1 November 2020 to 31 January 2020, and capped at £7,500 in total. This provides equivalent support to the self-employed as is being provided to employees through the Government's contribution in the CJRS. The fourth grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the fourth grant and set this in due course.
Furthermore, the Chancellor previously announced approved additional funding to support cash grants of up to £2,100 per month for businesses who may be adversely affected by the restrictions in high-alert level areas. These grants will be available retrospectively for areas who have already been subject to restrictions, and come on top of higher levels of additional business support for Local Authorities moving into Tier 3 which, if scaled up across the country, would be worth more than £1 billion. These grants could benefit about 150,000 businesses in England, including hotels, restaurants, B&Bs and many more businesses which are not legally required to close but have been adversely affected by local restrictions nonetheless.
For those requiring further assistance, a comprehensive package of financial support is available. The Government has temporarily increased the Universal Credit standard allowance for 2020-21 and relaxed the Minimum Income Floor for the duration of the pandemic meaning that where self-employed claimants' earnings have significantly fallen, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, the self-employed also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, and mortgage holidays.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available for small brewers experiencing financial hardship as a result of the covid-19 outbreak.
Answered by Kemi Badenoch - President of the Board of Trade
The Government recognises that breweries have been acutely disrupted by recent necessary restrictions to the hospitality businesses they supply. That is why the Government has extended the unprecedented package of support measures, to protect businesses and jobs. This includes:
Small breweries have and will continue to benefit directly from Government support schemes, and indirectly from the support offered to the pubs and restaurants they supply, protecting jobs in the industry. The Government is continuing to collect evidence on the impact of the pandemic on the sector and to work with businesses and representative groups to inform our efforts to support this sector.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what support he plans to make available for previously furloughed employees in the night-time industry and other sectors which are not yet safe to re-open according to covid-19 regulations.
Answered by Jesse Norman
The Government recognises the extreme disruption the steps necessary to combat COVID-19 are having on businesses and workers in the night-time economy across the UK. On 9 October, it was announced that where the Government has had to go further and close business premises in some areas, the Job Support Scheme is being expanded to protect jobs and UK businesses. The scheme will cover businesses that are legally required to close their premises as a direct result of coronavirus restrictions set by one or more of the four governments in the UK. The Government will provide employers with a grant for employees unable to work, covering two thirds of their usual wages, subject to a cap. Support will be available to eligible businesses from 1 November.
The Government has built flexibility into the Job Support Scheme to provide emergency short-term support for jobs and businesses, which forms part of the Government’s wider package of measures to support businesses adjusting to the impact of coronavirus. The Government will continue to work with businesses and representative groups to ensure that support provided is right for the night-time industry and other affected sectors.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available to (a) workers on zero hour contracts and (b) agency workers who have been advised to continue to self-isolate during the covid-19 outbreak.
Answered by Jesse Norman
The Government has committed to an unprecedented package to support individuals through this difficult time. This includes the introduction of the Coronavirus Job Retention and Self-Employment Income Support Schemes, as well as injecting an additional £9 billion into the welfare system according to Office for Budget Responsibility estimates.
If an employee earns average weekly earnings of at least £120 per week, they will be eligible for Statutory Sick Pay (SSP) if they have been ill or self-isolating; this includes agency workers and those on zero-hour contracts. The Government is committed to supporting individuals financially through this difficult time. For that reason the Government has changed the rules so that SSP is now payable from day 1, not day 4 for COVID-19 cases.
It is important to note that SSP is a statutory minimum and employers, who are responsible for paying SSP, will often pay more than this. More than half of employees receive more than this when they are off sick so many people will not see any fall in income during their isolation period.
The welfare system is best placed to provide support for those not eligible for SSP. This group will benefit from changes to the welfare system to support the most vulnerable. These changes include a £20 per week increase to the Universal Credit (UC) standard allowance and Working Tax Credit basic element, and a nearly £1 billion increase in support for renters through increases to the Local Housing Allowance rates for UC and Housing Benefit claimants.
In addition, the Department for Health and Social Care recently launched a trial for a new payment for those self-isolating in the highest risk areas in England. Starting with a trial in Blackburn with Darwen, Pendle and Oldham, individuals will be eligible if they are unable to work from home while self-isolating. This payment is in addition to the welfare safety net and SSP, providing a further incentive to self-isolate.
It will be available to people currently receiving at least one of the following benefits: Universal Credit, Working Tax Credits, income-related Employment and Support Allowance, income-based Jobseeker’s Allowance, Income Support, Pension Credit, or Housing Benefit.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available during the covid-19 outbreak for directors of limited companies who are (a) paid in dividends and (b) not eligible for universal credit.
Answered by Jesse Norman
Directors of limited companies who pay themselves a salary through their own company are eligible for the Coronavirus Job Retention Scheme (CJRS). The CJRS is available to employers, including owner-managers, and individuals paying themselves a salary through a PAYE scheme are eligible. Where furloughed directors, including companies with a sole director, need to carry out particular duties to fulfil their statutory obligations, they may do so provided it is no more than would reasonably be judged necessary for that purpose.
They may also be able to benefit from other elements of the comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants. More information about the full range of business support measures is available at
www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
As the economy reopens, it is right that state support is reduced and the focus shifts to getting people back to work. On 8 July, the Government introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs. The Plan includes the Kickstart Scheme, reduces the level of VAT for the hospitality and accommodation sector, and creates jobs through £8.6 billion of infrastructure, decarbonisation and maintenance projects. More information can be found here:
https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what (a) rent assistance and (b) other forms of financial support is available for market traders and stallholders who have been adversely affected by the covid-19 outbreak.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has delivered one of the most generous and comprehensive packages of support globally, with a total fiscal response of close to £200bn. Many of the measures introduced, including loan schemes, tax deferrals, Self-Employment Income Support Scheme and the Coronavirus Job Retention Scheme remain open and have been designed to be accessible to businesses in most sectors and across the UK.
Eligible market stalls with a rateable value could also benefit from flat rate payments of £10,000 under the grant scheme for the retail, hospitality, and leisure sectors. Moreover, in recognition that some market traders were excluded from this grant fund because of the way they interact with the business rates system, the Government encouraged Local Authorities to include these businesses as a priority group for the Discretionary Grant Fund.
In terms of rent assistance, the Government encourages tenants to continue to pay their rent in full where they are in a position to do so, although we recognise that others may not be in this position. We welcome the fact that many local authorities and other operators have been able to be flexible in their approach and negotiate suitable arrangements including rent concessions for a significant number of market traders in support of the industry, recognising the financial strain the pandemic has placed on their finances.
Asked by: Stuart Anderson (Conservative - Wolverhampton South West)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what financial support is available for self-employed publicans who are not eligible for (a) universal credit and (b) the Self-Employment Income Support Scheme.
Answered by Kemi Badenoch - President of the Board of Trade
The Self-employment Income Support Scheme is just one element of a comprehensive package of support available for individuals and businesses that publicans can benefit from. This package includes Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants. More information about the full range of business support measures is available at www.gov.uk/government/collections/financial-support-for-businesses-during-coronavirus-covid-19.
As the Government now begins to re-open the economy, it is right that state support is reduced and the focus shifts to getting people back to work. On 8 July, the Government introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs. For example, it is supporting jobs through the Kickstart Scheme, protecting jobs by reducing the level of VAT for the hospitality and accommodation sector and creating jobs through £8.6 billion of infrastructure, decarbonisation and maintenance projects. This is alongside many other measures that will help support people and kickstart the economic recovery. More information can be found here: https://www.gov.uk/government/publications/a-plan-for-jobs-documents/a-plan-for-jobs-2020