Self-employment Income Support Scheme

(asked on 15th October 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason self-employed individuals eligible for the Self-Employment Income Support Scheme will receive 20 per cent of their average monthly trading profits as financial support.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 22nd October 2020

The Self-Employment Income Support Scheme Grant Extension helps self-employed individuals who are actively trading but are experiencing reduced demand due to COVID-19, and is not a direct income replacement. It is a top-up, not intended to replace all lost profits. The SEISS Grant Extension covers three months' worth of average trading profits at 20%, meaning self-employed individuals affected for shorter periods will still be entitled to the full three months' worth of the grant. This strikes the right balance between ensuring support is granted to those who need it, while protecting value for the taxpayer.

Those who require further support may still be eligible for other elements of the unprecedented financial support 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 crisis so that where self-employed claimants' earnings have significantly reduced, their Universal Credit award will have increased. In addition to this, the self-employed have access to other elements of the financial support package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, and other business support grants.

Reticulating Splines