Self-employed: Coronavirus

(asked on 29th June 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the adequacy of the Government's system of support for PAYE freelance workers during the covid-19 outbreak.


Answered by
Jesse Norman Portrait
Jesse Norman
Shadow Leader of the House of Commons
This question was answered on 7th July 2020

The Government has announced unprecedented support for workers and businesses to protect against the current economic emergency, which PAYE freelancers are able to access. The support provided has included:

  • The Coronavirus Job Retention Scheme which, for the first 5 months, enables all UK employers to apply for a grant that covers 80% of furloughed employees’ usual monthly wage costs, up to £2,500 a month, plus the associated Employer National Insurance contributions and pension contributions. Employers can claim for employees on any type of employment contract, including freelancers, providing they were employed on 19 March 2020 and on PAYE payroll on or before 19 March 2020. This means a Real Time Information (RTI) submission notifying payment in respect of that employee to HMRC must have been made on or before 19 March 2020.
  • The availability of a three-month mortgage holiday, first announced in March as part of an unprecedented package of support for individuals, businesses and the economy. 1.9 million mortgage payment holidays have been granted, equivalent to 1 in every 6 UK mortgages.
  • A £20 per week increase to the Universal Credit (UC) standard allowance and Working Tax Credit basic element. This means that for a single UC claimant (25 or over), the standard allowance will increase from £317.82 to £409.89 per month.
  • An increase in the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants so that it covers the lowest third of local rents.
  • A relaxation of UC minimum income floor for all self-employed claimants.
  • A rebate scheme reimbursing employers with less than 250 employees for up to 2 weeks of Statutory Sick Pay (SSP) per employee. SSP has also been extended to those ill, self-isolating or shielding due to COVID-19.
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