Government will pay self-employed workers 80% of their average profits over the last three years – up to £2,500 per month.
The Chancellor Rishi Sunak has today announced a support package for self-employed workers who have been left out of work due to the coronavirus pandemic.
Mirroring the support offered to workers last week, Mr Sunak announced the Self-Employed Income Support Scheme which will pay self-employed workers 80% of their average monthly profits over the last three years. The taxable grants will be limited to £2,500 per month, and the scheme will be open for three months initially.
The scheme is only open to those with trading profits up to £50,000 per year who make the majority of their income from self-employment. It will also only be available to those who submitted a tax return for 2019 as a way to minimise fraud.
The scheme is due to come into force in June 2020.
See the full details of the scheme and Rishi Sunak’s breakdown below:
1/ The Government has announced a new Self-Employed Income Support Scheme to support those who work for themselves. pic.twitter.com/GTxO5Br4iO
— HM Treasury (@hmtreasury) March 26, 2020
1/ I’m proud of what we’ve done so far, but I know that many self-employed people are deeply anxious about the support available for them.
— rishisunak (@RishiSunak) March 26, 2020
So to support those who work for themselves, today I am announcing a new Self-Employed Income Support Scheme. pic.twitter.com/wJQZzNFOCH
In announcing the scheme, Rishi Sunak admitted there had been challenges in creating a support package that was fair for all. However, the initial response from groups representing freelancers and self-employed workers was largely positive.
YOUR VOICE HAS BEEN HEARD - today’s announcement from @RishiSunak guarantees unprecedented support for self employed workers who will be able to claim 80% of average earnings for last 3 years up to £2500 a month.
— Creative Industries Federation (@Creative_Fed) March 26, 2020
#COVID2019 #selfemployed
Massive announcement from @RishiSunak for freelancers and the self-employed. We have pushed so hard for you to have parity with employees and the scale of this commitment is what we needed. Still lots to work out. Official response coming soon
— Bectu (@bectu) March 26, 2020
We are delighted that Government is finally giving self-employed and freelance workers the recognition they deserve. This is about equality and fairness. #CoronavirusUpdate #WeAreTheMU #BehindEveryMusician
— Musicians' Union (@WeAreTheMU) March 26, 2020
Income protection insurance for the self-employed
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