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
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
Create Insurance have partnered with Vitality to offer income protection and life insurance for freelancers and the self-employed