Arab Press

بالشعب و للشعب
Saturday, Feb 22, 2025

UK government unveils aid for self-employed

UK government unveils aid for self-employed

Self-employed workers can apply for a grant worth 80% of their average monthly profits to help them cope with the financial impact of coronavirus, the chancellor has announced.

The money - up to a maximum of £2,500 a month - will be paid in a single lump sum, but will not begin to arrive until the start of June at the earliest.

Rishi Sunak told the self-employed: "You have not been forgotten."

Wage subsidies of 80% for salaried employees were announced last week.

Shortly after the chancellor spoke, the number of people in the UK who have died with Covid-19 - the disease caused by coronavirus - jumped by more than 100 in a day for the first time.

The total now stands at 578.

The government had faced criticism for failing to provide support for self-employed and freelance workers in its earlier package of economic measures.

Mr Sunak said the steps taken so far were "already making a difference" but it was right to go further "in the economic fight against the coronavirus".

  • Self-employed people will be able to apply for a grant worth 80% of their average monthly profits over the last three years, up to £2,500 a month.

  • At least half their income needs to have come from self-employment as registered on the 2018-19 tax return filed in January - anyone who missed the filing deadline has four weeks from now to get it done and still qualify.

  • The scheme is open to those who earn under £50,000 a year - up to 3.8 million of the 5 million people registered as self-employed.

  • Unlike the employee scheme, the self-employed can continue to work as they receive support.

  • The money, backdated to March, will arrive directly into people's banks accounts from HMRC, but not until June.

  • The grants will be taxable, and will need to be declared on tax returns by January 2022.

  • Company owners who pay themselves a dividend are not covered.



The scheme does not cover people who only became self-employed very recently - the chancellor said they would have to look to the benefits system for support.

Coming up with a workable scheme had been "difficult", he continued, because the self-employed were a "diverse population" and some of them earned a great deal.

But in all, the "fair, targeted and deliverable" plan would help 95% of people who earn most of their income via self-employment.

"We have not left you behind, we all stand together," he added.

Communities Secretary Robert Jenrick later told the BBC's Question Time that even where self-employed workers were unable to provide full financial records going back three years, the government was urging people to "give us what they've got and we will work through it with HMRC to see if there's a way to support you".

The Federation of Small Business, which represents many self-employed workers, welcomed the intervention, saying: "Although the deal is not perfect, the government has moved a very long way today."

But Labour's shadow chancellor John McDonnell said he was worried the money would come "too late for millions".

"People need support in the coming days and fortnight... there is a real risk that without support until June the self-employed will feel they have to keep working, putting their own and others' health at risk."

Labour leader, Jeremy Corbyn, said the government had been too slow to recognise the severity of the crisis.

In the UK, more than 11,600 people have now tested positive for coronavirus - although the actual number of cases is likely to be far higher.

The peak of demand for intensive care was expected to come in two to three weeks, but speaking alongside the chancellor at Thursday's briefing, England's deputy chief medical officer, Dr Jenny Harries, refused to be drawn on any predictions.

She said the UK was "only just starting to see a bite in the interventions - the social distancing - that have been put into place", but things appeared to be "starting to move in the right direction".

The government has imposed strict controls on everyday life designed to slow the spread of the disease.


Newsletter

Related Articles

Arab Press
0:00
0:00
Close
The negotiation teams of Trump and Putin meet directly, establishing the groundwork for a significant advance.
Israeli Minister Urges Hamas to Surrender and Depart from Gaza.
Iran Considers Moving Its Capital Due to Urban Difficulties
Israel and Hamas Finalize Sixth Exchange of Hostages and Prisoners During Continuing Gaza Ceasefire
Leaders of BRICS to Gather in Rio de Janeiro for July Summit
Muhsin Hendricks, a trailblazing openly gay imam, was killed in South Africa.
Trump's special envoy for hostage affairs cautions Hamas against challenging Trump before Saturday's deadline.
Two British citizens apprehended in Iran amid escalating tensions.
Israel Issues Threat of Military Action as Hostage Negotiations with Hamas Continue
Hamas Coordinates Worldwide Solidarity Marches in Reaction to U.S. and Israeli Initiative
Israel Warns of Ending Gaza Ceasefire Due to Hostage Situation
King Abdullah II Dismisses US Proposal to Relocate Palestinians, Commits to Welcoming Gaza Children.
Lebanon Installs New Government with Hezbollah's Impact on Key Ministries
Report: Iran Attempted to Assassinate Trump During Election Campaign
U.S. Authorizes $7.4 Billion Arms Sale to Israel
Iran's Supreme Leader Rejects Nuclear Negotiations with the U.S.
UN Chief Denounces Trump's Gaza Plan, Cautions Against Ethnic Cleansing
Pressure Intensifies for a Free Trade Agreement between the UK and GCC in Light of Economic Difficulties
Israel to Withdraw from UN Human Rights Council Due to Accusations of Anti-Semitism
EU Reaffirms Gaza's Essential Role in Future Palestinian State Following Trump's Proposal
Iranian Currency Reaches All-Time Low Amid US 'Maximum Pressure' Initiative.
UN Reaffirms Ban on Deportation from Occupied Territories Amid US Gaza Proposal
Palestinians Fear Repeat of 'Nakba' Amid Ongoing Crisis in Gaza
UAE Aids in the Exchange of 300 Prisoners Between Russia and Ukraine
Egypt Seeks Global Backing for Two-State Solution Following US Proposal for Gaza Plan
Trump's Suggestion to 'Seize Control' of Gaza Represents a Significant Shift in US Policy
French President is the first EU leader to extend congratulations to the new Syrian President.
Tunisian President Appoints New Finance Minister Amid Economic Crisis
Trump Suggests U.S. 'Takeover' of Gaza, Prompting Global Worries
Trump's Proposal for Gaza Provokes Global Debate
President Trump Suggests Moving Gaza's Palestinian Population
Aga Khan IV, Spiritual Leader and Philanthropist, Dies at 88
Erdogan and Syria's Sharaa Talk About Collaboration to Counter Kurdish Militants
Trump Suggests U.S. Control of Gaza Strip Amid Ongoing Conflict
Trump Resumes 'Maximum Pressure' Strategy to Limit Iran's Oil Exports.
Ex-British Soldier Sentenced for Espionage on Behalf of Iran and Fleeing from Prison
Gazans in Egypt Reject Displacement, Struggle with Return to War-Torn Home
Queen Rania Urges Protection of Children’s Rights at Vatican Summit
Hamas Officials Ready to Begin Negotiations for Phase Two of Gaza Truce
Trump Expresses Caution Over Gaza Ceasefire as Netanyahu Visits Washington
Oman to Host 18th Indian Ocean Conference on Maritime Security and Trade
Emir of Kuwait Meets BlackRock CEO for Talks on Investment Opportunities
Queen Rania of Jordan Calls for Global Action on Children’s Rights at Vatican Summit
Egyptian President El-Sisi Invited for White House Meeting Following Jordanian King’s Visit
Queen Rania Calls for Protection of Children’s Rights at Vatican Summit
Israeli Military Operations Continue on Lebanon Border Amid Ceasefire Tensions
Israeli Hostage's Release Highlights Uncertainty Over Family's Fate
Israeli Military Operations Escalate in Southern Lebanon Amid Hezbollah Tensions
Zayed Award for Human Fraternity Announces 2025 Honorees
Kuwait Anticipates a 12% Increase in Budget Deficit for the 2025-2026 Fiscal Year
×