Many self-employed still excluded from Covid help

The UK government has pledged £7.3bn in a refreshed package of support for self-employed people. But critics say that almost 3 million workers may be out of pocket, with the second coronavirus lockdown in England, and the Covid-19 restrictions in Scotland, Wales and Northern Ireland leaving many freelancers and contractors out in the cold again. Last week the Treasury presented a revised self-employment income support scheme (SEISS) that will pay out up to a maximum of £7,500 for the three months from November to January, with the first payments made in December. Under pressure from unions and small businesses, the government has also extended a universal credit allowance that was due to run out in mid-November. That will now continue into April next year. Announcing the changes, the chancellor, Rishi Sunak, said: “It’s clear the economic effects are much longer lasting for businesses than the duration of any restrictions, which is why we have decided to go further with our support. However, ExcludedUK, a group that emerged in March to campaign on behalf of those unable to access government support, says much more needs to be done to help the recently self-employed, limited company directors and other groups that do not benefit from the SEISS. Aron Padley of ExcludedUK says: “Nothing has changed. The eligibility criteria are exactly the same. Seven months on, many people in our group are now in a dark, dark place. Many people have lost everything.” An inquiry set up by the trade unions Prospect and Community has warned that the government risks creating a “stampede” away from self-employment that will damage the economy as well as crushing the entrepreneurial dreams of thousands.