Self-employment grant doubled to £3.1bn package

Chancellor Rishi Sunak has doubled the self-employment grant to £3.1bn through “November to January” with a “further grant to follow covering February to April.”

Speaking in the House of Commons Sunak told MPs, “I’ve always said that we must be ready to adapt our financial support as the situation evolves, and that is what we are doing today.

“These changes mean that our support will reach many more people and protect many more jobs.

“I know that the introduction of further restrictions has left many people worried for themselves, their families and communities.

“I hope the government’s stepped-up support can be part of the country pulling together in the coming months.”

The Chancellor added, “Today’s announcement increases the amount of profits covered by the two forthcoming self-employed grants from 20% to 40%, meaning the maximum grant will increase from £1,875 to £3,750.

“This is a potential further £3.1bn of support to the self-employed through November to January alone, with a further grant to follow covering February to April.”

As he concluded in his statement, Sunak said, “So far through this crisis we have now provided over £13bn pounds of support to self-employed workers, sole traders, small businesses and self-employed people are the dynamic entrepreneurial heart of our economy.

“And this government is on their side.

“In conclusion, Mr Speaker, a wage subsidy for closed businesses, and a wage subsidy for open businesses.

“Cash grants of over £2,000 a month for tier two businesses, and up to £3,000 a month for closed businesses.

“Support for local authorities, support for the self-employed, support for people’s jobs and incomes all on top of over £200bn of support, since March.

“This is our plan. A plan for jobs for businesses for the region’s, for the economy for the country a plan to support the British people, and I commend this statement to the House.”

The Self-Employment Income Support Scheme (SEISS) was launched earlier this year and it has been recently extended into April 2021. 

IPSE warned that it was “an enormous omission” that a third of self-employed people, including limited company directors and the newly self-employed, remain excluded from the scheme.

Derek Cribb, CEO of IPSE said, “It’s welcome that the government has doubled SEISS to 40% of previous income. However, there are still deep structural problems with the scheme, which the government must urgently address.