More than 100 MPs call for extension to self-employed relief package
A group of 113 MPs have signed a letter urging chancellor Rishi Sunak to extend the £6.8bn coronavirus relief package for self-employed workers.
The letter, written by Labour MP Siobhain McDonagh, said people across the country would be “left without work and without support” if the scheme is not extended past its current June end date.
The package hands a taxable grant of 80 per cent of income, up to £2,500 a month, to self-employed workers unable to work due to coronavirus.
HM Revenue and Customs has said it has received 2.3m claims for the self-employed scheme worth £6.8bn.
The programme was originally slated for only three months and to end in June, but there was some speculation it would be extended to October like the government’s furlough scheme for traditional employees.
However, the Financial Times reported yesterday that the self-employed scheme was unlikely to get extended, due to Treasury concerns that it was not well targeted.
McDonagh’s letter urges Sunak to reconsider any potential cut-off to the scheme to create parity with the furlough scheme.
The letter was signed by prominent Labour backbenchers such as Dawn Butler and Hillary Benn, along with Liberal Democrat leader Sir Ed Davey.
“Whilst the government has announced that the coronavirus Job Retention Scheme will now continue until October 2020, it remains unclear whether any extension to the Self- Employment Income Support Scheme will be announced,” the letter reads.
“Whilst some of our self-employed constituents may be able to return to work over the coming weeks and months, it remains likely that many will not. If the scheme does not continue, they will be left without work and without support.
“We are calling on you to ensure that this scheme is continued and to provide details of an extension as soon as possible.”
Federation of Small Businesses national chair Mike Cherry has made similar overtures to the chancellor.
“A big proportion of our 5m strong self-employed community now faces a total income cliff edge in a matter of days,” he said.
“Many of them – hairdressers, personal trainers, event organisers, caterers and B and B owners – work in sectors that will be impacted for many more weeks to come.”