Coronavirus Bill

Debate between Baroness Kennedy of Shaws and Earl Howe

Committee stage & Committee: 1st sitting (Hansard) & Committee: 1st sitting (Hansard): House of Lords
Wednesday 25th March 2020 Lords Chamber

[Earl Howe (Con)]

My Lords, I am grateful to the noble Lord, Lord Clement-Jones, and other noble Lords who have spoken to this amendment.

I will get straight to the point. The first thing that I ask the Committee to do is recognise the nature and scale of what the Government have done so far to protect the jobs and incomes of millions of people. The package of measures that we have already announced is unprecedented and is one of the most generous business and welfare packages by any Government so far in response to Covid-19. In the context of those measures, which have been broadly welcomed, the Government absolutely acknowledge the calls for more to be done in relation to the self-employed. I completely agree with what noble Lords have said about the vital role played by the self-employed in our economy and our national life. We have always said that we would go further where we could, and I can tell the Committee that we are actively considering further steps, which I will come back to.

We have already improved the welfare safety net to ensure that self-employed people and freelancers are better protected. We are temporarily relaxing the minimum income floor for all self-employed universal credit claimants affected by the economic impact of Covid-19 from 6 April for the duration of the outbreak. This means that a drop in earnings due to sickness or self-isolation or as a result of the economic impact of the outbreak will be reflected in claimants’ awards. It ensures that the self-employed are supported by the benefits system so that they can follow Public Health England guidance on social distancing and self-isolation.

Freelancers and the self-employed will also benefit from the changes announced to the benefits system such as the £20 increase in the universal credit standard allowance, which will mean that claimants are better off by £1,040 a year and will benefit from the increases to the local housing allowance. I add that we are already making sure that benefits are easily accessible and more supportive for those who need to make a claim. Other changes announced by my right honourable friend the Chancellor, such as deferring income tax self-assessment payments due in July 2020, are designed to help self-employed people and freelancers through this period.

My right honourable friend the Chancellor has stated that he is committed to going further to support individuals and businesses, and will provide a further update on support for the self-employed in the coming days. That is an assurance that I can give today. I have taken full note of the careful way in which the amendment has been drafted and the points articulated by noble Lords in support of it; they have been well and truly registered. An amendment to the Bill is not required for the Chancellor to provide further support for the self-employed, support that I emphasise is already planned and due to be announced shortly.

I emphasise again that everything is being done to ensure that everyone is supported to do the right thing for the good of us all. It would be wonderful for everyone if I were able to go further today, and the noble Lord, Lord Clement-Jones, will understand why I cannot, but I hope I have provided sufficient reassurance to enable him to feel comfortable in withdrawing the amendment.

[Baroness Kennedy of The Shaws]

Will agency staff be included in any thoughts that the Government are having about those who might be assisted but who are currently not covered? Many care workers and many people working in offices even here in London are supplied by agencies which do not consider themselves to be their employers but to be facilitators and mediators in creating opportunities to work. They are not able to claim those workers as people for whom they can have the special 80% arrangement. Might such employees be covered by the Government’s thoughts?

[Earl Howe]

The noble Baroness makes a very good point and one that I was familiar with in my previous role as a Health Minister. She is absolutely right: agency workers form a key part of the health and social care network and in other areas of our economy. I can assure her that they will not be overlooked.

--- Later in debate ---

[Earl Howe]

I fully acknowledge the noble Lord’s point. I refer him to the various measures that my right honourable friend announced for businesses generally, but in particular for small and medium-sized businesses. They are more vulnerable generally than larger businesses. The job retention scheme was specifically designed to address this situation, as he rightly said, as were mortgage holidays. The business interruption loan scheme is available to small businesses, particularly on finance facilities up to £5 million. That will enable more businesses to access the finance they need to assist cash flow. If it proves necessary for my right honourable friend to look at further measures, I have no doubt that he will do so.

[Baroness Kennedy of The Shaws]

Like the noble Lord, Lord Blunkett, I regret if I too am being something of a nuisance, but I recognise that this amendment seeks to deal with gaps, where people being short of funds would then create greater risks for others. I want the Government to keep in mind that this is our last chance for several weeks to talk about this because of the Easter break. I am seizing the moment to say in this House that there are people who have no recourse to public funds: asylum seekers. The Government should suspend the relevant policy immediately, so that people who face hardship, who have no recourse to public funds, who are often living in cramped circumstances and who are perhaps most vulnerable to the virus have opportunities to access funds.

[Earl Howe]

All I can do is assure the noble Baroness that the points she has made will be taken back to the department and considered.