Covid-19: Support for the Self-employed
Debate between Earl of Courtown and Baroness Verma
The Earl of Courtown
I thank the noble Baroness, Lady Thornhill, for her question. Her Majesty’s Government are looking at all options for how we take this forward. Specifically for freelancers and the self-employed, at the moment we are doing it through the welfare system, which will benefit from changes made on 20 March, such as the £20 increase in the UC standard allowance and the uprating of local housing allowance. We are also temporarily relaxing the minimum income floor for all self-employed UC claimants 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. Self-employed people unable to work because they are directly affected by Covid-19 or self-isolation will also be eligible for contributory employment and support allowance, as announced in the Budget; that is now payable from the first day of sickness. This package will enable self-employed people to claim welfare close to statutory sick pay.
The noble Baroness mentioned another issue, to which I do not have the answer. I will arrange for her to be written to on that.
Baroness Verma (Con)
My Lords, I will not ask about the self-employed; I will wait for the Chancellor’s Statement in a few days’ time. Will the small businesses able to access zero-interest loans have to put up any form of security for that loan?
The Earl of Courtown
My noble friend refers to the business interruption loan scheme, I think. The recent Budget announced a temporary new coronavirus business interruption scheme to help businesses access the finance that they need. On 17 March, the Government went further by increasing the value of the facilities available under the scheme from £1.2 million to £5 million. Alongside the action being taken by UK lenders, this will help to ensure that eligible businesses facing short-term cash-flow difficulties continue to access the finances that they need to respond to the temporary impact of the coronavirus outbreak on their cash flow.
My noble friend asked a specific question about security. I will write to her on that matter.