Covid-19: Government Support Debate

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Department: HM Treasury

Covid-19: Government Support

Barbara Keeley Excerpts
Wednesday 7th July 2021

(2 years, 9 months ago)

Westminster Hall
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Barbara Keeley Portrait Barbara Keeley (Worsley and Eccles South) (Lab) [V]
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It is a pleasure to speak in this important debate with you in the Chair, Mr Mundell, and I congratulate the hon. Member for Midlothian (Owen Thompson) on securing it.

Over the past 18 months, the people of this country have made extraordinary sacrifices to control the spread of coronavirus and to protect one another. At every turn, they have done what was required of them, but the Government have not been as reliable or committed. The financial support schemes put in place have often fallen short of what was needed. As we have heard, more than 3 million people have been excluded from Government support throughout the pandemic. Be it zero-hours workers who have been denied furlough by their employers, or sole traders who were excluded from self-employment schemes because of their registration status, the Government have consistently failed to plug the gaps in their support packages.

The greatest impact on many people in my constituency has been the gap between furlough and the self-employment income support scheme. For those working in the creative industries, it is common to work across a mix of short-term, pay-as-you-earn contracts and self-employed contract work. Unless more than half their income came from self-employed work, they could not get any support through the self-employment income support scheme. However, unless they happened to be working on a pay-as-you-earn contract at the start of the pandemic, they could not be furloughed.

People trapped in that situation have been left without support for 18 months, causing immense financial stress and leaving them trying to make impossible choices. Savings have been used up and I have heard from constituents who simply do not see how they can continue to pay their bills. I want to put it in their words and express their hurt. A constituent of mine who is self-employed and normally works in the entertainment industry described their situation:

“Through no fault of my own I’ve had no income since the grant in late November…It has been incredibly difficult trying to get through the last few months…All I want to do is earn a living in the way I have for the last 20 years. I’ve never asked for help and over the years I’ve had many ups and downs, but I need help now. The bills are mounting up and the wolves are at the door…I’ve had no option of work for 8 months out of the last 11.”

Another constituent described how they now owe money to HMRC:

“After being excluded and denied furlough for over a year, I now find myself somehow owing HMRC”

a sum of thousands. They continued:

“There has been no work, and schemes and jobs I applied for were suspended. I have no idea how I am going to be able to pay it back. I feel it is so unfair how I am being treated as a taxpayer. For me it’s like I’m being blamed for what the government did which isn’t my fault”.

As we move forward, my constituents and others excluded from the schemes need real financial support to make up for the debts that they have built over the last year. I hope the Minister can confirm that support will be offered as soon as possible.