Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if the Self-Employment Income Support Scheme will cover financial support for the transitionary periods (September and October 2020) between its first and second rounds of grant support.
Answered by Jesse Norman
The Self Employment Income Support Scheme (SEISS) grants provide a lump sum payment based on three months’ worth of profits in order to support eligible self-employed individuals. The first SEISS grant was open for applications from 13 May until 13 July and the second was open for applications from 17 August until 19 October.
The Government has announced that it will provide further taxable grants through the SEISS Grant Extension. The third grant will cover 55% of average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £5,160 in total. This grant will be increased from the previously announced level of 40% of trading profits to 80% for November 2020. This therefore increases the total level of the grant from 40% to 55% of trading profits for 1 November 2020 to 31 January 2020. The fourth grant will cover a three-month period from 1 February 2021 until 30 April 2021. The Government will review the level of the fourth grant and set this in due course.
For those who require more support, the SEISS continues to be just one element of a comprehensive package of support for individuals and businesses. This package includes Bounce Back loans, tax deferrals, rental support,?increased levels of Universal Credit, mortgage holidays, and other business support grants.
Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to ensure that (a) furloughed workers who are usually paid (i) variable salaries and (ii) tronc and (b) other furloughed workers receive a level of income at least equivalent to the minimum wage.
Answered by Jesse Norman
The National Minimum Wage (NMW) is calculated on the basis of hours worked, and furloughed workers will not be working any hours for their employer, although they will remain employed by them. Furloughed workers will be paid the lower of 80% of their salary or £2,500, even if, based on their usual working hours, this would be below the NMW. Employers can top up these payments voluntarily.
The Government is also supporting people on low incomes who need to rely on the welfare system through a significant package of temporary measures. These include a £20 per week increase to the Universal Credit standard allowance and Working Tax Credit basic element, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants. These changes will benefit new and existing claimants. Anyone can check their eligibility and apply for Universal Credit by visiting https://www.gov.uk/universal-credit.
Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to include agricultural businesses in the support packages introduced by the Government.
Answered by Steve Barclay - Secretary of State for Environment, Food and Rural Affairs
The Government has announced unprecedented support for business and workers to protect them against the current economic emergency including an initial £330 billion of guarantees – equivalent to 15% of UK GDP.
On 6 May the Government announced a new fund which will enable eligible dairy farmers in England to access up to £10,000 each to help them overcome the impact of the coronavirus outbreak. This will cover 70% of their lost income during April and May to ensure they can continue to operate and sustain production capacity without impacts on animal welfare.
Businesses in the agricultural sector may benefit from the range of support measures made available, which includes:
The Business Support website provides further information about how businesses can access the support that has been made available, who is eligible, when the schemes open and how to apply - https://www.businesssupport.gov.uk/coronavirus-business-support.
Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps his Department is taking to ensure that all new starters including people who were due to be on payroll after 19 March 2020 are eligible for the Coronavirus Job Retention Scheme.
Answered by Jesse Norman
On 15 April, the Government announced it would extend the cut-off date for the CJRS to 19 March, to include employees whose payroll information was notified to HMRC by 19 March. Processing claims for the Coronavirus Job Retention Scheme in cases where HMRC did not have RTI data by 19 March would require much greater manual handling by HMRC, which would significantly slow down the system while risking substantial levels of fraud. It would also require greater resource for HMRC when they are already under significant pressure to deliver the system designed. Those not eligible for the scheme may be able to access the other support Government is providing, including a package of temporary welfare measures and up to three months’ mortgage payment holidays for those struggling with their mortgage payments.
Asked by: Bell Ribeiro-Addy (Labour - Streatham)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to provide assistance with (a) business rates, (b) VAT relief and (c) PAYE relief to independent motoring garages that (i) must temporarily close and (ii) have fewer customers as a result of self-isolation following the covid-19 outbreak.
Answered by Jesse Norman
The Government has announced an unprecedented package of support for businesses and individuals affected by Covid-19, and remains committed to doing whatever it takes to support the economy as necessary.
At the Budget it announced that businesses in the retail, hospitality and leisure sectors with a rateable value of less than £51,000 would pay no business rates this year. On 17 March the Government went further, and extended the business rates holiday so that all eligible businesses in retail, hospitality or leisure will pay no business rates for 12 months, irrespective of rateable value. Those eligible businesses will also have access to additional cash grants of up to £25,000. The smallest businesses, those eligible for Small Business Rate Relief, will receive a cash grant of £10,000.
Since then, the Government has announced that UK VAT registered businesses can defer VAT payments due with their VAT returns between now and the end of June. No UK VAT registered business will have to make a VAT payment alongside their VAT return to HMRC in that period. These businesses will have until the end of the financial year to repay.
Under the Coronavirus Job Retention Scheme, employers can put workers on temporary leave and the Government will pay them cash grants of 80% of their wages up to a cap of £2,500 per month, providing they keep the worker employed. They will receive the grant from HMRC, and the scheme will be backdated to 1 March 2020.
For Income Tax Self-Assessment, payments due on 31 July 2020 will be deferred until 31 January 2021.
HMRC have also scaled up their Time to Pay service by setting up a new Covid-19 Helpline with more staff to support it. Time to Pay is available to all taxpayers in temporary financial distress and with outstanding tax liabilities. Taxpayers can contact the dedicated Covid-19 helpline to get practical help and advice on 0800 0159 559.
The Chancellor will continue to review and make further announcements as events unfold if required.