Covid-19: DWP Update

Jim Shannon Excerpts

Monday 4th May 2020 Commons Chamber

[Mr Speaker]

We now go over to a virtual Jim Shannon.

[Jim Shannon (Strangford) (DUP) [V]]

Thank you, Mr Speaker; it is always a pleasure to ask a question. I thank the Secretary of State for her energy and commitment and her responses to the questions so far. I also thank the DWP staff across the United Kingdom of Great Britain and Northern Ireland, and in particular those in Strangford, who have done a whole lot to help people.

The Secretary of State referred to self-employed directors. Hospitality, retail, fishing, construction and bus companies invest their profit back into their companies, as well as self-employed directors. Many of these are family businesses creating many jobs in the high street. Exactly what can be done to help the self-employed directors in shops in Newtownards, Comber, Ballynahinch, Saintfield and villages across the constituency of Strangford?

[Dr Coffey]

It is good to see my hon. Friend doing well over in Northern Ireland. I want to stress again that the scheme established by the Treasury will cover about 95% of people who receive the majority of their income from self-employment. I have tried to share with the House some of the approach taken in order to support people who pay themselves only, in effect, by dividends. As I pointed out earlier, a small percentage of people get the majority of their income in that way, on which, in effect, they pay only 7.5% tax. I am conscious that it cannot be decided whether dividends are solely for substitute pay or whether they are a return on investment, but I encourage those people to consider other forms of support that may be available at this time.