Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will make an assessment of the potential merits of removing the £50,000 cap for the Self-Employment Income Support Scheme to allow people with profits in excess of that cap to access financial support.
Answered by Jesse Norman
The Self-Employment Income Support Scheme (SEISS) helps those adversely affected by COVID-19. Individuals can at present claim a taxable grant under the SEISS worth 80 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £7,500 in total.
The extension of the SEISS announced by the Chancellor of the Exchequer on 29 May 2020 means that eligible individuals whose businesses are adversely affected by COVID-19 will be able to claim a second and final grant when the scheme reopens for applications in August. This will be a taxable grant worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.
The SEISS is designed to target help at those who most need it. Those who had more than £50,000 from trading profits in 2018-19 had an average total income of more than £200,000.
Those with average trading profits above £50,000 may still be eligible for other elements of the unprecedented financial support package made available by the Government. These measures include Bounce Back Loans, tax deferrals, rental support, increased levels of Universal Credit, mortgage holidays, and other business support grants.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps the Government is taking to support freelancers and people on short-term PAYE contracts who are not entitled to support under the Coronavirus Job Retention Scheme or Self-Employment Income Support Scheme.
Answered by Jesse Norman
The Government has prioritised helping the greatest number of people as quickly as possible, and the CJRS and SEISS have provided support to more than 11 million people across the country.
Those who are not eligible for the CJRS and SEISS may have access to other support that the Government is providing, including a package of temporary welfare measures, £3.2bn in funding for local authorities to support the most vulnerable people in society, mortgage payment holidays, and a nearly £1bn increase in support for renters through increases to the Local Housing Allowance rates for Universal Credit and Housing Benefit claimants.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what contingency plans his Department have made to support the economy in the event that a second wave of covid-19 requires a reintroduction of lockdown restrictions.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
In March 2020 the Government put in place strict social distancing measures to slow the spread of the Coronavirus so that the NHS would not be overwhelmed. Alongside this, the Government introduced an unprecedented package of support for businesses and individuals, including the CJRS which has helped 1.1 million employers across the UK furlough 9.4 million jobs.
The Government has set out a phased, cautious approach to reopening our economy, so that we do not risk a second peak of the virus. The Government has produced COVID-19 secure practical guidelines to support businesses to reopen and for workers to feel confident, safe and empowered to return to work. Public Health England, the Joint Biosecurity Centre and NHS Test and Trace constantly monitor levels of infection across the country, and will work with local authorities to implement additional measures if needed.
The Chancellor has announced further support for those sectors hardest hit, with a £1.57 billion package for the arts, and a cut in VAT to 5% for accommodation, attractions and the hospitality sector, and on 8th July set out a package of measures to support jobs across the UK, including a Job Retention Bonus to help firms keep furloughed workers and a new £2 billion Kickstart Scheme to create hundreds of thousands of new, fully subsidised jobs for young people.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to tackle potential increases in unemployment once the Government’s furlough scheme ends.
Answered by Jesse Norman
The Government has a broad set of policies in place to support businesses and individuals during COVID-19. The Government has designed the next stage of the Coronavirus Job Retention Scheme (CJRS) by balancing the need to protect jobs against the need to restart the economy as the Covid-19 backdrop improves. The CJRS scheme must be temporary and the Government must ensure people can get back to work when it is safe to do so and get the UK economy up and running again.
The Government has recently announced its Plan for Jobs. In it, in order to protect workers and encourage employers to minimise redundancies, the Government introduced a Jobs Retention Bonus. This will ensure that UK employers will receive a one-off bonus of £1,000 for each furloughed employee who is still employed as of 31 January 2021.
The Government has also announced unprecedented support to help unemployed people in Great Britain find a job. The Government is providing £1.2bn to significantly expand and enhance work search support, including doubling the number of work coaches, additional investment into the Flexible Support Fund to provide direct support at a local level, and using externally contracted provision to expand support even further.
Recognising that young people are particularly at risk, the Government has also launched a new £2bn Kickstart Scheme, creating hundreds of thousands of new, fully subsidised jobs for young people across Great Britain, as well as a guaranteed foundation of support to all 18-24 year olds on Universal Credit in the Intensive Worksearch group, through its new youth offer.
In England, the Government will also support people to build the skills they need to get into work, including by providing funding to triple the number of traineeships and sector-based work academy placements, new payments to employers to hire apprentices, and new funding to expand the National Career Service.
In addition to what is outlined in the Plan for Jobs, those who struggle to find work for a longer period will also benefit from a new, large-scale employment support offer. Further details will be announced shortly.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, if he will create a dedicated covid-19 hardship fund for sole traders and other self-employed people ineligible for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
Self-employed individuals, including members of partnerships, are eligible for the Self Employment Income Support Scheme (SEISS) if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.
Individuals who are not eligible for the SEISS may benefit from other elements of the unprecedented financial support provided by the Government. This package includes Bounce Back loans, tax deferrals, rental support,?mortgage holidays, and other business support grants. On 8 July, the Government introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what steps he is taking to support people who are newly self-employed who started a business after April 2019 and do not qualify for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
Self-employed individuals, including members of partnerships, are eligible for the Self Employment Income Support Scheme (SEISS) if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.
Individuals who are not eligible for the SEISS may benefit from other elements of the unprecedented financial support provided by the Government. This package includes Bounce Back loans, tax deferrals, rental support,?mortgage holidays, and other business support grants. On 8 July, the Government introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what plans he has to support limited company directors who take a large part of their income in dividends and do not qualify for the Self-Employment Income Support Scheme.
Answered by Jesse Norman
Self-employed individuals, including members of partnerships, are eligible for the Self Employment Income Support Scheme (SEISS) if they have submitted their Income Tax Self Assessment tax return for the tax year 2018-19, continued to trade, and have been adversely affected by COVID-19. To qualify, their self-employed trading profits must be no more than £50,000 and at least equal to their non-trading income.
Individuals who are not eligible for the SEISS may benefit from other elements of the unprecedented financial support provided by the Government. This package includes Bounce Back loans, tax deferrals, rental support,?mortgage holidays, and other business support grants. On 8 July, the Government introduced the new Plan for Jobs which will make available up to £30 billion to assist in creating, supporting and protecting jobs.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of people in financial difficulty who are not eligible for any of the Government's support schemes during the covid-19 outbreak.
Answered by Jesse Norman
The Government has provided a comprehensive economic response that is one of the most generous of its kind in the world, taking unprecedented steps to support families, businesses and the most vulnerable. As well as the Coronavirus Job Retention Scheme (CJRS) and Self-Employment Income Support Scheme (SEISS), this package includes Government-backed loans and grants to businesses, tax deferrals, rental support and mortgage and consumer credit holidays.
This package also includes extra funding for the welfare safety net to help those through this outbreak who are unable to access other forms of support. The temporary welfare measures include increases to Universal Credit and Local Housing Allowance, a relaxation of the Universal Credit minimum income floor, and making Statutory Sick Pay easier to access.
Now, the Government’s new Plan for Jobs will support, protect and create jobs. This plan will make available up to £30 billion to help kickstart the nation’s economic recovery ahead of a fuller package of medium-term recovery measures in the forthcoming Autumn Budget and Spending Review.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what his Department's role was in Exercise Cygnus in October 2016.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury participated in Exercise Cygnus in 2016. The aim of Exercise Cygnus was to assess the UK’s preparedness and response to a pandemic influenza that was close to the UK’s worst-case planning scenarios. The Government accepted all the recommendations from Exercise Cygnus. The lessons identified from the exercise have been incorporated into an on-going programme of work on the Government’s pandemic flu response plans.
Asked by: Mark Hendrick (Labour (Co-op) - Preston)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what learning were shared with his Department after Exercise Cygnus in October 2016.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
HM Treasury participated in Exercise Cygnus in 2016. The aim of Exercise Cygnus was to assess the UK’s preparedness and response to a pandemic influenza that was close to the UK’s worst-case planning scenarios. The Government accepted all the recommendations from Exercise Cygnus. The lessons identified from the exercise have been incorporated into an on-going programme of work on the Government’s pandemic flu response plans.