Oral Answers to Questions

Toby Perkins Excerpts

Tuesday 22nd June 2021 Commons Chamber

[Rishi Sunak]

My hon. Friend makes an excellent point. I am proud that she is working with Newbury College in her constituency. She is right that SMEs are the backbone of west Berkshire and other local communities across our economy. On her particular point, I am pleased to tell her that, from August of this year, employers who pay the levy but have unspent levy funds will be able to use a new bulk transfer service to send that money to SMEs, combined with a new SME match function so that they can find the SMEs that are most appropriate to their business, supply chain or local area. I hope that is helpful to her and Newbury College. The plan is for the Department for Education to have that up and running in August.

[Mr Toby Perkins (Chesterfield) (Lab)]

What assessment he has made of recent trends in personal credit availability for self-employed people.

[The Economic Secretary to the Treasury (John Glen)]

The Government have put together an unprecedented package of support for the self-employed, including the self-employed income support scheme, the temporary £20 per week increase in the universal credit standard allowance, and temporarily suspending the minimum income floor. The self-employed are also able to access the restart grant, the recovery loan scheme and business rates relief.

[Mr Perkins]

I am grateful to the Minister for that answer. However, my experience with some self-employed people in my constituency is that, having been self-employed for several years and accepted support from the self-employed scheme, if they then try to get credit, they are told that because they were on that scheme they are no longer eligible for credit, even though there is no reason to suspect that they will not be able to carry on being a guitar teacher, or whatever it is that they do, after the crisis is over. What can he say to the banks to ensure that they take a sensible approach to these people, who have perfectly sustainable businesses that have been suspended temporarily because of the Government’s restrictions but are just as good a credit risk as they were three or four years ago?

[John Glen]

The hon. Gentleman makes a very sensible and worthwhile point on this matter. We are looking closely at the Financial Conduct Authority’s “Financial Lives” survey, which indicates the degree of liquidity that exists. I work closely with the lenders on affordability assessments for the self-employed. I am happy to commit to continue to keep this matter under review and to receive further representations from him.