Small Businesses: Coronavirus

(asked on 15th October 2020) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what support is available for small businesses owners instructed to self-isolate on numerous and separate occasions to prevent the spread of covid-19.


Answered by
Kemi Badenoch Portrait
Kemi Badenoch
President of the Board of Trade
This question was answered on 23rd October 2020

The Government recognises that the necessary restrictions to protect public health have been disruptive for small business owners. Small business owners may be eligible for new style Employment and Support Allowance (ESA) if they are incapable of work, required to self-isolate according to Government guidance and have made sufficient national insurance contributions. We have made it easier for people to claim this support by removing the seven-day waiting period, meaning people can get support from day one.

Small business owners are also able to claim back from the Government the costs of up to two weeks of Covid-19 Statutory Sick Pay per employee, if their business has fewer than 250 employees. This rebate will pay for any Covid-19 related SSP, including if the owner is themself employed by the company and has to self-isolate.

Small business owners who are self-employed have also benefitted from the Self-Employment Income Support Scheme (SEISS) Grant Extension. Through this scheme, self-employed individuals will be able to claim two grants, the first of which will cover the start of November until the end of January, and the second of which will cover the start of February until the end of April. On 22 October, the Chancellor announced that we would be doubling the value of the grant for November to January from 20% to 40% of three-month trading profits. This will mean the maximum grant will increase from £1,875 to £3,750.

These measures are in addition to the Government’s unprecedented package of support available for individuals and businesses, worth over £190bn. This includes measures to support businesses who are legally required to close, such as the expanded Jobs Support Scheme and a more generous Local Restrictions Support Grant.

As we head into the Winter, the Government is continuing to collect evidence on the impact of the pandemic. This will of course inform our efforts to support small business owners going forward.

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