Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps he is taking to ensure that employees on the Self-Employment Income Support Scheme are paid the national minimum wage.

The Self-Employment Income Support Scheme (SEISS) is available to self-employed individuals who have been affected by reduced demand or have been unable to trade due to COVID-19, which they believe will lead to a significant reduction in their trading profits. Those receiving the SEISS cannot receive the national minimum wage as minimum wages do not apply to the self-employed.

The SEISS has provided and will continue to provide substantial support to those self-employed people who meet the eligibility criteria. The first SEISS grant supported 2.7 million individuals with claims totalling £7.8 billion. A further £5.9 billion has been claimed through the second SEISS grant.

The third SEISS grant will cover the three-month period from November 2020 until January 2021. This will be a taxable grant calculated at 80 per cent of three months’ average monthly trading profits, paid out in a single instalment and capped at £7,500 in total. Combined with up to £14,070 worth of support for each individual from the first and second grants, it makes the SEISS one of the most generous schemes for the self-employed in the world.

Moreover, the SEISS continues to be just one element of a substantial package of support for the self-employed. The Universal Credit standard allowance has been temporarily increased for 2020-21 and the Minimum Income Floor relaxed for the duration of the crisis, so that where self-employed claimants' earnings have fallen significantly, their Universal Credit award will have increased to reflect their lower earnings. In addition to this, the self-employed may also have access to other elements of the package, including Bounce Back loans, tax deferrals, rental support, mortgage holidays, self-isolation support payments and other business support grants.