Question to the HM Treasury:

To ask the Chancellor of the Exchequer, for what reason the value of the fifth Self Employment Scheme grant is set as a percentage of three months' profits; and what the evidential basis is for that policy.

The Government announced at Budget 2021 that the Self-Employment Income Support Scheme (SEISS) will continue until September, with a fourth and a final fifth grant.

The fifth and final SEISS grant, covering May to September, will include a turnover test, known as a ‘Financial Impact Declaration‘(FID) in order to ensure that the most generous support is targeted at those who need it the most. This will determine whether claimants receive a grant worth 80% of three months’ average trading profits, and capped at £7,500 or a grant worth 30% and capped at £2,850.

Previous SEISS grants provided support for a period that was subject to restrictive measures across the UK to tackle the virus. As restrictions continue to be lifted, it is right that the government begins to tailor the level of support provided.