Chancellor to announce support for self-employed

The TUC has called on the government to provide urgent aid to Britain’s five million self-employed workers. The government has been accused of dithering, but Chancellor Rishi Sunak is now expected to make an announcement later today.

A report from the union body published on 23 March warns the current measures in place for self-employed workers are “inadequate” with many facing severe hardship over the coming months.

Hundreds of thousands of self-employed workers have tried to apply for Universal Credit but have experienced huge problems when trying to accessing the system, leaving them with no income.

The TUC report calls on ministers to extend the wage subsidy scheme announced on 20 March to the self-employed. The TUC said this could be done through providing the self-employed with a guarantee of at least 80 per cent of their incomes based on their last three years of self-assessment tax returns.

It says this could be paid directly to the self-employed as a tax rebate. The call was repeated by a succession of unions representing gig workers, musicians, actors, journalists and others in insecure employment.

The TUC report highlights the example of Norway where the government is providing grants covering 80 per cent of self-employed workers’ earnings. In Belgium an income replacement scheme has been set up for the self-employed.

TUC general secretary Frances O’Grady said: “The government took a big and important step last week with wage subsidies for employed workers. But millions of self-employed workers – from the creative industries to construction – are still facing a collapse in their earnings.

“Many won’t be able to meet their basic living costs without further support. Ministers must urgently beef up support for the self-employed.”

She added: “Large-scale wage subsidies are the best way to boost household finances, keep businesses running and help our economy bounce back after this crisis. All workers – both employed and self-employed – should have their wages protected.”

On 23 March, the prime minister announced people may only leave home to exercise once a day, should travel to and from work only when it is “absolutely necessary”, and should shop for just essential items and to fulfil any medical or care needs.

The Chancellor is expected to make an announcement on support for the UK’s five million self-employed workers later today.