Chancellor announces support for self-employed
By Rachel Lawler
The Chancellor has confirmed that the government will be offering self-employed workers similar protections as employed staff during the coronavirus outbreak.
Self-employed people facing financial difficulties as a result of the coronavirus outbreak will be able to claim 80% of their monthly earnings up to £2,500 a month.
Monthly earnings will be calculated using an average of profits over the last three financial years.
The support is initially scheduled to run for up to three months and will be available for workers to access no later than June.
The Chancellor estimated that around 95% of self-employed workers would benefit as a result.
The scheme will only be available to people who are already self employed and have a self-assessment tax return for 2019.
The update comes shortly after more than 9,000 childminders wrote to their MP asking for financial support during the crisis, using the Alliance’s campaign.
Childminder support
Childminders and other providers who meet the scheme's criteria will get a taxable grant (meaning it doesn't need to be paid back) worth 80% of their average profits from the tax years 2016-2019 for three months.
Childminders who are eligible for the scheme will be contacted by HMRC directly and invited to apply online.
You can find out more about the Self-employment Income Support Scheme .
Concern about timings
Neil Leitch, chief executive of the Alliance, said: “We welcome the vital financial support that today's announcement offers to self-employed childminders trying to stay afloat during the coronavirus outbreak, and are glad the the income threshold has been set at a far more reasonable level than earlier reports had suggested.
"That said, we are deeply concerned about the timings outlined today. Childminders have mortgages, rents, bills and other expenses to pay right now - how, then, can they be expected to wait until the start of June for any financial support, as the government has indicated? With many are already questioning whether or not they are able to stay open to key worker families and vulnerable children during this period, it is vital that they receive wage support as soon as possible.
"With the number of families taking up formal childcare already falling significantly, childminders are already seeing huge drops in income from parent fees. As such, the government must outline what interim support it is making available for childminders who are doing as it has asked and providing care for key worker families and vulnerable children during this difficult time - otherwise, it is asking them to choose between continuing to provide a vital service for families in need, and facing financial ruin."
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