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Vince asks Perteghella about the reasons given by the Government at the time for excluding people from financial support during the pandemic.
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Young highlights a University of Bristol report stating that women in their 40s with dependent children were disproportionately represented among those excluded, raising concerns about child poverty, mental ill health, and the compounding effects of the gender pay gap. She agrees with Perteghella on the need for research into these longer-term impacts.
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Turmaine, who worked in health and social care during the pandemic, confirms that some of the excluded self-employed people are still suffering today. He agrees with Perteghella about the incompetence of the previous Government's management process.
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Witherden thanks Perteghella for securing this debate, highlighting its importance in addressing those excluded from financial support during the pandemic. He acknowledges her as a strong voice for these individuals.
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The right hon. Member for Tatton agreed that hardship was ongoing but argued that lockdown policies were unfair, arbitrary, and should never have been imposed due to lack of evidence. She cited the example of 3.8 million UK taxpayers excluded from financial support despite others receiving payments. McVey highlighted the £400 billion spent on the pandemic response leading to increased taxes and hardship for future generations.
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The Member for Dewsbury and Batley questioned whether more lives would have been lost without lockdown, expressing a differing view from Esther McVey on the necessity of lockdown measures.
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The hon. Member for Truro and Falmouth shared stories of constituents affected by lack of financial support during the pandemic, including a journalist and table tennis coach who lost her income without any government assistance due to being deemed a fraud risk because her earned income was less than her combined state and work pensions.
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The hon. Member raises issues with rigid criteria in the self-employed income support scheme, noting that it excluded recently self-employed individuals and women who temporarily paused their business activities for maternity leave or caring responsibilities.
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The hon. Member emphasises the abrupt end to support measures after the pandemic, suggesting that future crisis relief should taper off rather than ending abruptly.
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The hon. Member underscores the emotional and financial devastation faced by excluded individuals during the pandemic and calls for more flexible emergency support schemes to meet diverse working patterns in future crises.
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The hon. Member highlights the existence of a shadow group who did not fit into neat categories such as new starters, PAYE freelancers, and many directors of limited companies during the pandemic.
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In the early days of the pandemic, individuals and small businesses in constituencies found themselves excluded from support. They were told their circumstances did not qualify for support such as new businesses, newly self-employed, freelancers, those on parental leave, company directors of small businesses who received income from dividends and a salary. The impact was that youth unemployment spiked during the pandemic, with many young people facing limited job opportunities due to high turnover and insecure nature of their workplaces. Many found themselves in desperate need to pay bills and feed kids while surviving through any means possible.
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The pandemic was an unprecedented crisis requiring rapid intervention, but the Government's support system did not work for nearly 3.8 million freelancers and self-employed workers due to rigid eligibility criteria, outdated data or the distinction drawn between modern forms of work. The scale of fraud committed against the Government support schemes led to a loss of £10.9 billion of taxpayer money with only £1.8 billion recovered so far. Better design was possible but the Government chose not to prioritise proper safeguards against abuse.
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Expressed concern over the closure of local businesses due to lack of support during the pandemic, cited a constituent who lost their takeaway business and faced financial hardship when trying to move on. Emphasised the need for support, acknowledgment of loss suffered by people affected, and learning from experiences.
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Thanked the lead MP for securing the debate, highlighted the vital role played by small businesses and self-employed individuals during the pandemic. Criticised the previous government's lack of support, emphasised learning from past mistakes and ensuring better preparedness in future.
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The hon. Member for North West Norfolk congratulated the initiator on securing the debate and recognised the challenges faced by constituents due to lockdowns, supporting the actions taken by the Government during the pandemic, including the furlough scheme which protected 11 million jobs at a cost of £70 billion, the self-employment income support scheme providing nearly £30 billion to almost 3 million individuals, and various loan schemes approving nearly £80 billion in loans. However, he acknowledged that some groups missed out on full financial support due to eligibility issues.
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The Chief Secretary to the Treasury thanked Members for their contributions and emphasised the need to learn from the pandemic's economic impacts, acknowledging the challenges faced by those excluded from relief schemes. He highlighted the importance of supporting businesses and individuals during crises, noting the implementation of measures like the coronavirus job retention scheme and self-employment income support scheme.
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Calls for recognition, redress, accountability, and change following the lessons learned from the pandemic. Stresses that fair treatment should be given to those who paid into support schemes but were left behind during the crisis.