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Support for Self-employed and Freelance Workers
17 September 2020
Lead MP
Caroline Lucas
Debate Type
General Debate
Tags
Employment
Other Contributors: 30
At a Glance
Caroline Lucas raised concerns about support for self-employed and freelance workers in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The job retention and self-employment income support schemes have provided a lifeline but many are ineligible, leading to financial ruin for many people. The debate aims to highlight the failure of the scheme in addressing the needs of the self-employed and freelancers, especially those who combine self-employment with PAYE work or started their business recently. It calls for an extension and backdating of support, acknowledgment of a problem by the Government, and practical measures like looking at bank statements to ensure legitimacy.
Jim Shannon
DUP
Strangford
Intervened to highlight music teachers as another forgotten group without any income.
Asked how HMRC can distinguish between different sources of dividend income when assessing eligibility for support, questioning the feasibility of tracing the source of dividends.
Rachael Maskell
Lab Co-op
York Central
Challenged the Treasury Minister's explanation that a lack of staff at HMRC is preventing access to Companies House records, describing it as a disgrace.
Ruth Cadbury
Lab
Brentford and Isleworth
Suggested that issues could be resolved one-to-one in the meeting requested by Caroline Lucas.
Nigel Evans
Con
Rhuddlan
Echoed points made by Caroline Lucas regarding the exclusion of self-employed individuals from Government support. Highlighted issues such as unpredictable income, varied employment structures, and difficulties accessing support for newly self-employed or those changing jobs during the crisis. Emphasised the importance of support for sectors like weddings, theatre, live events, and conferences.
Richard Fuller
Con
North Bedfordshire
Stressed the need to reconcile discrepancies between Government claims that 95% of self-employed individuals are covered and statistics showing millions are excluded. Discussed issues such as lumpy income, varied employment structures, complex criteria for support, and difficulties faced by newly self-employed individuals or those recently changing jobs.
Andrew Slaughter
Lab
Hammersmith and Chiswick
Called attention to the impact on creative industries such as TV, theatre, arts, events, exhibitions, wedding planning, and the Bar. Highlighted that many of those excluded were following professional advice when setting up their businesses and are entrepreneurial risk-takers often at the beginning of their careers.
Sally-Ann Hart
Lab
Hastings and Rye
The Government provided businesses with an extensive package of economic measures. However, freelancers in Hastings and Rye, who are crucial to the local economy, have not received enough support. These individuals contribute significantly to the community's fabric by working in partnership with theatres, commercial organisations, charitable trusts, schools, and local groups.
Martin Vickers
Con
Brigg and Immingham
Like my hon. Friend from Hastings and Rye, I represent a coastal community where freelancers have been severely impacted by the pandemic. Government regulations have prevented many of them from working, and they deserve additional support.
Claire Hanna
SDLP
Belfast South and Mid Down
In Northern Ireland, about 15% of people are self-employed, and the Government's scheme has been beneficial for many. However, it did not address the needs of those who are newly self-employed without a tax return from last year, limited directors paying themselves with dividends, PAYE freelancers, part-time freelancers, or those just over the threshold. The creative sector in Northern Ireland, which represents 5% of our economy and is growing fast, requires targeted support to survive.
Jim Shannon
DUP
Strangford
The hon. Lady from Belfast South and Mid Down passionately advocated for the arts community, including historic venues like Bangor drama club, which closed after 90 years due to the pandemic. We must ensure that such venues can reopen as community hubs.
Fiona Bruce
Con
Congleton
Supported freelancers and self-employed individuals in her constituency who have fallen through the cracks of government support packages. Highlighted three specific cases: Andy Warren, Dave Boutcher, and Lauren Scott, emphasising how they were unfairly treated despite their significant contributions to society.
Tommy Sheppard
SNP
Edinburgh East
Discussed the unfair treatment of Gary Thomson, Sarah Lachhab, and Georgina Allison. Emphasised that HMRC's refusal to provide support is unacceptable given the scale of government spending on support schemes.
Greg Smith
Con
Mid Buckinghamshire
Acknowledged the Government’s generous support scheme for self-employed individuals but pointed out numerous cases where people have fallen through the gaps. Called for ways to stimulate the self-employed sector in the upcoming Budget, including recognising the risks and costs they incur.
Kerry McCarthy
Lab
Bristol East
I have received numerous cases of individuals struggling due to the exclusion from financial support schemes. New mothers, limited company directors with young families, and freelancers are all facing significant difficulties without adequate government assistance. Despite repeated efforts to lobby for these groups, there has been little progress. The Chancellor needs to acknowledge this plight and provide necessary support.
I represent Warrington South with a high level of self-employed individuals, over 20% of the constituency work independently. While appreciating the Government's scheme costing £7.7 billion for about 2.7 million people, there are still many who fall through the cracks like Jo and John Martin from the entertainment sector due to their structure as limited companies. I urge the Chancellor to focus on supporting start-ups and freelancers in the upcoming Budget.
While acknowledging the unprecedented crisis, we need solutions now. The Scottish Parliament needs financial support for its constituents. Seasonal workers, freelancers, and recent self-employed individuals have been left behind. I ask the Government to meet us, continue the self-employed scheme beyond October, expand it retroactively, look into gender pay aspects of the schemes which have let down many women, ensure safety measures continue, and consider transferring financial powers to Scotland if they prove ineffective.
Anthony Browne
Con
South Cambridgeshire
Congratulates Caroline Lucas on securing the debate. Acknowledges the importance of supporting entrepreneurs and strivers during the pandemic. Highlights the £280 billion support provided by the government, including various forms of assistance for self-employed individuals. Emphasises that while some have been excluded from direct financial aid like SEIS or furlough scheme, many received other forms of tax deferral or grants. Stresses the complexity of setting up an automated system to accommodate all self-employed individuals' unique circumstances.
Tracy Brabin
Lab
Batley and Spen
Thanked Caroline Lucas for securing the debate. Criticised Anthony Browne's statement that it is 'just too difficult' to support the excluded, arguing that with collaboration, solutions can be found. Described a week where many industries were ordered to close while awaiting financial support from the government. Shared examples of constituents who lost significant income and faced severe hardships due to being excluded from initial support schemes. Urged for extension of furlough scheme for last-to-return sectors.
Southgate and Wood Green
Critiqued the government's failure in providing financial assistance to a significant number of self-employed individuals, termed as 'the excluded 3 million.' Provided examples of constituents who were left without support despite their eligibility criteria being just outside the scope of initial schemes. Emphasised the need for remedying disparity and providing necessary financial aid to ensure economic recovery post-pandemic.
Ruth Cadbury
Lab
Brentford and Isleworth
Freelancers and self-employed workers fall outside various covid support schemes, leading many to be excluded despite their significant contribution. A number of solutions have been proposed including the use of dividend certificates for those in limited companies, adjusting SEISS calculations for maternity leave, and using UTR evidence for rough income calculation.
Ben Lake
PC
Ceredigion Preseli
Emphasises the need for targeted support for self-employed workers especially in sectors like creative arts, tourism, hospitality, and events. Many were excluded from SEISS due to strict criteria such as a 50% income requirement or timing issues, leading to severe financial distress.
Highlights specific cases of ineligible support recipients like Steve, a wedding videographer newly self-employed, and Lesley, a photographer director earning dividends. Urges the government to extend SEIS availability and eligibility criteria to help industries in recovery.
Richard Thomson
SNP
Paisley and Renfrewshire North
The self-employment income support scheme must be extended in time, scope, and retrospectively. Over 3 million people across the UK have been excluded from this support, including several hundred thousand people in Scotland. Richard Thomson commended ForgottenUK, ExcludedUK, and the Excluded UK APPG for highlighting these exclusions. He mentioned freelancers, directors of small businesses remunerated by dividends, newly self-employed individuals, and those who missed out entirely on any support through the job retention scheme due to a hard cut-off date of 19 March. The Scottish Government used their own resources to help the newly self-employed (£100 million) and those in the events sector (£10 million). Richard Thomson emphasised that the real harm is not just immediate hardship but the long-term effect on economic recovery, as small businesses are crucial for driving the economy forward.
Wes Streeting
Lab
Ilford North
The Chancellor's plans to cut off support for self-employed workers from October are criticised. The speaker emphasises that the self-employed are not looking for permanent handouts but need support to weather the crisis and recover. He highlights the despair felt by those left out of initial job retention schemes and the lack of flexibility shown by the Government in addressing exclusions. Examples of affected individuals, such as a face painter and balloon artist, and contributions from various MPs across parties are mentioned. The speaker also points out that around 15% of the workforce were self-employed before the crisis but this figure has fallen sharply during it. He calls for the Government to listen to concerns and suggests solutions put forward by experts like the Federation of Small Businesses.
Rachel Hopkins
Lab
Luton South and South Bedfordshire
Highlights that many excluded from support schemes are in creative industries, which contribute significantly to the UK economy. Emphasises the impact on individuals' livelihoods as well as broader economic recovery.
Meg Hillier
Lab Co-op
Hackney South and Shoreditch
Points out that those on repeated short-term contracts do not fit into any specific category but have tax records. Suggests with imagination, people with a long-standing tax record could be helped.
Munira Wilson
Lib Dem
Twickenham
Agrees that freelancers in precarious sectors like creative industries are facing severe difficulties due to the total drying up of casual work. Mentions specific areas such as hospitality, ushering, and box office work where jobs have vanished, leaving individuals desperate and running out of savings.
Kemi Badenoch
Con
North West Essex
The Government have provided £7.6 billion to over 2.5 million self-employed individuals through the Self-Employment Income Support Scheme. They have also introduced a second grant and a cultural recovery fund of £1.57 billion for those in the arts sector. The eligibility criteria require that at least half an individual's income must come from being self-employed, with profits no more than £50,000 and equal to or greater than non-trading income. Despite these efforts, there are concerns about those who receive dividends and newly self-employed individuals not being covered.
Caroline Lucas
Green
Brighton Pavilion
The hon. Member expresses dissatisfaction with the Government's handling of support for self-employed individuals during the pandemic, criticising the Minister for refusing to meet representatives from excluded groups despite repeated requests. She argues that the Minister’s rhetoric about supporting entrepreneurs and innovators is not matched by action. Caroline Lucas also acknowledges the positive aspects of government assistance received by some but urges immediate attention to those left behind.
Government Response
The Government have provided £7.6 billion to over 2.5 million self-employed individuals through the Self-Employment Income Support Scheme. They have also introduced a second grant and a cultural recovery fund of £1.57 billion for those in the arts sector. The eligibility criteria require that at least half an individual's income must come from being self-employed, with profits no more than £50,000 and equal to or greater than non-trading income. Despite these efforts, there are concerns about those who receive dividends and newly self-employed individuals not being covered.
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