Commons Sense

House of Commons · Ministers' Questions

Ineligibility for Covid-19 Financial Support

Tuesday 1 December 2020 · 8 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 8 Not answered 0

Key points

  • Minister received representations from organizations about individuals ineligible for financial support during the pandemic.
  • Financial Secretary plans to meet with groups such as ExcludedUK to discuss the issue.
  • Government provided over 280 billion in various schemes to protect jobs, livelihoods, businesses, and public services.

Topics (select to filter)

Questions & Answers

Q1 Rachel Hopkins Lab Luton South and South Bedfordshire
Economy Benefits & Welfare
Context

Organisations representing people ineligible for covid-19 financial support have highlighted the issue.

Question

What representations has he received from organisations about individuals who are ineligible for financial support during the pandemic? Does he plan to make a statement on this issue?

Answer from Rishi Sunak

The Government's economic priority has been to protect jobs, livelihoods, businesses and public services with over £280 billion spent. The Financial Secretary will meet groups such as ExcludedUK.

Partly answered

Not addressed: Did not directly address the commitment to make a statement on ineligible individuals for support schemes.

How: Under Review

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Q2 Jessica Morden Lab Newport East
Employment Benefits & Welfare
Context

Federation of Small Businesses has highlighted individuals who have not benefited from these schemes.

Question

Does he think it is right that those ineligible for job retention or self-employed income support will have been without help for a year? Why haven't Ministers met groups like ExcludedUK?

Answer from Rishi Sunak

My team has met representatives of the self-employed, but I do not agree that people have been excluded. The Government has provided £280 billion in various schemes.

Partly answered

Not addressed: Did not directly address why funding for those left out was not introduced.

How: Committed To Support

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Q3 Chris Elmore Lab Bridgend
Business Compliance Benefits & Welfare
Context

Individuals and groups have reported being excluded from Government schemes.

Question

Why does he not accept that the support schemes missed people? Will he introduce additional funding to help those who were excluded?

Answer from Rishi Sunak

I do not say every person can access all schemes, but across £280 billion of support designed to protect businesses, employed, self-employed and public services.

Partly answered

Not addressed: Did not directly address whether he recognizes mistakes or commits to additional funding for excluded individuals.

How: Committed To Support

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Q4 Paul Blomfield Lab
Business & Trade
Context

New businesses and their staff face difficulties accessing the job retention scheme.

Question

Why have people been excluded from support schemes like the hospitality sector? Will he act to close loopholes and provide necessary support?

Answer from Rishi Sunak

Support has been provided through business rates holiday, cash grants, VAT discount, eat out to help out and funding to local authorities.

Partly answered

Not addressed: Did not commit to closing loopholes or directly address the specific ask of providing support to those who fall through gaps.

How: Provided Significant Support

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Q5 Afzal Khan Lab Manchester Rusholme
Business & Trade
Context

A couple with a small business has seen their income slashed and is excluded from all Government support.

Question

Why have David and Alice, along with many others like them, been excluded from all Government support? What specific barriers prevent support?

Answer from Rishi Sunak

Their small business has benefited from the bounce back loan programme, providing tens of billions of pounds to a million SMEs up to £50k.

Partly answered

Not addressed: Did not address barriers preventing support or commit to additional action for those excluded from schemes.

How: Support Provided

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Q6 Rachel Hopkins Lab Luton South and South Bedfordshire
Culture, Media & Sport
Context

Freelancers and limited companies in the music industry are excluded from financial support.

Question

Considering the £5 billion impact of the music sector, what barriers remain to getting support to musicians? Can he update on this?

Answer from Rishi Sunak

There is no barrier to support for anyone accessing any scheme; £1.5 billion culture recovery fund, further support for creative arts and film/TV production.

Partly answered

Not addressed: Did not directly address barriers remaining or commit to updating measures specifically for musicians.

How: No Barrier

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Q7 Alison Thewliss SNP
Economy Benefits & Welfare
Context

The question arises from a perceived oversight by the Chancellor in misleading media about interactions with representatives of excluded groups. These groups feel they were not adequately represented.

Question

I would never accuse the Chancellor of misleading the House, but he certainly seems to have misled “Good Morning Britain” when he told viewers that he had spoken to and had back and forth with representatives of excluded groups. Those groups are clear that he has not. Will he apologise for the oversight and make amends by meeting MPs and representatives of all groups that have been denied financial support?

Answer from Rishi Sunak

I know that my right hon. Friend the Financial Secretary to the Treasury is meeting with that particular group. In that interview, I was making a general point about the fact that I and my team had met with various representatives of those who are self-employed. It is something that we did right at the beginning of this crisis as we looked to design the self-employed scheme and we have continued to do so throughout.

Partly answered

Not addressed: Apologising for misleading media about meetings with excluded groups representatives

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Q8 Bridget Phillipson Lab Houghton and Sunderland South
Employment Benefits & Welfare
Context

The question stems from criticism of the government's failure to provide new support measures for those excluded from current schemes despite ongoing challenges nine months after their introduction.

Question

We all understand that it was hard back in March to get every detail right on Government support schemes, but nine months on, why does the Chancellor still have absolutely nothing new to say to those millions of people right across our country who have been shut out from support since the beginning?

Answer from Rishi Sunak

Perhaps the hon. Lady could let me know whether she thinks that it is right to target support on those who are majority self-employed. She refers to the millions of people, but, as I have explained from this Dispatch Box, 1.5 million of the 5 million people who file self-employed tax returns are not majority self-employed; they earn the majority of their income from things such as employment, which means that they can access, for example, the furlough scheme. That was a decision that was made because we are targeting support in a certain way and we do not know what individuals are doing. By the way, the principle of our decision was supported by every organisation that I spoke to as we designed the scheme. Indeed, they were all supportive of a much higher threshold—a less generous threshold—than the one that we ultimately used, which was a majority of 50%. They were all supportive of something higher—60%. Rest assured, Mr Speaker, that those who are in that category have median self-employment earnings of between £2,000 and £3,000; it is not the primary source of their income. At that level, all the various other things that we have done will be of some help to them.

Partly answered

Not addressed: Providing new support measures for those excluded from current schemes

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