Commons Sense

House of Commons · Ministers' Questions

Self-employed People: Covid-19 Support Schemes

Tuesday 7 December 2021 · 2 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 2 Not answered 0

Key points

  • Toby Perkins asked the Minister about assessments regarding mortgages and credit availability for self-employed individuals who used Government's covid-19 support schemes.
  • Perkins noted that in his constituency, business owners who used the Government's schemes are being told they cannot get a mortgage or other credit arrangements due to those schemes.
  • The Minister stated that the Government have worked with the Financial Conduct Authority and will continue to work with credit agencies to ensure payment holidays do not impact borrowers' credit ratings.

Topics (select to filter)

Questions & Answers

Q1 Toby Perkins Lab Chesterfield
Economy Employment
Context

In response to concerns about the impact of utilising government covid-19 support on future financial access, Toby Perkins asked for an assessment of mortgage and credit availability.

Question

What recent assessment has been made regarding mortgages and credit availability for self-employed individuals who used Government's covid-19 support schemes?

Answer from John Glen

Previous receipt of covid-19 support should not, in and of itself be a barrier to credit provided that the applicant meets the lender eligibility criteria. It remains important that lenders carry out checks to ensure that they do not lend to individuals in an unaffordable way.

Partly answered

Not addressed: The Minister did not provide specific assessments or data on mortgage and credit availability for self-employed individuals who used the schemes, nor did he address the issue of lenders penalizing applicants based on their use of government support.

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Q2 Toby Perkins Lab Chesterfield
Economy Business Compliance
Context

In his supplementary question, Toby Perkins highlighted specific cases of self-employed individuals being denied mortgages and credit due to their use of government support schemes. He requested the Minister to engage with high street banks to address this issue.

Question

The reality in my constituency is that business owners utilising Government's schemes are being told they cannot get a mortgage or other credit arrangements because of those schemes. Will the Minister work with banks to ensure businesses with sustainable track records do not face penalties for using these support measures?

Answer from John Glen

The Government have worked with the Financial Conduct Authority and will continue to work with credit agencies to ensure payment holidays do not impact borrowers' credit ratings. However, commercial decisions remain outside direct government involvement; however, I will keep working with banks, financial institutions, and regulators to review the situation.

Partly answered

Not addressed: The Minister did not commit to engaging specifically with high street banks regarding the denial of mortgages or credit to self-employed individuals due to their use of support schemes.

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