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Covid-19: Government Support
07 July 2021
Lead MP
Owen Thompson
Midlothian
SNP
Responding Minister
Jesse Norman
Tags
Crime & Law EnforcementNHSTaxationEmploymentBusiness & TradeBenefits & WelfareMental Health
Word Count: 9613
Other Contributors: 13
At a Glance
Owen Thompson raised concerns about covid-19: government support in Westminster Hall. A government minister responded.
Key Requests to Government:
The MP asks the government to explore solutions urgently, such as backdated parity of support, delayed repayments for CBILs and bounce back loans, and a student loan-style repayment scheme. He also requests that the minister coordinate a meeting between excluded groups and campaigners.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
The MP is concerned about the exclusion of millions from government support schemes during the pandemic. He mentions that over 800,000 people have been unable to access the coronavirus job retention scheme due to a real-time information cut-off date and disputes the Treasury's claim that amending the date will open eligibility for an additional 600,000 self-employed individuals. The MP also highlights issues with discretionary grant funds and the lack of support for supply chain businesses in the events sector. He notes that excluded groups have been turned to universal credit as a last resort but estimates about 60% cannot access it due to factors like partner employment or business expenses. Additionally, he raises concerns about a looming toxic debt crisis and its impact on key industries and mental health.
Erith and Thamesmead
The MP argued that the Government should address gaps in support for businesses and workers, particularly concerning self-isolation penalties and debt accumulation. She highlighted groups repeatedly left out of schemes such as those making less than half their income from self-employment or company directors of small businesses. She also raised concerns about universal credit cuts and business rate relief cuts affecting 400,000 businesses in England.
Acknowledging the UK Government's efforts during the pandemic, Alyn Smith emphasized that millions have been excluded from crucial support due to rigid eligibility criteria. He called for flexibility in repayment schemes and ongoing support for small businesses and self-employed individuals.
Barbara Keeley
Lab
Worsley and Eccles South
She expressed concern about the financial impact of the pandemic on constituents, particularly in the creative industries. Over 3 million people were excluded from Government support schemes, leaving many without income for over a year and unable to meet basic living expenses. She cited examples of self-employed individuals who faced mounting debts due to lack of income.
Catherine West
Lab
Hornsey and Friern Barnet
She highlighted the disproportionate impact of debt on certain groups during the pandemic, suggesting that universal credit recipients should not lose their £20 per week top-up. She also called for reviewing recommendations from the Excluded UK all-party parliamentary group and ensuring proper funding for Citizens Advice Bureaux (CABs). Additionally, she mentioned an increase in food bank usage by 1.3 million more children eligible for school meals.
David Mundell
Con
Dumfriesshire, Clydesdale and Tweeddale
Reminded hon. Members of changes to normal practice for hybrid arrangements, including timings and camera requirements for virtual participants.
David Warburton
Con
Somerton and Frome
The MP highlighted the challenges faced by constituents unable to access Government support despite being severely affected by the pandemic, citing examples such as newly self-employed individuals, those earning over £50,000, and those on zero-hour contracts. He noted that these issues impact businesses going bust and increasing personal debt.
Jamie Stone
Lib Dem
Caithness, Sutherland and Easter Ross
Jamie Stone discussed the lack of commercial covid insurance cover for live events such as Glastonbury festival, urging the Government to establish a Government-backed covid cancellation insurance solution. He emphasized that cultural recovery hinges on having adequate insurance, which is crucial for Britain's soft power and its global reputation in culture and music.
Kate Osamor
Lab Co-op
Edmonton and Winchmore Hill
I am concerned about the exclusion of millions of individuals and small businesses from financial support during the pandemic. Many self-employed people have faced considerable hardship, with some receiving less than 50% of their income from self-employment or having profits in excess of £50,000.
Patricia Gibson thanked Owen Thompson for securing the debate and highlighted the exclusion of many workers from government support during the pandemic. She criticised the gradual withdrawal of furlough support, warning of a summer of redundancies and increased debt among families. Gibson also pointed out issues with lucrative covid contracts and questioned the economic sense in forcing people onto benefits rather than supporting them. Asked the Minister to give way during the debate.
Peter Grant
SNP
Gordon
Peter Grant criticized the government's response to the pandemic, stating that there was no planning for economic support when significant sectors had to shut down. He argued that the deliberate exclusion of self-employed individuals and small business owners from financial assistance was not a mistake but an intentional policy.
Rachael Maskell
Lab Co-op
York Central
Since the first covid cases were identified in York, numerous businesses have struggled due to inconsistent guidance and support from the Government. Many ineligible for help have seen their life's work slip away, particularly those in sectors like tourism, theatre, events, travel, and supply chains.
Stewart Hosie
SNP
Dundee East
The MP raised concerns about the COVID recovery loan scheme's criteria, which exclude viable businesses with Scottish decrees or English county court judgments from accessing funds. He urged the Government to persuade lenders to analyse a business's underlying viability rather than issuing an automatic denial due to financial distress caused by the pandemic.
Taiwo Owatemi
Lab
Coventry North West
The MP highlighted the difficulties faced by self-employed workers in accessing Government support schemes due to eligibility rules. She cited examples of constituents denied funding despite economic hardships, urging for transparent guidance and accessible support for this group.
Government Response
Jesse Norman
Government Response
It is a pleasure to serve under the chairmanship of Mr Mundell. The Minister acknowledges the extraordinary circumstances placed upon the nation during the pandemic, expressing gratitude for fair-minded contributions from MPs who recognise the scale and effectiveness of the Government's interventions worth over £350 billion. The coronavirus job retention scheme (CJRS) has supported 11.5 million jobs since its inception, while the self-employment income support scheme (SEISS) has provided grants to almost 3 million people. The Bank of England projects the economy to return to pre-crisis levels by the end of the year, with unemployment forecasted to be close to half of previous projections, potentially saving nearly 2 million jobs from loss. The fifth and final SEISS grant will have a value determined by a turnover test to target support towards those most affected by the pandemic. The Government acknowledges the need for fraud and error concerns while respecting groups proposing alternative solutions, such as the Federation of Small Businesses and ACCA. VAT deferral new payment schemes are in place alongside HMRC's management of tax reliefs' impact on different groups. Support has also been expanded for voluntary and charitable groups to assist those affected by the crisis.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.