In a statement to the House of Commons today (Wednesday 22 October), Sunak announced the Government was doubling the self-employed grants from 20% to 40% of previous earnings, meaning the maximum grant will increase from £1,875 to £3,750.
Grants are available for all self-employed workers, across all tiers who have stopped trading or have experienced a “significant” fall in trade, with two further payments to come.
The Government said this is a potential £3.1bn of support to the self-employed through November to January, with a further grant to follow, covering February to April.
We're doubling self-employed grants from 20% to 40%, meaning the maximum grant will go up from £1,875 to £3,750.— Rishi Sunak (@RishiSunak) October 22, 2020
Grants are available for all self-employed people (all tiers) who've stopped trading or have a significant fall in trade, with two further payments to come. pic.twitter.com/mUB7hFfsXt
He said: “As we increase the contribution we are making towards employees wages, I’m increasing our contribution to the incomes of the self-employed as well.
“Today we are doubling the next round of the self-employed income support scheme from 20% to 40% of people’s incomes, increasing the maximum grant to £3,750.
“So far through this crisis, we have now provided over £3bn of support to self-employed workers. Sole traders, small businesses and self-employed people are the dynamic, entrepreneurial heart of our economy and this Government is on their side.”
As part of the statement, the Chancellor also revealed he was launching cash grants for businesses in tier two.
We're making the Open Job Support Scheme more generous to protect jobs during lower demand.— Rishi Sunak (@RishiSunak) October 22, 2020
- Government now pays at least 62% for hours not worked
- Employer contribution cut from 33% to 5%
- Employees now take home at least 73% of pay for working a new minimum 20% of hours pic.twitter.com/bSXr0zup6d
The funding, which will be delivered by local authorities to hospitality, leisure and accommodation businesses, is worth up to £2,100 for every month tier two restrictions apply.
The grants will be retrospective, meaning firms in areas that have been under extra restrictions will be able to receive the money, backdated to August.
He also unveiled changes to the Job Support Scheme meaning pub staff will only have to work one day a week to be eligible and the Government will significantly reduce the amount employers have to contribute.
This equates to the Government paying at least 62% for hours not worked, employer contribution cut from 33% to 5% and employees take home at least 73% of pay for working a new minimum of 20 hours.