UK Parliament / Open data

Financial and Social Emergency Support Package

I understand that. The right hon. Gentleman will appreciate that if we date the official recognition of the need for intervention on coronavirus from the Budget, we are two weeks into the situation. The Prime Minister knows the situation; he made a commitment to the right hon. Gentleman an hour or two ago, and I cannot do better than the Prime Minister.

As of Monday, sole traders and freelancers have been able to gain access to the coronavirus business interruption loan scheme, provided that their activity is channelled through a business account. We are removing the universal credit minimum income floor, so that self-employed workers have access to universal credit, and we have deferred the next deadline for self-assessment income tax payments until 2021, so that self-employed people can manage their finances better over the course of the year.

It goes without saying that more needs to be done and, as I have said, we will do that, but as my right hon. Friend the Chief Secretary to the Treasury made clear

to the House yesterday, it is essential that that support reaches the people who need it the most. The Chancellor will provide a further update, as I have described, shortly. Until then, the Government will continue to listen carefully to hon. Members and, crucially, to those most directly affected. As the House knows, just as we are supporting businesses and employees, so we are also supporting families through the crisis. Those on low incomes will benefit from a package of measures worth more than £6 billion, including a £20 a week increase in universal credit standard allowance and the working tax credit basic element—an increase from £318 to £410 a month for a standard claimant over the age of 25. Those who are new to universal credit will not be required to attend assessment interviews. Advances for those claimants who need them will be available by phone or online.

Through these measures and others, the Government are absolutely clear that the burden of this pandemic must not fall on the lowest paid. We are particularly mindful of the needs of the most vulnerable members of our community and the charitable organisations that are working so hard to support them. The jobs retention scheme is available to all PAYE employers, including charitable and not-for-profit organisations. Furthermore, the business interruption loan scheme is applicable to social enterprises and to charities that receive half their income from trading. Charities will also benefit from a three-month VAT deferral to the end of June, and many are already eligible for 80% charitable rate relief as well, and, of course, as you will know, Madam Deputy Speaker, we are giving councils an additional £500 million in hardship funding to ensure that help is available for the most vulnerable people in our society who may be struggling to pay council tax bills.

About this proceeding contribution

Reference

674 cc374-5 

Session

2019-21

Chamber / Committee

House of Commons chamber
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