Chancellor must support members of Excluded UK who are in despair - Greg Wright

Rishi Sunak’s failure to act immediately when provided with a road map to support people who have been excluded from Government support during the pandemic is baffling.

Many of the people who have been excluded are in despair, despite being law-abiding taxpayers who have stayed at home to protect the NHS.

The All Party Parliamentary Group on Gaps in Support (APPG) has compiled a list of constructive recommendations on behalf of those who have fallen through the gaps.

Government support measures including the Job Retention Scheme and the Self-Employment Income Support Scheme, along with benefits such as Universal Credit, have been introduced to help workers whose livelihoods have been impacted by restrictions. But the support does not cover some people, including the newly employed, the newly self-employed, freelancers, directors of limited companies paid in dividends, and the self-employed with annual profits of more than £50,000.

According to the APPG, there are 2.93m people, across several groups, who have had little or no support from the Government. They include a number of Yorkshire business people, who have been supported by the campaigning group Excluded UK.

In order to be eligible for SEISS, the applicant's trading profits from self-employment must be equal to or more than their non-trading income - known as the 50-50 rule, the APPG said.

I was contacted by one distraught woman, who said she had been excluded under the “50/50 rule” because she is earning more from other income after taking her company pensions when she turned 50 in 2017. This move had enabled her to focus on running her business full time.

“I run creative workshops, events and parties, and I am unable to run these due to the lockdowns,’’ she said. “I’ve lost 80 per cent of my work.

"I'm currently selling online and via social media craft kits to try and keep afloat but also to help my mental health. I’m constantly on an emotional roller coaster, struggling to keep my spirits up, suffering from anxiety symptoms, panic attacks and meltdowns.

"I’ve paid my taxes and never claimed benefits or been out of work since I was 16. Most days are filled with tears and anger.

“I’m thankful to find the Excluded UK group so I know I’m not on my own.”

Other members of Excluded UK include a man who works as a driving instructor in North Yorkshire. He became self employed after leaving the motor trade in January 2019, and said he continues to fall through the net due to the 50/50 rule.

“To date, I have lost four months income, and stand to lose seven months out of 12 if I’m still prevented from working until at least after March,’’ he said.

“I was forced to take a bounce back loan for my business to survive last Spring, and have only received £180 in universal credit to date. My mortgage payments have increased due to having to take payment holidays.

“I’ll have to start paying back my BBL in March so my monthly expenditure will be more than ever. I don’t know how I’m going to manage this next few months financially as the Government still refuses to provide parity of support. I feel so let down by the Government. I have volunteered as a police special constable for the past 16 years to help my community and this is how I’m repaid.”

The APPG supports the proposed Targeted Income Grant Scheme (TIGS) which is designed to be a targeted solution for groups that have been excluded from meaningful government support.

The TIGS scheme – drafted by Rebecca Seeley Harris, the former Senior Policy Advisor to the Treasury’s Office of Tax Simplification – has been presented to the Treasury by the APPG, with the aim of sealing major gaps in the support package.

These targeted grants from £3,500 to £7,500 would be easy to administer, fraud-resistant and offer long-term economic benefits, according to the APPG.

These grant options are based on precedent. The £3,500 grant option matches the Northern Ireland scheme for the newly self-employed. The £7,500 for PAYE freelancers, limited company directors and those excluded by the 50/50 rule is in line with the grant cap amount on SEISS.

The Treasury has described its Self Employment Income Support Scheme as one of the most generous in the world. It has helped nearly three million people claim almost £20 billion, according to the Government.

Ms Seeley Harris, is however, unimpressed.

She said: “He (Mr Sunak) needs to acknowledge the situation and that the problem is real. There are people who are at their wits’ end and have no idea how they are going to live.”

As a first step, Mr Sunak can at least study the TIGS proposals in detail. It’s not too late to include at least some of them in the Budget.

Support The Yorkshire Post and become a subscriber today. Your subscription will help us to continue to bring quality news to the people of Yorkshire. In return, you'll see fewer ads on site, get free access to our app and receive exclusive members-only offers. Click here to subscribe.