Nearly 350,000 self-employed workers in Yorkshire taking 'massive hit' as UK goes into lockdown

Self-employed workers across Leeds and Yorkshire have been left "swinging in the wind" by the Government as the UK goes into lockdown, a Leeds MP has said.

Leeds West MP Rachel Reeves has called on Boris Johnson to deliver an urgent package of measures to help those impacted by the spread of coronavirus.

There are 52,000 self-employed workers in Leeds alone, according to the latest data from the Office for National Statistics, with 340,900 across Yorkshire and the Humber.

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Ms Reeves welcomed the measures announced on Friday by Chancellor Rishi Sunak to help traditionally employed workers.

Leeds West MP Rachel Reeves.Leeds West MP Rachel Reeves.
Leeds West MP Rachel Reeves.

He said the Government would pay 80 per cent of salary for staff who are kept on by their employer, covering wages of up to £2,500 a month.

But Ms Reeves warned that many self-employed workers were left “acutely exposed” and would not be able to make ends meet on universal credit of just £94.25 a week.

The Labour MP has called on the Prime Minister and Chancellor to establish an income protection scheme for the self-employed to give them similar help to that already offered to other workers.

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She also called for a major increase in the current “meagre” level of statutory sick pay (SSP) which currently stands at just £94.25 a week.

Ms Reeves said: “There are still huge gaps in the Government’s plans to help people whose income has taken a massive hit due to coronavirus, especially the five million self-employed workers who feel acutely exposed.

“At present, they can only get just £94.25 a week in sick pay as they are not covered by the Government’s income replacement scheme.

"However, an employee earning £25,000 a year on payroll could get £20,000 through the Government help on offer.

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“It is unfair and unjust that the self-employed are left swinging in the wind and unable to benefit from the assistance available to other workers and to self-employed workers in other countries.

“The Government must act as a matter of urgency to help the self-employed and protect their incomes."

Ms Reeves said the Government needed to take action to ensure people follow their advice to stay at home.

She cited schemes in Norway, Germany, Ireland and France as good examples of how Governments were supporting the self-employed.

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“Freelancers and self-employed workers in Leeds, Yorkshire and across the country desperately need the same lifeline offered to other workers," Ms Reeves added.

A HM Treasury spokesperson said: “The Chancellor has outlined an unprecedented package of measures to protect millions of people’s jobs and incomes as part of the national effort in response to coronavirus.

"This includes strengthening the safety-net for the self-employed who will benefit from a relaxation of the earnings rules for self-employed claimants under universal credit and deferring income tax self-assessment payments due in July 2020.

"We have always said we will go further where we can and are actively considering further steps.”