“The Chancellor’s Self-Employed Income Support Scheme was always likely to leave some wanting more, but in an effort to give more people some certainty around their incomes, today’s announcement goes a long way to helping many of the UK’s 5 million self-employed workers, covering 95% of all people who make the majority of their earnings via self-employment,” comments Kevin Doran, chief investment officer at AJ Bell.
“The proposal means that the UK Government will pay self-employed people a taxable grant worth 80% of their average income of the last three years, capped at £2,500 per month, for at least three months. It is available to those with an income of £50,000 or less and who make the majority of their income from self-employment. At an estimated cost of £35bn, it’s small beer in the grand scheme of things, but does show a government keen to keep the lights on whilst the nation’s workers are asked to hibernate for a while. With further income support from the State unlikely, the focus must now move towards giving people more certainty around their expenses.
“On that score, our proposed plan to scrub interest on all debts payable to UK banks for a period of three to six months should be welcomed. Funded by the banking sector itself, this foregoing of interest would tip the banking sector into a loss for the year, but seems only fair for a sector bailed out by society when the boot was on the other foot.
“For those who fall between the cracks of the social safety net, we would call upon the more fortunate in society to find their altruistic spirits. With the DFS ‘buy now, pay later’ sale now on hold, an alternative ‘pay now, buy later’ package is an option for many to support. Purchasing goods and services from the self-employed up front with delivery made when all of this is over is a ready way in which the nation can rally around those in need at this time.”