7 in 10 self-employed will struggle despite Covid-19 support

UK borrowing soars amid Covid costs

7 in 10 self-employed will struggle despite Covid-19 support

A survey carried out by accountancy service Coconut has suggested that despite the Covid-19 financial support package outlined last week by Chancellor Rishi Sunak, more than 7 in 10 self-employed people will still struggle.

Sunak announced that self-employed people who make less than £50,000 per year would be eligible for up to £2,500 per month, or up to 80% of their average income over the last three years, and that the money would be issued in June at the earliest. He said that it would take the financial years 2016-17, 2017-18 and 2018-19 into account.

He claimed that this package was “fair” and in line with what was offered to those who are employed by a company:

“The package for the self-employed I’ve outlined today is one of the most generous in the world that has been announced so far. It targets support to those who need help most, offering the self-employed the same level of support as those in work.”

But the scheme was immediately met with controversy and concern by people who are self-employed, and found that they would not receive any support from this package.

Coconut surveyed 2,032 people, and identified two clear problems with the Sunak’s proposition: that millions are simply excluded based on their previous income, and that payments will not reach people fast enough;

Around 3 in 10 people surveyed will suffer because they are new to self-employment so haven’t yet completed a tax return, and 2 in 10 surveyed have suffered from the timing of their transition into self-employed work in tax year 2018/2019.

It was also found that only 1 in 10 believe they will be OK without any help from the government, while 9 in 10 believe it’s going to be difficult or that they and their families are at risk.

Only 1 in 3 people have enough savings to get through the next 3 months, and therefore will not be able to support themselves and their families until June, when payments are due.

Coconut are petitioning the UK government to expand their measures so that it offers support to those who are now without work.

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