Rishi Sunak has been told not to “pull the safety net from under the feet” of millions of self-employed workers amid questions over the future of the government support scheme for struggling freelancers.
More than 110 cross-party MPs, including a number of Conservatives, appealed to the chancellor to extend aid for sole traders hit by the coronavirus crisis, such as hairdressers, personal trainers and caterers.
In a letter to Mr Sunak, the group warned that millions could be left “without work and without support” if the scheme is wound up in the coming days – as many are still forbidden from working by lockdown rules.
While Mr Sunak recently extended the furlough scheme – where the state pays 80 per cent of an employee’s wages – until October, he has not set out whether assistance for the self-employed will continue beyond the end of May.
He hinted at concerns with the project in a Twitter Q&A last week, saying it gives grants “to many people who can continue to be working at this moment because we can’t target it in the same way” as the furlough scheme.
Labour MP Siobhain McDonagh, who co-ordinated the letter, said: “This scheme is a lifeline for millions of locked-down workers right across the country.
“There are already significant holes in the support, but removing what is already in place would pull the safety net from under the feet of millions of self-employed workers.
“How can it be right for the furloughed scheme to continue but this scheme to not?”
The letter was signed by SNP, Liberal Democrat and Green MPs, as well as senior Tory backbenchers, including Sir Peter Bottomley, Dr Julian Lewis and Bob Neill, the former chair of the Commons justice committee.
Mike Cherry, national chairman of the Federation of Small Businesses (FSB), warned that sole traders have been "left in the dark" while employees have been offered greater certainty over the months ahead.
He said: “More than two million self-employed people have applied for the self-employment income support scheme which is encouraging.
"But they’re now facing a total earnings cliff edge in less than two weeks’ time. Many work in sectors which will be among the last to have restrictions eased.
“Thousands are fearing for their futures. They need assurances urgently."
A Treasury spokesperson said: “The chancellor indicated the SEISS would be a temporary scheme when he announced it at the end of March, but it could be extended if necessary.
“The government is keeping this under review.”
