Millions of self-employed people will be given an "unprecedented" grant worth 80% of their profits in a coronavirus bailout - but not until JUNE.
Chancellor Rishi Sunak finally unveiled a scheme for Britain's 5million self-employed tonight after days of frantic talks with unions.
He said the taxable grant will be worth 80% of a firm's monthly profits over the last three years - capped at £2,500 a month.
Those figures are similar to a scheme being offered to millions of full- and part-time workers.
Yet while that scheme will be open in April, the Chancellor admitted the scheme for the self-employed will only be in force “no later than the beginning of June” - more than two months away.
He defended the two-month delay, saying Treasury officials were working flat-out on multiple schemes.
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However, opposition MPs slammed the Government over the scheme, saying it left businesses without any cash until June.
Labour MP David Lammy said: “Leaving the 5 million self-employed Brits without any support until June is a slap in the face.
“Many will be bankrupt by then. And why is there an eligibility cap for the self-employed but not the employed?
“This is not what I call fair."
Green MP Caroline Lucas added: “Glad Rishi Sunak has listened & finally introduced package for self employed.
“But June?! What are people supposed to do till then...? Currently 5 week wait for Universal Credit.”
Lib Dem MP Layla Moran said delaying the first grant payments until June meant the self-employed do not have parity with salaried workers.
The Federation of Small Businesses said: “Although the deal is not perfect, the Government has moved a very long way today.”
Recipients will get the grant for the months of March, April and May 'in one go' in June.
Until then, self-employed people will be forced to claim Universal Credit.
And the scheme will not be open to all self-employed people.
The Chancellor defended the exemptions - saying the 5% who won’t qualify have a £200,000 average income.
The grant will be paid in a single lump sum, with the first payments starting at the beginning of June.
It will only be open to those who:
- Have trading profits of up to £50,000, and
- Take the majority of their income from self employment, and
- Are already in self employment - who have a tax return for 2019.
The Chancellor said the restrictions on the bailout would “make sure only the genuinely self-employed benefit”.
It is expected to cover 95 per cent of self-employed people and they will "get three months in one go" in June.
But he insisted his package would “stand as one of the most significant economic interventions at any point in the history of the British state - and by any government, anywhere in the world.”
The Chancellor also announced anyone who missed the filing deadline in January will be given four weeks from today to submit their tax return.
It comes after days of outrage over five million self-employed Brits not being offered financial support, despite Downing Street pledging to cover 80 per cent of employees' wages.
Concerns have been raised that the newly announced package for the self-employed could leave them waiting several weeks for the cash because the system will be so complex.
Speaking today, Mr Sunak said: "I know that many self employed people are deeply anxious about the support available for them.
"We know people are worrying about their jobs and their incomes.
"To you I say this, you have not been forgotten we will not leave you behind we all stand together.
"Today I'm announcing a new self-employed income support scheme."
He described the measures as 'unprecedented' and 'one of the most generous self-employed support schemes anywhere in the world'.
For people who are struggling right now, self-employed people can access business interruption loans and self-assessment income tax payments can be deferred until the end of January, Mr Sunak said.
He added that self-employed people can also access Universal Credit in full.
Some 463 people in the UK have died from coronavirus, with more than 9,529 confirmed cases across the country.
Today, Wales confirmed six further deaths, while Scotland and Northern Ireland reported another three.
The UK has contributed £210million towards an international effort to create a vaccine.
The Government has also ordered millions of antibody tests which will let doctors and nurses know whether they are immune to the virus.
Home tests for people to find out whether they have had coronavirus could be available in a matter of weeks, according to Public Health England.
It comes after police started setting up road blocks in the streets to enforce social isolation.
Officers now have the power to pull cars over and ask their drivers about the nature of their journeys.
They can then send the motorists home and issue them with a fine.
Downing Street has also appealed for 750,000 people to volunteer to help vulnerable people during the crisis.
More than half a million Good Samaritans responded to the Government's initial plea, prompting it to increase the target.
