Martin Lewis has slammed a “completely unfair” quirk in the fifth self-employment income support grant (SEISS) that leaves workers out of cash.
The MoneySavingExpert founder pointed out that the fifth SEISS grant is designed to cover eligible claimants for five months, from May to September.
However, the money is for three months’ worth of trading profits, capped at £7,500 - meaning those who get the grant are missing two months’ worth of pay.
Martin said the pay “doesn’t make sense” but noted “that’s the system” and urged people to claim what money they can sooner rather than later, with the closing date being September 30.
The grant is expected to start opening for applications in early July.
Speaking on ITV’s This Morning, Martin said: “The last chance you’ve got to apply for this is September 30 but of course most people are desperate for the money and the sooner you apply, the sooner it will be in your bank balance.
“This grant covers the period from May to September and it gives you three months of average trading profits.
“You get three months’ of average trading profits to cover a five-month period. If you think that doesn't make sense, you’re right.
“It is completely unfair compared to the furlough payment.”
Martin also pointed out that previous SEISS grants don't technically cover all the months that the scheme has been active during the pandemic.
There has been nine months' worth of grants - three in total - to cover March 1, 2020 to January 2021 31.
This marks a total of 11 calendar months, so in theory there has been two months missing during this time.
Commenting on this previous layout, Martin said: “They’ve done this before and it’s left many self-employed people rather frustrated by that system - but that’s the system.”
The Treasury has previously claimed SEISS shouldn't be viewed as a month-by-month replacement of self-employed income.
A spokesperson said: "Throughout this crisis our priority has been to protect lives and livelihoods. Our schemes have supported millions of jobs and the incomes of millions more.
"While we acknowledge it has not been possible to support everyone in the way they might want our schemes were designed to target support at those who need it most, while protecting public money against error, fraud and abuse."
Who is eligible for SEISS 5?
If your turnover has dropped by 30% or more, you'll be able to claim the full grant worth 80% of three months’ average trading profits, capped at £7,500.
This is the same amount the fourth, third and first grant were worth.
For those who have seen their turnover fall by less than 30% , you'll be able to claim a grant worth 30% of three months' average trading profits, capped at £2,850.
The eligibility for SEISS 5 is the same as it was for the fourth grant.
You must have:
Filed a 2019/20 tax return
Traded in both the 2019/20 and 2020/21 tax years - and continue to trade beyond this
Seen your business profits impacted by the coronavirus crisis - and have evidence of this
Earned at least 50% of your total income from self-employment
Recorded average trading profits of £50,000 a year or less
Crucially, you can keep working while you claim a SEISS grant but you must prove your profits have been affected by Covid.
