Scale of self-employed workers claiming Government help in Preston

Six in 10 self-employed workers in Preston have claimed grants through an extended government scheme to help them survive the coronavirus pandemic.
HM Revenue and Customs figures show around 3,300 people in Preston applied to the second round of the Self-Employment Income Support SchemeHM Revenue and Customs figures show around 3,300 people in Preston applied to the second round of the Self-Employment Income Support Scheme
HM Revenue and Customs figures show around 3,300 people in Preston applied to the second round of the Self-Employment Income Support Scheme

But the Association of Independent Professionals and the Self-Employed says businesses still "reeling" from the impact of Covid-19 need further support, as a second wave of the virus seems imminent.

HM Revenue and Customs figures show around 3,300 people in Preston applied to the second round of the Self-Employment Income Support Scheme (SEISS) between August 17 and the end of the month.

Hide Ad
Hide Ad

That was 60 per cent of those in the area who were eligible to make a claim.

From May 13 to mid-July, eligible self-employed workers could claim a grant worth 80 per cent of their average monthly profits for a three-month period, limited to £7,500.

The grant was extended in August, but lowered to 70 per cent of profits and capped at £6,570, with applications closing on October 19.

Claims made by people in Preston amounted to £7.1m, or £2,200 per person on average.

Hide Ad
Hide Ad

In the first round of the scheme the average claim was worth £2,500.

Construction workers made the largest number of claims across the North West (60,500) and the most common age group for applicants was 45-54 (50,200). This pattern was repeated across the UK.

They were among 193,000 seeking support – 62 per cent of those eligible across the region, which saw an average claim of £2,300.

Across the UK, just over 2m people applied in August – a take-up rate of 60 per cent, with claims totalling £5.1bn or £2,500 on average.

Hide Ad
Hide Ad

Andy Chamberlain, director of policy at IPSE, said the scheme has been a vital lifeline for those who are eligible.

"But now is not the time to withdraw support completely," he added. "Self-employed businesses are still reeling from the economic impact of coronavirus and many of them were excluded from SEISS because of its strict eligibility criteria."

The group is calling on the Government to introduce a new round of support to ensure struggling businesses can stay afloat.

Mr Chamberlain added: “As a second wave of coronavirus approaches, local lockdowns and individual quarantining measures are inevitable. Government must do more to support businesses that will be impacted by these restrictions.”

Hide Ad
Hide Ad

A Treasury spokesman said: "We’re committed to supporting the self-employed, and our Self Employment Income Support Scheme is one of the most generous in the world.

"Those who do not qualify will be able to access our wide range of other support that is helping people who have been affected by coronavirus – including income tax deferrals, £1bn more support for renters, access to six-month mortgage holidays, business rates relief, grants, and bounce back loans, which provide support that is interest-free for the first 12 months.”

Related topics:

Comment Guidelines

National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting. Please review our Community Guidelines before commenting.