Source · Select Committees · Treasury Committee
Recommendation 8
8
Paragraph: 54
Although we acknowledge the Chancellor’s intention to target the SEISS at those who are most...
Conclusion
Although we acknowledge the Chancellor’s intention to target the SEISS at those who are most dependent on self-employed income, not all of them would have access to the Coronavirus Job Retention Scheme, as we pointed out in our first report of this inquiry.
Paragraph Reference:
54
Government Response
Acknowledged
HM Government
Acknowledged
Your report makes several recommendations regarding eligibility criteria for SEISS. You have recommended that the Government should reconsider the criteria that requires applicants to have trading profits that are at least equal to their non-trading income, in order to widen support. The design of the SEISS, including this requirement, is intended to target support at those who need it the most. HMRC data shows that of the people with profits from self-employment who do not meet the 50% self-employed income test, the majority (60%) of people had income from employment, over a third (37%) had pension income, around quarter (24%) had dividend income and around a fifth (21%) had property income. During the design stage of the schemes, the industry groups and organizations that we engaged with were supportive of a higher threshold of at least 60 per cent of income having to come from self-employment. This is a less generous threshold than the 50 per cent threshold that the Government ultimately used.