Government must urgently extend wage support to the self-employed, says TUC

24 Mar 2020 11:44 AM

The TUC yesterday (Monday) called on the government to provide urgent aid to Britain’s five million self-employed workers.

• Current support for five million self-employed is inadequate, says union body

A new report published yesterday says the current measures in place for self-employed workers are “inadequate” with many facing severe hardship over the coming months.

The report calls on ministers to extend the wage subsidy scheme announced on Friday to the self-employed.

The TUC says this could be done through providing the self-employed with a guarantee of at least 80% of their incomes based on their last three years of self-assessment tax returns.

This could be paid directly to the self-employed as a tax rebate.

The report highlights the example of Norway where the government is providing grants covering 80% of self-employed workers’ earnings. And Belgium where an income replacement scheme has been set up for the self-employed.

Commenting on the report TUC General Secretary Frances O’Grady yesterday said:

“The government took a big and important step last week with wage subsidies for employed workers.

“But millions of self-employed workers – from the creative industries to construction - are still facing a collapse in their earnings. Many won’t be able to meet their basic living costs without further support. Ministers must urgently beef up support for the self-employed.

“Large-scale wage subsidies are the best way to boost household finances, keep businesses running and help our economy bounce back after this crisis. All workers – both employed and self-employed - should have their wages protected.”  

Notes to Editors:

The full TUC report can be found here: https://www.tuc.org.uk/research-analysis/reports/fixing-safety-net-what-next-supporting-working-peoples-incomes.