Chancellor extends coronavirus support for self-employed but for the final time

Rishi Sunak has announced that support for the self-employed will be extended - but confirmed the scheme would end after one more round.

The Chancellor confirmed that the Self-Employment Income Support Scheme will allow people to claim a with those eligible able to claim a second and final grant capped at £6,570.

It comes as he also announced wide-scale changes to the furlough scheme, sparking fears that unemployment will spike as companies struggle to fit the bill for their own staff.

Those eligible under the Self-Employment Income Support Scheme (SEISS), which has so far seen 2.3 million claims worth £6.8 billion will be able to claim a second and final grant in August.

The grant will be worth 70 per cent of their average monthly trading profits, paid out in a single instalment covering three months’ worth of profits, and capped at £6,570 in total.

Chancellor Rishi Sunak said:  “Our top priority has always been to support people, protect jobs and businesses through this crisis. The furlough and self-employment schemes have been a lifeline for millions of people and businesses.

 “We stood behind Britain’s businesses and workers as we came into this crisis and we stand behind them as we come through the other side.

 “Now, as we begin to re-open our country and kickstart our economy, these schemes will adjust to ensure those who are able to work can do so, while remaining amongst the most generous in the world.”

Mr Sunak also confirmed changes to the furlough scheme, including allowing staff to work part-time from July 1.

Mr Sunak said employers will also have to foot part of the bill from August, as the scheme, which has already cost the Treasury £150billion is wound down.

But the move has sparked fears for redundancies as companies face paying staff but without trade returning.

The 80% payout will continue until July 31, after which point firms will have to start paying national insurance and pension contributions.

The payout will then fall to 70% in September, followed by 60% in August, when firms will be asked to make up the difference to 80% - or £2,500.

While this is currently optional, the Government says employer contributions will become compulsory - even for those who are unable to restart their business.

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Labour warned that the changes may cause a "spike in unemployment".

Anneliese Dodds MP, Labour’s Shadow Chancellor said: “It is welcome that the government has heeded Labour’s calls for a more gradual introduction of the employer contribution to furlough, the introduction of flexibility within furlough to allow part time working, and the extension of the self-employed scheme.

“However, it is concerning that there is no commitment within these plans for support to only be scaled back in step with the removal of lockdown.

"Nor is there any analysis of the impact on unemployment of a ‘one size fits all’ approach being adopted across all sectors.

“The Chancellor must publish the evidence behind these decisions to provide reassurance that his proposals won’t cause an additional spike in unemployment, and an even more difficult economic recovery from this crisis.”