Labour has welcomed the changes to coronavirus income support schemes announced today by the Chancellor – but warned the government against a ‘one size fits all’ approach.
Rishi Sunak has extended the coronavirus self-employment income support scheme (SEISS), due to end this weekend. 113 MPs had demanded an extension to the mechanism currently supporting millions.
In August, self-employed workers will be able to apply for a second and final coronavirus support payment equivalent to 70% of their monthly profits, capped at a total of £6,570.
The Chancellor also confirmed that employers would need to start contributing to furloughed workers’ salaries, and he introduced flexibility to the scheme by allowing part-time work from July.
From August, the taxpayer contribution to wages will still cover 80% of furloughed wages, while employers will be asked to pay National Insurance and pension contributions – 5% of total employment costs.