Self-employed workers set to get 80% of wages under government emergency coronavirus package

Self-employed workers hit by coronavirus shutdown will be offered 80 per cent of their income under an emergency package, reports say.

Millons of Brits will be entitled to a portion of their wages under an emergency package to be unveiled on Wednesday.

The Sun reports the details are set to be thrashed out on Tuesday, March 24, with the package set to be revealed tomorrow (Weds).

It is thought as many as five million Brits could be entitled under the unprecedented package.

Prime Minister Boris Johnson and Chancellor Rishi Sunak are said to be involved in creating the package.

Mr Sunak, who unveiled concessions for workers last Friday in adjustments to his Budget, is looking at unveiling a grant scheme.

The scheme, similar to one adopted by Norway, will see the government fork out 80 per cent of average income earned over the previous three years.

This would be calculated on tax returns and banking history but like the job retention scheme, it would be capped at £2,500 per month.

The Prime Minister's spokesman told reporters on Monday morning: "We understand the difficult position the self-employed are in.

"We have always said we will go further where we can and are actively considering further steps.

"We appreciate the urgency of the situation and officials are working around the clock to find a well-targeted support package."

Shadow chancellor John McDonnell wrote to Mr Sunak on Monday warning of "significant gaps" in the compensation scheme.

In a letter signed by more than 100 MPs and peers, Mr McDonnell said: "We welcomed much of your statement on Friday 20th March 2020 setting out plans to support the incomes of workers impacted by the coronavirus outbreak.?

"However there are two significant gaps in the provisions you have advanced.

"First, your proposal for income support through the jobs retention scheme does not include the self-employed and freelancers, whose income are now increasingly being seriously affected by the coronavirus outbreak.?

"Second, you have failed to raise the level of statutory sick pay currently at £94.25 a week. Clearly, as the Secretary of State for Health confirmed when questioned this week, this is not an income level that anyone can live on.?"

TUC general secretary Frances O'Grady also urged ministers to "beef up" support for the self-employed.

She 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."

It comes after Labour leader Jeremy Corbyn said: "There now needs to be clear guidance to employers and workers about which workplaces should close - and the Government must close the loopholes to give security to all workers, including the self-employed, as well as renters and mortgage holders."

Labour MP Neil Coyle tweeted: "If there's no support for self-employed people and no penalties for employers insisting workers come in, Johnson's announcement is insufficient to ensure compliance."