Treasury Committee: Urgent action needed for those not eligible for Treasury’s support measures

Rt Hon. Mel Stride MP, Chair of the Treasury Committee, has today written to Rt Hon. Rishi Sunak MP, Chancellor of the Exchequer, urging him to set out what action he will take to help those who aren’t eligible for HM Treasury’s support measures in response to coronavirus.

Last month, Mr Stride wrote to the Chancellor to request further information on the Government’s financial response to coronavirus. The Committee has published the Chancellor’s response today.

The Committee has also published a high-level summary of further evidence received by organisations, trade unions and business representation as part of its inquiry into the Economic Impact of Coronavirus.

Commenting on the correspondence, Mr Stride said:

“The Chancellor has provided a detailed explanation of the support measures that he has announced so far. However, as the summaries of evidence that we have published show, some people appear to have been left behind.

“Whether it’s those who started a job after 28 February and who therefore have real difficulty qualifying for the Job Retention Scheme, those who draw down some of their income through dividends, or the time it will take for payments to reach individuals and businesses, it’s clear that urgent action is needed.

“Significant progress has been made and millions of people will be helped by the Government’s schemes, but some people have slipped through the net.

“I have asked the Chancellor to examine the proposals in the two summaries and to set out the action that he will take to help those who aren’t currently eligible for the Treasury’s support measures.”

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Notes to Editors

• The Treasury Committee has sent both summaries of evidence to HM Treasury and Mr Stride has asked the Chancellor to set out what action he will take to help those who aren’t eligible for the support measures. Mr Stride has asked for a response by Thursday 16 April. This letter is attached.

• Last week, the Committee published an initial summary of evidence received from individuals and organisations before 27 March. The summary published today is of evidence received between 27 March and 2 April in response to the Chancellor’s announcement on support for the self-employed.

• Mr Stride’s letter to Mr Sunak, dated 24 March 2020, is here. The Committee requesting information on a range of subjects including employment support measures, poverty alleviation, NHS funding, additional funding, communication, charities, local authorities, regional impacts, insurance, Covid-19 Corporate Financing Facility (CCFF), and public sector finances. Commenting at the time of publication, Mr Stride said:

“The Treasury Committee has issued a call for evidence on whether the Government’s financial response to coronavirus is sufficient, and if there are areas where more support is needed.

“We have received over 14,000 responses, mostly on issues relating to self-employment, from people who work in a wide variety of professions, including childminders, taxi drivers and hairdressers.

“This is clearly an area where further action is needed by the Government. I’ve asked the Chancellor what additional support will be given to the self-employed, as well as a number of other key questions around additional NHS funding, how the Government will communicate rapidly and effectively with businesses to make them aware of the available assistance, and how the Government will be supporting charities.”

• Mr Sunak’s response to Mr Stride and the document summarising the evidence that the Committee has received are attached.

• The summary document published last week by the Committee is here. Commenting on the document at the time, Rt Hon. Mel Stride MP, Chair of the Treasury Committee, said:

“The level of response to our call for evidence on the economic response to coronavirus has been unprecedented. On behalf of the Treasury Committee I would like to thank everyone for getting in touch.

“The evidence that we have received will inform the Committee’s work in the ensuing weeks and months, whether it’s deciding who to call to give evidence or the recommendations we should make to Government.

“Some of the concerns raised with the committee may have since been alleviated for some, such as through the recent support for many self-employed people, but some persist, and no doubt more will arise.

“We will shortly issue a further call for evidence on the more recent measures announced by the Government, the financial service sector’s actions in relation to coronavirus, and on how the economy has been affected more broadly.

“The committee continues to review these issues at significant pace, and I urge individuals and businesses to keep up their engagement with us.”

• The topics included in the summary published today are:
• • Eligibility gaps in support for self-employed:
  • • People who work via Personal Service Companies
    • People falling the wrong side of the £50,000 threshold
    • People who are newly self-employed
    • Graduates
    • People who started work, or were due to start work, after 28 February cut-off date
    • Workers who have taken time off for maternity/paternity
  • Entitlement to Universal Credit (UC)Impact of payments delay
  • Support with ongoing costs
  • Coronavirus Business Interruption Loan Scheme (CBILS) funding is not yet reaching small businesses
  • Need for clarification of entitlement

• The homepage for the Committee’s inquiry into the economic impact of coronavirus is here. Evidence submitted to the inquiry will be published in tranches. The evidence published so far is available here.

• The Treasury Committee held an evidence session with HMRC on Wednesday 8 April. The witnesses were Jim Harra (First Permanent Secretary and Chief Executive, HMRC) and Cerys McDonald (Director, CV-19 Policy Co-ordination, HMRC). The session can be viewed in full on Parliament TV here.