Sefton Central MP Bill Esterson highlighted the case of constituent “excluded” Alison Powell from Formby at Prime Minister’s Questions.
Alison, who runs a business providing language clubs in schools, earned £10 more from employed income than self-employed income in the 2018/19 tax year – which means she has not qualified for the government’s coronavirus self-employed income support scheme.
Alison was not employed in a salaried role at the time of the national lockdowns in March and October, so she has not qualified for furlough. All her income from April 2019 has been from self-employment
Mr Esterson said Alison was one of the three million “excluded”, who had not been entitled to any financial support through the pandemic.
Alison retired as a teacher at the age of 60 prior to starting her new business.
When schools closed during the first lockdown her income was reduced to nil, and she was shocked to find she didn’t qualify for any government support.
When schools reopened in Sept she was able to deliver some classes but these were limited in numbers due to class and year group bubbles.
Now the schools are closed again. Ironically, she has one member of staff who she has been able to furlough, yet she is still unable to claim any financial support for herself.
Alison said: “I feel cheated – by my calculations I’ve missed out on about £8,000. I could show instantly what income I have lost due to the pandemic but the Treasury says it is too complicated to change the scheme to help those of us who have not qualified. I got a small discretionary grant from Sefton Council of £1,500 which was very welcome but doesn’t go anywhere near covering what I have lost.
“In the tax year of 18/19 I worked more in employment than self-employed but I then left that job so that I could try to make my own way. My employed income is no more use to me now so why are they using it against me to stop me claiming the self-employed grant. All of my income now is from self-employment. Don’t the government want people to break out on their own and be entrepreneurs?”
Mr Esterson said: “I raised Alison’s case in PMQs because it is a good example of the arbitrary and unfair way that the Chancellor’s support schemes have operated. It is no good the Prime Minister saying the government are doing ‘whatever it takes’ and putting their ‘arms around the country’ when three million people have been left with no work and so little government support.”
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