World News – GB – Dodds: Independent owners face ‘perfect storm’ amid Covid support cuts – LabourList


Anneliese Dodds has warned that independent homeowners in the UK face a’ grim winter ‘after a new Labor analysis found some of them would still be living on just 30% of their pre-coronavirus income over the next few months

The shadow chancellor pointed out that the cuts to the Self-Employment Income Support (SEISS) scheme announced by Rishi Sunak, combined with the end of the mortgage holiday, will cause a « perfect storm » for independent homeowners

According to an analysis by Labor, an independent independent owner living at the national minimum wage before the crisis would have had a monthly income of £ 854 after taking into account mortgage costs and council tax

But with the cuts to the SEISS, the same owner will only be left with £ 654 a month – and with the mortgage leave withdrawn, he could end up with £ 254, just 30% of their monthly pre-income crisis

The analysis of the reduction in income by workers was based on the average costs of housing tax and mortgage payments of a self-employed person who earns minimum wage and lives in an average one-bedroom property in Bolton

Commenting on the numbers, Labor’s main economic spokesperson Dodds said: “Independent homeowners face a perfect storm as the government decided to abandon them as we enter winter.

« There is still time for the government to stop a bleak winter for UK self-employed workers It must remove the mortgage cliff’s edge, close loopholes in its income support schemes and help people defer the cost interest payments « 

The new Labor findings come from a report by the Joseph Rowntree Foundation indicating that 20% of all UK mortgage holders, or around 16 million households, are worried about paying off their mortgage in the next three month

The report also found that around 26 million households with a mortgage said their incomes had fallen since March, with the majority of them having to cut spending, especially on food and bills

The SEISS was launched by the government at the end of March It allowed some self-employed workers during Covid to claim a taxable subsidy of 80% of their average monthly business profits, capped at £ 7,500 over three months

The Chancellor announced last week that SEISS will now only provide 40% of the average monthly business profits of a self-employed person if severely affected or unable to work, down from 20% of her original proposal

Many self-employed people are completely excluded from the scheme and left without any government income support, including new self-employed and those who typically make over £ 50,000 in profit each year

Labor warned against ‘leaving self-employed workers in a shambles’ after research found half a million self-employed work in industries hard hit by coronavirus restrictions , including hotels, arts and sports

The Resolution Foundation think-tank found this month that among those who were self-employed before the crisis, 17% – around 760,000 of the UK’s 4 49 million self-employed workers – were not working at all in September

In addition to cuts in income support, many self-employed homeowners now face rising costs as emergency Covid mortgage leave is set to be withdrawn by the government at the end of the month

Applications for the mortgage holiday scheme, introduced at the start of the crisis, end on October 31 As more regions come under restrictions, people with affected incomes will no longer be able to apply for support to make mortgage payments

The end of October also marks the end of a home repossession ban that protected many mortgage lenders during the crisis It was put in place in June to ensure people have a home in which to isolate themselves during the pandemic

Labor calls on government to extend mortgage leave and ban foreclosures, as well as reduce the waiting period for people to access the long-running Mortgage Interest Support (MIS) program

The SMI program, first launched in 1988, offers loans to those receiving certain means-tested benefits – such as income support or a pension credit – to help them pay interest of their mortgage

Candidate currently needs nine-month aid to access the program But Dodds calls on the government to lower the nine-month threshold to three, as the Labor Party did during the financial crisis

Planned changes to SEISS were announced by Rishi Sunak as part of his third economic update in a month, along with new, revised measures to strengthen support for businesses severely affected by the coronavirus pandemic

The Shadow Chancellor criticized Rishi Sunak at the time for « always running to keep pace » during the crisis and asked her counterpart to explain why the new support came just months after many regions initially faced stricter local restrictions

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Self-employment, Anneliese Dodds, employment, storm

World News – GB – Dodds: Self-employed owners face ‘perfect storm’ amid cuts in Covid support – LabourList



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