One million fall through “critical gaps” in COVID-19 funding schemes
Approximately one million people are not being supported through the crisis by existing COVID-19 funding schemes. Ministers in the Treasure Select Committee have called on the government to plug “critical gaps” in the schemes to meet its pledge of “doing whatever it takes”.
Among those who currently cannot access support include recently hired employees, freelancers and limited company directors.
Calls for government to do more
The Treasury says the schemes have protectors millions of jobs and livelihoods. However, the UK Chancellor admitted on 14 June that the government has not been able to help everyone. The Select Committee has called on the government to do more:
“The Treasury’s interventions have been welcomed by many but rolling out financial support at pace and scale has inevitably resulted in some hard edges in policy design and some critical gaps in provision,” the committee said.
“The government must assist these people if it is to completely fulfill its promise to do whatever it takes to protect people from the economic impact of coronavirus.”
COVID-19 funding exemptions
Some employees are left out of the scheme because of their employer’s choice of timing in submitting payroll paperwork. Others who started a job after the furlough cut-off date are exempt from wage support.
Another large group that has fallen through the cracks include freelancers as many work on short-term contracts. According to MPs, industries like television and theatre, which rely on short-term contact work, should be given more support.
These critical gaps in Coronavirus funding schemes have led to the Forgotten Ltd campaign. To date, the campaign has received more than 79339 signatures. Their aim is to call on the government to extend COVID-19 support packages to ‘left behind’ ltd company directors.
Treasury Select Committee Chair Mel Stride MP, said: “The Government should focus on making sure that those self-employed who work through their own companies can have dividends that result from self-employment being counted when it comes to the assessment of the furlough amount that they can qualify for.”
How we can help
Cardens Accountants works with freelancer and limited company clients to provide accountancy and business advisory services. If you aren’t sure where to turn this year, email us at