Are Boris' Measures Helping the Unemployed or the Self-Employed?

The ongoing COVID-19 outbreak has necessitated a range of measures to support both the unemployed and those in the self-employed sector. However, the effectiveness and targets of these measures remain a subject of debate. This article will explore the current state of support for the unemployed and the self-employed, highlighting the measures in place and addressing common perceptions and misconceptions.

Support for the Unemployed

The unemployed have continued to receive their benefits without interruption. Their financial support remains unchanged, and they are not forced to seek employment given the current restrictions. The system, known as Universal Credit, provides ongoing financial assistance to claimants as a safety net. It is important to recognize that the government's primary objective is to mitigate the spread of the virus rather than to provide a basic income.

One key factor in this is the requirement for job seekers to seek work. With lockdown measures in place, these requirements cannot be enforced, which means that many unemployed individuals remain at home. This aligns with public health recommendations that minimize social interactions to reduce the risk of transmission.

Support for the Self-Employed

While the unemployed continue to receive support through Universal Credit, the self-employed face a more complex situation. Financial aid for the self-employed is means-tested and often takes time to process. In the face of immediate needs, emergency measures have been implemented to provide relief.

The government has acknowledged the inherent difficulties faced by the self-employed, and measures are in place to ease the financial strain. A comprehensive package provides 80% of wages for employees who cannot work due to the pandemic. This incentive is designed not only to protect jobs but also to encourage individuals to stay at home and maintain social distancing.

Additionally, a bailout has been announced to support self-employed individuals, providing a portion of their income for the next three months. While these payments will be made in arrears, the deferral of July tax payments to January 2021 creates flexibility for those who need additional support. This measure aims to ensure that sole traders can cover essential living expenses without needing to leave their homes.

Government's Strategic Focus

It is crucial to understand that the financial measures implemented by the government are not about providing comprehensive basic income. The policies are designed to align with public health objectives, such as slowing the spread of the virus and supporting economic recovery during the crisis. The measures for both the unemployed and self-employed reflect a strategic balance between economic support and public health concerns.

The 80% deal for PAYE employees incentivizes businesses to furlough workers who can no longer work from home but are not critical to the continued operation of the business. This approach not only protects jobs but also promotes public health by keeping individuals out of the workforce, reducing the risk of transmission.

Conclusion

While the situation remains challenging for both the unemployed and the self-employed, it is clear that the government's measures are carefully designed to meet the unique needs of each group. Support for the unemployed through Universal Credit ensures ongoing financial assistance, and targeted measures for the self-employed address immediate financial pressures.

As the pandemic continues to evolve, it is essential to stay informed about the latest developments and government support measures. By understanding the strategic focus of these measures, we can better navigate the challenges and contribute to a more resilient recovery.