Government slammed for ‘discriminating’ against the self-employed and working parents ‘hardest hit’ by pandemic

The government has been slammed for ‘discriminating’ against the self-employed during lockdown, but it argues its support scheme is one of the ‘most generous in the world’.

A tax advisory firm has criticised the government for its alleged lack of support for those running their own businesses during this second lockdown.

And working parents are struggling too, with some saying they’ve been set back by at least a year in their careers because of the pandemic.

Across the UK there are close to five million people who are self-employed – including sole-traders, directors and the newly self-employed.

Those who have built up their own businesses could now be facing an increasingly desperate situation as the second round of restrictions bite, ‘at a time when they should be encouraged’, argues Robert Salter, tax director at tax advisory firm Blick Rothenberg.

Mr Salter slammed the ‘disadvantaging’ of the self-employed during lockdown.

He said: “Extensive support has been provided to employees, via the furlough scheme, and many established businesses via business rates holidays and government-supported loans.

“But government’s policies both before and during the pandemic have often discriminated against and disadvantaged the self-employed.

“With unemployment having increased sharply during the pandemic, the government should be doing everything possible to encourage entrepreneurship and support those individuals who are already in self-employment.

“This is especially necessary given the struggles that many established parts of the economy have suffered over the past six months and the understandable reluctance of such established businesses to recruit full-time, traditional staff at the present time.”

Mr Salter also criticised the government’s new changes tax rules too, saying some contractors will be hit be ‘a double whammy’ of being treated as employees for tax purposes but will get none of the benefits like pensions, paid holiday or sick pay that employees receive.

And in a survey of 2000 people by another consulting and advisory firm, Theta Global Advisors, working parents say they’re finding things particularly difficult.

A total of 40pc of parents across Manchester said their own mental health has suffered because of the increased pressure and responsibility of helping their child with their homeschooling.

One in five people in Manchester believe parents have been ‘hardest hit’ by the pandemic as they had to work, take care of and teach their children simultaneously.

And 22pc of parents in Manchester said taking are of their child during the first lockdown period set them back more than a year in their career.

Chris Biggs, partner at the firm, said: “Lockdown restrictions were bound to impact people across the country but for those who already look after children, the impact this period would have on their career has been significantly underplayed.

“Our research has shown that working parents do feel that they are under increased pressure and stress due to homeschooling during lockdown and the majority of Brits support this.

"Therefore, we must do more to help working parents to ensure this lockdown doesn’t hold them back even further.”

A spokesperson for Her Majesty’s Treasury said: “Our Self Employment Income Support Scheme is one of the most generous in the world and has helped more than 2.7 million people so far.

 “Those who do not qualify are still able to access our wide range of other support such as income tax deferrals, support for renters, access to mortgage holidays and bounce back loans, which provide support that is interest free for the first 12 months.

“Our reforms [to tax rules] have been widely consulted on and will ensure that two individuals sitting side-by-side and doing the same work for the same employer pay the same tax and national insurance contributions."

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