Theodora Hadjimichael, CEO at Responsible Finance, commented:
“The coronavirus (COVID-19) outbreak presents a significant challenge to UK workers. At least 20% of the workforce – over 5 million self-employed people and at least 1.5 million individuals with low-income jobs – stand to gain nothing from the government’s pledge to give coronavirus-hit workers statutory sick pay from the first day off rather than the fourth, as they fall below the earnings limit to qualify[i]. Many will be forced to go against government advice and carry on working because they need to pay their bills[ii].
The assertion that the self-employed can apply for universal credit instead gives little comfort to these individuals given the fact that affected workers cannot afford the wait for their first payment. At the same time, benefits claimants who miss Jobcentre appointments or medical assessments may face sanctions. So those on low or precarious incomes risk facing further vulnerability with the spread of the coronavirus.
We urge the government to release emergency funding so people aren’t forced to borrow from high-cost lenders to pay for essentials whilst in isolation and unable to work or claim sick pay. Responsible finance providers, as trusted and affordable lenders, are well placed to deliver this funding.”
[i] Turn2Us (2020)
[ii] The Guardian (2020) https://www.theguardian.com/world/2020/mar/07/gig-economy-workers-on-breadline-too-poor-to-stay-at-home-if-they-catch-coronavirus