We're aware that some users are experiencing technical issues which the team are working to resolve. See the Community Noticeboard for more info. Thank you for your patience.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

#GapsInSupport - National Audit Office "2.9 million people were not eligible" for Government Support

Options
amykirk1996
amykirk1996 Posts: 354 Forumite
Fourth Anniversary 100 Posts Name Dropper
edited 23 October 2020 at 12:02PM in Coronavirus Board
Direct quote from newly released report - "COVID19 employment support schemes have been largely successful in protecting jobs to date.  But as many as 2.9 million people were not eligible for the schemes."
Source: https://www.nao.org.uk/report/implementing-employment-support-schemes-in-response-to-the-covid-19-pandemic/

The 3 million figure has often been scrutinised but here’s another report confirming exactly what Martin Lewis did all those months ago.  Martin has tweeted again this morning that the NAO numbers are "based on HMRC" data.

But that 100,000 makes all the difference, doesn't it @Grumpy_chap?

We now have the figures, beyond all reasonable doubt.  This is not a 'non problem', as shown by the reported "4 suicides in 72 hours" - yes you did read that correctly - twitter.com/ExcludedUK/status/1319239555816607744

So stop trying to brush this subject under the carpet and start engaging constructively in the debate as to what those who (up to now) have been described as having fallen through the gaps, but in reality have been deliberately pushed under the proverbial bus, what are they supposed to do?
«1

Comments

  • Section 14 being the relevant section:

    A combination of policy decisions and constraints in the tax system
    meant that as many as 2.9 million people were not eligible for the schemes.
    People were excluded from the schemes either because of ministerial decisions
    about how to target the schemes, or because HMRC did not have data needed
    to properly guard against the risk of fraud. The precise number of people needing
    help is uncertain because not everyone will have been sufficiently affected by the
    pandemic to need financial support. Groups ineligible for support were as follows:

    • CJRS: an estimated 1.1 million people were ineligible because HMRC had
    limited data to verify claims. HMRC has not estimated the number affected
    but third-party estimates suggest around 0.4 million short-term contractors
    moving between jobs were ineligible. Additionally, 0.7 million limited company
    directors could not claim for company dividends paid instead of salaries.
    The tax system treats company dividends as investment income and
    HMRC cannot separately identify those payments from other investments.
    However, company directors could still claim for earnings registered with
    the Pay-As-You-Earn scheme and apply for bounce back loans. 

    • SEISS: HMRC estimated that around 1.6 million self-employed people did not
    meet the scheme’s policy criteria. Of these, 1.4 million people had trading
    profit that was less than their non-trading income; 0.5 million people had
    a trading profit of £0 or made a loss; and 0.2 million people were ineligible
    because their trading profits exceeded £50,000.2

    • SEISS: third-parties estimated a further 0.2 million people who were newly
    self-employed in 2019-20 were ineligible because they had not yet submitted
    a Self Assessment return. Therefore, HMRC did not have verified records on
    which to confirm their activity and estimate their income. This figure could
    have been greater had lockdown occurred further from the January 2020
    deadline for annual tax Self Assessment returns. HMRC intends to introduce
    more frequent (quarterly) reporting for self-employed people under Making
    Tax Digital from April 2023 (paragraphs 2.6 to 2.11 and Figure 6).
  • 68comeback, your refusal (and others) to engage constructively beforehand meant that was inevitable.

    If you’ve got nothing useful to add to the debate, may I suggest you don’t bother at all?

    We now have confirmation that the 3 million figure is, and always was, correct.  On that basis, stop the diversion and deflection.  This subject will not be brushed under the carpet.
  • Why was this thread closed earlier and now reopened?
  • jayzor
    jayzor Posts: 65 Forumite
    Second Anniversary 10 Posts
    Who cares? Most of those would have gone out and found other jobs by now, jobs that are viable. Of course, a few would probably rather spend time on a forum moaning they aren’t getting any free hand outs, instead of being productive.
  • Jayzor, yes you're right - who cares that 4 people (that are known of) have taken their own lives because of this.


  • Setting aside the number (which can never be agreed upon) the question of what do people do now is the key.   As there are so many individual circumstances (some need support, some continued unaffected, some took CBILS, BBLS some where in receipt of CJRS etc) there is no one size fits all answer. 
    Perhaps the real question is what should the OP do now? I disagree with the premise and I have also disagreed previously whether they are infact excluded, however I empathise and understand that regardless, they are in a difficult position.
    I have suggested previously that when CJRS stops (partial because of dividend payments for some I know) then BBLS is the obvious option whilst they pivot their services and look for new opportunities if confident in your business plan or if you think things will change materially in your industry.  Are you considering this now?  Alternatively it will have to be seeking alternative income (FT, PT, FTC or services contract) or if this is not possible then UC which is the same as every other Company Director in the Uk.
    Setting aside the reasons, which have been covered before, the reality is that people in situations such as the OP face the job market in November which may not have been as bad if it were not for the spike we are currently facing.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.9K Banking & Borrowing
  • 253.1K Reduce Debt & Boost Income
  • 453.5K Spending & Discounts
  • 243.9K Work, Benefits & Business
  • 598.8K Mortgages, Homes & Bills
  • 176.9K Life & Family
  • 257.2K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.