If you are self-employed
See our article here about help under the Self-employed Income Support Scheme.
If you work in the gig economy
Unless it has been agreed as part of your contract, it is unlikely that you will be entitled to Statutory Sick Pay, sick leave or paid holiday leave.
Some employers have said they will offer sick pay if you have to self isolate because of coronavirus. Others have said they might offer some kind of compensation if you have been diagnosed with coronavirus.
If you’re working in the gig economy, check with the company to find out what your rights are.
You will be able to claim sickness benefits available to self-employed people if you’re eligible.
If you’re employed
The government has announced it will pay your wages through the coronavirus job retention scheme if your employer is forced to temporarily close because of coronavirus.
This will be available to anyone on the PAYE scheme and your employer will need to contact HMRC to apply. In order for you to qualify, your employer will have to re-assign your employment status as a 'furloughed worker’.
The scheme will pay 80 percent of retained workers’ salaries, up to £2,500 a month, plus the associated employer National Insurance Contributions and minimum automatic enrolment employer pension contributions on that wage. Your employer can top up your salary to more than this if they choose to.
Wages under the scheme can be backdated to 1 March, if you stopped working then, and the scheme will be open for at least three months. There is no limit on the amount of funding or the number of employees that can be furloughed.
The first of the grants are hoped to be paid before the end of April so it could take a few weeks to get your money.
If you have already been told your job is gone, you should contact your employer to see if they are now willing to take you back on and reassign you as a furloughed worker.
If you have already made a claim for benefits contact the relevant benefit helpline for advice on what to do before you cancel your claim.
Employment and Suppot Allowance (ESA)
You can apply for ESA if you are employed, unemployed or self employed.
Most new claims will be for the 'new style' ESA. To get this 'new style' ESA you need to have worked as an employee, been self employed and paid sufficient National Insurance in the previous 2 - 3 years. National Insurance credits also count, so if you have claimed Child Benefit or Tax Credits, you may be eligable.
Your partners income and savings will not affect how much 'new style' ESA you are paid.
ESA is taxable and counted as social security income for Tax Credits
You cannot get 'new style' ESA if you are getting Statutory Sick Pay (SSP) from your employer. You can apply for 'new style' EA for upto 3 months before your SSP ends and you will start to receive ESA payments when your SSP ends.
You can get Universal Credit (UC) at the same time or instead of ESA, but it ESA is counted in full as unearned income for UC purposes.
You can apply for ESA if you are below state pension age and have a disability or health conition that affects how much you can work. You can apply for ESA if you are working, unemployed or self empolyed. There are conditions to working whilst claiming ESA.
You cannot get ESA at the same time as claiming:-
- Statutory Sick Pay (SSP)
- Statutory Maternity Pay (SMP)
- Jobseekers Allowance
For more information and to check eligability click here.
If you don’t want to go into work because of coronavirus
If you don’t want to travel or go into work because you are worried about catching coronavirus your rights are more limited. Employers are required to listen to your concerns and try and find a way to work around them. You might also be able to take the time off as holiday or unpaid leave. Your employer may also be able to set you up to work from home.
Am I entitled to sick pay?
Your rights to Statutory Sick Pay (SSP) depend on your employment status and earnings, see below for the various options.
- If you’re an employee and earn more than £118 a week
If you’re an employee and earn at least £118 a week (£120 from 6 April 2020), you will be able to get £94.25 per week (£95.85 from 6 April 2020) for up to 28 weeks. The government has announced SSP will be paid from the first day you are off sick if it is related to coronavirus.
SSP covers you both if you’re ill and if you need to self isolate because you have been in direct contact with the virus. You will still need to provide a sick note or fit note. You no longer have to go to a doctor to get a sick note or fit note. You can get one by calling NHS 111.
Some employers have more generous contractual sick pay schemes, which menas that they will pay you either full pay or reduced pay for your period of illness. It is worth checking your contract, staff handbook or directly with your employer.
The government has said that it will bear the costs of SSP for small employers, so claiming it should not be a problem. If you do have a problem, contact the HM Revenue and Customs statutory payment dispute team:
Telephone: 03000 560 630
Monday to Thursday 8.30am to 5pm
Friday 8.30am to 4.30pm
Textphone: 0300 200 3212
Monday to Friday 8am to 5pm
- If you’re an employee and earn less than £118 a week
If you’re employed but your earnings are too low to claim SSP, you may be able to claim Universal Credit. You can do this online here.
Don’t delay making a claim for benefits, even if you think you might have been affected by coronavirus.
However, if you are already getting any of these benefits, which are being replaced by Universal Credit:
- Housing Benefit
- Tax Credits
- Income Support
- Employment and Support Allowance
and need to make a new claim for Universal Credit because of coronavirus, check with the Citizens Advice Help to Claim service as soon as possible to find out how they might be affected and to get advice about your situation. Making a new claim for Universal Creit could mean that your existing benefits are reduced, so make sure you take advice first.
If you run your own business
The government has said they will fund the costs of Statutory Sick Pay (SSP) for employers with workforces of 250 people or fewer for up to 14 days.
You can also apply to HMRC for a grant to cover up to 80% your employees’ salaries, up to £2,500 a month, providing that you have designated them a 'furloughed worker'.
The government has announced grants and business rates support for small and medium sized business too.
Banks will also be offering loans to small and medium sized businesses under the governments Coronavirus Business Interruption Loan scheme.
If you’re registered for VAT, the government has announced VAT payments due between 20 March 2020 and the end of June 2020 have been deferred. They will need to be paid by the end of the financial year, however.
The government has announced the next Self Assessment tax return payment – due on 31July – has been deffered until January 2021 and you won’t be charged any penalties or interest for late payment during this period.
HMRC has expanded its Time to Pay Scheme if you are struggling financially because of anything to do with coronavirus and you owe outstanding tax.
If you already have missed a payment or are worried you will miss your next payment, call the HMRC Time to Pay helpline on 0800 0159.
If you’re business is struggling from the impact of coronavirus, then you can call Business Debtline on 0800 197 6026.
If you can’t work because you have to look after someone with coronavirus
You are entitled to time off work if you have to help a child or close relative who has coronavirus, has to self-isolate or needs to go into hospital. This person does not have to live with you.
This also applies if you need to take time off to look after children or arrange childcare because their school has been forced to close.
You have no statutory right to pay during this time, but employers might offer support depending on your contract and workplace policies. Talk to your employer to see what they can do to help.
The amounts of time you take off must be reasonable for the situation and you might have to use any unused paid holiday first.
If your partner or relative who lives with you gets coronavirus, or has symptoms, they might be able to claim Statutory Sick Pay (SSP).
If your child’s school has closed
Schools across the UK have closed to everyone apart from for the children of key workers. This might be a difficult time for parents, but there are options available to you.
You are entitled to take time off to care for a dependent child. There are no rules around how much time you can take off and you should talk to your employer about your options.
You might also be able to take time off as holiday leave.
If you’re worried about childcare costs
If your hours have been reduced, your income has gone down, you might be worried about how this will affect any help you get towards childcare costs.
With the lockdown in place and some childcare providers closing temporarily, you might also be concerned if you’ve paid in advance to retain your child’s place, or if your childcare needs have stopped completely.
If you claim through the tax-free childcare scheme, this is usually based on a three-month period, so support will depend on when you next need to report your income.
If you’re getting the childcare costs element of Universal Credit, or getting help through tax credits, the number of hours you’re now working and your income can affect how much help you get towards childcare costs.
If you’re getting free school meals
Schools are making provisions to provide meals and food parcels to everyone who is eligible for free school meals.
How this is happening depends on the school your child is attending and where in the country you live.
If you live in England visit the Gov.uk website.
In Wales visit the Gov.wales website.
In Scotland visit the Mygov.scot website.
In Northern Ireland visit the NI Direct website.
If you’re worried about losing your job
The government grants, which allow your employer to cover up to 80 percent of your salary up to £2,500 a month, should minimise the risk of losing your job. Ask your employer if they could place you on furlough instead of making you redundant, this would mean you could still get 80% of your salary.
Lay-offs and reduced hours
If you’ve been asked to take unpaid leave, and your contract allows you to be unpaid during this period, you might be able to claim Guarantee Pay.
You might also be able to claim new-style Jobseekers Allowance and, if you need help with other costs, Universal Credit.
Benefit changes because of coronavirus
The Universal Credit standard allowance and working tax credit basic element will both be increased by up to £1,040 a year for 12 months.
This will be available to new and existing claimants regardless of whether you’re employed, self-employed or a job seeker.
The amount you will get depends on your circumstances including household income and savings. You will not beable to claim Universal credit if you have more than £16,000 in capital.
If you’re self-employed, the minimum income floor for Universal Credit will be temporarily abolished from 6 April 2020, meaning that most self employed people should be able to claim.
The Local Housing Allowance will increase and some people may get more money to cover their housing costs to cover the costs of the bottom 30 percent of rental properties in your area.
If you’re claiming Universal Credit and are not able to work or attend interviews at the jobcentre because of coronavirus, it’s important you contact your work coach by phone or through your online journal as soon as possible.
