Metropolis mayors warn of a psychological well being pandemic among the many self-employed
Three mayors from England’s largest cities have written and called Rishi Sunak to help the 3 million self-employed who are excluded from Covid support.
London Mayor Sadiq Khan, Manchester Mayor Andy Burnham and Liverpool Mayor Steve Rotheram have called on the Chancellor to help those who have fallen through the cracks of the Self-Employed Income Support System (SEISS).
Otherwise, warned Mr Burnham, England is facing “a mental health pandemic in addition to Covid”.
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An estimated 10 percent of the UK workforce are excluded from Covid-19 support, according to ExcludedUK.
Mr Burhnam said, “We are here to send a message to the Chancellor that it is no exaggeration to say that jobs, homes and marriages are pending … that is so wrong on so many levels.”
The Mayor of Manchester said the government’s cold shoulder for those who have just taken the plunge and started their own business and are doing exactly what the government wants is sending the wrong message of becoming entrepreneurs.
Mr Burnham said there were only a few days to get the message across to the Chancellor before his government spending was reviewed.
The Mayor of Manchester said a tax break from HMRC was an easy solution to dealing with the crisis.
Mr Khan said it was “inexplicable” that “the wealth creators” of the UK economy were so ignored.
Liverpool Mayor Steve Rotheram said he would announce a local support package for excluded self-employed next week.
> See also: MPs urge the government to do more to help self-employed people through Covid-19
The dire effects on the mental and physical health of those excluded from state Covid-19 support are exposed in an ExcludedUK survey.
Almost one in five of those excluded from government support currently has panic attacks or phobias that they did not have before the lockdown.
And 14 percent admitted having thoughts of suicide or harming themselves.
Four out of five excluded felt stressed or anxious, with almost half “struggling” with their mental health and 12 percent “struggling seriously”.
Prescription drug use has also increased, with 10 percent of banned drugs taking drugs for anxiety, depression, and stress. Another 15 percent said they needed professional help.
Four out of five had insomnia and nearly two-thirds felt lost or failed.
Over half (51 percent) of those excluded – including directors of limited liability companies, the newly self-employed, and those earning less than 50 percent of income – have earned less than £ 500 a month since then.
More than three quarters of those excluded (77 percent) had no access to government benefits, including universal loans.
A third of those excluded estimate that their income for 2020/21 will be between a quarter and nothing compared to what they earned before the pandemic.
One in five says they are in danger of losing their home.
A quarter of those surveyed have had absolutely no work since March, and a third have cut their work / trade by over 80 percent since March.
And 5 percent was reduced to the use of food banks due to a lack of income.
As a result, personal debt has increased, with half of those surveyed being forced to borrow due to Covid-19. 25 percent took on personal debts of up to £ 10,000 and 4 percent were strangled with over £ 50,000 in personal debt that they did not have before the pandemic.
Excluded UK surveyed over 3,000 of its members for the report.
As the 3m turn out to be impossible
As the 3 million banned from government Covid-19 corporate support collapse, the numbers are as follows:
- Ltd. Company Directors: 26%
- Newly self-employed: 21.3%
- 50/50 rule: 19.8%
- Newcomers / holiday refused: 11.9%
- Earn over £ 50,000: 6.3%
- Annual payout: 5.8%
- Paid freelancers: 5.5%
Self Employed Checklist – A Guide for Small Businesses