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Financial Support Options for Struggling Self-Employed Workers: A Global Overview

GOOVER DAILY REPORT September 4, 2024
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TABLE OF CONTENTS

  1. Summary
  2. Government Disaster Payments
  3. State-Specific Assistance
  4. Local Government Initiatives
  5. Resources for Specific Populations
  6. Financial Aid Programs
  7. Interest Support and Tax Relief
  8. Conclusion

1. Summary

  • The report titled 'Financial Support Options for Struggling Self-Employed Workers: A Global Overview' provides an extensive analysis of financial support mechanisms available to self-employed individuals across various countries. It focuses on initiatives established in response to challenges like the COVID-19 pandemic. Key findings include several government disaster payments such as Australia's Covid-19 Disaster Payment, state-specific assistance like New South Wales' Test and Isolate Support Payment, local government initiatives including the UK's Household Support Fund, and tailored support programs like Help for Heroes for veterans. Additionally, the report examines financial aid programs such as CalWORKs and San Diego County General Cash Relief, as well as interest support and tax relief measures implemented by the South Korean government. Overall, the report paints a comprehensive picture of the diverse financial support frameworks designed to alleviate the economic pressures faced by self-employed workers globally.

2. Government Disaster Payments

  • 2-1. Australia's Covid-19 Disaster Payment

  • The Covid-19 disaster payment from the Australian Government provides financial assistance to individuals who have lost income due to lockdown restrictions in Sydney that began in June 2021. Eligible recipients may receive a lump sum payment of up to $750 per week. This support is accessible to Australian citizens, permanent residents, and eligible working visa holders.

  • 2-2. Pandemic Leave Disaster Payment

  • The pandemic leave disaster payment is designed for those who are unable to earn an income because they must self-isolate or quarantine or are caring for someone with Covid-19. The Australian Government offers a lump sum payment of $1,500 for eligible individuals who meet these criteria.

3. State-Specific Assistance

  • 3-1. New South Wales Test and Isolate Support Payment

  • In New South Wales, individuals who need to self-isolate and are unable to work while waiting for a COVID-19 test result may be eligible for the NSW Government's Test and Isolate support payment. The payment amount is $320 and is designed to assist those impacted by isolation requirements due to the pandemic. This information is directly derived from the City of Sydney's resource on financial help available for residents.

  • 3-2. State Government Guides for Wellbeing and Housing Support

  • The NSW Government has compiled a comprehensive COVID-19 assistance guide that provides information on various types of support for residents. This guide includes resources for personal wellbeing, employment, food and housing support, as well as financial services. It addresses the difficulties many residents have faced in accessing essential services and maintaining housing affordability, especially exacerbated by the pandemic. The guide serves as a crucial tool for those in need of financial support and legal assistance, highlighting available government disaster payments and aid programs.

4. Local Government Initiatives

  • 4-1. UK's Household Support Fund

  • The UK's Household Support Fund provides financial aid to eligible individuals facing significant financial difficulties. This fund offers a free cash payment of up to £200 directly deposited into the bank accounts of those who qualify. The aid aims to assist with essential expenses such as energy and food bills, thereby alleviating some of the financial pressures experienced by vulnerable households. Local councils receive allocated slices of funding from the government, allowing them to distribute resources according to the size of the population and the number of households in need within their areas. It is important to note that funding amounts may vary by council, and recipients are encouraged to check their local eligibility and distribution process. The funding period for assistance extends from April 2024 to September 2024, and applications can be processed through referral by a member of the Advice Compact.

  • 4-2. Local Council Aid Distribution

  • Local council aid distribution is a crucial component of the UK's Household Support Fund implementation. Each local authority handles a specific allocation of funds which can be used to aid residents struggling with the cost of living. Distribution is tailored to each council’s circumstances, including the size of their area and the number of vulnerable households they serve. Residents can access aid through their local councils but cannot self-refer, emphasizing the structured nature of the support system in place. As funding is limited, councils advise residents to familiarize themselves with eligibility requirements and to seek assistance promptly to ensure they receive the support available to them.

5. Resources for Specific Populations

  • 5-1. Help for Heroes Support for Veterans

  • Help for Heroes delivers one-to-one recovery support through various services. The psychological support includes the Hidden Wounds service that offers assessment and treatment for mental health difficulties, with a team of trained clinicians providing treatments like cognitive behavioral therapy and counseling. Welfare support is managed by a case management team that assists individuals and families with complex needs, offering advice on welfare issues such as money, health, housing, and benefits. The Veterans Clinical Liaison Team, consisting of registered nurses, occupational therapists, and medical advisors, aids individuals facing physical health challenges by helping them access specialized therapies and clinical equipment and re-engaging with their community. The Very Seriously Injured Programme specifically supports individuals with catastrophic injuries who require around-the-clock care, assisting them in accessing crucial services such as speech and language therapy, financial support for caregiving costs, and specialist equipment. Additionally, the Grants Team awards grants to those urgently requiring financial support for recovery. Finally, the Sport, Activity, and Fellowship Team provides a wide range of free sporting, recreational, and social activities across the UK, promoting wellbeing and reducing isolation, along with bespoke physical fitness support.

  • 5-2. Tailored Financial, Welfare, and Mental Health Support

  • The analysis of financial support options for specific populations reveals that tailored services are crucial for addressing diverse needs. These services include financial assistance programs that provide necessary funds to struggling individuals, welfare initiatives that ensure access to basic needs such as food and shelter, and mental health services that offer psychological support, counseling, and therapy to those facing emotional distress. The integration of these services provides a comprehensive framework for support, allowing for improved recovery and reintegration into society for individuals with varying challenges.

6. Financial Aid Programs

  • 6-1. CalWORKs Temporary Cash Assistance

  • CalWORKs offers temporary financial aid to eligible families with young children. The amount of cash assistance a family receives each month depends on the number of family members and their income. This program is designed to provide essential financial support to families during challenging times.

  • 6-2. San Diego County General Cash Relief

  • San Diego County General Cash Relief provides temporary cash assistance for eligible county residents who have no other means of support. Any aid received must be repaid to the county. Additionally, completed hours of required job training may count toward repayment of the debt. For more information, individuals can call 1-866-262-9881. This program aims to aid those in immediate financial distress.

7. Interest Support and Tax Relief

  • 7-1. South Korean Financial Support for Electricity Bills

  • The South Korean government has announced special financial support for electricity bills to assist 1.26 million micro-enterprises and self-employed individuals. This support can provide up to KRW 200,000 to alleviate the financial burden related to electricity costs.

  • 7-2. Low-Interest Refinancing Programs

  • As part of efforts to ease financial burdens, the South Korean government plans to offer a low-interest refinancing program aimed at 15,000 micro-enterprises and self-employed individuals. Additionally, the government will refund interest paid on loans to banks and small and medium-sized financial institutions for up to 2.28 million individuals to further reduce financial strain.

  • 7-3. Increased Income Threshold for Simplified VAT Registration

  • The government has increased the threshold for individuals to register as simplified taxable persons for value-added tax, raising it from KRW 80 million to KRW 140 million. This change is designed to alleviate tax burdens on smaller businesses and self-employed individuals.

8. Conclusion

  • The analysis unveils a diverse range of financial support options designed to mitigate the economic impact on self-employed workers across different global regions. Mechanisms such as the Covid-19 Disaster Payment and the Pandemic Leave Disaster Payment in Australia, as well as the New South Wales Test and Isolate Support Payment, highlight the crucial role of government aid in providing relief during crises like the COVID-19 pandemic. Local initiatives like the UK's Household Support Fund and San Diego County General Cash Relief demonstrate the importance of targeted local aid in addressing immediate financial needs. Additionally, programs tailored to specific populations, such as Help for Heroes, emphasize the necessity of specialized support services for groups with unique needs, like veterans. The South Korean government's Interest Support and Tax Relief Program underscores the significance of financial restructuring and tax relief in supporting micro-enterprises and self-employed workers. Though the variety of support measures indicates substantial effort, complexities in accessing and understanding these resources suggest the need for better coordination and dissemination at local levels. Continued research and evolving adaptive support mechanisms are essential to meet the changing needs of self-employed individuals, ensuring that relief efforts remain effective and inclusive. Future prospects should focus on streamlining access and increasing awareness to optimize the practical applicability of these financial support options.

9. Glossary

  • 9-1. Covid-19 Disaster Payment [Government Aid]

  • A financial support mechanism established by the Australian government for individuals who lost income due to pandemic-related restrictions since June 2021. This payment aims to alleviate financial burdens on affected self-employed workers by providing up to AUD 750 per week.

  • 9-2. Pandemic Leave Disaster Payment [Government Aid]

  • This Australian government payment supports those who cannot earn an income because they must self-isolate, quarantine, or care for someone with COVID-19, offering a lump sum of AUD 1,500.

  • 9-3. Test and Isolate Support Payment [State-Specific Assistance]

  • New South Wales provides this payment of AUD 320 to individuals who need to self-isolate while awaiting COVID-19 test results, aiming to reduce financial strain during the isolation period.

  • 9-4. Household Support Fund [Local Government Initiative]

  • A UK initiative allowing local councils to distribute funds to families facing significant financial hardship. Support can include up to £200 aimed at assisting with energy and food bills.

  • 9-5. Help for Heroes [Non-Governmental Organization]

  • An organization providing comprehensive support to veterans, including financial assistance, welfare advice, mental health services, and physical health support tailored to those with complex needs.

  • 9-6. CalWORKs [Government Aid]

  • A program in California offering temporary financial aid to eligible families with young children, potentially including self-employed individuals.

  • 9-7. San Diego County General Cash Relief [Local Government Initiative]

  • Provides temporary cash assistance to eligible San Diego residents lacking other means of support. This aid must be repaid to the county if certain conditions are met.

  • 9-8. Interest Support and Tax Relief Program [Government Aid]

  • South Korea's initiative to support micro-enterprises and self-employed individuals through financial support for electricity bills, low-interest refinancing programs, and tax relief by increasing the income threshold for simplified VAT registration.

10. Source Documents