Portsmouth photographer, 52, turns to benefits after loophole leaves him unable to coronavirus rescue cash

Mr Sunak yesterday unveiled a new scheme to support wages during the pandemic which will run for the next six months in a bid to stave off huge jobs losses over winter.

But dismayed North End entrepreneur Terry Neale said a crippling loophole has meant he will not be entitled to a single penny of government aid.

The 52-year-old set up his photography business in April last year and had not been trading long enough to qualify for any of the grants announced by the treasury since lockdown began in March.

Now with his savings dwindling and having only managed to work three days in six months, Mr Neale has turned to the benefits system for the first time in his life – and fears he will have to give up on his ‘dream job’.

The former finance manager said: ‘The government has repeatedly ignored calls from millions of people like me who have been left out in the cold through no fault of their own. It just seems incredibly harsh. It’s a kick in the teeth that we’re being continually ignored.

‘I’m born and bred Portsmouth, a taxpayer for 35 years, never been unemployed and never claimed any benefits.

‘Last month I had to swallow my pride and claim benefits for the first time in my life because I’ve only had three days of work since lockdown began.

‘Now I might have another six months without any help. That will be the death knell for my business.’

The chancellor announced his new support measures in parliament as part of an effort to avert a winter jobs crisis when the current furlough scheme comes to an end next month and tougher restrictions are introduced to combat coronavirus.

Mr Sunak’s plan will see the government, together with employers, top up wages for staff working as little as a third of their normal hours, for six months starting from November.

However, the scheme would ‘support only viable jobs’ as opposed to jobs that only exist because the government is continuing to subsidise the wages, MPs were told.

Mr Sunak insisted his priority was to save jobs but he admitted: ‘I can't promise that everyone can go back to the job that they used to have.’

Other announcements included:

• Self-employment income support scheme extended

• A ‘pay as you grow’ extension to the Bounce Back Loan scheme will give businesses 10 years to repay them

• VAT cut to 5 per cent for hospitality and tourism extended until the end of March.

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Campaign group ExcludedUK, which represents about three million UK taxpayers like Mr Neale who have not been eligible for coronavirus rescue packages, said the chancellor’s bailout package should have gone further.

A spokesman said: ‘While we broadly welcome the new schemes that were announced today, individuals and small businesses that have thus far been excluded from any meaningful support continue to find themselves excluded and face further financial hardship and debt through no fault of their own, while the associated mental health crisis continues to grow.

‘The financial hardship endured over the last six months by three million people will be further compounded as we enter into this new period, alongside much uncertainty that still lies ahead.’

A message from the Editor, Mark Waldron

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