2 April 2020 | 5-minute read

Support for UK Etsy sellers in COVID-19 relief

Avatar image for Etsy Staff by Etsy Staff
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EU governments are working on a set of economic recovery measures to help struggling workers and businesses manage the global COVID-19 pandemic. The problem? They’re largely considering solutions for employees and traditional small businesses, but not the self-employed micro-businesses who make up the majority of Etsy sellers.

We are encouraging the European Commission and national governments to include our community, but lawmakers need to hear from you too.

Join us in urging UK and European governments to help Etsy sellers today.

As sole traders, Etsy sellers rarely qualify for unemployment insurance, paid leave, or the small business loans and other direct assistance measures offered by EU countries. There is a real risk that despite significant stimulus on the table, Etsy sellers will fall through the cracks.

That’s why we’re urging the European Commission and EU governments to make sure that any COVID-19 stimulus package includes comprehensive supports for the self-employed and micro-businesses, including direct cash assistance, expanded unemployment protection, protection of business-critical services like delivery, payments, and internet connectivity, debt deferral, among others.

Tax and debt deferral: We fully support the initiatives of certain Member States of providing tax and debt relief for businesses affected by COVID-19 to defer payment of contributions and taxes. To this end, we call on all EU countries to follow suit and expand that deferral to include the self employed. We also urge all EU Member States to negotiate deferred mortgage and credit card payments for self-employed micro-businesses, who often operate out of their homes and use personal credit cards to fund their business.

Unemployment protection: More than 50% of independent workers in Europe are not covered by unemployment benefits. While Etsy sellers do not face the same classification issues as on-demand service providers, they do face similar economic security issues, such as managing income volatility and savings for the future. For this reason, the Commission and Member States should not only focus on platform workers as such, but broaden the discussion to include those workers outside of traditional employment arrangements. Member States should also be encouraged to immediately fund an income protection fund for the self-employed and gig workers, which would allow them to draw down benefits in the event of declining income due to decreased demand for their goods or services.

Direct assistance: We welcome that Cohesion Policy Funding and the EU Solidarity Fund will play a key role in the Coronavirus Response Investment Initiative, particularly with a focus on the long term impact of the crisis. It’s imperative, however, that EU countries now use these funds with greater flexibility to reallocate financial resources with a focus on the areas of greatest need, including support for vulnerable groups such as micro-businesses and the self-employed. For example, Member States should create a supplementary direct assistance programme for the self-employed and sole traders to help cover the cost of lost business, paid sick leave, individual health care costs, and fixed expenses.

Business-critical services: Etsy sellers depend on critical e-commerce infrastructure, including financial services, delivery, and internet connectivity. EU governments should ensure that these essential services, including the free flow of goods, remain fully operational, even as the public and private sectors take greater measures to contain the spread of the virus.

Together, these reforms would ensure that Etsy sellers can weather the immediate threat of the coronavirus pandemic, along with the longer-term threat of economic downturn.

But lawmakers won’t act on these ideas unless they hear from you – their constituents – directly.

Contact your representatives using the appropriate country link below:

Austria Czech Republic Germany Latvia Poland Spain
Belgium Denmark Greece Lithuania Portugal Sweden
Bulgaria Estonia Hungary Luxembourg Romania United Kingdom
Croatia Finland Ireland Malta Slovakia
Cyprus France Italy Netherlands Slovenia

Looking for information on COVID-19 assistance programs and resources available in a different country? You can also learn more about assistance programs and resources in the United Kingdom, France, Germany, and Canada. You can find tips for handling your shop if you're impacted by COVID-19 and learn more about what Etsy is doing to protect the marketplace in our Help Center.

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