UK receives £9Billion in coronavirus aid from the EU under withdrawal agreement rules.

Today we learn that the UK has received £9 Billion (approximately € 10.3 billion) in aid from the EU due to the coronavirus pandemic. The money was approved under the state aid Temporary Framework scheme which the Commission adopted on the 19 March 2020.


The Commission said: “The European Commission has approved a GBP 9 billion (approximately € 10.3 billion) UK aid scheme to support self-employed individuals and members of partnerships affected by the coronavirus outbreak. The scheme was approved under the State aid Temporary Framework adopted by the Commission on 19 March 2020, as amended on 3 April and 8 May 2020.”

“The UK notified the Commission under the Temporary Framework, a scheme to support lower-end income self-employed individuals, including members of partnerships, which have been severely affected by the economic impact of the coronavirus outbreak. The scheme will allow them to continue their activities during and after the crisis.”

“The Commission found that the UK scheme is in line with the conditions set out in the Temporary Framework. In particular, (i) the income subsidy will be granted over a period of not more than twelve months and will be subject to the condition that the activity of the beneficiaries is ongoing and will be maintained; (ii) aid intensity will not exceed 80% of the monthly gross income (including social security contributions), and (ii) aid will not lead to overcompensation.”

“The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.“On this basis, the Commission approved the measures under EU State aid rules.”

To stop any fall out from other member states over this aid, due to the UK leaving the EU in December 2020, the Commission said: “According to the UK Withdrawal Agreement, during the transition period, EU law continues to apply to, and in, the UK as if it were a Member State. This includes all EU rules relating to State aid.”

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