People will be able to continue working while claiming the grants.
Under the new plan self-employed workers will get a grant worth 80 per cent of their average earnings over the last three years, up to a maximum of £2,500 a month. This covers 95% of people who receive the majority of their income from self-employment.
It comes after it was announced last Friday that the Government would cover 80 percent of wages up to £2,500 ($2,989) a month for staff being kept on by their employer.
A notable feature of Britain's highly flexible labour market is the high number of people who are self-employed.
Self-employed people are a crucial part of the UK's workforce who've understandably been looking for reassurance and support during this national emergency.More news: Roman Reigns Pulled From WrestleMania 36
The much-awaited announcement today (Thursday) was directed at musicians, electricians, taxi drivers, childminders and hairdressers.
"To all of those who are self employed, who are rightly anxious and worried about the next few months: you haven't been forgotten, we will not leave you behind and we are all in this together", Sunak said at a news conference in Downing Street.
The scheme will be open to those with a trading profit of less than £50,000 in 2018-19, or an average trading profit of less than £50,000 from 2016-17, 2017-18 and 2017-18.
More than half of a claimant's income needs to come from self-employment.
Roy Rickhuss, general secretary of the Community union, said: "Waiting until June will be too long for numerous self-employed who already are struggling to make ends meet". The scheme will last for at least three months, with an option of extension.More news: Watch Idris Elba Shut Down Cardi B’s Coronavirus Conspiracy Theory
Self-employed workers have called on Rishi Sunak to explain how they will pay their bills for the next three months, while senior MPs and union leaders are urging him to make the aid available much earlier.
"It would cost nothing for Government to align the Coronavirus Job Retention Scheme with use of HMRC's Check Employment Status for Tax (CEST) tool, which aims to fairly pick out the third of freelancers who are "deemed employees".
Self-employed workers are not paid through PAYE and they don't have the same obligations as a company director.
The scheme has been designed after extensive engagement with stakeholders including the TUC, the Federation of Small Businesses and IPSE - The Association of Independent Professionals and the Self-Employed.
The Chancellor wants to "treat the self-employed like the employed" and has introduced the Self-Employed Income Support Scheme.More news: Crocs giving away free shoes each day to healthcare workers
Nimesh Shah of accountants Blick Rothernburg said: "Given that self-employed individuals have been granted an nearly identical package of support to the employed worker, albeit with some restrictions, this could be the precursor opportunity for the Government to end the disparity in the two tax regimes, which it has been wanting to do for some time".