Financial help(5 Posts)
Hi everyone. I work in the financial field and it's really clear that some people are going to be struggling right now. I've been doing some really in depth research on financial help right now and what's available. Most of you will probably know about a lot of these already but even if 1 or 2 people come across this thread and it can help them, I'll feel I've done my bit at least.
Everyone that is currently receiving universal credit or tax credits will receive an extra £20 a week. Now some people will say people on benefits are the least likely to suffer during this lockdown/pandemic but that's simply not true as the majority of people that claim benefits of any kind actually work and if their hours are reduced or they get furloughed, this will help slightly. If you lose your job or your hours reduce, your universal credit payment will go up because you're not earning anything or earning less.
Nothing to do with coronavirus but the minimum wage is rising to £8.72 for over 25's next month so you can factor in that extra 50p an hour into your budget if you're still able to work right now and earn minimum wage.
You can take a 3 month mortgage repayment holiday with most banks and building societies. Most have made it really straight forward. You put your mortgage account number and name into the form online and it's granted right away and you get a text confirming this. Some say they need to 'consider it' then 9 times out of 10 will grant it and send a letter/e-mail to confirm. If your payment is due within 3 days of asking for the payment holiday, it will start from next month due to direct debits already being processed, it will start straight away otherwise. If your current deal is due to end within the next 3 months, phone your mortgage provider and ask about renewing your deal early then fill out the form for the payment holiday once you're on a new deal.
We've all heard about being furloughed and joining the job retention scheme. It's quite a task to get your head around it but your employer will be the one dealing with it. The way in which it's designed to work is that your employer decides to furlough you meaning that you are not needed to work so you stay at home/stop working from home. They then carry on paying your wage at either your normal salary or the average wage you usually earn but 80% of it (100% of it if they can afford to). They will then be reimbursed by the scheme when it's up and running. Some employers will not have the cash flow to do this and may need to wait until the scheme is up and running before they can pay you. The government have decided it's most likely the leisure and hospitality field that will be in this position (instant cashflow so instant lack of cash flow) so most of these types of businesses can apply for a grant of £25,000 to try and pay their staffs wages on the job retention scheme and other overheads and rates so that they don't disturb pay roll (usual pay date) and don't need to pay people off. Full details are due to be online from the 1st of April and can be found on the gov.uk website.
It's been announced that self employed people will also get 80% of their earnings but there is a big but. Only those who have filed a tax return will be eligible. So fairly new self employed people will not qualify. Instead they will have to use the benefits system. Read up on the type of work that is permitted right now or phone any of the number of hot lines and find out if it's ok for you still to work and what precautions you need to take if you do. Do a risk assessment yourself also if you are permitted to work and weigh up if you would be putting yourself or anyone at risk. It's easier said than done but if you're vulnerable, don't take the risk.
If you have any loans or finance at the moment, go to the website in which you have your products with and check if they are offering repayment holidays on loans, hire purchases, credit cards etc. Weigh up if it's worth it. Some banks and companies are offering it but some are not.
If you have a credit card with an available amount to spend, go to your offers page and go to cash transfers and see if you have any offers. A lot of credit card providers are putting offers onto their customers credit cards where they can take up to 90% of their available balance as a cash transfer to their bank account, the bank account must be in your name, on a 0% interest deal until at least December 2020. Some are offering longer. Some have also waived any fee for doing so, some haven't (usually a 2.5% fee or there abouts which is added on to the amount and also interest free for the length of the deal).
You are more likely to be granted an overdraft at the moment but bare in mind the rates are around 39.9% at the moment so for totally desperate situations only, try a mortgage break, loan break or credit card cash transfer first as they are all much cheaper ways to borrow.
There's other things in place but the details are very hazy at the moment so I don't want to list them here until they are formally announced or more information is given.
If anyone has any more information or help they have come across, please share 😀
This has gotten lost, not even visible anymore to find in the sections 🙄
Bumping for you.
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