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Related: Lockdown Learning, discuss home schooling during lockdown.

Covid

So what are people going to do for money?

95 replies

DoubleAction · 15/03/2020 09:38

Already DS has seen his shifts cut because they've been so quiet. As this progresses, financial hardship is going to become very real for huge sections of the population. I understand people saying we need to put the nation's health first and protect lives but what do you expect will happen to help these people pay their bills?

SSP isn't going to cut it and in any case it's not about people needing time off ill, it's about jobs and businesses actually disappearing.

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BonnesVacances · 15/03/2020 09:43

I think banks etc are going to have to have a stay on paying bills, mortgages etc and allow people to prioritise buying food and essentials. This will undoubtedly leave some families in a pickle with more debt piling up, so it's going to be tough really. But that's always a risk when living month to month or when you're self-employed. You never know what's around the corner.

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treedragon · 15/03/2020 09:55

Isn’t the general advice to have about 3-6 months of savings totalling your take home pay. So say you take home £1,000 that’s £6,000 squirrelled away for bad times.

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BernadetteRostankowskiWolowitz · 15/03/2020 09:57

Isn’t the general advice to have about 3-6 months of savings totalling your take home pay. So say you take home £1,000 that’s £6,000 squirrelled away for bad times

Only someone with a comfortable income could achieve this.

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newmummy8789 · 15/03/2020 09:57

@treedragon I don't know may people that do though.
I'm currently on maternity leave and my husband will get SSP and we won't be able to cope if he can't go to work. Our options will be borrow off family or I will have to return to work 4 months early.

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SushiGo · 15/03/2020 09:57

Yes but treedragon, it's well established that most people don't have that as wages are so low compared to costs (mainly housing) in fact most people not only don't have any savings, they also have debt.

I don't know OP. I am very concerned.

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Frankiecandle · 15/03/2020 09:59

You really think that everyone is in a position to squirrel away 6 months wages?

Do you live in such a bubble that you can't see that is impossible for so many people?

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StormBaby · 15/03/2020 09:59

I'm the only earner in my home as DH is disabled. My work is slowing down, I'm also not entitled to company sick pay as I've only been there 9 weeks. I might register for universal credit now, even though I'm not entitled

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Topseyt · 15/03/2020 10:04

The general advice is ignorant. It assumes that all people can afford to save from their wages or salaries every month and takes no account of the fact that rent / mortgage payments plus utilities, council tax (if not exempt due to being on some benefits), food and childcare bills can wipe out some people's income each month.

It may be nice to be on enough money to save some every month, but many people aren't. Until relatively recently we weren't either.

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adaline · 15/03/2020 10:06

In other countries they've put a halt on bills and things so people can still afford to buy food if they can't work. I assume something similar will come into play here if we end up on lockdown.

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BusterGonad · 15/03/2020 10:08

Treedragon aren't you the joker.

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LittleMonstersMummy · 15/03/2020 10:09

I'm disabled and rely on benefits month to month to survive. I'm beyond terrified.

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LynetteScavo · 15/03/2020 10:10

Isn’t the general advice to have about 3-6 months of savings totalling your take home pay. So say you take home £1,000 that’s £6,000 squirrelled away for bad times.

It's very good advise, but first you've got to save it and secondly you've got to have no emergencies which mean you dip into it.

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Meruem · 15/03/2020 10:11

I wfh anyway but that contract may end in April. I could get similar work in an office setting but not keen on commuting and mixing with all those people! I’m in public sector so the volume of work won’t be affected by CV. I have probably a month or so where I could manage with no income at all but that’s about it. Don’t really want to go down the UC route but if needs must, then it would be an option. I’m lucky in that my outgoings are small and I rent from a HA. So no mortgage etc to worry about. I would hope (although it’s certainly not guaranteed) that my HA would be sympathetic in the current climate and not start threatening to evict for one missed payment but I am prioritising rent over everything.

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AllTheseThingsThatIHaveNotDone · 15/03/2020 10:12

I don't know - I am a supply teacher so if I don't work, I don't get paid. So if the schools do all shut, I don't get paid.
I have already used a lot of my savings and am already on an interest-only mortgage and budgeted spending. My ex will have to bail me out which is as it should be as they are his kids too.
Does anyone know how universal credit works for those who work for agencies with fluctuating income and how UI could or would help as a new claim if employed by an agency but no work available as schools closed?
I could always tout myself as a Skype teacher offering on-line tutoring I guess, maybe there is a virtual education agency who could take me on? straw clutching

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Meruem · 15/03/2020 10:24

I believe UC is based on your earnings for the previous month. So if you are signed up to an agency but there was no work, then you would still get the UC payment.

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trappedsincesundaymorn · 15/03/2020 10:26

I'm only eligible for SSP. The thought of having no income for even 2 weeks frightens me more than catching CV. I wish I could "squirrel away" 3-6 months worth of salary but it's not possible. I wonder, when all this has calmed down, how many more homeless people there will be.

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AgnesNaismith · 15/03/2020 11:59

Isn’t the general advice to have about 3-6 months of savings totalling your take home pay. So say you take home £1,000 that’s £6,000 squirrelled away for bad times.

Ahaha haha haha haha haha

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MigginsMrs · 15/03/2020 12:01

Isn’t the general advice to have about 3-6 months of savings totalling your take home pay. So say you take home £1,000 that’s £6,000 squirrelled away for bad times.

That’s really fucking helpful. Do you have a time machine so we can achieve this?

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Titsywoo · 15/03/2020 12:08

Dh luckily works in a sector that is unlikely to be affected and works from home. I do accounts for a couple of companies including a soft play centre who says they will have to close if the schools do so that is a worry. I worry more about my parents business and my MIL and her partner as they rely on his income and are in their 70s.

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BonnesVacances · 15/03/2020 13:34

It must be really difficult for self employed people at the moment or supply teachers etc. I think if anything comes out of this it'll be a better understanding of how close to the wind people sail every month. All it needs is an accident or a chronic illness and you can't work or pay your bills. There always needs to be a plan B but so few people actually have one.

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mumto2teenagers · 15/03/2020 13:39

Mortgages could be put on hold but how would that work for renting. My dd rents and if the rental payments are the landlords only source of income which he relies on for food, etc how can they be suspended.

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DoubleAction · 15/03/2020 14:53

I'd expect government to be leaning on banks and utilities for payment holidays, although I'm not sure how easy that is with everything in private (and sometimes foreign) hands.

They can't ask small landlords and other businesses to do the same though.

Does anyone believe the benefits system would cope with the huge influx in applications that must be coming? Just the processing of it, not the actual cost.

I think there will have to be some sort of emergency relief offered with not too many questions asked, to speed through applications but obviously that would be open to abuse.

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Jay135 · 15/03/2020 14:57

Unfortunately we live in an era where people never thought a rainy day might come and now absolutely loads will go under unless the government order the banks to give all mortgage holders and loan holders an immediate 3 month payment holiday should they need it. Renters it is more difficult but perhaps they could bring in an emergency piece of legislation to pay rent for people for 3 months where they can demonstrate hardship.

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Babyroobs · 15/03/2020 14:58

People will have to claim Universal credit to top up their income. This is going to be a logistical nightmare for the DWP who are already under pressure. as long as no savings over 16k people may be entitled to Uc if sudden income drop. happy to do rough calculations for people if they want.

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LouQoo · 15/03/2020 15:03

Makes a change from most of the threads. Most mumsnetters seem to be looking forward to 3 months off to do some knitting and watch Netflix.

As someone who was made redundant on Friday, I’m concerned about interviews - they all seem to be going on hold.

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