Cash point: Act now to deal with money worries

If you are concerned about the financial impact of COVID-19, assistance is available. Here’s what you can do to help yourself

The COVID-19 pandemic is bound to affect us all financially in some way, from cancelled holidays and trips, to time off work. But being prepared now could help minimise the impact. “While this is likely to be a stressful situation for many people, there are steps you can take now to help you deal with any challenges, and to hopefully give you some peace of mind during the coming months,” says Nick Hill, money expert from the Money and Pensions Service.

“A good starting point is to do an emergency budget and check what savings you have to bridge any gaps. You should also check with your bank, insurers and providers such as energy companies to see what support they can offer. If you still think you will struggle to make ends meet, there are free support services available to help you online and over the phone, whether you’re facing an emergency cash shortfall or you’re worried about debt.”

It is worth remembering that the government is announcing new financial help to support businesses and households daily, so keep up to date at Gov.uk.

The Money Advice Service has set out the following advice if you’ve been affected financially by COVID-19.

KNOW YOUR RIGHTS REGARDING SICK PAY

Your rights to Statutory Sick

Pay (SSP) depend on your employment status and earnings. If you’re an employee and earn at least £118 a week, you will be able to get £94.25 per week for up to 28 weeks. Normally you must be off for at least four days in a row, but the government has announced SSP will be paid from the first day you are off sick if it is related to coronavirus.

Some employers have more generous contractual sick pay schemes – it’s worth checking. If you’re not eligible for SSP

– for example, if you’re selfemployed – you might be able to claim new-style Employment and Support Allowance (ESA) if you’re ill, or elements of Universal Style Credit if you need help with costs like children or housing. If you’re employed but your earnings are too low to claim SSP, you may be able to claim Universal Credit.

TAKE A ‘MORTGAGE HOLIDAY’

Mortgage lenders have announced support if you have to take time off work because of coronavirus, including a repayment holiday of up to three months. Contact your lender if you think you might benefit from this. Renters should contact their landlords and explain you’re unable to work because of coronavirus and need a bit of leeway.

CONTACT SUPPLIERS IF YOU’RE STRUGGLING

Contact your creditors and service providers immediately if you are unable to pay the full amount. In many cases you will be able to agree an alternative payment plan while you work through your financial crisis. The worst thing to do is to leave bills unpaid and not say anything.” ● For more money advice, visit Moneyadviceservice.org.uk