YOUR GUIDE TO MONEY CHANGES
Coming out of lockdown and the end of government support means this could be a scary time for many. Here’s the latest expert advice
After months of furlough, self-employed grants, stampduty holidays and topped-up benefits, many worry what’s to come now that the lockdown restrictions have been lifted. Our money expert Jasmine Birtles explains these changes in the new financial landscape.
ON FURLOUGH? STAY IN TOUCH
The government is currently paying 60 per cent of salary to furloughed workers compared to 80 per cent at the start of the pandemic, with the scheme to end completely at the end of September. Sadly, it’s predicted that this will create a “significant risk” of redundancies. “Keep in touch with your employer to see what they are planning,” advises Jasmine. “If you are made redundant, you have the same rights that you had outside of furlough.” Check gov.uk to see what you can expect. “Sign up for Universal Credit as soon as you know that you could be laid off, as it can take a few weeks to process the payments.”
SELF-EMPLOYED? FIND NEW AVENUES
Work for yourself? The SEISS (Self-Employment Income Support Scheme) Grant also finishes at the end of September. “If you’re in a sector that is still struggling, now would be a good time to find a new outlet or look for a full-time job,” says
Jasmine. “Hospitality has a lot of vacancies, as does the healthcare sector, including care-home assistants, nurses, doctors and all types of support workers, while the technology industry is crying out for people with coding skills, sales, design and more – with impressive salaries,” says Jasmine. “For many self-employed people, having a ‘portfolio career’ with two or more regular gigs brings in enough income to have a good standard of living.”
THREE KIDS? CHECK YOUR ELIGIBILITY
“In April 2017, a new ruling meant that tax credits and Universal Credit only applied to the first two children in a family,” says Jasmine. “If you’re struggling to pay the bills, go to Turn2Us.org.uk and use their benefits calculator to see if you are eligible for other payments or grants.” According to Turn2Us, half a million households are missing out on unclaimed Child Benefit, 399,000 on Child Tax Credit, 211,000 on Working Tax Credit and 1,000,000 on Universal Credit – so it’s worth checking.
ON UNIVERSAL CREDIT? GET EXTRA HELP
“During lockdown, people on Universal Credit were given an extra £20 a week, but this will be withdrawn by early October,” says Jasmine. “As we are coming into a period of rising inflation and the possibility of higher unemployment, this is going to be tough for a lot of families.” Again, check Turn2Us.org.uk to see if you could get more benefits or a free grant. “There is help available if you’re struggling to feed the family,” Jasmine says. “Start with your local council, as many of them have grants and vouchers they can give out. You could be eligible for Guardian’s Allowance, free school meals, help with the costs of childcare, school clothing, school travel costs, healthy start food vouchers or the Sure Start maternity grant.” Meanwhile, in Scotland there are Best Start food vouchers, Best Start Grant, and Scottish Child Payments.
WANT TO BUY? ACT NOW
The Stamp Duty Holiday has a current tax-free threshold for properties worth up to £250,000. “From October, rates will return to normal and the point homebuyers pay stamp duty will go back to £125,000,” says Jasmine. “If you’re planning on buying a property, try to complete the sale before October to make the most of the current rates.” There’s also a change to the Mortgage Guarantee Scheme. Jasmine says, “In lockdown, nearly all the 95 per cent mortgages were pulled. Now the government is guaranteeing 20 per cent of
the loan, lenders are happier to offer 95 per cent mortgages again without charging too high an interest rate. As a first-time buyer, you have until the end of next year to get a five per cent deposit together, so do what it takes, including moving back in with mum and dad for a while.” Are you under 40? “Set up a Lifetime ISA; you can put up to £4,000 a year into it and you get another 25 per cent added in by the government,” Jasmine says.
NEED A LOAN? GO TO FAIR LENDERS
“For many years, people who couldn’t get cheap loans from banks and other lenders had to resort to high-cost lenders like Provident Personal Credit,” says Jasmine. The company went into administration in March and is now advising former customers to consider credit unions and affordable credit providers like FairForYou. co.uk. “These organisations help people with savings and loans, particularly if you are on a low income,” Jasmine says. “They’re like not-for-profit banks but, unlike banks, they will lend small amounts to their members at reasonable rates.” Citizens’ Advice, StepChange, Community Money Advice or National Debtline will all point you to fair lenders.