Your lockdown recovery guide
There’s a support package to help you stay afloat
The Government’s coronavirus financial support packages keep changing.
If you’ve not been able to keep up-todate with them, don’t worry. Here’s a summary of where we are today.
Employees
The furlough scheme was due to end on October 31 and be replaced by the Job Support Scheme. However, when Boris Johnson announced a further four- week English lockdown on October 31, he also extended the furlough scheme and amended this again on November 5.
The scheme has now been extended until March 31, 2021, for employees already on an employer’s payroll at 23:59 on October 30. Employees who were made redundant or stopped working after September 23 can also qualify for the scheme if they are re-employed.
The government will pay 80 per cent of wages up to a cap of £2,500 per month of gross pay for claims running to January 2021. This policy will be reviewed in January to decide whether economic circumstances are picking up sufficiently for
employers to contribute more.
Furlough cash is capped at £2,500 gross per month
Self-employed
The Self- Employed Income Support Scheme (SEISS) has also been extended for six months, with two grants. The first covers three months from November 1 to January 31. It amounts to 80 per cent of three months’ average monthly trading profit, given as a single payment and capped at £7,500.
The second grant (amount not yet decided) will cover the three months to 30 April 2021.
For the thousands who have slipped through this support net – primarily those in the “gig economy” – the remaining support option is Universal Credit (UC), which for those over 25 is £ 409.89 per month. UC’s Minimum Income Floor is temporarily removed if an individual gets coronavirus or must stay at home because of it. The MIF did not apply to anyone after April 6 this year but was due to be reinstated on November 13. It has now been extended until the end of April 2021.
Sick pay
Eligible employees can claim Statutory Sick Pay of £95.85 per week from day one. It is available to those who are advised to self-isolate. Self-employed and gig economy workers who are not entitled to statutory sick pay can claim Employment and Support Allowance, which is £74.35 per week.
Mortgage holidays
For those in difficulty due to coronavirus, lenders will offer at least a threemonth mortgage holiday. This was due to end on October 31 but has also been extended. Borrowers who have already had a payment holiday can have a further three- month deferral, and those who have not yet had one will be able to request two payment deferrals, of up to six months in total.
Those who resumed repayments after an initial deferral will be eligible for another one of up to three months, and given several options on how best to do so.
Borrowers have until January 31 2021 to request a payment deferral.
The FCA (the financial regulator) expects lenders to provide tailored support to those who are not eligible for further payment deferrals.
A ban on repossessions will continue to January 31 2021.
Tenants
Legislation to suspend new evictions expired on September 20 but since August 29, except in very serious cases, landlords must give six months’ notice of possession proceedings.
For a full summary of your options see WarrenShute.com or search for the weekly Money Planner podcast.