Your cash on life support: this was the ‘virus’ Budget

As the coronavirus pandemic plays havoc with our lives, the authorities are scrambling to limit the financial impact. Sam Meadows reports

A week that started with the worst one-day fall for British stocks since the financial crisis was followed by a Bank of England interest rate cut, the first Budget of the new Government and more record-breaking stock market drops, all under the shadow of the growing threat from coronavirus.

A lot has changed for your finances in the past few days alone. Rishi Sunak, the Chancellor, used his first Budget to lay out a major package of support for anyone affected by Covid-19, but he also outlined the Government’s plans for the future.

The Budget came hours after the Bank of England’s decision to reduce Bank Rate from 0.75pc to 0.25pc, as more firms take steps to protect workers from coronavirus.

This is Telegraph Money’s guide to what these turbulent days mean for your work, your mortgage, your savings and every other important aspect of your financial life.

WORK

The Government has warned that one in five people could be off work at any given time thanks to coronavirus. At £94.25 per week, statutory sick pay is far lower than most salaries, meaning many would be left struggling if they had to rely on it. The Government had already announced that statutory sick pay would begin on day one of sick leave instead of day four for those who have been affected.

In the Budget, Mr Sunak also announced support for the selfemployed ( see page 3).

He also unveiled measures to boost what many workers will earn. The National Living Wage, the minimum a firm can pay its staff, is expected to rise to £10.50 an hour by 2024 from its current level of £8.21. The most immediate change comes next month, when it will be increased to £8.72 an hour.

More than 30 million workers will