The Chancellor of the Exchequer, Rishi Sunak, alongside Boris Johnson, has announced an unprecedented package to support families and businesses
With the coronavirus pandemic shutting down normal day-to-day life for a huge number of Britons, the government has introduced measures to keep families secure in their homes and the economy intact.
“Our planned economic response will be one of the most comprehensive in the world; you will not face this alone.”
Those were the words on Friday evening from Rishi Sunak, Chancellor of the Exchequer. He spoke at length about the plans set to come in place to help protect the workforce – and economy – when it’s needed most.
“I have a responsibility to make sure that, for the first time in our history, the government is going to step in and help pay peoples wages. We’re setting up a new coronavirus job retention scheme,” explained Sunak.
This means that the government is promising to cover 80% of the salary of retained workers – up to a value of £2,500. And any employer will be eligible for the scheme.
The scheme itself will cover the cost of wages – backdated to 1st March – and will be open for an initial three month period, although Sunak has vowed to extend the scheme if necessary.
For homeowners, the government announced a three-month mortgage holiday for those in financial hardship during this time. Customers will need to apply for the scheme through their mortgage provider, and although acceptance isn’t guaranteed, all applications will be fast-tracked.
During the three months, under FCA rules, accounts will still accrue interest, which will be recovered later, however, the capital sum of the mortgage will remain unchanged. Homeowner’s credit ratings won’t be affected.
Initially, only available for owner-occupiers, lenders have now extended the three-month holiday to include buy-to-let mortgages.
On the 18th of March, the government announced that landlords cannot apply to the court to evict tenants for at least three months. If you are worried about rent arrears, at the first instance it is recommended to talk to your agent and landlord first to agree to a rent reduction or to accept late rent.
Rent will still be due as normal, so if you can still afford to pay your rent, they recommend you do so as not to end up with a large bill at the end of this period. Landlords may allow you to delay payments or pay a reduced rate; however, they are not obliged to do so.
If you have lost your job, or are suffering a reduction in your earnings, you will need to apply for any benefits you may be entitled to. Your benefits should increase with a change in your earnings, and this will include housing benefit.
There are calls for more to be done to help renters, including the possibility of a ‘rent holiday,’ similar to the mortgage holiday. Charities and unions have also called for increases to benefits payments including SSP to help people cope with bills.
For up-to-date information about your finances during this period, please follow this link – https://www.gov.uk/government/publications/support-for-those-affected-by-covid-19/support-for-those-affected-by-covid-19
Connect with us
View by date
Yesterday evening, the Prime Minister, Boris Johnson led the daily news briefing with an update on the lockdown rules. Mr Johnson confirmed that the five tests that needed to have been met during lockdown have now been met. The five tests included: 1. Making sure the NHS could cope. 2. A sustained fall in the …Read more...
Boris Johnson announced on Monday that all non-essential retailers will be allowed to reopen in England from the 15th June. Retailers will have to adhere to new guidelines to protect their workers and their customers, and it is ‘contingent on progress in the fight against coronavirus.’ This goes alongside outdoor markets and car showrooms which …Read more...
This weekend should have been the final of the Emirates FA Cup Final. However, with sport suspended until mid-June, we thought we would look back at some of the greatest FA Cup finals ever… The FA Cup is the ultimate knockout football competition. Originally beginning in 1871-72, the tournament is open to all clubs …Read more...
The signs that Britain is continuing to take tentative step to life after lockdown increased today when it was revealed McDonald’s is to re-open 32 of its drive-through takeaways. Days after announcing it was to open 15 of its 1,270 branches for delivery orders, the fast-food giant has announced more than 30 restaurants, largely in …Read more...
You may not be able to enjoy days out with the kids right now, but there’s still plenty of fun that can be had at home! Baking Cooking and baking are great activities for children of all ages. Of course, depending on the age of the child, they will be able to undertake different cooking …Read more...