Get on furlough to cover part of your salary.
Furlough was introduced back in March to prevent mass redundancies.
Update 6 Nov 2010: Furlough scheme will be extended until end of March 2021. It will cover up to 80% of a person's wage up to £2,500/m. If you were made redundant
after 23 Sept 2020, you can be rehired and put on furlough.
Coronavirus Job Retention Scheme (CJRS) - also known as the Furlough scheme - will remain open until December, with employees receiving 80% of their current salary for hours not worked, up to a maximum of £2,500. Under the extended scheme, the cost for employers of retaining workers will be reduced compared to the current scheme, which ends today. This means the extended furlough scheme is more generous for employers than it was in October.
The scheme subsidises the wages of people who can't do their jobs, either because their workplace is closed, or because there is no longer enough work for them.
Hours before the furlough scheme was due to end, the government announced it would be extended until December, to cover a further lockdown in England.
In this current climate if your employer has problems with business you could ask them to furlough you on the government scheme. As of 5 Nov 2020 you will get 80% of your salary on this scheme, with the employer only covering pension and national insurance contributions.
You can be furloughed regardless of whether you are on full-time, part-time, agency, flexible or zero-hour contracts, but you must have been on the payroll by 30 October 2020.
You can also take on other jobs while placed on leave, as long as it doesn't breach the rules of your existing contract.
Also you can not be given notice while on furlough.
Your employer must put you on furlough. You can not claim this yourself. The payment from the government will be sent to your employer and they will pay you. Your employer is not allowed to pay you less than the government grant. Important to know is that if you are employed by your own business you can furlough yourself.
Update 6 Nov: Confirmend new SEISS rules:
- Self-Employed scheme will cover 80% of trading profits.
- will cover 3 months period from November to January inclusive.
- Grant will be taxable and capped at £7500.
- Grant extension will be for 6 months, from 1 Nov 2020 to 30 April 2021.
UK-wide Self-Employment Income Support Scheme (SEISS) scheme is extended. It will provide 80% of average trading profits for November.
The self-employed will be able to claim state aid of up to 80% of profits during the month-long lockdown. This is increased from the 40% before.
It will be opened from the end of November to cover November income. Freelancers, contractors and newly self employed people would remain excluded.
Payment will be expedited to provide support at the right time.
If you are a bussiness - limited company.
Business can continue to apply for government-backed support loans until 31 Januery 2021, extended from previous deadline 30 November 2020.
These are to include Bounce Back Loan Scheme (BBLS). Borrow from £2,000 and up to 25% of their turnover to maximum of £50,000.
Business can apply for BBLS through thir business bank. You can apply for a loan if your business is: based in the UK, established before 1 March 2020, has been adversely impacted by the coronavirus.
See also The Coronavirus Business Interruption Loan Scheme (CBILS) provides financial support to smaller businesses affected by coronavirus (COVID-19) for more options.
As a company you can also get:
Up to £3,000 per month under the Local Restrictions Support Grant if their premises is forced to close.
£1,000 for every furloughed employee kept on until at least the end of January.
£1,500 for every out-of-work 16-24 year-old given a ''high quality'' six-month work placement.
£2,000 for every under-25 apprentice taken on until the end of January, or £1,500 for over-25s.
A grant available to self-employed people affected by coronavirus has also been doubled to 40% of profits, with a maximum grant of £3,750 over a three-month period.
Life insurance Covid sickness cover.
There is no doubt that the coronavirus pandemic has taught us a number of valuable lessons - one of which is how financially vulnerable we are.
Many have witnessed first-hand how quickly life can change and may have been reminded of the importance of financial protection.
If you are motivated to take out life insurance after COVID-19, here's what you need to know.
An indisputable change in the usual surveys is the introduction of COVID-19-specific questions in the life insurance application forms. Additional questions are asked about diabetes, asthma, overweight and the like.
This means that when you apply for life insurance quote, you will need to answer questions such as:
- have you tested positive for coronavirus in the last 30 days?
- have you been advised to isolate yourself?
- Have you had symptoms of coronavirus?
- Have you been in direct contact with someone diagnosed with a coronavirus?
If you answer yes to one or more of these questions, your life insurance application will probably be postponed - how long will depend on the insurer, but it is often about a month (after the time of recovery, if you are actually infected with the virus).
And if you have suffered particularly severe symptoms, such as if you have been hospitalized, your application may be delayed for longer.
It is crucial that you answer these and all other questions honestly and do not fail to disclose pre-existing conditions. If you ever claim and your insurer finds that you have been dishonest, it may invalidate your insurance.
If your condition puts you at greater risk for COVID-19 - such as asthma and diabetes - or you are over the age of 50, you may find it more difficult to get life insurance coverage, while those insurers that offer coverage are likely to charge higher premiums.
If your condition is particularly high risk, the insurer may ask for more medical information or ask your doctor for a report.
Whichever company you choose for your insurance, you should carefully read the terms of the proposed contract so that there are no unpleasant surprises.
Get purchase credit cards to differ payments.
More than 70% of UK seniors use credit cards and ability to postpone payments is crucial for people whose incomes are affected by COVID-19. Reduced working hours or redundancies reduce their ability to pay bank bills.
There are thousands of deferred payments on credit cards and personal loans. Those who have received a small deferral, usually a quarterly one, will have to face the new conditions of the banks. Payments should not be missed, but the card provider should be notified so that they can help and agree on a plan on how to make payments. You need to think carefully before concluding any of the new arrangements.
If you need help with payments one option would be to apply for a credit card for purchases. This credit card will give you interest free period (usually 12 – 24 months) when you don’t have to pay any interest on the purchases you made with it. Be careful though, because high interest rates will kick in after the interest free period. Also, you must pay in the minimum payment amount every month.
If you already have credit card for purchases and your gratis period is coming to and end, you can apply for a balance transfer credit card. How do balance transfer credit card work:
You get a credit card and you can transfer a balance from another credit card to the new one. You then have a interest free period (12-36 months) where you must pay the minimum amount every month and you are not charged interest. After this period ends you will be charged high interest, so you need to make sure you have repaid the full balance by then.
Credit card for purchases can have balance transfer fee – one of payment where you pay some percentage of the balance you want to transfer. There are also balance transfer credit cards which have no such balance transfer fees.
In any case be very careful how much you borrow and plan ahead.
Cancel car insurance to save money in the lockdown.
Everyone knows the rule - If you want to use your car, it must have a valid insurance. In the fast-paced and busy everyday life, the need for this is indisputable. But how are things in the current situation?
For more than half a year, people's normal lives have been blocked, as well as their free movement back and forth. Their cars, for which all taxes have been paid, stand in front of the homes unnecessary, unusable, but insured. The news that is received by the hour, it turns out that these cars will not be used soon, and considering the situation, the money given for insurance would be beneficial to the insured. Taking responsibility not to use the car, the insurance is unnecessary. In many cases, when it comes to families, two cars are available, respectively with two insurances. It would be much more practical and profitable for one car to have suspended insurance and the insurance of the second to be for two drivers.
Of course, the problem remains where to keep the cars, with cancelled insurance. Having a personal parking space, garage or yard is easy, the problem is when the car has to stay on the street, where the lack of insurance does not allow it. You need to look for a place in a paid parking lot, which is not always profitable.
Another thing to keep in mind when cancelling insurance is to take the No Claim Bonus letter confirmation from your insurer, which is valid for at least 2 years. With it you can re-insure your car and keep the discount.
Check with your insurer what are the terms and conditions if you want to cancel your car insurance.
It is clear that it is a very difficult moment for everyone, but for ordinary consumers in a given situation it is extremely important to have small reductions in costs and reaction and support from the responsible institutions.
Hours before the main mortgage holiday schemes neared it’s deadline, the UK government announced that mortgage holidays would be extended. There are still no full details on how this will happen, but here's what we know:
• Borrowers who have already started a paid holiday will be able to extend it. This will be up to a maximum of six months.
• The FCA says lenders will soon provide information on what this means for customers and how to apply.
• Borrowers who have already had a six-month payment break and still need help will receive "tailored support". Your lender should contact you to discuss this.
• New and extended mortgage vacations will not appear in your credit report.
So, if you haven't had one yet and you're applying in November, or if you've had it for less than six months and extended it, it won't show up as a missed payment. (Remember, however, that even if it's not in your credit file, lenders can still find out about the break in payments in other ways and can use that information to help make a decision on your next loan application.)
If you have already taken six months of paid mortgage leave, then you will switch to "tailored support measures". However, what this means for you will depend on your financial circumstances. How well your finances are settled will also have an impact.
These are some of the help measures that may be offered to you, although lenders are free to offer other solutions if something else works better for your specific circumstances:
• Payment deferral (a new deferral can be added to the current one). This is probably only a short-term measure and can be offered if your circumstances are still changing and you are unable to commit to a longer-term measure, such as changing the type or length of your mortgage.
• Reduced payment period (a new period can be added to the current one). If you can pay something for your mortgage but can't make a full contractual payment, your lender may agree to make reduced payments. Again, this measure is likely to be only for the short term.
• Extension of the mortgage. This basically means that you will pay less each month (but because you take out loans for a longer period, you will pay more in general).
• Change your mortgage type. An example of this could be switching to a mortgage for interest only or switching to a product with a different interest rate.
Let's hope that soon we will have all the necessary information.
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