The Financial Support Available During Lockdown | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 02/11/2020

On Saturday evening, Prime Minister Boris Johnson announced plans for England to go into a second lockdown that he stated will last until the 2 December 2020. Although the lockdown measures still need to be passed through Parliament, already a number of financial schemes have been put in place to help those who will financially struggle during the second lockdown.

Here, we take a look at what help will be made available to those financially impacted by the lockdown in England.

Furlough scheme extended

At the time of the proposed lockdown announcement, the Prime Minister also stated that the furlough scheme will be extended. The extension of the scheme, which was due to end on the 31 October 2020, will see workers who have been furloughed receive 80% of their current salary for hours not worked, up to a maximum of £2,500. The furlough scheme will now remain open until December, covering the November lockdown period. The extended furlough scheme is slightly more flexible, as employers can now ask employees to work part-time and still be eligible for furlough in addition to being furloughed full-time.

Mortgage repayment holidays extended

It was also announced that mortgage repayment holidays, which were also due to end on the 31 October 2020, will be extended. Homeowners financially impacted by the pandemic will now be able to apply for a mortgage repayment holiday for six months. Those who have already applied for a repayment holiday will be able to top up the holiday for a further six months. The application and granting of mortgage repayment holidays will not be recorded on the borrower’s credit files.

Credit card and personal loan repayments

The Financial Conduct Authority (FCA), which regulates the finance industry, has put forward proposals for consumer credit borrowers, which includes credit card and personal loan borrowers, to be granted a six months repayment holidays if they are facing financial difficulties due to the pandemic. The FCA has also proposed that those who have already been granted a repayment holiday should be allowed to extend the holiday period for a further six months.

Moving home during the second lockdown

The Government guidelines for November lockdown state that those who cannot work from home can still continue to work, even if this involves working in other people’s homes. As such, house valuations, removals and estate agents viewing properties can all still take place during the November lockdown. In addition to this, Housing Secretary Robert Jenrick has said that people can still move home during the lockdown, but it must be a new permanent primary address.

Additional support for businesses

Businesses forced to close due to the lockdown will be eligible for the following grants:

  • Grants of £1,334 per month or £667 per two weeks for properties with a rateable value of £15,000 or under;
  • Grants of £2,000 per month or £1,000 per two weeks for properties with a rateable value of between £15,000-£51,000;
  • Grants of £3,000 per month or £1,500 per two weeks for properties with a rateable value of £51,000 or over.

In addition to this, £1.1 billion will be given to Local Authorities to help them support businesses.

At the time of writing, no further information about additional financial support for self-employed or freelancers has been announced.

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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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