Coronavirus - latest personal finance news

On Friday 20 March 2020, the Chancellor announced a wide package of support for individuals who are struggling because of the economic impacts of the coronavirus outbreak.

Employees

The Chancellor announced a new fund to help employers to carry on paying their employees.

Businesses are to be given grants to cover the wages of employees who are currently unable to work because their employers are struggling as a result of the coronavirus outbreak.

The scheme will cover 80% of salaries up to a maximum of £2,500 per month.

It will be a few weeks before the scheme opens, but grants can be backdated to the beginning of March 2020.

It is currently unclear how this will work for people on zero-hour contracts until more detail is published.

The Chancellor expressed a hope that employers would keep employees on while waiting to be able to apply to the scheme. 

As an employee, this scheme will hopefully improve the chances of you being able to keep your job and continue receiving wages. 

People who are already out of work or lose their job

For people who have already lost their jobs and those whose employers do not choose to keep them on, the Chancellor has announced an increase in the standard allowance of Universal Credit and Tax Credits by £1000 per year. This increase will come into effect from 6 April 2020.

Renters

The Chancellor has announced an increase in the maximum amount of help through Housing Benefit or Universal Credit that will be given with rent in the private rented sector, called Local Housing Allowance. An extra £1 billion over one year across the UK is to be allocated to make sure that the maximum amount of help that people in the private rented can receive is at least 30% of average rents in all areas of the UK.

Self-employed people

The Chancellor has announced that the Minimum Income Floor on Universal Credit will be suspended for all self-employed people. 

This means that if you are self-employed, your Universal Credit entitlement will reflect the level of support you really need. This suspension will come into effect from 6 April 2020.