All the financial help you can get if you have to self-isolate due to coronavirus or there’s a local lockdown
CORONAVIRUS infections are rising and that means many more people are having to self-isolate or miss work because of local lockdowns.
This can affect your finances, but here we explain the financial support available, who's eligible and how to claim, including the new £500 payment for self-isolating.
£500 self-isolation payment
A new payment of up to £500 is available if you're officially told to self isolate by the NHS, are on a low income and can't work from home and this causes a loss of income.
If you've been contacted by the NHS Test and Trace team and asked to self-isolate for 14 days to help stop the spread of coronavirus, you may be eligible for the money.
Who can claim?
Just under 4million people receiving certain benefits in England will be able to claim the cash if they are asked to self-isolate from 28 September onwards.
Anyone who can't claim SSP could or .
You may also be able to get SSP if you are in a local lockdown and have been told to shield.
Income support for the self-employed
The self-employed can still apply for support through the government's Self-Employment Income Support Scheme.
If you're unable to work or earn an income because you're self-isolating or because of local lockdown restrictions you may be able .
Taking payment holidays
You may be able to reduce your outgoings by taking a payment holiday.
A payment holiday is a break from paying back the money you owe on things like loans and mortgages and you may be able to reduce payments too rather than pausing them all together.
You should speak to your bank, lender or provider to agree a break or reduction - never just stop making payments.
You'll still have to pay back what you owe after the break and you may end up paying back more in the long term because you're still being charged interest during a payment break.
It might also take longer to pay the money back, so make sure you understand things fully before deciding to take a break.
Mortgage
Homeowners who find themselves struggling to pay a mortgage can ask their lender for a break of up to six months.
This temporary help is available until 31 October but banks will continue to offer help for anyone struggling after this on a case-by-case basis, although it could impact your credit score.
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Will a payment holiday affect your chances of getting a new mortgage?
IT'S up to individual lenders to decide whether or not they take into account a coronavirus payment holiday when considering a mortgage application.
Although they can't see a payment break on your credit score, they may use other methods such as Open Banking where it will show up.
Here's what the banks have said they will do, according to MoneySavingExpert:
- Barclays
Barclays has said that it won't necessarily use information of a payment holiday due to the pandemic when assessing a new mortgage application.
For example, a payment holiday with another lender won't have an impact on your mortgage application.
- Bank of Scotland, Halifax and Lloyds
All three banks are owned by Lloyds Banking Group. They've said that it will take payment breaks into consideration when deciding whether to lend to you, even if you took it out due to the coronavirus crisis.
- NatWest and RBS
Both are part of the same banking group, Royal Bank of Scotland. The policy here is that a coronavirus payment break would be considered but having one itself wouldn't prevent someone from being approved a new mortgage.
Loans and credit cards
Everyday bills
Help with rent
For private renters, speak to your landlord as soon as you can.
They may be able to defer your payment, or to allow you to pay a smaller amount - but they don't have to do this.
Social renters should speak to their housing association or local council.
A ban on evictions during the pandemic has now ended, but where there is a local lockdown in place, evictions will not be enforced by bailiffs.
Help if you can't pay
If you find yourself struggling financially because you're self-isolating or because you're in a local lockdown, there's always help available.
Contact your bank or lender in the first instance if you're struggling to keep up with repayments.
Millions of families on low incomes in England will be paid up to £500 if they have to quarantine to stop the spread of the coronavirus.
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