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COVID-19
Support for Individuals & Self Employed
Universal Credit
For the self employed, including those who work from home, and lower earners (below £118 per week), you can claim for full Universal Credit.
There is an increase to the standard Universal Credit Allowance by £1,000 a year for the next 12 months. The normal Universal Credit allowance depends on your individual circumstances, but if you’re single and 25 and over you can get up to a monthly standard allowance of £317.82. Over a year, that’s £3,813. So with the additional £1,000, that's likely to mean somebody in this category could get up to £4,813/year.
Of course, any universal credit you do get is dependent on your earnings, whether you’ve got children, and other factors.
You also have the option to claim for the Contributory Employment and Support Allowance to top up the universal allowance, if you meet conditions for eligibility.
Self employed accessing universal credit
The self employed will be able to access universal credit at a rate which is equivalent to statutory sick pay.
Universal credit is designed to provide people with a safety net if they’re unable to work, or top up incomes for those in work, though how much you actually get is subject to means testing.
The Chancellor confirmed that he will be suspending the 'minimum income floor'. This means the self-employed can now access universal credit at a rate equivalent to statutory sick pay, which is currently £94.25 per week.
Working Tax Credit
There will be an increase to the working tax credit basic element by £1,000 a year for the next 12 months.
With working tax credit, a basic allowance is currently up to £1,960 a year, though what you get depends on your circumstances.
With the emergency increase, the new working tax credit basic allowance would be up to £2,960 a year.
How do I access the funds?
Contact your local Department of Work & Pensions (DWP) in the first instance.
Self-employed: Payment on account due in July
For those who are due a payment on account in July 2020, this does not need to paid until January 2021.
Hardship Fund through local authorities
How much is available?
£1 billion to support the financial security of vulnerable people, through a half billion boost to the welfare system, and a half billion pound Hardship Fund for Local Authorities. Help will be provided on rent and home running costs via the Hardship Fund if you cannot work.
How do I access the funds?
Contact your local authority quoting the Hardship Fund for more information Self-employed and low earners (below £118 per week)
Help for renters
Help for renters by increasing universal credit and housing benefit so that the local housing allowance will cover at least 30% of the market rent in the recipient's area.
The amount you can currently get in local housing allowance depends on where you live and what kind of accommodation you live in.
You can check current local housing allowance rates for your area using this DirectGov tool. Local housing allowance has been frozen for several years, so today's announcement means that your local housing allowance will be brought up to whatever 30% of the market rent in your area is.
Mortgage holiday
Those who have difficultly paying their mortgage, mortgage lenders will offer at least a three month mortgage holiday.
Call your mortgage provider directly for help
Mirandus Recommendation
A mortgage holiday means you will be due to pay any outstanding interest deferred after the mortgage holiday arranged and will likley lead to higher monthly payments, so think carefully on this option and the length of time you wish to take a break from payments.
Please have a look at the following pages to find exactly what you are looking for: