MILLIONS of vulnerable Brits are at risk of being pushed into debt due to a lack of protection for those in local lockdowns, a charity has warned.
Citizens Advice is calling for more support in areas in England with tougher coronavirus restrictions, particularly those that are moved into Tier 3.
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Blanket measures put in place to protect people’s finances during the national lockdown in March have since been eased as restrictions were lifted over the summer.
But the charity warns that a more tailored approach is now needed in regions where the government is enforcing stricter rules.
People’s income in Tier 3 – or “very high” risk areas – will be hit the hardest, as businesses, such as pubs and bars that only serve drinks, are forced to close.
The Chancellor’s Job Support scheme will cover two thirds of wages for employees whose workplace has been temporarily shut down, but Citizens Advice warns this is not enough.
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It comes as Manchester mayor Andy Burnham is believe to have finally accepted a Tier 3 lockdown today after a stand-off with the government.
Bailiffs should be temporarily banned from chasing up debts for council tax arrears in Tier 3 areas, the charity said, while local authorities should be given extra funding to support those who’ve fallen behind on payments.
The government should also provide private sector tenants with grants or loans if they are struggling to pay their rent, prioritising those in Tier 3.
Wales already has a scheme to help tenants cover the rent with low-cost loans that must be paid back over five years.
The best level of support is being provided by energy suppliers that continue to offer the same care for vulnerable customers as it did during the national lockdown.
These measures include providing extra credit to those on prepayment metres when they can’t afford to top up, to make sure they’re not disconnected. The scheme was today extended until 2021.
The charity adds that debts will be made worse if the £1,000 a year coronavirus boost to Universal Credit isn’t extended beyond April 2021.
Financial help for local lockdowns
HERE’S all of the extra help you can get if where you live has gone into local lockdown:
Up to two thirds of wages covered – Under the Job Support Scheme, the government will pay up to 66% of your wages if you can work because the business has been shut down by local restrictions.
£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.
Statutory Sick Pay – Anyone who must self-isolate and can’t work from home can get Statutory Sick Pay (SSP) of £95.85 per week if they qualify for it.
Income support for the self-employed – The new self-employed grant will cover 20% of average monthly profits, up to a total of £1,875, spanning November to January next year.
Taking payment holidays – You may be able to reduce your outgoings by taking a payment holiday on things like your credit card, mortgage or personal loan. You should speak to your bank, lender or provider to agree a break or reduction – never just stop making payments. These end on October 31.
Apply for a council tax reduction – You can apply for a council tax reduction on the Gov.uk website but you’ll need to meet certain criteria. Your bill could be cut by as much as 100 per cent if you’re on a low income or claim benefits. Carers who look after someone in the household for at least 35 hours a week are also exempt from paying.
Help if you can’t pay – If you find yourself struggling financially there’s always help available. Contact your bank or lender in the first instance if you’re struggling to keep up with repayments.You’ll also find support and advice from the following organisations for free:
Jamie McGlynn, local service manager at Citizens Advice Manchester, said: “Now that many of the protections have been lifted, we’re seeing a surge in people contacting us for help as bailiffs, debt letters and eviction notices start up again.
“Added to that, there have been a lot of redundancies announced in recent weeks and many people we help are working reduced hours because of the impact of the first lockdown.”
Dame Gillian Guy, chief executive of Citizens Advice, added that lifting the nationwide financial protections was based on the assumption that household finances would improve after lockdown.
She said: “For many in the highest tier of coronavirus restrictions, this will now simply not happen.
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“Some regulators, like Ofgem, have been proactive in strengthening protections as we enter what is likely to be a hard winter for many.
“In other sectors, help for people living in the areas of strictest lockdown is confusing, inconsistent and, in some areas, inadequate.
“As more parts of the country move into the highest tier of coronavirus restrictions, a renewed package of protections and support is vital to keep people living there from falling into further debt.”
The Sun has contacted The Treasury for comment.
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