My picks of last week’s news are the extra £38 money for debt advice and StepChange’s Coronavirus – financial recovery strategy.
Tweet of the week
Historian here. We almost never use statues to teach history. We have a whole bunch of more efficient tools at our disposal, like, you know, BOOKS. What’s happening is that these young people HAVE learned the history, and that’s why they’re pulling down the statue. 💪🏽
— Dr Una McIlvenna 💀🎶 (@UnaMcIlvenna) June 8, 2020
Extra £38 million for debt support in England in the wake of coronavirus MaPS: Money and Pensions Service predicts UK need for debt help will increase 60% by the end of 2021.
- and my article on the news: MaPS to give £38 million more for debt advice – it’s badly needed!
Coronavirus and personal debt: a financial recovery strategy for households StepChange: We estimate that 4.6million people negatively affected have accumulated £6.1billion of arrears and debt, averaging £1,076in arrears and £997in debt per adult affected.
- Guardian article on it: UK households face £6bn debts because of Covid-19, says charity.
FCA fines Lloyds Bank, Bank of Scotland and The Mortgage Business £64,046,800 for failures in mortgage arrears handling FCA: The FCA therefore found that the banks breached Principle 3 and Principle 6 of the FCA’s Principles for Businesses between 7 April 2011 and 21 December 2015.
- Sun article on it: Lloyds pays £350 to 526,000 mortgage borrowers after wrongly pushing people further into debt
Furloughed Hull dad ‘in debt’ because of little-known DWP Child Maintenance rule HullLive: the CMS has told the dad he must continue to pay maintenance in full, despite earning less, due to the 25 per cent threshold rule – which means the organisation will only alter a paying parents’ liability if their wage increases or decreases by 25 per cent or more.
Over a million people are struggling to pay fuel bills during lockdown – how to get help Daily Record: Everything you need to know about resolving energy debt during the coronavirus crisis
TSB is first bank to withdraw mortgage deals for customers with 15% deposit amid fears of a plunge in house prices Mail: High street banks have largely deserted customers with a deposit of 10 per cent.
Benefits & other news
Return to spender Resolution Foundation: To get a complete picture of the current hit to living standards, however, we need to switch our focus from jobs and earnings to incomes and consumption.
Coronavirus: Young hit hardest by lockdown financial squeeze BBC: young people, renters and people living in London have found a greater proportion of their income goes on essentials, some of which cannot be deferred, than other groups.
Half of coronavirus Universal Credit claimants ‘face hardship’ in five-week wait Mirror: The damning survey comes as charities warn the five-week wait for payment is leaving people destitute during the Covid-19 pandemic.