14 coronavirus money & travel need-to-knows
Martin: 'It's an unprecedented challenge to our health, economy, businesses, personal finance and way of life. Everyone needs to prepare'
Martin: 
For our nation, it's been a hard, anxious and upsetting week. While the primary concern is health, our financial wellbeing matters too.
Sadly, the question isn't whether the impact of the gradual shutdown across the UK will be devastating on businesses and personal finances - that's a given. The real unknown is how long it will last.
My eyes have wettened more than once, after contact from people panicked in dire straits - whether it's self-quarantined heart patients who can't get out to top up energy prepayment meters, or the desperation of a single mum, petrified as she can't afford to feed her child if schools are shut and she needs to stay at home to look after them.
Yet answers aren't easy. For the MSE team and I, it's been a constant, ongoing battle to get the info you need, and often when we do, it changes minutes later and we have to start again. I'm incredibly proud of the team - but we can't promise perfection at this time, and in some cases we have to deliver the horrid answer that there is no help.
However, we are committed to working (all at home) to try to answer 1,000s of the questions you've sent us. And we won't just focus on coronavirus, but continue helping in all our usual MoneySaving areas too.
We're constantly updating TWO KEY coronavirus guides
- The Coronavirus Financial Help & Rights guide.
- The Coronavirus Travel Rights guide.
Yet for quick help, the team and I have prepared these 14 coronavirus need-to-knows.
1) Three-month mortgage holidays & credit card forbearance are available for those who are struggling. If you may struggle to keep up with your bills and keep food on the table, speak to your bank. Most have said they'll offer forbearance (tolerance and help), plus on Tue evening just before we sent this email the Chancellor announced he'd got a 'forbearance commitment' from all of them.
- Mortgages & loans. All banks should offer those struggling a three-month holiday from mortgage payments (ie, deferring the payments by three months). This isn't underwritten by the Govt - it's offered by banks.
The impact on your credit score is currently unconfirmed. Yet, as even before this banks were offering something similar, and as most said it wouldn't affect your credit score (as they were 'agreed payment holidays'), we suspect that'll still be the case.
We'll be updating the exact position, including credit score impact & eligibility, as the info comes in, in our Lender-by-lender mortgage help.
- Credit cards. Most banks and card firms told us they will allow emergency credit limit increases, while some will offer repayment holidays and a few will waive fees for missed payments. For full info, credit score impact & eligibility, see Credit card lender-by-lender help.
2) Struggling to pay your rent? Urgently speak to your landlord. The Chancellor has sadly not yet announced direct help for renters, though he's hinted there may be more to come in the next couple of days.
This is a more difficult area, as it's often a relationship between two individuals, and landlords may be relying on the income just as much as you are. Explain your situation, and if necessary, ask if you can be allowed more time to pay your rent.
Remember, most landlords will struggle to get new tenants right now, so there's a common interest in keeping tenants in properties. Trying to come to a reasonable mutual arrangement helps both. The landlords' associations have encouraged them to show forbearance, so good communication is key. See Renters' help.
3) Employees are due statutory sick pay from day one. If you're employed and forced to 'self-isolate', whether sick or as a precaution, you are due at least statutory sick pay (some employers give more), though you need to earn on average at least £118/wk to be eligible.
The amount isn't generous though, at just £94/wk (Martin has been lobbying to change this). The claim is currently from the fourth day sick, but the Govt plans to make it from day one (the legislation hasn't kicked in yet, but when it does it'll be dated retrospectively from 13 Mar). This may well change when we hear more from the Chancellor. See Sick pay help.
4) The Foreign Office now advises against all but essential travel ANYWHERE outside UK - the key trigger for travel insurance. This has just happened - it's initially for 30 days, though of course it may be extended. It means if you do have a trip booked in that time with most travel insurers (sadly not all) you are usually due a refund even if flights/hotels are still on. See our Coronavirus travel rights guide for more.
PS: Some insurers are snowed, and prioritising those travelling within the next 7 days - they're asking if you can wait to call, please do.
| Martin: 'If you're in NEED of 0% credit - apply ASAP' "I've heard unconfirmed mutterings (though intuitively it makes sense) that credit card firms are already starting to tighten acceptance criteria - never mind the fact many people's income's may be compromised. Therefore, if you need to cut existing debt costs via 0% balance transfers, do it ASAP.
New borrowing is trickier. Normally I'm anti-borrowing unless for one-off needed, planned, budgeted-for expenditure (in which case, use our Cheap Loans guide).
Right now though I'm torn. It's understandable that in these unprecedented times some may want access to a cheap borrowing facility just in case. In which case 0% credit cards will fulfil that, but please be incredibly careful - only use in dire emergency (if you get one, lock it away and pre-define the criteria you'll allow yourself to use it in)."
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5) If your child's school closes you've a right to take time off work to look after them - but it may be UNPAID. While the Govt's so far decided against mass school closures, it's warned these may be necessary for up to 16 weeks. If this happens (or your childminder/nursery shuts), by law you can take a reasonable amount of time off to look after your kids.
But as you're not sick or self-isolating, you don't get sick pay, and you don't legally have a right to be paid for this time (we hope this may change in announcements the Chancellor's due to make over the next couple of days). Some employers will offer paid time off though, so check or see if you can take it as paid holiday. Info & updates in Childcare work rights .
6) Self-employed / freelance / on zero hours? You may be able to claim employment support allowance. If you are off work and not entitled to sick pay, you may be able to claim benefits - the primary one being the employment support allowance. But this is even less generous than statutory sick pay - just £73/wk. Again, it'll be available from the first day you're off (once the new legislation has kicked in).
We hope to hear the Chancellor announce improvements and more help in the next few days. All updates will be in our Help for the self-employed info.
7) Everyone struggling or likely to should check now if you're entitled to benefits. As well as the specific help available for coronavirus, it's important to check whether there is other help you may be eligible for. Use our free 10-min benefit check-up tool.
| Martin: 'We need to show patience, compassion and forbearance, even to companies, at this time' "I wanted to say something that's at odds with MSE's original founding motto - 'a company's job is to screw you, our job is to screw them back' (since then it's morphed to 'cutting your bills, fighting your corner'). Right now, even in our commercial relationships, we should try not to be adversarial. We want banks and firms to show people patience, compassion and forbearance. Yet equally, when our entire economy and way of life is under threat, we must try to return it. Many firms are struggling to cope, change policies, or even just get their staff settled in new ways to work - so be patient. And for those who can afford it, even if you've a right to a full refund for a ticket, travel or more, if the firm is in a struggling sector and asks if you'll take vouchers instead, it's worth considering. That may just be what stops that firm from collapsing and their staff from losing their jobs, which results in more money taken out of society and a vicious cycle. Of course, be mindful of how you'd be protected (eg, by your card provider) if it did go bust." |
8) Concert, theatre or sporting event cancelled? You should usually get a refund. A succession of events big and small have been cancelled, from The Who's tour to the Grand National. If you bought tickets from an official seller, you should be entitled to a refund, though not necessarily booking or delivery fees - see Event refund help. Though as Martin says above, you may want to consider how hard you push for it, depending who the firm is.
9) Most banks will let you access fixed savings without penalty. Normally if you've locked cash away in a fixed-rate savings account, you have to pay a penalty to get it out before the fixed term's up. Yet at least eight banks have told us they'll waive penalties for those affected by the pandemic. See Savers bank-by-bank help .
It is worth noting though, with interest rates dropping, your money may well be locked away at a rate that's now impossible to get (see fix savings note below), so you should only do this if really needed.
10) Topping up prepaid energy may be difficult if self-isolating, but
some firms will help. If you're self-isolating, those with a smart meter can top up remotely (via phone, app or online). If not and you have a trusted person who can help, let them take your key and card to the shop (it may need disinfecting first).
Otherwise, some firms say they can help, eg, Bulb and EDF are able to post you a preloaded top-up card or key with emergency credit. Not all are so proactive though, see Energy firm-by-firm prepaid top-up help.
11) Sky and BT Sport are not currently offering refunds for sports services. If you've paid, sadly they've said there is no refund, even though live sport is now in effect cancelled. However, if you're out of contract you may want to use our Haggle with Sky & Haggle with BT guides to reduce your bills and cancel the service.
12) If you are (or may be) made redundant, know your rights and get a survival plan in place. Hard as it is to write, we are likely to see an increase in redundancies, and it is likely to be difficult for many to find alternative employment while the shutdown conditions are still on. You do have rights though. See our Redundancy survival plan.
13) Got a train season ticket? You can get a partial refund for a small admin fee. While you can't pause a train season ticket, many firms will let you cancel and get a refund for the rest of the time (based on the cheapest way you could've bought tickets for the travel you've had, plus typically a £10 admin fee). So check if cancelling and rebooking later will be cheaper.
14) You can no longer get new travel insurance to cover the coronavirus - and annual policies may not cover new bookings. If you have a holiday booked but no insurance, then it is too late. We don't know of any policies offering cover for coronavirus-caused cancellations and claims, and even if you have an annual policy, most are now excluding coronavirus cover for newly-booked trips.
If you've already booked a holiday and are affected, a growing number of airlines (incl BA, Easyjet and Ryanair) are also letting customers at least rebook trips, while hotels and car hire firms are also offering some flexibility, so check. See What individual holiday firms are offering.
That's the core info - again use our Coronavirus Financial Help and Coronavirus Travel Rights guides. Plus it's a good time to focus on general finances and do a Money Makeover.
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