Tag: finance

Summer support for students

Earlier financial help for those facing hardship

Students facing hardship this summer due to COVID-19 can now receive financial support within a package of new measures.

The Scottish Government has brought forward early access to £11.4 million of discretionary funds – support for higher education students in financial difficulty – to be administered by colleges and universities.

Unlike continuing higher education students, most former further education students can receive benefits if they are unemployed. Colleges will now have flexibility to offer discretionary funds to bridge the timing gap between bursary payments ending in June and Universal Credit payments starting.

Scottish students studying in Europe as part of EU Portability or historically arranged schemes will be able to access a £100,000 emergency fund administered by the Student Awards Agency Scotland (SAAS).

SAAS has also suspended all new debt recovery actions in respect to grants and bursaries until September for students whose circumstances have changed and may have to return overpayments. Students are encouraged to contact SAAS to discuss what help is available.

Minister for Further, Higher Education and Science Richard Lochhead said: “Given the economic impact of COVID-19, many continuing students who rely on seasonal and part-time jobs in the summer could find it difficult to cover their basic housing or cost of living costs.

“No student should face financial hardship as a result – so these new measures will support students until the start of the next academic year when bursary, grant and loan payments will begin again.

 “We are now bringing forward £11.4 million in support for higher education students in financial difficulty that was not due to be available until the new academic year. This builds on our £5 million support plan for FE and HE students announced in April.

“The UK Government package announced on 4 May for higher education providers and students was disappointing, and fell short of recognising the full scale of the challenge.”

SNP MSP Gordon MacDonald has welcomed the Scottish Government’s announcement of extra financial help for students facing financial hardship over the summer months.  

MSP Gordon MacDonald said: “Many students across Edinburgh will have expected to find paid work over the summer to cover their rent or save for the following term – but are now, through no fault of their own, unable to do so.  

“This Scottish Government support will be welcome news for those students who rely on part-time jobs over the summer months, who could find it difficult to cover their living costs due to the COVID-19 pandemic. 

“No student should face financial hardship as a result of this crisis – and these new measures will support students until the start of the next academic year when bursary, grant and loan payments will begin again.”

Support for customers who are struggling to pay their mortgage due to coronavirus

The Financial Conduct Authority (FCA) has today announced proposals which will continue support for customers who are struggling to pay their mortgage due to coronavirus (Covid-19).

The proposal outlines the options firms will be required to provide customers coming to an end of a payment holiday, as well as those who are yet to request one.

For customers yet to request a payment holiday, the time to apply for one would be extended until 31 October 2020.

For those who are still experiencing temporary payment difficulties due to coronavirus, firms should continue to offer support, which could include extending a payment holiday by a further three months.

Christopher Woolard, Interim Chief Executive at the FCA, said: “Our expectations are clear – anyone who continues to need help should get help from their lender.

“We expect firms to work with customers on the best options available for them, paying particular attention to the needs of their vulnerable customers, and to provide information on where to access help and advice.

“Where consumers can afford to re-start mortgage payments, it is in their best interests to do so. But where they can’t, a range of further support will be available. People who are struggling and have not had a payment holiday, will continue to be able to apply until 31 October.’

If the proposals are confirmed, the FCA would expect:

  • Customers who can afford to return to full repayment should do so in their best interests – at the end of a payment holiday, firms should contact their customers to find out if they can resume payments and if so, agree a plan on how the missed payments will be repaid.
  • Anyone who continues to need help gets help – lenders should continue to support customers who have already had a payment holiday where they need further help. Firms are expected to engage with their customers and find out what they can re-pay and, for those who remain in temporary financial difficulty, offer further support. As part of this firms should consider a further three-month payment holiday.
  • Extending the time the scheme is available to people who may be impacted at a later date – customers that have not yet had a payment holiday and experiencing financial difficulty will be able to request one until 31 October 2020.
  • Keeping a roof over people’s head during a public health crisis – the current ban on repossessions of homes will be continued to 31 October 2020. This will ensure people are able to comply with the government’s policy to self-isolate if they need to.
  • Payment holidays and partial payment holidays offered under this guidance should not have a negative impact on credit files. However, consumers should remember that credit files aren’t the only source of information which lenders can use to assess creditworthiness.

This guidance would not prevent firms from providing more favourable forms of assistance to the customer, such as reducing or waiving interest.

Firms should consider signposting customers towards sources of debt advice. Debt advice may be helpful for customers coming to the end of payment holidays and may be particularly useful for consumers with pre-existing payment shortfalls or who are likely to be in longer-term financial difficulty.

When implementing this guidance, firms should be particularly aware of the needs of their vulnerable customers and consider how they engage with them. For customers who aren’t able to use online services (such as digital channels), firms should make it easy for customers to access alternatives.

The FCA welcomes comments on these proposals until 5pm on Tuesday 26 May and expects to finalise the guidance shortly afterwards.

This guidance only applies to mortgages. It does not apply to consumer credit products which are covered by separate guidance which will be updated in due course.

Gareth Shaw, Head of Money at Which?, said: “The extension of these measures will bring relief to people who would otherwise struggle financially during the challenging months ahead.

“Mortgage lenders should make the process as straightforward as possible, ensuring people can easily access the support they need.

“Consumers should also consider their options carefully as a mortgage payment holiday will likely lead to increased payments in the future – so it is likely to be in their interest to continue making payments as normal if that is feasible.”

Chancellor extends furlough scheme until October

The government’s Coronavirus Job Retention Scheme will remain open until the end of October, the Chancellor announced today.

  • Coronavirus Job Retention Scheme will continue until end of October
  • furloughed workers across UK will continue to receive 80% of their current salary, up to £2,500
  • new flexibility will be introduced from August to get employees back to work and boost economy

In a boost to millions of jobs and businesses, Rishi Sunak said the furlough scheme would be extended by a further four months with workers continuing to receive 80% of their current salary.

As we reopen the economy (at least in England – Ed.), we need to support people to get back to work. From the start of August, furloughed workers will be able to return to work part-time with employers being asked to pay a percentage towards the salaries of their furloughed staff.

The employer payments will substitute the contribution the government is currently making, ensuring that staff continue to receive 80% of their salary, up to £2,500 a month.

Chancellor Rishi Sunak said: “Our Coronavirus Job Retention Scheme has protected millions of jobs and businesses across the UK during the outbreak – and I’ve been clear that I want to avoid a cliff edge and get people back to work in a measured way.

“This extension and the changes we are making to the scheme will give flexibility to businesses while protecting the livelihoods of the British people and our future economic prospects.”

New statistics published today revealed the job retention scheme has protected 7.5 million workers and almost 1 million businesses.

The scheme will continue in its current form until the end of July and the changes to allow more flexibility will come in from the start of August. More specific details and information around its implementation will be made available by the end of this month.

The government will explore ways through which furloughed workers who wish to do additional training or learn new skills are supported during this period. It will also continue to work closely with the Devolved Administrations to ensure the scheme supports people across the Union.

The Chancellor’s decision to extend the scheme, which will continue to apply across all regions and sectors in the UK economy, comes after the government outlined its plan for the next phase of its response to the coronavirus outbreak.

The scheme is just one part of the government’s world-leading economic response to coronavirus, including an unprecedented package for the self-employed, loans and guarantees that have so far provided billions of pounds in support, tax deferrals and grants for small businesses.

Today the UK government is also publishing new statistics that show businesses have benefitted from over £14 billion in loans and guarantees to support their cashflow during the crisis.

This includes 268,000 Bounce Back Loans worth £8.3 billion, 36,000 loans worth over £6 billion through the Coronavirus Business Interruption Loan Scheme, and £359 million through the Coronavirus Large Business Interruption Loan Scheme.

Mike Cherry, National Chairman of the Federation of Small Businesses, said: “The Job Retention Scheme is a lifeline which has been hugely beneficial in helping small employers keep their staff in work, and it’s extension is welcome.

“Small employers have told us that part-time furloughing will help them recover from this crisis and it is welcome that new flexibility is announced today.

BCC Director General Adam Marshall said: “The extension of the Job Retention Scheme will come as a huge help and a huge relief for businesses across the UK.

“The Chancellor is once again listening to what we’ve been saying, and the changes planned will help businesses bring their people back to work through the introduction of a part-time furlough scheme. We will engage with the Treasury and HMRC on the detail to ensure that this gives companies the flexibility they need to reopen safely.

“Over the coming months, the government should continue to listen to business and evolve the scheme in line with what’s happening on the ground. Further support may yet be needed for companies who are unable to operate for an extended period, or those who face reduced capacity or demand due to ongoing restrictions.”

Dame Carolyn Fairbairn, CBI Director-General, said: “The Chancellor is confronting a challenging balancing act deftly. As economic activity slowly speeds up, it’s essential that support schemes adapt in parallel.

“Extending the furlough to avoid a June cliff-edge continues the significant efforts made already and will protect millions of jobs.

“Introducing much needed flexibility is extremely welcome. It will prepare the ground for firms that are reawakening, while helping those who remain in hibernation. That’s essential as the UK economy revives step-by-step, while supporting livelihoods.

“Firms will, of course, want more detail on how they will contribute to the scheme in the future and will work with government to get this right.

“Above all, the path of the virus is unpredictable, and much change still lies ahead. The government must continue to keep a watchful eye on those industries and employees that remain at risk. All schemes will need to be kept under review to help minimise impacts on people’s livelihoods and keep businesses thriving.

“The greater the number of good businesses saved now, the easier it will be for the economy to recover.”

Commenting on the extension of the government’s job extension scheme today, TUC General Secretary Frances O’Grady said: “We are pleased ministers have listened to unions and extended the job retention scheme to the autumn. This will be a big relief for millions.  

“Changing the rules to allow part-time working is key to enabling a gradual and safe return to work. And maintaining the rate at 80% is a win for the pay packets of working families.

“As the economic consequences of Covid-19 become clear, unions will keep pushing for a job guarantee scheme to make sure everyone has a decent job.”

Anneliese Dodds MP, Labour’s Shadow Chancellor, said: “The furlough scheme is a lifeline for millions. The Government was right not to pull it away.

“It is welcome that the Chancellor has heeded the call by Labour, trade unions, and businesses for more flexibility in the scheme, to support employees to go back to work part-time.

“The government must clarify today when employers will be required to start making contributions, and how much they’ll be asked to pay. If every business is suddenly required to make a substantial contribution from the 1st August onwards, there is a very real risk that we will see mass redundancies.”

Extension to Furlough Scheme could cost the Government £70 billion

The Chancellor has extended the current Furlough scheme until the end of October but he now has a huge challenge to get this right, say leading tax and advisory firm Blick Rothenberg.

Heather Self a partner at the firm said: “He needs to achieve a “Goldilocks” effect – not too hot, and not too cold.  If he provides too much it will be very expensive and may discourage firms from reopening. If he provides too little thousands of people could lose their jobs.

She added: “It is going to be a turbulent time for the labour market in the Autumn. Some sectors, such as the hospitality and tourism sector, are likely to see significant redundancies, while others such as construction and financial services will be relieved to see a gradual winding-down of support.

From the announcement today, we now know that:

–          Support will be continued to the end of July in full, with employers required to contribute after that date.

–          Part time working will be permitted, but only for some employees

–          The same level of overall support – 80% of wages up to a maximum of £2500 a month – will be maintained

Heather said: ” As the furlough scheme is reduced the Government needs to incentivise business and come up with creative ideas about how business can keep going and retain staff.

“The Chancellor could not go on paying out billions of pounds indefinitely, and everyone understands that, but there needs to be much more joined up thinking between Government and business.”

So far, some 7.5m employees have been furloughed, at a cost approaching £10bn.

The expected costs to the end of July are likely to be around £50bn, with the extension at a reduced level to the end of October perhaps costing a further £20bn.  These are very significant sums, amounting to around 10% of total Government receipts.

As Britain seeks to get back to work, the pressures on different sectors will be very uneven.

While some sectors, such as construction and financial services, are getting back to work, others such as leisure and hospitality will be much slower to recover.

And the position in the tourism and heritage sectors is likely to become critical if they lose the whole of the Summer season.

Heather Self said: “Enabling part time work is welcome, as it will permit a gradual return to work.  But the Chancellor said this would only be available to businesses “currently using” the scheme – it is not clear what the cut-off date will be for businesses still considering whether they need to furlough employees.

“The Chancellor needs to pay attention to the needs of different sectors, difficult though this may be.  Leisure and hospitality businesses are unlikely to be able to cope with reopening fully by the end of July, and may need to contemplate redundancies.

“Additional support beyond the furlough scheme will be needed for a long time – whether loans such as the CBILS scheme, or grants, or incentives such as an increase in the Employment Allowance to encourage employers to maintain their staff levels, or even take on new employees.”

Give the cash to our councils, says Briggs

Scottish Conservative Lothian MSP Miles Briggs has hit out against Finance Secretary Kate Forbes’ refusal to pass on £150 million in funding from the UK government for Covid-19 relief.

City of Edinburgh Council, like the other 32 local authorities in Scotland, have been told to use their reserves for dealing with Coronavirus.  On 31 March 2019 Edinburgh had reserves of £243.1 million.

The UK Government announced another £1.6 billion in funding for local councils in England, but SNP Ministers are declining to hand the equivalent money on to cash strapped councils in Scotland.

The Scottish Conservatives have previously criticised cuts to council  budgets before the outbreak of Covid-19 and the withholding of funds to council to fight Covid-19 is a continuation of this trend.

Councils across Scotland have increasingly had to use their reserves to make up the reduction in council funding in the SNP/ Green budget each year, which has depleted their reserves and led to warning from Audit Scotland that Councils are running on empty.

Lothian MSP, Miles Briggs, said: “Edinburgh City Council has an important role to play in tackling Covid-19, but are being hindered by the refusal of SNP Ministers to pass on funding for Council that has been made available to Councils in England.

“Health and Social care services have been amongst the hardest hit by Coronavirus and they will continue to struggle if SNP Ministers to not provide them with proper funding.

“Councils are going to become increasingly important in the management of Covid-19 once lockdown is lifted and measures need to be put in place to limit social distancing and have adequate levels of PPE.

“To be effective they will need the funding to be able put these measures in place, funding which is currently being withheld by SNP Ministers.”

Small business Bounce Back Loans launch today

  • small businesses will be able to apply for quick and easy-to-access loans from today
  • businesses will be able to borrow between £2,000 and £50,000 with the cash arriving within days
  • loans will be 100% government backed for lenders, and businesses can apply online through a short and simple form

Thousands of small firms and sole traders – including high street staples like hairdressers, coffee shops and florists – will be eligible for 100% government-backed Bounce Back Loans to help them make it through the coronavirus outbreak.

From 9am this morning, small business owners can apply to accredited lenders by filling out a simple online form, with only seven questions.

The government has also agreed with lenders that an affordable flat rate of 2.5% interest will be charged on these loans. And any business that has already taken out a Coronavirus Business Interruption Loan of £50,000 or less can apply to have these switched over to this generous new scheme.

The Bounce Back Loan scheme is the latest step in a package of world-leading support measures launched by Chancellor Rishi Sunak – with £7.5 billion already awarded in business grants, 4 million jobs supported through the job retention scheme and generous tax deferrals supporting hundreds of thousands of firms.

The Chancellor of the Exchequer, Rishi Sunak, said: “Small businesses will play a key role creating jobs and securing economic growth as we recover from the Coronavirus pandemic.

“The Bounce Back loan scheme will make sure they get the finance they need – helping them bounce back and protect jobs.”

Business Secretary Alok Sharma (above) said: “We are backing small businesses, which are the backbone of our communities, with the support they need to stay afloat.

“This new scheme of 100% government-guaranteed loans gives owners of even the smallest businesses the confidence and flexibility to borrow a sum which works for them. This will help ensure they can continue to trade, and be a key part of our efforts to reboot the British economy.”

As part of the scheme, small businesses can borrow between £2,000 and £50,000. The government will provide lenders with a 100% guarantee and cover the cost of any fees and interest for the borrower for the first 12 months. No repayments will be due during this period to enable firms to get back on their feet.

The loans are available through a network of lenders, including the five largest banks.

Don’t be conned by cyber-skullduggery!

Thousands of people could be conned if they don’t pay attention, says leading tax and advisory firm Blick Rothenberg.

Fiona Fernie, a partner at the firm said: “Within hours of the Government’s Coronavirus Job Retention Scheme (CJRS) there was significant activity by cybercriminals trying to cash in on the scheme.

“These were in the form of emails that purported to come from the Government and suggested that HMRC needed bank account details into which the grant should be paid.

“The wording most commonly used to-date is:

‘Dear customer, we wrote to you last week to help you prepare to make a claim through the Coronavirus Job Retention Scheme. We are now writing to tell you how to access the COVID-19 relief. You will need to tell us which UK bank account you want the grant to be paid into, in order to ensure funds are paid as quickly as possible to you’.

Fiona added: “Most scams focus on obtaining the banking details of the recipient either by suggesting they can claim some kind of financial benefit from following the instructions in the correspondence, (for example a tax refund to help protect themselves from the Coronavirus outbreak, a goodwill payment from HMRC or a large sum of money in return for a set-up payment), or that they have a ‘fine’ to pay as a result of some misdemeanour: such as leaving the house more than once a day during lock down.

“The most frequent forms of communication are emails and text messages purporting to come from Government or HMRC officials and are designed to lure the recipient into precipitate action before thinking carefully about the substance of the message.

“People should be aware that neither HMRC specifically nor Government more widely communicates with individuals either by email or by text, unless you have signed up to the relevant protocol with them.  Certainly, payments that can be claimed by taxpayers or fines that can be imposed are not dealt with in this way.”

Fiona warned: “The communications are designed to look entirely legitimate and as well as using official logos, fraudsters change the ‘display name’ on their email address to only show the name of the body they purport to represent. They are very clever.

“It is imperative to treat any email or text apparently received from an official body with extreme caution – if you are taken in it could be a very costly mistake.

“WhatsApp or social media messages are also used by cybercriminals and should be treated with similar caution.”

So, what should you do if you receive one of these messages? 

Fiona lists below some of the things that you can do to protect yourself:

  • Do not reply to these emails, texts, WhatsApp or social media messages
  • Do not call the phone number listed in an email or text
  • Do not click on any links or open any attachments in emails
  • Do not provide any personal or financial details
  • If in doubt about whether an email or text is genuine, click on/hover over the ‘display name’ email address from which you have received the email. This will show you the full details of the sender and will make it clear whether the email is from a genuine Government or HMRC source
  • If you are in doubt about the source of one of these messages which appears to be from HMRC, forward it to them. You can do this via email at phishing@hmrc.gov.uk or via text at 60599 (network charges apply) and then delete it.

Fiona said: “In addition, the National Cyber Security Centre (NCSC) has recently launched a reporting service urging the public to forward any questionable emails to report@phishing.gov.uk.  The NCSC’s automated scanning system then checks them, and immediately shuts down and removes criminal sites.

“However, there are other scams which are even less easy to spot, and which are designed to play on the other major anxiety caused by the Coronavirus pandemic – protecting our health.

“Of the over 2,000 online coronavirus scams which have been removed over the last month by the NCSC, almost 500 were fake online shops selling personal protective equipment items such as gloves and face masks which either never arrive or do not meet the required standards.  Some of the sites also distribute malware which damages the computer systems of those who visit the sites.

“Even charities are at risk: some have been contacted by fraudsters claiming to be from an organisation able to provide helpful information such as a list of ‘at risk’ elderly people in the community who may require support from the charity.  The recipient is then directed to click on a link leading to a fake website or a request to make a cryptocurrency (such as Bitcoin) payment, to enable the release of the information.”

Fiona said: “The messages are not confined to scams allegedly coming from this Government; one received yesterday by a colleague purported to come from the National Crime Investigation Center, USA which is part of the FBI – it was another scam.”

Dear Scam victim,

This is National Crime Investigation Center USA.

In our investigations from banks on International and National Funds Transfer (INFT) protocols in the past 10 years from all banks worldwide. We have come across your contact details and records with one of these Banks. In view of the carried investigations, we have contacted you confidentially for vital information toward your transaction with this bank. It was clear that the bank have delayed your payment thereby looking for a means to divert your fund to different individual account not belonging to you.

However, all bank officials who mishandled your transaction has been duly sacked and management dissolved and dismissed from bank work as a result of this attempt. Upon our investigation conclusion, we found out that your transaction was legitimate and for this reason, a compensation amount of $3,150,567.00 (Three million one hundred and fifty thousand, five hundred and sixty seven dollars) has been allocated to you for immediate payment through our accredited bank, Federal Reserve Escrow.

Kindly contact the compensation paying officer with the below details.

Fiona said: “Sadly, there are always those who are happy to exploit the problems of others to their own advantage.  Despite the many pressures we are all under in these difficult and unprecedented times: we must be vigilant so that we do not become their victims.”

Coronavirus could see Scotland’s economy shrink by a third

The economic impact of the efforts to tackle the coronavirus (COVID-19) pandemic could see Gross Domestic Product (GDP) fall by around a third, according to a report by the Chief Economist.

The latest State of the Economy report, published by the Scottish Government’s Chief Economist Gary Gillespie, presents analysis showing that GDP in Scotland could fall by around 33% during the current period of social distancing, similar to estimates from UK and international bodies such as the Office for Budget Responsibility (OBR) and the Organisation for Economic Co-operation and Development (OECD).

Alongside a summary of latest economic developments, the report includes Scottish Government analysis of:

• channels through which COVID-19 is impacting Scotland’s economy;
• short term impact of social distancing on GDP and the labour market;
• exposure of different sectors to COVID-19 risks;
• medium term path of the economic recovery.

Economy Secretary Fiona Hyslop said: “Our response to COVID-19 is saving lives, but I am deeply aware that the pandemic is having an economic effect that is already being felt across Scotland.

“The Scottish Government is doing everything we can to support businesses at this very difficult time.

“We want Scotland to recover as quickly as possible from this outbreak, and that includes rebuilding our economy as quickly as is safely possible.

“None of us should be under any illusions about the scale of economic recovery and, as we have said before, no government will have all of those answers.

“That is why we have set up an independent advisory group to provide expert economic advice and this will be crucial to help us deal with the challenge of rebuilding our economy.”

state-economy

 

Thousands of businesses benefit from support grants

More than £215 million has been awarded to over 18,000 Scottish business ratepayers in just two weeks, the Scottish Government has announced.

The money has been allocated under two new schemes to help firms combat the effects of the coronavirus (COVID-19) outbreak.

Latest Scottish Government figures show that 59,385 applications were made to 32 local authorities for the business grants by April 14 this year. There have been 18,528 grants awarded so far worth £215,445,000.

Finance Secretary Kate Forbes said: “We are doing everything we can to support business at this very difficult time and will continue to listen to and engage with the sector. Our total support for Scottish business now exceeds the £2.2 billion passed on from the UK Government.

“The fact we have managed to pay out this large amount to so many businesses across Scotland is a substantial achievement and demonstrates the capability of our partners in local government. I am grateful for their continued efforts in helping to deliver these vital grants.

“In addition to our generous backing for businesses we are also committed to helping sectors of the economy that are not being supported in other parts of the UK such as aviation, seafood fishing, fish processing and farming and charities.

“This scheme complements other support available and many businesses applying will also be eligible for the furlough scheme and rates relief. I would encourage only businesses who need support to apply, enabling us to direct as much help as possible to those who need it most.

“We promised to pass every penny received from the UK Government on to businesses in Scotland and we are. Our priority remains to protect lives but we are doing all we can to protect livelihoods too.”

Business Gateway has been working closely with local authorities to support the delivery of grants throughout Scotland.

Councillor Steven Heddle, COSLA’s spokesperson for Environment and Economy, said: “I want to thank council staff and colleagues from Business Gateway for their incredible efforts to implement the grant schemes so quickly.

“Small to medium-sized enterprises have been severely impacted so delivery of support grants as quickly and effectively as possible is a top priority.

“This support will be fundamental in helping businesses put plans in place to recover and grow beyond this crisis, protecting jobs and supporting economic recovery in communities across the country.”

The funding has been allocated between two funds:

· The Small Business Support Grant scheme allows small businesses to apply for grants up to £10,000.

· The Retail, Hospitality and Licenced Premises Support Grant allows firms to apply for up to £25,000.

Compared with a week earlier, grant applications grew by around 10,000, awards by around 11,000 and the value of payouts by around £127 million. On April 6, the totals stood at 49,214 applications received, 7,650 paid out, worth £88,625,000.

Business Gateway delivers advice and support to Scottish businesses on behalf of COSLA.

Post Office helps self-isolating people to access cash

The Post Office is making two of its products available to all UK banks, building societies and credit unions, to make it easier for people who are self-isolating to access cash.

The products are Payout Now – a voucher sent by text, email or post to a customer who can share it with a trusted person to withdraw cash; and Fast Pace – a service allowing a customer to arrange for a trusted person to collect a cheque from them, cash it at Post Office and return with the money.

Martin Kearsley, banking director at the Post Office, said: “Being able to easily access cash is a vital service for older people and those self-isolating.

“Our Payout Now and Fast Pace services mean they can access cash quickly and securely to repay someone for a helpful service like shopping, or simply manage their finances, providing peace of mind that cash can be securely sourced with the help of any trusted helper.”

Gareth Shaw, Head of Money at Which?, said: “Millions of people rely on cash every day but many will struggle to access their money during the coronavirus crisis.

“Our research has found a third of people, including those aged 65 and over and vulnerable consumers, have concerns about managing their money digitally, so this initiative will ensure those who rely on cash will not be cut off during this difficult time.

“Initiatives like this also highlight how close to collapse the UK’s cash network is and further drives home the need for swift action to guarantee access to cash over the long-term.”

The Post Office has a UK network of more than 11,500 branches.

FCA confirms temporary financial relief for customers impacted by coronavirus

The Financial Conduct Authority (FCA) has today confirmed a package of targeted temporary measures to help people with some of the most commonly used consumer credit products. 

Following a short consultation the FCA will be going ahead with the proposals outlined last week, which will give firms the flexibility under our rules to provide temporary financial relief to those facing payment difficulties during the coronavirus (Covid-19) pandemic.

Christopher Woolard, interim Chief Executive at the FCA, said: ‘We know many people are suffering financial pressures brought on as a result of the coronavirus pandemic.

“The measures we’ve announced are designed to provide people affected with short-term financial support through what could be a very difficult time. The changes will provide support for consumers with credit cards, loans and overdrafts, facing temporary financial difficulties because of the pandemic.

‘Customers should think carefully before making use of these measures and only do so if they need immediate help. Where they can still afford to make payments, they should continue to do so.

‘We know there is still more work to be done, and we will be announcing further measures to support consumers in other parts of the credit market in the future, including in the motor finance sector next week.’

The measures include firms being expected to:

  • offer a temporary payment freeze on loans and credit cards for up to three months, for consumers negatively impacted by coronavirus
  • allow customers who are negatively impacted by coronavirus and who already have an arranged overdraft on their main personal current account, up to £500 charged at zero interest for three months
  • make sure that all overdraft customers are no worse off on price when compared to the prices they were charged before the recent overdraft pricing changes came into force
  • ensure consumers using any of these temporary payment freeze measures will not have their credit file affected

The rule changes will be in force from today and the full range of measures will apply by Tuesday 14 April 2020.

This is to allow firms time to ensure they have the appropriate level of resources available to handle customer requests. All firms will be ready to receive customer requests by 14 April, although some firms including the major banks and building societies, will be adopting the changes today.

Consumers should check firm websites or social media posts for more information, and where possible use online services to request assistance.

This will reduce the pressure on firm call centres who are experiencing a high demand in calls due to the current pandemic situation. If consumers need to get in touch by telephone please be patient and, if you can, wait until after the Easter weekend, even if your lender is offering help sooner than the 14 April 2020.

In response to the consultation, the guidance now includes clarification on which products are in scope. In particular, the FCA are confirming that the following products are covered: guarantor loans, logbook loans, home collected credit, a loan issued by Community Development Finance Institution and some loans issued by credit unions, but only where these are regulated. The guidance also applies to firms which have acquired such loans.

These measures won’t replace normal forbearance rules where these would be more suitable for a consumer in serious and immediate financial difficulty. Consumers in financial difficulty should contact the Money Advice Service (MAS) for further guidance.

The FCA will keep this guidance under review.