Martin's coronavirus update
16 NEW need-to-knows incl:
Furlough shaming | Covid flights | Redundancy prep | Book flight bargains? | Rent eviction ban extended | Maternity furlough good news | Self-employment grants? | WFH tax back | Equity release | Hoseasons & Parkdean refunds | Annual trav ins news
Today is an important symbolic and practical milestone in coronavirus support. Today (Wed) the door shuts on new entrants to the furlough scheme. That's because to be furloughed from July, you have to have been furloughed for three full weeks by then. So unless you were furloughed by today, it's too late (with one notable new exception, see point 4).
There are currently 8.9m on furlough, and in essence this move is the start of constricting the number who access state support. That has a huge impact for those on furlough now, as I'll explain below, yet it's also sour news for the millions who have been excluded from help, struggling on no income, as hope of change recedes too.
As always, all new info we get is added to our constantly updated guides...
Coronavirus travel rights, incl refunds & insurance
Coronavirus life in lockdown, incl MOTs, food & entertainment
As always, while we strive for 100% accuracy, please give us just a touch of wriggle room - things are changing all the time.
1) Furlough shaming needs to stop - furlough isn't feckless. In recent days I've heard, and seen on social media, a growing number of comments such as "people are flouting the furlough scheme" by being "in parks, or treating it as a holiday". So a note...
It's EMPLOYERS that choose to furlough staff. If so, until July, it literally means those furloughed CAN'T WORK for them. Are we saying people should just cocoon in misery and wait? That's dire for mental health and wellbeing. See my explanation (OK, my rant) from my BBC 5 Live Ask Martin show - furlough shaming must stop video.
2) Redundancy is coming for 100,000s - tool up on your rights now. I'm sorry for the stark warning. From Aug, employers need to start contributing towards furlough costs. This means redundancy is likely by then for those in roles employers don't consider viable after Oct, when furlough ends. As redundancy can require a 45-day consultation period, that means many will soon get letters.
I suspect this will impact 100,000s or even millions. We've updated our Redundancy guide - with tips to prepare financially and details of your rights to pay, notice and holiday, as well as other legals. Plus if you've employment / redundancy rights questions, on my ITV show on Thu at 8.30pm, I'll put them to employment lawyers. Pls tweet them to @MartinSLewis, importantly using the programme's hashtag #MartinLewis.
3) Flights restarting: Airline-by-airline coronavirus flight protection - masks, seat gaps & more. 
The skies have been empty for weeks, yet airlines are ramping up plans to start flying again. Ryanair aims to have 40% of flights running on 1 Jul, Easyjet will resume mainly UK domestic flights on 15 Jun, and BA says some flights are already running.
Many are putting safety measures in place. These include leaving seats empty, providing face masks or even making passengers ask to use the loo. See our coronavirus flights airline-by-airline table.
4) STOP PRESS - CONFIRMED: Parents returning from maternity / paternity leave CAN still be furloughed after the deadline. As I explained in the intro, if you're not on furlough from today (Wed), you've missed the deadline and can't be furloughed after. Yet in my TV show last week, I was asked a question about those due to return from statutory maternity leave in the next few months, who'd miss this deadline.
Well, we'd already been on it, and since I've been pushing even harder for change, arguing it'd be discriminatory if they weren't allowed to be furloughed if others in the firm were.
And I'm delighted to say, just as we were about to send this email, which is also just before the deadline hits, I got a response from the Treasury saying it'd fix it, and allow parental leave returners, who work for a firm that has others on furlough, to be furloughed after the deadline. It even sent a quote from Chancellor Rishi Sunak to boot:
"When I announced these changes [to furlough] last month, I was clear we wanted to do this in a fair way, that supports people back to work. But for parents returning from leave, their circumstances have meant they are still in need of support, and I'm pleased that they will be able to receive the financial assistance they and their family will need."
No technicals of how yet - they'll come on Friday. Full updates will go in our maternity / paternity leave furlough info.
5) Working from home? Claim TAX back on added costs, plus now if your employer reimbursed your home office equipment costs, they're tax-free. In my How to claim tax back for working from home blog, I explained that those who have been required to work from home, and who have had increased costs, eg, heating or electricity, are entitled to claim a tax break. And for extra costs of up to £6/week, receipts aren't needed.
Plus, now added to that blog is a section for those who bought home office equipment and whose firms paid them back. Normally as this is a 'benefit-in-kind' you'd need to pay tax and national insurance on it, but due to coronavirus, currently you needn't.
6) CONFIRMED: Annual travel insurance should cover you if you renewed after coronavirus hit - unless you switched firm. This has taken a while to clear up (bravo MSE Callum and Steve N), so I'm glad to finally be writing it. Millions of regular travellers have annual policies covering all their trips away. When these lapse they just get a new one.
So a June trip, booked in Jan, may be covered by one annual policy up until, say, April, with a second one starting the next day. Normally that's no problem, until this year...
- Travel insurers stopped offering coronavirus cancellation cover after it was declared a pandemic in mid-March.
- The claim is with the company that covers you when the issue that stops you going occurs. It's tough to define when that is with coronavirus.
However, regulator the Financial Conduct Authority has now confirmed to us that if you had an annual policy before mid-March and renewed with the same insurer since, you SHOULD still be covered for coronavirus issues as long as you were covered before you renewed. Insurers we've spoken to, including the AA, Direct Line and Leisure Guard, have confirmed this. So if you're rejected, go to the Financial Ombudsman and argue the firm isn't following "standard industry practice".
It's more difficult if you switched insurer at renewal. Normally that's a good MoneySaving idea, but I hope and suspect few did it this year, for exactly this reason (which we'd pointed out). In this case you may not be covered for coronavirus cancellation by either policy.
Some insurers (eg, Admiral, Churchill and Direct Line) tell us you may be able to claim on your old policy in this scenario, for the amount you paid towards the holiday while the old policy was in effect.
Others are saying no, in which case complain, then go to the ombudsman, arguing "the policy was in place when the Foreign Office advised indefinitely against travel", but there's no certainty. Full info in insurer-by-insurer annual travel cover help.
7) Warning. Equity release ISN'T an easy answer to fast cash. I keep hearing from people looking at releasing equity from their homes to get them over the current financial hump / hurdle / mountain. Please be careful - it's often expensive and has long-term risks. I'm not saying it's always wrong, just don't rush in. It needs careful consideration.
For example, the average lifetime mortgage rate is 4.1%, so if you don't repay any, the amount owed doubles every 17yrs. So borrow £20,000 at the youngest age, 55, and by the time you're 72 it's £40,000. By the time you're 89 it's £80,000. Full help, including what to watch out for, in our Equity Release guide.
8) Rental eviction hearings in Eng & Wal now banned until Aug. Last week we heard mortgage payment holidays were to be extended until Oct, yet nothing had been said about renters, who are arguably even more vulnerable. However, the Govt's now extended its ban on Eng & Wales eviction court hearings until 23 Aug (from 25 June).
If you're renting and unable to pay, talk to your landlord. Many are under financial pressures of their own, and unable to access support schemes (though they may be able to get buy-to-let mortgage payment holidays) so try to come to an agreement that works for you both. Full info (including info for Scotland & NI) in rental eviction extension.
9) Hoseasons & Cottages.com are now offering FULL REFUNDS for UK vacation rental cancellations, after competition regulator intervenes. For weeks we've been guiding you on how to try to get refunds from UK vacation rentals, after being swamped with complaints that customers were only being offered vouchers or new dates. We formally reported large numbers of complaints we'd h ad to the Competition and Markets Authority (CMA).
Now Hoseasons (and sister firm Cottages.com) has relented, and after reading the CMA guidance, its given a commitment that it'll offer a full refund for any bookings that are cancelled due to coronavirus. See full Hoseasons refunds info.
10) STOP PRESS: Parkdean to offer 50% credit for caravan site closures. Having just added the maternity furlough news above, now we've just been told that site operator Parkdean, which had been playing hardball on coronavirus closure refunds, has done a volte-face and is now offering a package of measures including 50% credit on 2021 fees, to cover the closure period. So as not to delay the email further, we'll add all the info to our Static Caravan Refunds guide.
PS: So that's Hoseasons and Parkdean changing tack on refunds and remedies today. My suspicion is news is getting around that the CMA is getting serious, and firms are deciding it's better to pre-empt it. Expect to see more announcements such as this.
| 11) 'Am I still allowed to claim the self-employment grant - my business has only been mildly affected by Covid-19?'
Sarah emailed me this week to ask... "I'm a self-employed music teacher. My income has been affected by the pandemic, but I've lost only 20% of it. Most of my teaching is done online.
"HM Gov has been in touch with me five times to say I can apply for the Self-Employment Income Support Scheme (SEISS). I am eligible, however I see no way of saying I only need 20% of the grant. I do not wish to be accused of making a false claim, and would prefer to be awarded the correct amount now, rather than pay back the overpayment later. Any advice? With thanks." Name changed to protect anonymity.
We get many emails such as this - it's likely a reason a million eligible people haven't claimed the SEISS grant. So to reiterate. If you're eligible and can declare "my business has been affected by Covid-19" - as Sarah clearly can (whether due to your/staff illness, less access to premises, reduced demand, etc) then you CAN claim, even if you're still working.
And the grant is a flat rate - you either get it or you don't. So in Sarah's case she is entitled to the whole amount. See full self-employment income support help, criteria and how to claim. And if that sits morally uncomfortably, and you need the help, take the 20% and donate the rest to a coronavirus charity (do ensure you tick Gift Aid, as you pay tax on the grant as income).
PS: I'm aware how frustrating reading this will be to those in excluded groups, such as new-starter self-employed, those with bigger profits, limited company directors and more. Sorry, but we're trying to help everyone as best we can. |
12) Bargain flights & bargain holidays. Should you book them now? There's heavy discounting of flights and holidays right now, such as Easyjet offering one-way flights from Luton to Majorca for £19.99. Yet is it worth booking right now - while the Foreign and Commonwealth Office (FCO) is warning against non-essential travel to any country, without an end date, and there's possible quarantine on return?
Of course, for trips later in the year, or next year, we hope the chance things will be nearer to normal is greater, but there's no certainty.
- Flight / holiday gets cancelled by them? You're due a refund, but we all know that hasn't always proved easy - see our 50 holiday firms ranked for cancellation refunds.
- Flight / holiday not cancelled, but FCO guidance against travel remains / returns? Refunds are unlikely, as most travel insurers won't cover you.
Even if the UK lets you travel, then there's still the risk the country you're planning to go to won't let you in or will want you to quarantine. Overall, there are more buts than from a beach scene in Benidorm.
So first see if you can book something with cancellation rights - effectively just reserve a room and a price, which some hotels give. Or book via a travel agent such as Hays Travel, which offers no-quibble cancellation rights up to six weeks before travel on some holidays (though there's always a solvency risk).
If that still works out too expensive, then it's a choice between taking a punt and waiting a bit until we know more. If you can bag a £60 return to the Canaries for travel in a few months' time, you may just want to book it with your fingers crossed (not easy if you're booking online). But the costlier it is, the more caution is needed.
For more help on finding cheap deals, see our Cheap Flights, Cheap Hotels , Cheap Package Holidays and Cheap Car Hire guides. Over the next few weeks, we'll be researching and detailing more info on how to holiday in financial (and health) safety.
13) 'Furlough & work' and self-employment grant TWO info due this Fri. We already know that furlough will now last until Oct, that firms will start to contribute to the cost from Aug, and that part-time work while furloughed will be allowed from 1 Jul. See our furlough guide for how you'll be paid if you work.
But here's a heads-up that more technical details, which will hopefully answer the other key questions, are due this Fri 12 Jun - we'll of course update our guide then.
Similarly, we know there'll be a second self-employment income support grant, covering Jun to Aug, worth 70% of avg monthly trading up to £2,190/mth. Eligibility is the same as for the first grant (you can get both if eligible), disappointing many who were excluded. Again, full technical guidance is due on Fri and we'll update our guide then.
14) Can you cancel a holiday due to quarantining when you return? As of Mon, those arriving in the UK - including returning holidaymakers - must quarantine themselves for 14 days. This will be reviewed on the week of 28 Jun, when I suspect it'll be strongly watered down. Of course, if you travel right now, you've few rights as the Foreign Office currently advises against all but essential travel.
But if that's lifted before quarantine, it becomes a sticky issue. As it doesn't stop or affect you going on holiday (it's just a problem on return), it's unlikely to become a reason firms let you cancel, nor will most travel insurers cover it. Yet be careful cancelling the holiday yourself too early, as if you cancel you've far fewer rights than if they cancel on you.
More info on refunds rights if quarantine stops you travelling, and remember, even if the quarantine's lifted, many countries still have strict entry requirements for Brits.
15) Struggling to cover credit card & loan repayments? A (partial) mortgage holiday may be a better solution. Last Thu, the rules changed to extend mortgage payment holidays , so now you've until 31 Oct to apply if you haven't had one, or to extend by a further 3mths if you have. My rule on these is simple - if you NEED ONE, DO IT, but ONLY IF NEEDED, as the interest still racks up and it can impact your credit score (the link above details why).
We don't yet know if credit card and loan payment holidays will be extended from their current 9 Jul end date. So if you pay interest on loans and credit cards, (ie, they're not 0%,) and you're struggling with repayments, taking a mortgage payment holiday to reduce costs while continuing to repay cards or loans makes sense, as most mortgages are way below 5%, while loans and credit cards are far costlier, many at 6% to 40%.
If you can cover some mortgage costs, then just ask for a partial holiday, for example to only pay half of the mortgage. Yet as you repay a mortgage over a much longer period, while the interest is lower, it racks up for longer. So plan to pay off this extra interest, by overpaying your mortgage by what you would've paid to the card or loan each month, as soon as you can afford to.
16) Offered a voucher not a refund for a cancelled holiday? Travel insurers aren't bailing many out. Insurers are playing hardball. Those we've spoken to have said if you don't want a voucher and are legally due a refund, YOU must pursue all other avenues (even up to and incl taking legal action) before they'll let you claim.
Yet they don't make all the rules - you could always try to claim, then take the insurer to the ombudsman, which is easier than court action against the travel firm. Full help in Can I claim on my insurance if I've only been given a voucher?
If you DO accept a voucher and rebook, if you had existing single-trip travel insurance, they should cover the new trip if you tell them, but you probably WON'T be covered for coronavirus cancellation. With annual policies, ask your insurer if it'll extend your policy if it doesn't already cover the dates of your new trip.
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The ITV Martin Lewis Money Show LIVE (from home), Thu 8.30pm
Employment rights, redundancy help & your financial questions
In the week's must-watch financial briefing (if I say so myself), as well as MoneySaving tips and taking your questions on financial issues, I want to tackle your job and redundancy rights queries too. So I'm roping in some employment lawyers to tackle your questions along with me.
We're live, so you can get in touch during the show, but if you want to send questions in advance, just tweet me @MartinSLewis using the show's hashtag #MartinLewis. Do tune in or program your VCR.
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