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Legal & money

The financial fallout for newly unemployed

(14 Posts)
grannyactivist Wed 18-Mar-20 13:35:16

Little talked about yet is the impact of unemployment on people who thought they had secure jobs. We are facing a period of sudden unemployment that will affect tens of thousands of people.

Many of us have children with secure jobs in good careers, but now that's all about to change. When the schools do close they're unlikely to re-open straight after Easter, so will the teachers be paid when they're not in school? New jobs in the retail sector (deliveries and backroom staff) won't make up for the job losses in the hospitality and travel industries. Transport is just about to be hit when buses, trains and taxis lose passengers. The Entertainment industry, Recruitment, Events etc. all are being affected immediately with massive lay-offs of staff.

Sick pay will get some through the first couple of weeks if people are self-isolating, but for those whose jobs have simply disappeared they will need to begin the Universal Credit claiming process, which is already under enormous strain. Now people who never could have imagined themselves in that position will need to negotiate the broken benefits system. People are usually shored up by FoodBanks while they wait for claims to be processed, but as the FoodBanks themselves are already struggling with the effects of the virus on donations (understandably down) and volunteers (most are in the high risk age bracket) there is going to be only limited help from there.

I am concerned about all those people who, in addition to worrying about their family's health, are now going to be hit with a financial crisis.

Nezumi65 Wed 18-Mar-20 13:39:54

I think they need to introduce a universal basic income for everyone for a period of a year to them be renewed

It’s the only way to stop people falling through the cracks

Nezumi65 Wed 18-Mar-20 13:41:00

I think the teachers will be fine - contracted teachers anyway as they are still working, just remotely. TA’s may be more impacted

lemongrove Wed 18-Mar-20 13:44:38

There is sick pay, or if actually unemployed then benefits while looking for another job.
Not all our DC have secure or well paid jobs GA on this forum, so do understand the worry.
It will be a hard time ahead for a lot of people in this country and in all other countries for the year ahead.
The hardest time of all is for those who become really ill with the virus, though.

Whitewavemark2 Wed 18-Mar-20 13:54:35

Funnily enough it is possible to talk about more things at once. So yes we must fight this virus with every weapon we can muster, and support each other every way we can.

We can also talk about how this crises has thrown up the glaring inequalities in our society which were always there, but are now feeding into the crises because of the need for the low paid to have a continuous income or be faced with a struggle to keep their heads above water.

We can also be critical about decisions being made on our behalf.

Throughout WW11 decisions were being made for a welfare state when the crises was over, in the recognition of the inequality in U.K. society at the time. It would be marvellous if we could do the same.

gillybob Wed 18-Mar-20 13:59:05

I think teachers and all of those in the public sector (with contracts) will be fine. It's those working in the private sector who will suffer as more and more small businesses go to the wall.

grannyactivist Wed 18-Mar-20 14:08:43

gillybob I suspect that even those in the public sector will be affected eventually; it was the government's plan to 'streamline' public services anyway and with little coming into the coffers from taxes the government's measures may go further than they initially planned in order to 'save' money.

However, I agree with you. I think it's small businesses that will go to the wall first and even the government's temporary measures to help won't stop businesses that survive the virus from then being crippled by having to pay back the loans the government has just announced. sad

grannyactivist Wed 18-Mar-20 15:03:13

The Chancellor has just confirmed that businesses in receipt of small business rate relief will receive a grant of £10k and businesses in receipt of the retail, leisure or hospitality discount will get a grant of £25k. Good news and hopefully an indicator that the government is aware of the need for a speedy response to the financial crisis that the coronavirus has precipitated.

If anyone needs to apply, or has a family member who needs to apply, for Universal Credit there is a helpful guide here: www.understandinguniversalcredit.gov.uk/helping-someone-claim/how-to-use-this-section/

EllanVannin Wed 18-Mar-20 16:24:52

The only ones who'll be doing a roaring trade are divorce lawyers, funeral directors and counsellors in MH illness.

EllanVannin Wed 18-Mar-20 16:28:52

Sadly we have 104 deaths in the UK sad God Bless x. Scary.

Dinahmo Sat 21-Mar-20 11:56:52

It's not just the people who are in employment that are affected by the current crisis. The self employed more affected since the only measures taken by the government at the moment are to defer payment of VAT and the July SA tax until next year.

I have just started a campaign on 38 Degrees to try to change rules relating to the assessment of income tax for 2019/20 and 2020/21. I'd be grateful if you would read it if it pops into your inbox and, if you agree with it, sign the petition and forward it to your friends and family and anybody that you know who is self employed.

growstuff Sat 21-Mar-20 12:38:32

The proposed help for the self-employed is means tested and only £94pw - unlike for employed workers, who would receive 80% of their income and not means-tested. The self-employed are being treated very shabbily. An employed person on, say £25,000 would receive £20,000. A self-employed person would receive less that £5,000. Savings (possibly to pay the tax bill) and any other income will mean that many will get nothing.

growstuff Sat 21-Mar-20 12:40:28

Self-employed renters face a double whammy.

Dinahmo Sat 21-Mar-20 14:20:27

Further to my above post, i should have included a link. Here it is

you.38degrees.org.uk/petitions/assistance-for-the-self-employed-1