Money & Personal Finance Advice
Free, practical financial advice and information on the coronavirus pandemic for the citizens of Scotland
Benefits and Tax relief
Attending benefit appointments
Those who can attend their usual appointments for benefits should continue to do so, unless informed otherwise by the offices conducting them.
Those who are already claiming benefits that cannot attend appointments should call the office that make payments of benefits and / or login and update their online journal to ensure that benefits are not sanctioned and continue to be paid as normal.
The most vital thing to remember is communication. Anyone claiming benefits must keep in contact with the office paying these benefits, regardless of the situation.
Self-Employment, Unemployment & Benefits
Redundancy, reduction in hours or unpaid leave are now very real considerations for many people due to the outbreak of coronavirus.
Those forced to take time out of work due to the coronavirus outbreak who won’t receive pay whilst off may be entitled to income through claiming benefits.
Additionally, citizens in this position may be entitled to submit claims for Employment and Support Allowance (ESA) or Universal Credit, even if they are receiving minimal income or other benefits are currently being paid. This includes those who are self-employed.
More information on these benefits and how to apply are available HERE.
Universal Credit Portal / Proof of Identity
The Universal Credit portal can be accessed HERE.
It should be noted that users cannot sign in with their ‘Find a Job’ (previously Universal Jobmatch) User ID and Password.
There are options available for ‘Forgotten username’ and ‘Forgotten password’ if the user has already registered but cannot remember their details.
Citizens who do not have an online Universal Credit account may be able to use the Universal Credit online service to:
- Create a Universal Credit account
- Make a claim
- Join their partner’s claim
This can be done HERE.
Users are also able to sign in using GOV.UK Verify, with a valid UK passport or driver’s licence HERE.
Applications and appeals for benefits managed by Social Security Scotland will continue despite COVID 19. These benefits are:
- Disability Living Allowance
- Personal Independence Payment
- Attendance Allowance
- Severe Disablement Allowance
- Industrial Injuries Disablement Benefit
- Carers Allowance
- Best Start Grant
- Funeral Expenses
- Cold Weather Payments
- Winter Fuel Payments
- Discretionary Housing Payments
- Universal Credit (Scottish options)
- Scottish Child Payment (SCP)
Delays in transfer of benefits to Social Security Scotland
Due to the impact of COVID 19 on public life and resources required from those involved in health, devolution of certain benefits that were intended to happen in 2020 will be delayed.
The following benefits planned for devolution are still the responsibility of the UK government:
- Social Security Scotland’s replacement for Personal Independence Payment (PIP).
It is possible for some to claim a tax return for expenses that have incurred from working at home during the COVID 19 pandemic.
Who can claim tax relief?
Tax relief can be claimed by any worker that has had to work from home because of COVID 19. It cannot be claimed if the choice to work from home was voluntary and it must have been required by an employer. The relief covers a large number of expenses related to homeworking.
What expenses can be claimed with this tax return?
The costs that can be claimed include but are not limited to the following:
- Heating bills
- Metered water bills
- Home contents insurance
- Business call bills
- Setting up a new broadband connection
- Buying a laptop needed for home working
- Buying a chair needed for home working
- Buying a mobile phone needed for home working
It is important to note that costs that would need to be paid regardless of whether home working is required (e.g. rent or council tax) can’t be claimed for.
How much can be claimed in tax relief?
The claimant can choose between two different payment options:
- £6 per week for this tax year and £4 per week for previous tax years
- The amount equal to the expenses incurred from having to work from home (see claimable expenses list above). Evidence of the costs (e.g. bills, contracts, and receipts) must be provided to use that option
The tax relief is provided on the rate of taxation. This means that
How can tax relief be claimed?
On Gov.uk by using this link:
Claim tax relief for your job expenses: Working from home – GOV.UK (www.gov.uk)
Financial support
Like mortgages, lenders on credit cards, personal loans and overdrafts have agreed with the government to offer assistance to consumers who are experiencing financial difficulty due to the coronavirus.
Some banks and credit card companies are currently allowing emergency increases in credit limits, repayment holidays or the option of waiving fees and charges for non or late payment.
Due to legislative changes, banks and lenders must show overdraft charges as a percentage or APR.
Anyone experiencing financial hardship due to credit cards, loans or overdrafts should contact their bank or lender as soon as possible for clarification of their situation and to discuss viable solutions.
The Financial Conduct Authority (FCA) has confirmed the support that will be available for users of motor finance, buy-now pay-later (BNPL), rent-to-own (RTO), pawnbroking and high-cost short-term credit (HCSTC) products, who continue to face payment difficulties due to the coronavirus pandemic.
The following measures came into force on the 17th of July 2020:
- If customers can afford to return to regular repayment, or make partial payments, it is in their best interest to do so.
- Firms should contact customers coming to the end of a first payment freeze to find out if they can resume payments. If so, agree a plan on how the missed payments could be repaid.
- For customers still facing temporary payment difficulties due to the coronavirus:
- Firms will provide them with support by freezing or reducing payments to a level they can afford, on their motor finance, BNPL or RTO agreements for a further 3 months.
- For BNPL customers, where a loan is within the promotional period, this will mean offering customers an additional extension to that period.
- For pawnbroking agreements, where a loan is within the redemption period (irrespective of when the redemption period is due to end) this will mean firms offering a further extension to the redemption period. If the redemption period has already ended, this will mean agreeing not to sell the item during the payment deferral period.
- Customers that have not yet had a payment freeze or requested an extension of an existing payment freeze can request this up until 31st October 2020.
- HCSTC customers can only apply for a payment freeze under this guidance once up to 31st October 2020 in respect of each HCSTC agreement. For those customers who have had a payment freeze and are still experiencing payment difficulties, firms will provide a range of support – including formal forbearance – in accordance with the FCA Handbook.
- The ban on repossessions will continue until 31st October 2020 – this applies to motor finance and RTO customers still facing temporary payment difficulties as a result of coronavirus and who need their vehicles or goods.
- Where a customer needs further temporary support to bridge the crisis, any payment freezes or partial payment freezes 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.
When implementing these measures, firms should be particularly aware of the needs of their vulnerable customers and should consider how they engage with them. Firms should also help customers understand the types of debt help and money guidance that are available and encourage them to access the resources that can help them.
This guidance came into force on 17th July 2020.
Housing
Assistance for those renting their homes
If you are struggling to pay your rent, it is strongly advised that you contact your landlord and negotiate a solution. This may be in the form of a temporary decrease in rent, with any shortfall being made up at a later date. Unfortunately, rent breaks and holidays are not possible for those renting their homes, so agreement to an alternative, mutually beneficial solution with the landlord is important.
If you have lost your job, needed to take unpaid leave to keep your job or had your working hours (and by extension, your income) reduced, you may be eligible for benefits. For example, Universal Credit Housing Element can cover part of your rent. Please see our “Benefits” section on this page for more information You may also be eligible for Council Tax Reduction. Please see the “Council Tax” section, which is also on this page, for more information.
For more information on your rights and negotiating with your landlord or local authority in relation to your rent, you can visit our page on “Housing” HERE.
The government are yet to announce a finalised plan for citizens who rent their homes.
The UK government has announced plans to release money towards large scale council tax relief, including higher reductions, more local schemes and improved hardship policies. It is important to note that the local councils of Scotland are not funded by the UK government, instead being funded by the Scottish government. These changes will only effect English councils.
With regards to Scotland, the Council Tax Reduction (CTR) scheme can be used by those that would otherwise struggle to pay their council tax due to COVID-19. CTR is administered by local councils across Scotland.
Eligibility for council tax reduction and application information can be accessed by contacting the local council. There is a resource that can be accessed to find and contact the local council at Mygov.scot.
Those who can, should continue paying their council tax as normal. Anyone who falls behind with their council tax payments (or who believes they may fall into this category at some point in the future) are advised to communicate with the finance team at their local authority who may be able to offer solutions such as repayment plans or alternative methods of payment.
Energy
Energy companies are obligated to make considerations for vulnerable consumers when dealing with energy debt and maintaining consumers’ supply.
Some energy customers may be unable to meet energy bills due to a reduction in their income or the physical inability to top up prepayment meters due to social isolating.
Communicating any difficulties with your energy supplier immediately is vital in ensuring that your energy supply is maintained throughout the coming weeks / months.
Prepayment meters
Many energy companies are offering to mail out top-up keys and cards to consumers who are impacted through self-isolation or those experiencing other problems. When this is not possible, some companies are also sending engineers to top up the meters for vulnerable consumers.
Topping up through smart meters can be achieved over the phone and online by contacting the supplier. This method also makes it easier for suppliers to provide help when required, such as affordability issues in topping up. Suppliers can temporarily turn prepayment meters into credit meters, which means it is less likely that consumers will go off-supply.
The advice provided by energy suppliers is to top up a little more than necessary if possible. This will ensure that if access issues occur, the supply will be maintained.
Credit Meters
Those who have credit meters (usually paid monthly or quarterly by bill) remain in a similar position to those on prepayment. Energy companies are reviewing issues with energy on a case-by-case basis during the coronavirus outbreak and are still bound by Ofcom definitions of vulnerable consumers, working to ensure their needs are met.
Consumers that are experiencing difficulties in paying for energy or who face losing power are advised to contact their energy supplier immediately to resolve any issues as soon as these become apparent.
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