Wage support changes and debt help

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 18 April 2020

⏱️ 26 minutes

🔗️ Recording | iTunes | RSS

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Summary

Action to protect workers who would otherwise face redundancy due to the coronavirus outbreak was brought in by the government last month. Known as the Job Retention Scheme it pays 80 per cent of wages for people kept on by their employer up to a maximum of £2,500 a month. At the time there was disappointment from those who missed out because they didn’t start their job before the scheme’s cut-off date of February 28th. This week that date was extended to the 19th of March. The Treasury says the date change is “expected to benefit over 200,000 employees” - but will it? Guest: Heather Self, Tax Partner, Blick Rothenberg.

Plans to refund the victims of fraud isn’t "working as well as hoped" according to financial watchdog the Payment Systems Regulator. Data gathered by the PSR shows that two high street banks who promised to refund victims refused to do so in 96% of cases. Money Box hears from the PSR Managing Director Chris Hemsley to find out what his organisation is doing about it, what action it wants to see from the banks… and why it isn’t taking tougher action already. Money Box also hears from the son of one victim whose bank initially refused to refund him after criminals used his bank details to steal his life savings of £90k.

The FCA announced more plans to support households struggling to pay bills due to the impact of coronavirus on incomes. They include a three month payment freeze for car loans and a one month interest-free halt on high-cost short-term credit payments like payday loans. The FCA hopes to finalise the proposals by Friday 24 April and expect them to happen shortly afterwards. A three month credit card payment holiday for people with cash problems caused by coronavirus came into force this week.

Guests: Sara Williams debt campaigner and founder of the Debt Camel blog and Stuart Masson Editor for thecarexpert.co.uk

Presenter: Paul Lewis Editor: Emma Rippon Producer: Charmaine Cozier

Transcript

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0:47.4	Hello, in this Moneybox podcast, we look at some shocking figures which show banks are ignoring their own code of practice and refusing to reimburse customers whose accounts have been
0:52.3	raided by thieves. And there are new rules plans to allow people to take payment holidays from car finance plans and payday loans.
1:00.4	But we start with tens of thousands of disappointed people after a government announcement which seemed like good news.
1:07.2	You'll remember the job retention scheme lets an employer give workers 80% of their pay up to a maximum of £2,500 a month, to stay at home on a so-called furlough, and the government will pick up the bill. But it had a very strict cut-off date. If you were not working on the 28th of February, you could not take part.
1:28.2	We heard from many people leaving jobs before that date and starting a new job after it, who were left out.
1:34.4	So an announcement this week that the qualifying date was being changed to the 19th of March gave them hope they might be included.
1:42.0	Heather Ewens was one.
1:43.0	I was relieved and very happy to find out that the job retention scheme cutoff date had moved
1:48.2	from the 28th of February to the 19th of March. It meant that I could now probably be furloughed
1:53.7	by my new employer, meaning that I would have income in the foreseeable future as opposed to
1:58.9	being in a really, really difficult financial position.
2:01.6	Well, more from that listener. Later with me is Heather Self. She's a tax partner at Blick Rothenberg.
2:07.4	Heather Self, on the face of it, it seemed like good news, extending the scheme to people who started work
2:12.0	right up to the 19th of March. I thought it was good news. Heather Ewan thought it was good news.
	...

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