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The Government has delivered unprecedented support for living standards during this
challenging time, protecting livelihoods with the Self-Employment Income Support Scheme,
the Coronavirus Job Retention Scheme, and temporary welfare measures<p /><p><br> The
Government has extended the Coronavirus Jobs Retention Scheme until 31 March 2021.
Eligible employees will continue to receive 80% of their usual salary for hours not
worked, up to a maximum of £2,500 per month. The Government has increased the overall
level of the third grant under the Self-Employment Income Support Scheme to 80 per
cent of average trading profits, meaning that the maximum grant available has now
increased to £7,500</p><p><br> The Government has provided Local Authorities with
£500 million to support people who may struggle to meet their council tax payments
this year. The Government expects that this will provide all recipients of working
age local council tax support with a further reduction in their annual council tax
bill of £150 this financial year</p><p><br> These measures are in addition to the
changes this Government has made to make the welfare system more generous, worth over
£7 billion according to recent OBR estimates. This includes a £20 per week increase
to the Universal Credit standard allowance and Working Tax Credit basic element, and
a nearly £1 billion increase in support for renters through increases to Local Housing
Allowance rates</p><p><br> We have also worked with mortgage lenders, credit providers
and the Financial Conduct Authority to ensure the financial sector provides support
for people across the UK to manage their finances by providing payment holidays on
mortgages and consumer credit products</p><p><br> The Government has also provided
unprecedented support for businesses impacted by the COVID-19 pandemic. This support
includes the Coronavirus Business Interruption Scheme, Coronavirus Large Business
Interruption Scheme, Bounce Back Loan Scheme and the Future Fund which, as of 18th
October, have collectively supported over 1.4 million businesses with facilities worth
more than £62 billion. The Chancellor has announced that the Government has extended
the application deadline for these schemes to a single date, 31 January 2020, meaning
that even more businesses will have access to financial support</p><p><br> To help
people in problem debt get their finances back on track, an extra £37.8 million support
package is being made available to debt advice providers this financial year, bringing
this year's budget for free debt advice in England to over £100 million</p><p><br>
In May, the Government also announced the immediate release of £65 million dormant
assets funding to Fair4All Finance, an independent organisation that has been founded
to support the financial wellbeing of people in vulnerable circumstances. The funding
is used to increase access to fair, affordable and appropriate financial products
and services for those in financial difficulties</p><p><br> From May 2021 the Breathing
Space scheme will offer people in problem debt a pause of up to 60 days on most enforcement
action, interest, fees and charges, and will encourage them to seek professional debt
advice</p><p /> <br /> It would be premature to evaluate the impact of these measures,
which seek to prevent financial hardship and to resolve problem debt where it does
arise.
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