EVICTION & DEBTS HELP UPDATE - From the BBC: The government has announced a "truce" on enforcement action for tenants facing eviction in England and Wales this Christmas.
It also said that evictions will not be enforced in areas subject to local lockdowns as the pandemic continues.
The government added that it has increased notice periods to six months in an "unprecedented measure".
Campaign group Generation Rent said the government "must offer [renters] more."
The government confirmed that court proceedings for evictions in England and Wales would restart on 21 September after being suspended for six months due to the coronavirus crisis.
But under new measures announced on Thursday, evictions will not be enforced by bailiffs if a local area is in lockdown that includes restrictions on gathering in homes.
Bailiffs will also be told that they should not enforce possession orders over Christmas, other than in "the most serious circumstances", such as cases involving domestic abuse or antisocial behaviour.
The government has not yet confirmed which dates the "winter truce" will cover for tenants in England and Wales.
The government has also issued advice for those strubggling with debt:
For those worried about paying utility bills or repaying credit cards, loans or mortgages due to the impact of COVID-19, the below guidance sets out the steps you can take to get the support you need.
In the first instance, people struggling to pay essential bills are encouraged to:
Image: Business Minister Paul Scully.
Business Minister Paul Scully said:
We know it is a particularly difficult time for households across the UK, with many struggling to keep up with bills, loan payments and mortgages due to the impact of COVID-19.
The government, regulators and industry acted quickly in March to assist as many people as possible, with measures including mortgage holidays, and support for energy, water and telecoms customers.
I would urge those who are struggling to speak with their providers, seek out free advice and explore the payment options open to them.
In response to the impact of coronavirus, the government agreed a raft of measures with providers across a range of sectors to ensure struggling consumers are treated fairly. These agreements cover the following sectors.
Energy
The government has agreed a set of principles with domestic energy suppliers to support consumers impacted by coronavirus.
Energy companies will seek to identify and prioritise customers who may need additional support, taking into account Priority Service Register customers, prepayment meter customers, and customers who are vulnerable to having a cold home.
Based on individual circumstances, firms may offer support such as:
Water
The government and Ofwat, the economic regulator of the water sector in England and Wales, remain in close contact with water companies on the water industry’s response to coronavirus. All water companies have measures in place for people who struggle to pay for their water and wastewater services, these include:
Telecoms
The government is working closely with telecoms providers to ensure they treat customers who are struggling to pay their bills fairly, and to help them stay connected. Firms are asked to:
Mortgages
At the start of the pandemic in March, the Financial Conduct Authority introduced mortgage payment holidays, which have been extended until 31 October 2020. Mortgage holidays allow customers impacted by coronavirus a temporary break from having to make mortgage payments (although interest will still accrue during this period). Alongside this, the government has been in close contact with mortgage lenders and administrators to ensure they treat consumers fairly during the coronavirus pandemic. Further measures agreed with lenders include:
Loans, credit cards overdrafts, motor finance and other forms of credit
The FCA has also stepped in to ensure those are having temporary difficulties meeting loan or credit commitments due to coronavirus, can request a 3-month payment freeze on the following services:
If people are having temporary difficulties meeting payments due to coronavirus, they can request a freeze of payments on a high-cost short-term credit loan for at least 1 month up to 31 October 2020. Alternatively, those who have already taken a payment freeze, can apply for another 3-month freeze up until 31 October 2020.
Additionally, customers impacted by coronavirus can ask their main current account provider for up to £500 of overdraft borrowing with no interest for 3 months. They can also ask for help with the costs of your overdraft above this amount if it is needed.
Insurance
The FCA has agreed a range of options that insurers may consider appropriate to help customers, including:
The government has acted to protect renters during the pandemic by suspending eviction proceedings for 6 months, to 20 September, as well as changing the law to extend the notice period landlords must give their tenants to 6 months, except in the most serious cases, until at least the end of March 2021.
Alongside this, the government has provided a comprehensive package of support to help prevent people getting into financial hardship or rent arrears as a result of coronavirus:
Where tenants are struggling to pay their rent, they should speak to their landlord at the earliest opportunity to allow both parties to agree a workable way forward. They may also wish to seek advice from specialist providers such as:
Each local authority has its own Local Council Tax Support (LCTS) scheme which provides reductions in council tax for low-income residents. There may also be other support available, including through the range of discounts and exemptions that can be applied to council tax. Further detail is available in the Plain English Guide to Council Tax.
General guidance and further advice
For those that are still worried about their finances, or who would like more information on how to best manage their budget, the government-backed Money Navigator Tool provides guidance tailored to individual needs, including directing individuals to further advice where appropriate, such as free debt advice.
Consumers that are worried about debts or have already missed payments should consider accessing free and independent debt advice directly. The government sponsored Money Advice Service (part of the Money & Pensions Service) can help you find support via The Debt Advice Locator.
Further independent debt advice for those who can’t keep up with payments can be found from the below trusted organisations:
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