Any help for the unemployed?

lloydy84

Hi, just a quick question. I think I know the answer already but posting here for any help.
Situation:
- Frank started a new job in January 2019. 
- Frank's workplace was closed down on the 24th of March as it deals with the public.
- Last week Frank was informed that, due to the effect of Coronavirus but in China (where the products come from) and in the UK, his services were no longer required. Frank was told that he would be let go from the company with one weeks pay. 
- Frank is aware that he could be entitled to Furlough and asked his boss via whatsapp if he could be furloughed for as long as possible. Boss replied stating that furlough was a means of retaining staff, and that Frank would sadly not be retained, therefore, sadly, they refused to furlough.

Frank's income was net £1485/month
Frank's partner's income is £1285/month
Frank has no children or savings. 
Frank checked online to see if he was entitled to benefits. Under the universal credit system he is entitled to £29/week. Alternatively he is entitled to £325/month JSA.

If Frank's former employers fail to furlough him, is he entitled to any other benefit? The only money he has is £805 in his current account & £2000 locked up in flights/holidays which he will get back through his insurance if his holiday in July is cancelled. 

Frank and his partners outgoings are £2100/month, this would compare to an income of £1610

Thank you got any help. Understand these boards are busy and people are in bad situations.

calcotti

No it’s UC or JSA as you have worked out. Possibly Council Tax Reduction from local authority but if UC entitlement is that low I suspect there will be no CTR due.

Jeremy535897

I assume the low level of UC is because of the partner's income? He needs to look for some work. If they have a mortgage, ask for a mortgage break.

lloydy84

Very much suspected this was the case. 
Does strike me as rather sad that nothing is really being done to help those who have become unemployed in this situation. I understand that many can be furlough, and I also understand that employers are being encouraged to furlough staff even if they're sure that they won't be keeping them on after this shut down, which makes it seem even more odd that they're not helping those that have been laid off.
- Indeed the low amount of UC is due to partners income. Which isn't amazing, 18k before tax.
- No mortgage, renting. Not so cheap area.

Jeremy535897

Could the landlord be persuaded to enter into some sort of rent deferral plan?

Hermann

Frank needs to look to reduce the £2100 a month outgoings.

Perhaps payment holiday on debt/mortgage?
Help with Rent/Council Tax if renting although if UC is so low then may not be much help for rent.

Not sure there is much more income wise available beyond finding another job, which isn't an easy ask for some at the moment.

calcotti

lloydy84 said: Does strike me as rather sad that nothing is really being done to help those who have become unemployed in this situation. 

What was done was to increase the UC entitlement by £90/month on the standard allowance plus increases to the housing element. Couples have always been assessed on joint circumstances for means tested benefits.

This is actually quite a significant increase to the benefits system that people who become unemployed have been dealing with for years. 

Please don’t interpret the above remarks as unsympathetic to your situation - the fact is being reliant on benefits is not easy.

lloydy84

Yup, those monthly outgoings will have to come down somehow. Rent and council tax amounts to £740/month, car payment £290/month until November (30 month loan, luckily only 7 months left) Going to be tight.
Jobs are very difficult to come by. Big noise about fruit pickers but nothing around this area, order pickers/drivers advertising for Iceland, applied for already.

Mrsn

Did you try both benefits calculators to check the amounts estimated? Seems a bit low for UC given you are renting and your partner only earns 18k but I am no expert!

You would be best placed to get that car payment on hold if you can and speak to your landlord regarding rent, they may be able to help temporarily. 

lloydy84

calcotti said:

lloydy84 said: Does strike me as rather sad that nothing is really being done to help those who have become unemployed in this situation. 

What was done was to increase the UC entitlement by £90/month on the standard allowance plus increases to the housing element. Couples have always been assessed on joint circumstances for means tested benefits.

This is actually quite a significant increase to the benefits system that people who become unemployed have been dealing with for years. 

Please don’t interpret the above remarks as unsympathetic to your situation - the fact is being reliant on benefits is not easy.

Absolutely, can imagine that is the case.

calcotti

Mrsn said:

Did you try both benefits calculators to check the amounts estimated? Seems a bit low for UC given you are renting and your partner only earns 18k but I am no expert!

You would be best placed to get that car payment on hold if you can and speak to your landlord regarding rent, they may be able to help temporarily. 

You are right the UC figure of £29/week (£125/month) does look low. If partner earns £1285 the earnings deduction is £810. Even if both are under 25 years old that would suggest eligible rent is only about £425 whereas OP indicates it is higher than that. If one of them is 25 or over the calculation is more adrift. Even so JSA may be worth more.