Coronavirus finance & bills help
Help if you're struggling to pay mortgages & other debts, plus rental help, council tax & more
The coronavirus pandemic fundamentally changed the way we live. While the primary concern has always been health, many have struggled - and are still struggling - with financial wellbeing too. Wide-ranging payment holiday help was put in place, but those schemes have now ended. 'Tailored help' is now the order of the day. Our guide tells you what help's still available and how to apply.
Important! This guide is no longer updated, but we've left the information below for reference. Always check with your lender or utility provider what help they can give you if you're struggling to pay bills or debts.
In this guide
The entire financial landscape shifted last year due to the coronavirus. We saw the Bank of England undertake economic shock therapy and reduce the UK base rate twice in just over a week back at the start of the pandemic. And we saw lenders scrambling to help customers who'd lost their income, offering payment holidays on loans, mortgages and credit cards, plus widespread help for those overdrawn.
It was economic shock therapy that was needed. Many people were worried about how they would be able to afford to pay their bills, or just afford to live. But all payment holiday help schemes are now over. Yet, you can talk to your lender or utilities provider and get help that way.
We've split this guide into two main parts:
Help with credit products – this covers products such as mortgages, credit cards, loans, overdrafts and car finance, as what's available for them is similar, despite the differences in the way these products work. The help's the same because they're all regulated by one body, the Financial Conduct Authority, which has set guidance for firms on what help they should offer.
Help with other household bills – here the help is much more dependent on what the bill is, and what the various regulators involved have asked firms to do.
We hope this is helpful, but let us know if you think we've missed something.
What help's available if I'm struggling to pay my mortgage, credit card, loan, insurance or other debts?
Regulator the Financial Conduct Authority (FCA) has set out a series of rules for lenders to follow to help customers who are struggling to make repayments.
Payment holidays were available until earlier this year, but they've now ended for everyone who was on one. So, if you're in financial difficulties now, you'll be offered tailored support based on your individual circumstances.
While the support available will mean similar things across a broad range of products, there are a few nuances depending on which product you need help with. Scroll down, or use these links to skip to relevant sections:
Help if you're struggling with mortgage repayments
Make sure you call your lender to let it know about your financial situation - don't just miss payments without speaking to it. Head to your lender's website and find the section which details its coronavirus help. You should be able to find the correct contact details there. Lenders are currently very busy, so it's best to do this as soon as possible before your next payment.
Take the time to understand the implications of any help you're offered - ask what it'll mean for your payments in future, and whether the help will go on your credit report.
Quick questions
Help if you're struggling with credit card debt or loan repayments
How to apply for tailored support
Head to your lender's website and find the section which details its coronavirus help. You should be able to find the correct contact details there. Lenders are currently very busy, so it's best to do this as soon as possible before your next payment if you know you won't be able to make that payment.
Take the time to understand the implications of any help you're offered - ask what it'll mean for your payments in future, and whether the help will go on your credit report.
Quick questions
Help if you're struggling to pay your rent-to-own, pawnbroker or buy now, pay later loan
Lenders in these three areas must also give you tailored support if you have payment difficulties, or if you're coming off a payment holiday and you're still struggling. Let's first define what falls under these three categories:
Buy now, pay later. Buy now, pay later covers in-store credit or catalogue credit where you get an interest-free or low-interest period at the start, often for a year, where you may not need to make any payments. After the initial period, you'll need to make monthly payments, and you may start being charged interest at this point. Buy-now-pay-later firms include Hitachi Capital and Consumer Credit Solutions (though not most Klarna, Laybuy or Clearpay deals).
Rent-to-own. Rent-to-own stores, such as PerfectHome and the in-administration BrightHouse, let you take white goods and other household appliances home in return for weekly or monthly payments to 'rent' the item. Usually you'll be able to buy the item if you want to, during the contract or at the end, though you can return it at the end if you no longer need it or want to upgrade.
Pawnbrokers. This is where you 'pawn' an item - ie you sell it to the pawnbroker and they give you cash in return. However, you'll also get a redemption period, where you can buy the item back for an agreed price. If you don't buy the item back in that time period, the pawnbroker will be able to sell it to anyone.
If you're struggling with rent-to-own, pawnbroker or buy now, pay later debts, your lender will need to provide tailored help. As it'll be based on your circumstances, there are no set solutions. But, you may be offered one or more of the bits of help below:
A (further) payment deferral. This is likely to be a short-term measure only, and may be offered if your circumstances are still changing, and you're not able to commit to a longer-term measure such as setting up a repayment plan.
A (further) period of reduced payments. If you can pay something towards your loan but can't make the full contractual repayment, your lender may agree to you making reduced payments. Again, this measure is likely to be short-term only.
Waiving or reducing interest. If you can't meet your payments, the lender needs to make sure the amount you owe isn't rising out of control, so it may need to cut or waive the interest it's charging you.
Agreeing a repayment plan. This is where your lender works with you to set up a plan that doesn't meet contractual repayments, but allows you to pay off the debt in a reasonable amount of time.
Refinancing your credit agreement. This might mean, for example if you have a loan, that you agree to pay it back over a longer period, thus reducing the monthly payment you need to make (but as you're borrowing over a longer period, you'll pay more overall). This will only be offered where it's likely to be affordable, and your finances are settled enough to commit to a new agreement.
Tailored support WILL go on your credit report
The FCA says lenders SHOULD report any forbearance (such as extra payment deferrals or reduced payments) to credit reference agencies. Lenders will need to let you know if the support they're offering you would have an impact on your credit report (see how to check your credit reports for free).
How to apply for tailored support
Head to your lender's website and find the section which details its coronavirus help. You should be able to find the correct contact details there. Lenders are currently very busy, so it's best to do this as soon as possible before your next payment if you know you won't be able to make that payment.
Take the time to understand the implications of any help you're offered - ask what it'll mean for your payments in future, and whether the help will go on your credit report.
Quick questions
Help if you're struggling with payday loans
Just like the other debts in this list, your payday lender still needs to help you if you're struggling (or if you're coming off a payment holiday). This could include:
The lender accepting token payments, eg £1, until you can resume normal repayments
Agreeing a repayment plan so the debt's paid off over several months
Waiving or lowering interest rate charges
So, if you can't pay your payday loan - whether it's a new problem or a continuation of previous difficulties - talk to your lender to see which of the solutions works best for you and for it - though do be aware that any help you get WILL be reported on your credit report, and may affect your ability to get credit in the future.
For more information, have a read of our payday loans guide, which has help on steps you can take to get out of payday loan debt. It's also worth checking if your payday loan was mis-sold and whether you can reclaim.
Help if you're struggling with car finance payments
Head to your car finance lender's website and find the section which details its coronavirus help. You should be able to find the correct contact details there. Lenders are currently very busy, so it's best to do this as soon as possible before your next payment if you know you won't be able to make that payment.
Take the time to understand the implications of any help you're offered - ask what it'll mean for your payments in future, and whether the help will go on your credit report.
Quick questions
Paying overdraft interest? You can get tailored support, which could include waiving interest or transferring the debt to a loan
Will overdraft help be shown on my credit report?
The fact you're using your overdraft and how much you owe will be shown on your credit report. However, if the bank agrees to reduce or waive interest, for example, this wouldn't be shown on your credit report.
The only difference might come if you accept a loan to pay the overdraft off. In this case, the loan would be added as a new credit product in the loans section of your report and your bank account would then show with a balance of zero on your credit report as you're not borrowing anything - and this will be the case even if you're in credit. To check what's showing on your report, see how to check your credit reports for free.
For further help and information, see our Cut overdraft costs guide, which includes info on how to get your overdraft to 0%.
Quick questions
Help if you're struggling to pay insurance premiums
Help if you're struggling to pay rent
Many rules have been changed to support those struggling to pay rent due to the coronavirus outbreak. No social renter should be evicted due to coronavirus, local government and housing associations have confirmed, and although private renters can still face eviction, extended notice periods have been put into place. Here's the key info if you're in financial difficulty...
Speak to your landlord as soon as possible to let them know your situation and work out a repayment plan.
Many landlords just have one extra property, often inherited and mortgage-free, and use the income from rent for living expenses. In the current crisis, these landlords aren't eligible for any Government help (not even universal credit). So if your landlord's in this position, they may be struggling too.
When you talk to your landlord, be sensitive to their circumstances, and try to find a solution that suits you both.
Check you're receiving all financial help you're entitled to, including universal credit.
The Government increased the housing allowance part of universal credit so that the local housing allowance would cover at least 30% of the lowest rents in your area, which may help you. See our Coronavirus Universal Credit & Benefits guide for more.
If you rent privately in London, it's worth using the Mayor of London's property licensing checker to see if you're owed a refund of up to 12 month's rent, which could be due if your landlord doesn't have the right documentation. You'll still need to put in some legwork but it could be worth £1,000s. See our news story for full information.
Renters must get notice to leave – but can be taken to court and evicted if it's exceeded
There's a strict process landlords need to follow to evict you. The first part is to serve you notice of eviction. But the notice they need to give you varies:
In England, since 1 October 2021 they usually need to give you two months' notice (unless you owe more than four months of rent, in which case the notice period is just four weeks).
In Wales and Scotland they usually need to give you six months' notice, if given before 24 March 2022 in Wales and 31 March 2022 in Scotland.
In Northern Ireland they usually need to give you 12 weeks' notice, if given before May 2022.
In all cases, if the eviction is due to anti-social behaviour then the notice period is shorter – typically 28 days.
If you've not left by the time the notice period is up, your landlord can then choose to start court proceedings (or tribunal proceedings in Scotland) to evict you. Yet rules in England and Wales also require landlords to provide information about how tenants have been affected by the coronavirus pandemic. Without this, the case can be rearranged for a later date.
If the court agrees you can be evicted, then your landlord can appoint bailiffs who can gain entry to the property to take possession of it, or to remove your belongings and change the locks. You could also be expected to pay towards your landlord's legal fees. However, it can take weeks or months for the eviction to happen after the court allows it.
For more rental help, see our 50+ top tips for renters.
What should I do if my landlord's trying to evict me?
It's worth saying that you need to be given at least the notice required in your country for you to leave. If you've not left by the time this ends, your landlord can then apply to the court or tribunal for a hearing date. Even if they do this, you won't have to leave your property immediately – it's still a process and, from hearing until actual eviction (if granted), can take weeks or even months.
You also can't be evicted if you or someone else in the home has coronavirus or has been told to self-isolate.
Each case is different, so if your landlord's trying to evict you, try:
Shelter (in England, Scotland or Wales)
Citizens Advice (not NI, but it signposts to local NI community advice centres)
Your local Law Centre (not Scotland)
All of these sites have lots of helpful information on what to do next, plus many have advisers who can speak with you about your rights and potentially even help in court.
What help's available if I'm struggling to pay for energy, broadband, water or other bills?
If your income's been affected by coronavirus, then it's likely you could struggle to pay bills as well as making repayments on your debts. We've rounded up the help available on the most common household bills below. Scroll down, or see the specific help available for:
Help if you're struggling to pay gas & electric, incl prepaid meters
Energy suppliers are offering help to those who may struggle to pay bills as a result of the coronavirus pandemic – both prepay and credit meter customers. Though the huge rise in energy prices in recent months has also pushed more in to needing help.
Regulator Ofgem has written to all suppliers, saying it expects them to "take proactive measures to support prepayment meter customers, including customers in vulnerable circumstances".
Ultimately, suppliers will deal with issues on a case-by-case basis, so the best thing you can do if you are struggling to pay your bill due to coronavirus is to contact your provider as soon as you can.
Help if you're struggling to pay your broadband bill, or you can't afford broadband at all and need it for home schooling
If you are struggling, it may be cheaper to find a new deal - our Broadband guide has full info.
When you do switch, your broadband may be down for up to two hours, but in rare cases the outage can be longer if anything goes wrong, so it's worth considering at this time when broadband's so crucial.
Help if you're struggling to pay your council tax
The Local Government Association (which represents councils in England and Wales) has told us that all local authorities have help in place for people who are facing financial hardship as a result of coronavirus. COSLA, its Scottish equivalent, has told us that councils there are helping too. If you're in Northern Ireland, see more on the council tax-equivalent domestic rates system in the questions below.
The support you get will depend on your circumstances but it could include:
Payment plans. This is where you can work with your council to figure out an affordable repayment schedule if you're in arrears or unable to pay forthcoming council tax instalments.
Bill reductions if you're on universal credit, other benefits or a low income. Council tax reductions are long-standing discounts of up to 100% off bills for those on benefits or a low income. It doesn't matter if you own your own home or rent, or whether you're employed or not. All can apply. Yet what you get depends on:
- Where you live (each council runs its own scheme).
- Your circumstances (eg, income, number of children, benefits, residency status).
- Your income, including savings, pensions and your partner's income.
- Who lives with you (eg kids or other adults).
Some councils may let you backdate the reduction, but by how many months varies by council so you'll need to check, though the sooner you do it, the sooner your bill will be reduced.
In England, you may also qualify for some money off your bill. On top of the discount provided to those on a low income, you may also be able to get something extra. How much you can get depends on your council, but we've seen £50-£150 being offered when we've done spot checks of councils. Find details of your local council at Gov.uk.
How do I check what my council is offering?
Quick question
Help if you're struggling to pay water bills
Need extra help? Sign up to the Priority Services Register
All water firms in England and Wales have schemes that allow customers to register for free additional support if they can't leave their home, have limited mobility, have sight, speech, hearing or cognitive impairment, or have a serious illness or a mental health condition.
Help includes:
Uninterrupted supply of water, even during wider-scale service interruptions.
Help managing and paying bills, including home visits, reading meters and providing alternative bill formats such as Braille or additional languages.
Help identifying that the person at the door is a genuine water company employee.
Warning – watch out for coronavirus scams
Lowlife scammers are taking advantage of coronavirus to try to defraud people, especially the elderly and vulnerable.
Action Fraud identified thousands of reports of fraud relating to coronavirus, with victims' losses totalling more than £5 million. Many of these are online shopping scams where victims have tried to buy products such as protective face masks and hand sanitiser from fraudsters. There have also been over 4,400 reports of coronavirus-themed phishing emails designed to trick people into opening malicious attachments or revealing sensitive information.
A common tactic used by scammers is to send messages purporting to be from research groups linked with the Centres for Disease Control and Prevention in the US, or the World Health Organisation. Some claim to be able to provide a list of people infected with Covid-19, which links to a malicious website or asks the victim to make a payment in Bitcoin.
Other common phishing emails include those pretending to be from the Government, sending articles about the coronavirus outbreak with links to fake company websites, or sending details of investment schemes which encourage people to take advantage of the coronavirus downturn.
Received a suspicious email? The National Cyber Security Centre (part of GCHQ) has launched its new Suspicious Email Reporting Service to take phishing scams down – all you have to do is forward suspect emails to its report@phishing.gov.uk email address.
Pension holders targeted in spate of scams
One very common scam during the coronavirus crisis has targeted pension holders, saying they can access cash quickly if they transfer their pension. And with many desperate for cash, this scam often finds a target – and victims lose an average of £82,000 through pension scams. Here's what to look out for
An out-of-the-blue offer of a free pension review. If someone calls you and says they're from your pension company, or are from a financial adviser offering you a free pension review, NEVER continue with the call.
Someone saying they're calling from your pension company. If they say they're from your pension company, say you will call them back, and then look up the company's contact details online or on your policy documents. NEVER call a number they've given to you. If it's a legitimate call, the caller won't mind.
If you're under 55 and someone calls with an offer to access your pension, don't continue. You can't access your pension before you're 55 unless you're terminally ill. Anyone offering this isn't legitimate.
Someone offering to manage your pension. Similarly, if someone asks you to transfer your pension to their company or put it under their management, do your homework on the company before taking any action. You can check if pension companies or advisers are registered on the FCA Financial Services Register, a public record that shows details of regulated firms, individuals and other bodies.
Tips to protect yourself against scams
Action Fraud says you can do the following to minimise your chances of being tricked:
Be vigilant for scam messages. This includes not clicking on any links or attachments if you receive a suspicious message, and not responding to any unsolicited messages or calls that ask for personal or financial details.
Take care when shopping online. You should always do your research if buying from a company or person you don't know and trust, and possibly ask a friend or family member for advice first. If you do go ahead with an online purchase, you should use a credit card if possible for extra protection (see our Section 75 guide).
Protect your devices from threats. This includes always installing the latest software and app updates to protect your devices from new threats.
Also see MSE Katie's 20+ coronavirus scams to watch out for blog for more of the known coronavirus-related scams out there and tips to protect yourself from fraudsters.
Have you been scammed?
If you've lost money to fraudsters, you should do the following:
Immediately end all communication with them.
Contact your bank to tell them you've been scammed, and cancel any recurring payments.
Report the scam to the police through the Action Fraud website. You can also call it on 0300 123 2040, but be aware it has a reduced phone service at the moment, so waiting times may be longer than usual.
If you want one-on-one help, you can contact Citizens Advice Scams Action by phone or online chat.
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8 October 2024
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