What's happening with furlough?

What is the impact of furlough on my benefits and how can I maximise my income?

I’m no longer able to work following ill health, what help is available?

What happens if I need to self isolate because of COVID-19 symptoms?

Can I get financial support for self-isolation?

My employer has told me I might be made redundant: what are my legal rights?

Will I get full redundancy pay if I have been on furlough?

What support is available if I’m self-employed and struggling?

What's happening with furlough?

The Coronavirus Job Retention Scheme has been extended until 30 September 2021. From 1 July 2021, the government will pay 70% of wages up to a maximum cap of £2,187.50 for the hours the employee is on furlough.

From 1 August 2021, the government will pay 60% of wages up to a maximum cap of £1,875 for the hours the employee is on furlough. For claims from 1 July 2021, employers must top up their employees’ wages to make sure they receive 80% of their wages (up to £2,500) for the hours they are on furlough. The caps are proportional to the hours not worked. Please note that the Coronavirus Job Retention Scheme will be ending on 30th September 2021. Claims for September must be
submitted by 14 October 2021 and any amendments must be made by 28 October 2021.

What is the impact of furlough on my benefits and how can I maximise my income?

If being on furlough reduces a person's income, they may be eligible for Universal Credit.

If eligible for Universal Credit, earnings received whilst on furlough will be treated like any other earnings and may affect how much Universal Credit a person can receive.

Please be aware that if a person is already receiving tax credits or any of the benefits that are replaced by Universal Credit, these will stop if the person applies for Universal Credit and cannot be started again.

If the person was contracted to work less than 16 hours per week before placed on furlough, they may be eligible for New Style Jobseeker’s Allowance (JSA).

• Claimants receiving furlough pay may be eligible for Contributory ESA if they are too ill to work, and their payments will be treated as earnings in assessing their
  entitlement. Contributory ESA is available to those who have a good recent work record as there is a test of sufficient National Insurance Contributions having been
  paid.
• For people claiming Carers Allowance, furlough pay is treated as earnings. Carers Allowance is payable where the claimant earns less than £128 per week and spends
  35 hours or more in caring for someone who is in receipt of Daily living component of Personal Independence, Attendance Allowance or middle or higher rate of care
  component of Disability Living Allowance.
• Maternity Allowance is not payable to someone who is furloughed. If the furlough comes to an end whilst the person is still on maternity leave, maternity allowance
  will then be payable

I’m no longer able to work following ill health, what help is available?

If a person is unable to work due to ill health but they are employed, they might want to claim Statutory Sick Pay (SSP). They can get SSP for up to 28 weeks if they're employed but unable to work and their average earnings are at least £120 a week.

The rate for SSP is £96.35 a week (2021/22), though some employers have more generous sick pay schemes and others will assess cases individually (the person should check the terms of their contract or the staff handbook to find out what’s available).

If they have a health condition or are disabled which means they are no longer able to remain in employment, they could be entitled to benefits that will:

• Top up their income – for example, Universal Credit.
• Help with essential costs – for example, the housing costs element of Universal Credit.
• Allow someone who cares for the person to claim Carer’s Allowance.
• Help with the extra costs of being disabled or having a long-term health condition – for example, Personal Independence Payment

What happens if I need to self isolate because of COVID-19 symptoms?

You should follow the government laws regarding staying at home and isolating if you or a member of your household have covid-19 symptoms. Your employer should support you by supporting your mental health and wellbeing and consider what changes could be made to enable isolating employees to work from home. You may need to provide proof to your employer that you have been told to self-isolate or that you have tested positive for coronavirus. You are entitled to Statutory Sick Pay, if eligible, from day 1 if you cannot work while self-isolating.

Can I get financial support for self-isolation?

You might be able to get a payment of £500 if either:

• You have been told to self-isolate because of coronavirus (COVID-19) and you cannot work from home
• You’re the parent or guardian of a child who has been told to self-isolate and you need to take time off to look after them

The eligibility guidance is here https://www.gov.uk/test-and-trace-support-payment/

My employer has told me I might be made redundant: what are my legal rights?

When a genuine redundancy situation occurs, you have various rights which need to be upheld during the redundancy process. Your employer must follow a consultation and selection process before they select anyone for redundancy. If you feel your redundancy was unfair, you should appeal the decision and raise a formal grievance if there is no formal appeals process. There are templates and more information on this on the ACAS website If you feel the redundancy was unfair:
Your rights during redundancy - Acas

Will I get full redundancy pay if I have been on furlough?

Your redundancy payment must be worked out using your full normal pay not your furlough pay which may only be 80% of your normal pay.

What support is available if I’m self-employed and struggling?

There is a ‘Time to Pay’ service offered by HMRC for anyone with outstanding tax liabilities: https://www.gov.uk/government/publications/time-to-pay.

Self-employed people are not usually eligible for Sick Pay (SSP). If someone is diagnosed with Covid-19 or is required to self-isolate because they or someone in their household is showing symptoms or has been told to self-isolate they may be able to apply for Employment Support Allowance https://www.gov.uk/employmentsupport-allowance/how-to-claim. This benefit will now be payable from day 1 of sickness, rather than day 8.

A self-employed person who is not sick or self-isolating, but now has no work and doesn’t qualify for SEISS can claim Universal Credit which may also be able to help with rental costs.

If self-employed people claiming Universal Credit have set aside money to cover their tax liability this will be viewed as a business asset and capital will be disregarded.

The usual Universal Credit upper capital limit is £16,000 and people with capital above this level cannot normally get Universal Credit so this concession is helpful for those with other capital or with a lot of money set aside for tax liability.