Weekend personal finance news roundup: Saturday 9th May 2020
In our weekend personal finance news roundup, the five money stories you need to know from the past seven days.
In this edition – sharpest recession forecast, government paying wages, and kitten scam warning.
Sharpest recession forecast
The UK economy is heading towards the sharpest recession in recorded history.
According to the Bank of England, the economy could crash by 14% this year, with the pandemic “dramatically reducing jobs and incomes in the UK”.
Their modelling is based on lockdown measures continuing until June, with a gradual easing of social distancing measures until September.
Government paying wages
The government now pays almost a quarter of all wages under the Coronavirus Job Retention Scheme.
Around 6.3 million people are on furlough under the scheme, representing 23% of the UK employed workforce.
Employers can receive 80% of workers’ wages for employees on furlough, up to a maximum of £2,500 a month.
Kitten scam warning
Action Fraud is warning about a spike in scams involving the sale of puppies and kittens.
According to Action Fraud, scammers are advertising pets online and asking for a deposit. The scammers also offer other services, including delivery.
But sales are fake and victims lose their money, a total of nearly £300,000 in the past two months.
Credit customer relief
The banking and finance industry has provided financial relief to hundreds of thousands of consumer credit customers whose finances have been impacted by the coronavirus.
According to industry body UK Finance, almost 700,000 customer accounts have been given a payment holiday on their credit card. UK Finance members have also provided almost 470,000 payment holidays on personal loans for customers impacted by the coronavirus.
Charity Shelter has warned that private renters face eviction when the lockdown ends, where they have lost their jobs during the pandemic.
Nearly half a million people in England are at high risk of homelessness, according to data from 187 local authorities. Evictions are suspended for the duration of the crisis.
A government spokesperson said: “We’re committed to supporting all those affected by Covid-19 through these unprecedented times and we’ve implemented an enormous package of measures to do so.”