Written evidence from Name Withheld [SWP0020]

My recommendation would be that the government allows all people to receive 80% of the average they have earned over the past 3 years, up to £2500 a month, rather than just to those who are in current employment and not retired. This would put the support criteria in line with that of the self employed. This way, the people concerned would receive the necessary support, instead of just the businesses and the “economy”.

As an investment writer, I feel I am quite knowledgeable about the financial situation of the government and the economy. As such, I would be happy to discuss my suggestion at length if you require.

I have seen on the BBC that you want to have some feedback from people who have just submitted a universal credit claim due to the coronavirus situation, as per here:

In response, please see the email I sent my local MP the other day about the inadequacies of the situation for myself.

I would appreciate any feedback you can provide.

Dear MP

I live in your constituency on Clapham Common Southside.

I was made redundant from my job as a financial writer at the end of January, having been in continuous employment at the company for over 5 years in total. I have been in almost continuous employment in the industry since 2006, barring a couple of years abroad. This was the first time I have been made redundant. I have paid over £30,000 in tax this year.  In February, I was living off my meagre savings as I was verbally promised another job at another company also in financial services; however, this job has now been put on indefinite hold as a direct result of the coronavirus situation. I have been offered a number of other roles at other companies and unfortunately all of these have also been put on hold. As a result, I have been unable to work since the start of February and probably will not be able to in the near future, until this situation is resolved.

While I agree with the steps the government is taking regarding coronavirus, these have directly made it impossible for me to earn any money. I still have significant rent, bills and other financial commitments and have very little savings left. I have already put credit card payments etc. on holidays and been denied access to more credit due to my employment situation. I tried to apply for council tax exemption and was told we could have around £10 a month, despite the fact that we are paying >£180 a month between us.

I have applied successfully for universal credit in conjunction with my partner who is a trainee GP (we get around £1400 pcm), but the amount we have been allocated is not enough to cover my share of the rent and bills, let alone any living costs. she earns less than £40k a year - obviously not enough for two people and a £2300 pcm flat in Clapham (before bills). I have generally earnt approximately 2.5 times what my partner earns and have therefore paid a greater share. I am obviously not able to access the furlough payments as I am unemployed, but it is still a direct result of the government's actions that I am unable to earn my living. People who are furloughed are earning 80% of their pay, but my universal credit payment is only approximately 25% of what I would earn as salary after tax.

I understand that my situation is probably relatively unusual, but I am in a minority who have fallen through the cracks of what financial support the government is offering. Can you tell me if there is anything that can / will be done to boost the financial support given to those who have been unlucky enough to have been made redundant just prior to this crisis? I understand that the level of universal credit payments is supposed to encourage people to work, but the government is acting directly against the financial situation of for those in my situation and I believe I should be compensated appropriately. I do not think it would be unheard of for someone in my situation to claim lost earnings as a result of the government's actions (although I do support the coronavirus social distancing response and would personally have taken more drastic actions).

April 2020