Families facing "financial ruin" as Covid financial support ends

Labor, according to Labor, faces a Covid cliff with fear of financial ruin if financial aid programs end.

Shadow Chancellor Anneliese Dodds said a lack of savings linked to the coronavirus-induced economic downturn has resulted in 2021 spawning a toxic cocktail – and could spell disaster for families.

Upcoming deadlines include the end of the eviction ban on January 11th, the mortgage vacation on the last January and the extended vacation program on April 30th.

The window for applying for government-sponsored loan programs is slated to close on March 31, and ministers plan to cut £ 20 a week from universal credit starting April 6, Labor said.

The party said its own analysis showed the UK entered the pandemic with one of the lowest savings rates in developed countries.

Data shows UK households saved £ 3,055 less than the average for other economies in the G7 group in 2019.

Labor said a quarter of families had less than £ 100 in savings when the Covid-19 pandemic hit.

The impact of coronavirus restrictions was found to have cost more than 1.3 million jobs while millions of self-employed have been excluded from Treasury support since the crisis began.

Ms. Dodds said: “The irresponsible decisions of the Conservatives over the past decade have left many British households in this crisis with no penny in the bank.

“When Covid hit, they had nothing to fall back on – and now some are on the verge of financial ruin when multiple ridges of Covid supporting cliffs surface.

“The Chancellor’s chaotic approach to this last-minute crisis has plunged Britain into the worst downturn of any major economy, but it does not appear to have drawn any lessons.”

“Families across the country will continue to suffer unless he fixes the UK’s broken safety net and addresses the root causes of income insecurity in our country.”

The shadow cabinet member’s warning came when Boris Johnson told the public that the “bitter economic consequences” of rules to combat the spread of the coronavirus meant that more people “would continue to lose their jobs through no fault of their own”.

In an article in the Telegraph, the Prime Minister pledged to “continue our actions to support the economy and protect jobs and livelihoods in the New Year”.

A Treasury Department spokesman said, “As the Bank of England and others have said, the Chancellor’s £ 280 billion support package has protected the jobs and incomes of millions of people and helped thousands of businesses stay afloat.

“We have always adapted to the changing circumstances, and the expansion of key programs like vacation, self-employment assistance and business loans has given people and businesses the security they need by the end of April.

“And our plan for jobs will protect, support and create jobs across the country and give companies the confidence to keep and hire them.

“We remain determined to do everything we can to help lead the UK through this pandemic.”

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