CILEx

Managing your money:
​a guide to financial support

With the furlough scheme about to end, redundancies on the horizon and the UK in recession, where can CILEx members find support when their financial security is at risk?

About the author: Dominique Edell ACILEx is charity support o›cer at the CILEx Foundation.​The economic and social impacts of the events of 2020 are being felt by many of our members. In the past month, we have been faced with the news that further social restrictions will be placed across the UK, whilst schools, transport and public services are operating on restricted timetables. The country is gearing up for a potential further wave of the virus, and the consequences this will have on our home - and work - lives.

Support at work

Employee assistance schemes

If you are employed, your workplace may have an employee assistance scheme to which you can refer for advice on a number of issues. Typically, you can access telephone or remote advice from trained staff on wellbeing, finances, welfare issues and, in some cases, legal advice.

If you are working remotely or on furlough, you should still be able to access this staff benefit, but do check with your HR service or manager if you are unsure.

Staff associations

Some of our members, particularly those working inhouse or for government bodies, may also be members of staff associations or trade unions. Your subscription to these bodies will often include access to telephone welfare support and money management and other advice services.

Support at work if you are at risk of redundancy

Your employer will be able to advise you of any additional support they can offer to support you during redundancy consultations. This might include , so that you can arrange interviews or make calls during the working day. The Advisory, Conciliation and Arbitration Service offers advice on your rights if you are at risk of redundancy.

Supporting you and your family

The pressure of money worries can negatively affect every area of our lives, and your home and family life are, naturally, of paramount importance when considering your budget. The Money Advice Service (MAS) offers useful information about what you should do if you are worried about money or facing a reduction in income, and where to turn for help and advice with problem debt. The MAS website provides links to articles and useful calculators to assist you with debt management and budgeting, and template letters to use if you need to write to your creditors or bank. MAS also has a convenient WhatsApp and webchat service.

State benefits

Even if you work, you may be eligible to claim state benefits to supplement your household income. The benefits system has changed over recent years, moving away from separate ‘legacy’ benefits to the Universal Credit scheme. This benefit supports those who are on lower incomes, who meet the eligibility criteria and live in the UK. It is important to note that Universal Credit is paid in arrears, and the wait before your first payment can be in the region of five weeks.

Entitlement to Universal Credit and other income-based state benefits (such as pension credit and disability benefits) often entitle you to additional financial support such as free prescriptions, reduced public transport costs and, if your children are of school age, to free school meals and access to local voucher schemes during holidays (subject to local area availability).

For those members who have children, a reduction in income may mean that you are now eligible to claim child benefit. This benefit is subject to an earnings cap of £60,000 (earners over £50,000 are liable for income tax repayment on the benefit). If your circumstances have changed, you can make an application for this benefit to be restored. 

If your income has reduced, you may also be eligible for council tax support (also known as Council Tax Reduction). Many local authorities have set up Coronavirus Support hubs or information lines, so contact your council for more information on whether you can make a claim. Also, get in touch with your council if you now live alone, as this may also entitle you to a discount.

Advice on benefits, including universal credit, disability benefits, child benefits and maternity benefits, can be found at GOV.UK.

Support with childcare

Many schools are reducing their opening times in response to social distancing requirements. This can leave working parents with additional worries about the affordability of adequate childcare.

The Tax-Free Childcare scheme replaced the employer-supported childcare voucher scheme in 2018. By registering with HM Revenue and Customs, you can open an account in which the government will contribute the tax payable to your childcare provider. This can be used for childminders, nurseries, play schemes and wraparound childcare clubs, subject to eligibility.

Additionally, you may be able to claim up to 30 hours of free childcare for children aged three and four years old, if you are a working parent household. For families where one parent in the home is not working, this reduces to 15 hours. If you are concerned that redundancy will affect your eligibility, talk to your childcare provider, who can tell you if a grace period may apply while you find new employment.

Also, get in touch with your child’s school if you anticipate a change in household income. Many schools have Parent Support staff, who can advise on local grants and family support schemes for education costs such as transport, uniform, books and equipment.

Borrowing and debt

You may already be suffering the impact of reduced wages and unexpected expenses brought about by the previous lockdown period. Before your budget hits crisis point, you can self-refer to the following agencies for early advice and support.

Contact your lender

According to the National Debtline charity, many credit lenders are offering three- month pay freezes on loans and credit card payments. You may still be charged interest during this time, so it is important to speak to your credit lender to discuss the terms of any payment schedule amendments.

Additionally, National Debtline advises that you have until 31 October to ask your mortgage company for a three-month payment holiday under the scheme announced earlier this year. Additional support, including temporary payment reductions, may still be available subject to terms and conditions agreed with your mortgage lender.

Contact your landlord or letting agent

If you are unable to afford your rent, get in touch with your landlord or letting agent as soon as possible. Your local Citizens Advice will have information on local support and resources. If you believe that you may be at risk of losing your home, you can speak to advisers at Shelter, the national housing charity, or get in touch with your local council for emergency housing advice.

Problem debt

Managing increasing debts can seem like an impossible task. StepChange Debt Charity offers free and confidential advice and solutions on all aspects of debt. The charity’s website includes on online assessment tool, or you can speak to an adviser. They can assist you with arranging payment holidays for household bills, help with communicating with creditors, and create a plan to allow you to deal with your debt.

It is important to remember that you may need to declare certain debt arrangements on your prior conduct declaration to CILEx Regulation Limited (CRL). For further information, visit the CRL website.

Maintaining your wellbeing

The stress of money insecurity - added to the day-to-day pressures of a busy career in law - can have a negative effect on your wellbeing and mental health. If you feel as though your physical and mental health are suffering, please speak to your GP. Many surgeries offer telephone appointments, which are easier to schedule into your working day than face-to-face appointments; otherwise, the mental health charity MIND has produced helpful online guides on protecting your mental health during periods of debt.

SUPPORT FROM CILEx

Your CILEx membership offers support in several ways

We advise you to tell us at the earliest opportunity if you are worried about how financial hardship may impact your ability to work or learn:

  • A membership benefit is access to LawCare, a specialist service offering free advice on a wide range of issues affecting the legal community.
  • The CILEx Benevolent Fund supports members who are experiencing unexpected hardship. Details of the claims process and eligibility criteria can be found on the CILEx website. Along with providing grants, the charity can also refer members to an independent money advice service for budgeting advice and benefit eligibility assessments.
  • If you are unable to afford your membership fee, please call Membership Services on 01234 841000 or e-mail: membership@cilex.org to discuss payment options.
  • The Stay Connected hub is a fantastic resource full of wellbeing information, and the Find a Job and myCareer sections are essential reading for those seeking employment.
  • Finally, please take the time to review the recently updated Useful contacts webpage for further details of the organisations mentioned in this article and more.