COVID-19 has caused chaos with my income - where to go for advice

COVID-19 has caused chaos with my income - where to go for advice

COVID-19 has caused chaos with my income – where to go for advice

The current COVID-19 pandemic has impacted all aspects of daily life. From shopping and socialising to travelling and eating out, we’re all having to think more carefully about what we do and how we do it. One of the main areas impacted by COVID-19 is industry.

Almost every worker in the UK has felt the knock-on effects of the pandemic, with many unable to work because of the current pandemic.

If you’ve seen your earnings tumble since the start of lockdown, understanding what to do and where to go for advice will help to see you through. Take a look at our guide to get started.



Almost as soon as lockdown began, the Government announced measures designed to prevent mass unemployment and support UK businesses.

Moreover, one of the most important support measures was their furlough scheme. This scheme sees the Government step in to pay 80% of staff wages for employees furloughed during the pandemic.

Employees are furloughed when their employer is unable to keep them on the payroll. This may be because the employer has ceased trading or because they need to scale down their staff in order to weather the pandemic.

If you have been furloughed, you can’t do any work for your employer until you come off furlough. However, you can volunteer to help with efforts to fight the virus.



Like employees, the self-employed will be able to claim up to 80% of their wages if they are unable to work during lockdown. Pay-outs to the self-employed will be limited to £2,500 per month.

However, this money won’t be available until the first week of June. Until then, the self-employed will need to rely on savings or apply for Universal Credit to see them through.


Company directors 

As company directors are PAYE employees of their businesses, they can be furloughed just like other employees. This allows them to claim up to 80% of their monthly earnings to a maximum of £2,500 per month.

However, this will only apply to PAYE earnings, not dividends. For many directors, this will mean a significant shortfall in their take-home pay.


Long term unemployed will continue to receive their benefits during the pandemic. If you were recently made unemployed, or if you resigned just before the lockdown began, you may be eligible for your employer’s furlough scheme.

As @CitizensAdvice says, “If you stopped working for your employer on or after 28 February 2020, you might still be able to get paid through the scheme if your employer rehires you.”

If your employer chooses not to rehire you, you’ll have to apply for Universal Credit to get you through the pandemic.

Find out more about the measures affecting you and learn where you can get advice and information by exploring our site today.