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Government explains why you can go to the shops but not see family

Many people have gone months without seeing their loved ones.

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The government have revealed why the public will be able to go shopping in non-essential shops but not see family. 

The announcement on Monday said that non-essential shops are able to reopen to the public from June 15th, but saw no update on when people will once again be allowed to visit their loved ones.

There was outrage following this, so the question was addressed on Tuesday’s daily press briefing. Due to the social distancing restrictions, most people have gone months without seeing their closest family members.

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During the briefing, led by health secretary Matt Hancock and Professor John Newton, director of health improvement for Public Health England, the officials were asked why schools and shops could return to normal but people still couldn’t visit another household.

Ellie from Kent asked: “If people can start to shop for un-essential items and kids can go back to school when we don’t know where those people have been, why can’t we visit another household who we know have been self-isolating such as grandparents and partners?”

Professor Newton, explained that the risk of catching the virus within households is greater. He said: “The issue here is all about risk. We know that if social distancing measures are being implemented well in places like supermarkets, the risk is really quite low.

“We know the highest risk of transmission is within households, so the people you are most likely to infect are the people in your own household. That’s why the advice has to be different for meeting people in households compared to other places.”

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He added that there is a still a degree of risk in opening shops, schools and other public places, which are all planned for June. 

He said: “The gradual increase in contact is what will get us all back to normal. But we do have to bear in mind that everything we do has risk attached to it and the objective is to reduce that risk as much as possible.”

He told Ellie he ‘entirely understood’ where she was coming from in asking for an explanation, adding: “There is a yearning to see people in another household. We are looking at how we can make this happen in a safe way.”

Ministers have previously said that government advisers are looking into the idea of a household bubble, which would allow two households to spend time together.  But during a press conference last week, Professor Van-Tam said he was not in a position to comment on how far Sage had got in terms of reviewing the advice.

According to a Downing Street spokesperson, further advice on social contact between families will be released in ‘due course’. 

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People on working tax credits will get a £500 one-off payment, Rishi Sunak confirms

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Brits on tax credits get a one-off benefits payment of £500, Rishi Sunak reveals in budget. 

Outlined in the budget, Sunak explained that a £20 weekly increase in universal credit will extend for a further six months.

The chancellor explains that by the way Working Tax Credits system works people will not be able to receive the extra £20 weekly. 

Instead, people will benefit from a £500 one-off payment.

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Mr Sunak said: “To support low-income households, the Universal Credit uplift of £20 a week will continue for a further six months, well beyond the end of this national lockdown

“We’ll provide Working Tax Credit claimants with equivalent support for the next six months.

“Because of the way that system works operationally, we’ll need to do so with a one-off payment of £500.”

The £500 tax credit boost will run in the same way that the Universal Credit is paid – automatically. 

Lots of people have switched from the old ‘Tax Credit’ to the new ‘Universal Credit’ system. Anyone who hasn’t yet been transferred across will now be eligible for this new one-off payment. 

The number of people claiming universal credit in the UK has doubled since the start of the pandemic, reaching 6 million people at the start of this year. 

The extra benefit support is welcomed but many are raising concerns that six months is not long enough.

Sunak also revealed in today’s budget that furlough will be extended until September but employers will have to pay 10% of the employee’s wages in July and 20% in August and September. 

You can see a round-up of all the key points from the budget here

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What Rishi Sunak’s new budget means for people in Greater Manchester

Everything you need to know

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Rishi Sunak has said he wants to be honest about the government’s plans for fixing the public finances.

The chancellor says there has been ‘acute damage’ to the economy, with more than 700,000 people losing jobs and the economy shrinking by 10% – the largest fall in 300 years.

Borrowing has also been as high as during wartime.

He said: “It’s going to take this country, and the whole world, a long time to recover from this extraordinary situation.”

Here are the key points from his 2021 budget announcement….

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Furlough

  • Sunak explains that 1.8 million fewer people are expected to be out of work than previously thought, with the peak at 6.5% down from the forecasted peak of 11.9%.
  • Furlough is set to be extended until the end of September this year, however, firms will be asked to contribute 10% of employee’s wages in July and 20% in August and September as the scheme is gradually phased out.
  • A fourth grant worth 80% of average trading profits up to £7,500 covering February to April that will help self-employed people.
  • The £20 increase in universal credit will extend for six months

Business Support

  • Total cash support to businesses has reached £25bn. A further £5bn restart grant has now been confirmed to help companies get going after lockdown.
  • Hospitality and leisure businesses will pay no business rates for three months, then discounted for the remaining nine months of the year by two-thirds.
  • The 5% VAT cut will be extended to the end of September and gradually increased at 12.5% for six months before returning to the normal rate in April 2022.

David Dixon/Geograph

Housing

  • The stamp duty holiday will be extended on properties up to £500,000 to the end of June. It will return to normal levels from October 1st.
  • Mortgage guarantees were also confirmed to help first-time buyers access 95% mortgages, with just 5% deposits.

Public Finances

  • The government will take a ‘fair’ approach to ‘fixing the public finances’ the chancellor confirms.
  • There will be no increase in national insurance, income tax or VAT.
  • The personal allowance will remain at £12,750 until 2026 and the higher rate will increase to £50,270 next year.
  • Inheritance tax threshold, pensions lifetime allowance, annual exempt allowance from capital gains tax and VAT exemption thresholds will all be frozen.
  • New minimum wage rates come into force in England on April 1st. Basic rate workers will see a 2.2% increase, with the National Living Wage rising to £8.91 an hour.

David Dixon/Geograph

Borrowing

  • The budget deficit will reach £355billion this year (17% of GDP) – the highest level in peacetime.
  • Sunak said: “It’s going to be the work of many governments over many decades to pay it back, just as it would be irresponsible to withdraw support too soon, it would also be irresponsible to allow our future borrowing and debt to rise unchecked.”

Growth

  • The chancellor explains that the economy will recover more quickly than previously thought.
  • GDP will grow by 4% this year and 7.3% next year according to official forecasts.

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Contactless payment limit set to increase to £100

It’s hoped this will provide a much-needed boost to the retail sector

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Rishi Sunak is set to announce in the budget today an increase in contactless payment limit up to £100.

At the start of the Covid-19 pandemic in 2020, the contactless limit was increased from £30 to £45 and it is hoped this second increase will provide a much-needed boost to the retail sector.

Some industry sources have expressed alarm at the new threshold, warning of the potential increase in fraud, according to Sky News.

The increase in the limit was made possible due to Brexit. The European Commission set the limit to €50.

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Sunak is expected to highlight the important of ‘pinging’ payments as shoppers continue to rely less on cash. 

Speaking to the Evening Standard, he said: “London’s retail sector is famous across the world, with Oxford Street, Covent Garden and Westfield seen as global destinations for shopping.

“As we begin to open the UK economy and people return to the high street, the contactless limit increase will make it easier than ever before for people to pay for their shopping, providing a welcome boost to retail that will protect jobs and drive growth across the capital.”

The chancellor is set to unveil the budget at 12:30pm today. He is expected to offer more information on the mortgage scheme that will offer 5% deposit as well as extending the stamp duty holiday and increase corporation tax from 19% to 23%.

Sunak is also set to announce the extension of furlough until September and information on a £5bn scheme to help firms such as shops, clubs and gyms.

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