What assistance are you eligible for if you are unable to pay your essential bills and debts?

Almost all of the special coronavirus measures will have expired by 2022.

Many people have lost their jobs, had their hours reduced, or have not recovered their self-employment income. Moreover, millions of people are behind on their rent, council tax, and other essential bills.

Universal Credit was reduced last year, energy bills are significantly increasing, gasoline prices have skyrocketed, and food prices continue to rise...

If you do not believe you will be able to pay for everything, consider the following:

• what benefits you may be able to claim - some you may not have heard of;
• other assistance in lowering your expenses;
• your options for dealing with priority and non-priority debts;
• where to go for sound debt advice

Benefits assistance

Turn2Us and other similar websites can show you what you might be able to claim. Even if you believe you have claimed everything possible, it is worth double-checking.

Be cautious if a benefits calculator suggests you would be better off claiming Universal Credit (UC) if you already receive tax credits or housing benefits. These benefits end when you claim UC and cannot be reinstated.

I recommend that you contact us for Advice. They can run a "what if" analysis to ensure that switching to UC is the best option for you.

There may be additional assistance available that does not appear in a benefits calculator because it is "discretionary" - not everyone who applies will receive it. The majority of this information is provided by your local council, so visiting their website is a good place to start.

Here are some examples:

• If your Universal Credit or Housing Benefit does not cover the full cost of your rent, or if you are subject to the benefit cap or the bedroom tax, your council may be able to provide you with a Discretionary Housing Payment (DHP).
• In addition to Council Tax Support, some councils provide additional assistance with Council Tax. This could be referred to as the Discretionary Council Tax Support Hardship Payment.
• Councils have been given more funds to implement a Household Support Scheme beginning in April 2022. They may also have an Emergency Support Scheme, which often distributes food or fuel vouchers rather than cash.
  

Make a budget and determine your top priorities.

When there isn't enough money to cover all of your expenses, you must make choices.

It is critical to understand what must be paid first and in full, even if this leaves insufficient funds to pay other debts. See What are the most important debts and bills? for a breakdown of priorities and non-priorities

After you pay your rent/mortgage, car finance, food, clothing, and heating, you may have little or no money left over for unsecured loans, credit cards, and catalogues. This may sound concerning, but non-priority creditors are well aware that they are at the bottom of the list and that priority bills must be paid in full.

Bills and debts of highest priority

Mortgage and Rent

Universal Credit can assist you with the cost of renting.

Mortgage assistance is available through UC, but it does not begin until you have been on the programme for 39 weeks. See What help is available if you can't pay your mortgage. for the assistance lenders should provide if you are struggling, and what you should request

Get assistance as soon as possible. If you are concerned about your mortgage or rent, have received an eviction notice from your landlord, or have received threatening letters from your mortgage lender, contact your local Citizens Advice.

The Council Tax

Council tax may appear to be less important than other priority debts. If you have to choose between paying the rent and the council tax, choose the rent! As does feeding the kids.

However, councils are quick to take action if you ignore council tax debt. They move through the legal system much faster than other creditors and employ bailiffs more frequently.

What to Do If You Can't Pay Your Council Tax examines all of your options.

If none of these options works, contact your local Citizens Advice. They can also assist you with a Section 13A Application for a council tax reduction if your finances are so difficult that you have a "negative budget," which is when you don't have enough money to pay your priority bills and essential expenses even if you make no payments on your debts.

If your council tax band is A-D, you will receive a £150 payment. This is intended to help with the rising cost of energy bills.

Cards, catalogues, unsecured loans, and overdrafts are examples of non-priority debts.

Customers who are unable to make payments are required by the FCA to be treated "with forbearance and due consideration" by lenders and debt collectors.

This means that lenders must consider accepting lower payments and freezing interest on unsecured debts such as loans, credit cards, catalogues, and overdrafts.

"Consider" may sound vague, and you may be concerned that your lender will be unhelpful.

However, when asked, most banks, credit card companies, and other lenders stop charging interest. Particularly if you explain that you have important bills and debts to pay, such as rent/mortgage, council tax, and utilities.

Lenders understand that you don't have much money and that paying the rent and feeding the children must come first. If they do not freeze your interest, you can file a complaint with the Financial Ombudsman Service.

So, how do you go about getting this assistance?

Ingram Toft can help you every step of the way. From filing a complaint to the lender to filing a complaint with the Financial Ombudsman Service. All you have to do is fill out the complaint form and send all the necessary paperwork.