1 million turn to benefits

Get straight to the good stuff every day with the Multiply Minute; a lightning-quick round-up of the money news and how it affects you.

Universal credit claims

Almost a million people have successfully claimed for universal credit in the past fortnight. That’s almost ten times more than the Department for Work and Pensions expect during a normal two-week period. It said the system is still functioning despite the surge in demand and its staff are working “flat out” to get people the support they need.

Credit card freeze

People struggling with debt repayments will get a break from the bank. The Financial Conduct Authority (FCA) is asking banks to freeze payments on loans and credit cards for up to three months. It also wants people to be able to use the first £500 of an existing arranged overdraft without paying interest. The new measures should come into force by Thursday 9 April.

Housing market halt

Nationwide has said it will be hard to gauge house price activity over the next few months, as lockdown measures prevent people buying or selling property. Prices rose 3% in the month before coronavirus hit, but the future of the market now looks uncertain. Nationwide is one of the major lenders withdrawing its mortgages from the market.

Companies running out of cash

UK businesses are at risk of going under; six in ten say they have less than three months of cash left. The British Chambers of Commerce (BCC) warned that firms have suffered a sharp drop in income since lockdown started. Chancellor Rishi Sunak is set to overhaul the government’s emergency loan scheme to try and speed up bank’s lending decisions. The changes should mean that businesses can get access to cash faster.

BA grounded

British Airways is expected to announce that it’s suspending 36,000 employees, who will be furloughed on the government’s job retention scheme. No staff are expected to be made redundant. The airline has grounded most of its fleet in the wake of travel restrictions and has been negotiating with the Unite union for over a week to agree the deal.