Universal Credit systems swamped

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.

Claims through the roof

The Department for Work and Pensions (DWP) says almost 500,000 people have applied for Universal Credit in the last nine days. Many are facing long online queues to access the system, and the civil service has deployed thousands of staff to help handle the surge in claims.

Banks under fire

Banks are in trouble with MPs and companies over their handling of the coronavirus business interruption loan (CBIL) scheme. They’re insisting that business owners put up personal money and assets as collateral, meaning the bank could go after those things if the business goes under. CBIL was meant to protect companies by making it lower risk for both banks and businesses, but some are concerned that the banks’ requirements will put businesses off from using it.

Fewer homebuyers

Demand for property is down 40% as people put their plans on hold, according to Zoopla. It predicts a 60% fall in property sales between April and June. The UK-wide lockdown has also led to cancelled valuations and viewings. The impact of the slowdown on house prices remains to be seen.

Mortgage holiday warning

Lenders have warned that the mortgage holiday scheme risks pushing people further into debt (paywall). They’re also worried that unclear advice could lead some customers to simply cancel their Direct Debit, rather than getting in touch with the bank. Many mortgage providers are encouraging customers to continue making payments if they possibly can, even if they're lower.