FURLOUGHED STAFF COULD BE £500 WORSE OFF THIS PAY DAY – HOW TO MITIGATE THE FINANCIAL IMPACT
27th April 2020 - Analysis from comparethemarket.com indicates that, despite the new Coronavirus Job Retention Scheme saving millions of jobs, people who have been furloughed may face an immediate financial shortfall. The scheme will mean that people on an average UK salary will receive just over £500 less than their usual monthly pay cheque under the Coronavirus Job Retention Scheme, assuming their employer is not topping up their salary.
Furthermore, with recent estimates revealing that as many as 8.3 million individuals could be furloughed under the Coronavirus Job Retention Scheme, this could equate to a staggering £4.1 billion in lost earnings.
At a time when people may be looking to reduce household expenditure, to offset the loss of earnings, comparethemarket.com has calculated that households can save on average £850 annually, which equates to £70 per month, just by switching energy, broadband, home and motor insurance providers.
- For motor insurance, individuals can achieve an average saving of £282
- For home insurance, individuals can achieve an average saving of £105
- For energy, individuals can achieve an average saving of £363
- For broadband, individuals can achieve an average saving of £100
Anna McEntee, Product Director, comparethemarket.com, said:
“Households feeling the pinch during this crisis could find these savings hugely valuable in managing their household finances. While this may not cancel out the significant impact the pandemic is having on some households’ income, shopping around for a new provider is a step that we can all take as a way to reduce costs. With an average combined saving standing at nearly £850, shopping around for insurance, energy and broadband can go some way to combatting the payday pinch being felt by many UK households.”
Notes to editors:
All savings data sourced from comparethemarket.com and Ofcom, while other figures are from the ONS and Resolution Foundation.
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