Refunds and Money Saving Ideas
In the middle of March 2020, life as we know it came to a halt, because of this we have been left with a lot of questions. We have received various communications from providers that we work with in response to the current situation and we feel that the information below may be useful.
There are a number of areas where refunds may be available or useful to you and your family. We have also included a couple of tips on how to save money whilst on lock down.
Moving House
• If you have exchanged contracts and the property you are moving to is “vacant” you can continue with your move but need to follow the related guidance on home removals. There is no definition of vacant but we assume this means a property where the seller has previously moved out rather than one where the seller will be vacating the property on the day of completion itself.
• However, a statement from the British Association of Removers advises their members to cancel or postpone any move that has not yet started although this conflicts with the Government advice issued. So, this needs to be considered where parties have exchanged contracts but have not booked their removals. It also needs to be considered by those who have already booked removals. So even if a property is vacant you may have logistical difficulties in moving into it unless the removal is actually underway i.e. the removers have started packing. (Source Edwin Coe Solicitors 27/3/2020)
Private School Fees
• For clients paying school fees it looks very possible that pupils will not be returning to school before the end of the Summer term. This raises the question “will parents have to pay school fees for the Summer term” which are normally due at the end of April?
• The Chief Executive of the Independent Schools Council has confirmed "that this is one of the issues that will be dealt with at school level, depending on individual policies and contracts with parents".
• The FT quoted a solicitor, Ellie Spencer, of Goodman Derrick; "parents are paying for a service and might be able to argue that the school is not providing that service. Even if the school provides online teaching, this is not the whole service, so parents might be entitled to a discount".
• Therefore, advice to clients is to hunt down the contract/agreement signed when the child/ren entered the school and find out what provisions are in place. Some of the larger independents maybe in a better position to offer some form discount or help with fees.
• It is worth noting that school fees insurance normally provides parents with cover against the loss of fees in the case of injury or illness.
Private Nurseries
• Parents will typically get monthly bills for private nurseries. The April bills are therefore imminent.
• Again, the picture seems to be varied. Some nurseries are charging full fees. Others are offering a discount.
• The advice would be to check the T&Cs signed at outset. Purnima Tanuku, Chief executive of National Day Nurseries Association noted that " Whether parents continue to pay fees when a closure is outside a nursery's control will depend on the agreements between individual nurseries and their parents"
University Costs
• Students will receive their loans for living costs for the Summer term as scheduled.
• Tuition fees will be paid directly regardless of how any teaching will be provided.
• Unite, the UK's largest student accommodation provider said it would allow students to exit their tenancies early and they will have not to pay rent if they inform Unite that they have left or will leave by 5pm on April 10th.
• Private Landlords may expect rent to be continued to be paid. Parents acting as guarantors may therefore need to continue to pay.
Rail Season Tickets
For clients who commute:
• Train companies are saying that annual season tickets will be refunded pro-rata but to get any money back commuters need to have at least 12 weeks remaining on the ticket. This is because they effectively get 12 weeks free travel on a season ticket.
• Refunds should be paid within 28 days
• https://www.thetrainline.com/en/help/question/6423/can-i-get-a-refund-on-my-season-ticket
• For clients using London Transport. TFL have confirmed someone needs at least 6 weeks on an annual season ticket and three days on a seven-day ticket. Apply for a refund via the TFL website.
• https://tfl.gov.uk/fares/refunds-and-replacements
Flights and Holidays
• If you have a flight or package holiday scheduled before the 16th April and it is cancelled this may apply to you. You do not have to accept a voucher or credit note and you shouldn’t be forced to rebook; you are legally entitled to a refund.
• FCO guidance not to travel means that it should be possible to claim on travel insurance.
• When flights and holidays are cancelled both airlines and travel agents are obliged to issue refunds.
• https://www.which.co.uk/consumer-rights/regulation/package-travel-regulations
• For holidays booked to leave after 16th April the situation is less clear and it is a case of "wait and see" at the moment.
• The Which guidance may also provide additional information and help. Link below.
• https://www.which.co.uk/news/2020/03/coronavirus-outbreak-advice-for-travellers/
Ways to save money
As the routine of daily life has changed, here are a couple of ideas for saving money.
Vehicles
• If you have 2 cars it may be worth keeping one off the road and also defer car tax (declare SORN), perhaps reduce your insurance cover to TPF&T.
• MOTs have been given an extension at the moment too.
Bank direct debits
• For businesses, cancel direct debits to the larger suppliers. For example, energy use at your business premises will have dropped by 90% or more whilst your businesses is closed, but energy suppliers will continue to take their full direct debit. Call them with accurate readings to reflect the reduced usage.
• Go through all bank statements and check if all payments going out are necessary, can they be paused or stopped all together. Including bank account charges and fees.
Please note that we cannot guarantee the above is completely accurate, please check with your individual suppliers for confirmation.
If you would like to review your expenditure please see our article “Balancing your expenses in times of crisis”. It provides a link to our Budget Calculator which will allow you to see at a glance your income and expenditure, allowing you to budget accordingly. Click here to see the article.
If you would like any further assistance please do not hesitate to contact us.
