The government’s lockdown announcement on Monday included advice “that all holidays and non-essential travel within the UK should now be off limits to slow the spread of coronavirus”, says Helen Coffey in The Independent.
“Essential travel does not include visits to second homes, campsites, caravan parks or similar, whether for isolation purposes or holidays. People should remain in their primary residence.”
So, what does that mean if you have a trip booked in the next few weeks? Generally speaking, insurers and holiday firms take their cue from official government advice, which means that trips within this country should now be treated the same as foreign holidays. You should be offered new dates for your trip or a refund.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The first thing to do is contact your accommodation or travel provider and ask what their policy is under the current circumstances.
Accommodation firms including Airbnb, Booking.com and some hotel chains are waiving their cancellation fees for people having to abandon travel plans, says Jo Rhodes on Which?, the independent consumers’ group. Many are also offering flexible cancellation policies.
If you were due to stay somewhere that has closed owing to the virus, “it’s likely you’ll get a full refund for your trip direct from the company – and won’t need to claim on insurance”, says Naomi Schraer on Moneysavingexpert.com.
More broadly, this extraordinary situation is also causing the travel industry to change its rules regarding refunds. Almost £1bn worth of holidays due to take place between 17 March and 16 April have been cancelled, according to The Independent. These huge payouts could cause travel firms to collapse.
As a result, the European Commission has updated its guidance on customer refunds. “Holidaymakers are being asked to take vouchers instead of refunds,” says Kara Godfrey in The Sun. An ABTA spokesperson told The Sun that accepting a voucher will mean holidaymakers get “essential assurance that they will either get a holiday or their money back, as well as providing a much needed helping hand to travel companies through these difficult and unprecedented times.”
You may also be able to claim for a cancelled trip through your travel insurance. British travel insurance claims are on track to hit a record high because of Covid-19.
“The Association of British Insurers (ABI) expects the industry to pay out at least £275m for coronavirus-related claims, mostly to cover cancellations,” says Oliver Ralph in The Financial Times. “The previous record for cancellation payouts was £148m in 2010 when travel was disrupted by the Icelandic volcanic ash cloud.”
-
SIPP holders to get cash warnings and be offered default fundsNews Providers will be required to offer investors a default fund and must warn customers of the inflationary risk of cash savings the regulator has said. What the new rules mean for your retirement pot?
-
Zoopla: Asking price discounts hit a five-year high – is now the time to buy a property?
News Zoopla’s October House Price Index shows sellers are accepting discounts of 5.5% on average to secure a sale – we reveal where homeowners are taking the biggest asking price cuts
-
NatWest-owned Ulster bank boosts easy access savings rate to 5.2%
Rates on easy access savings accounts have hit over 5%, with Ulster Bank now giving savers the chance to earn 5.2% on their cash savings. We have all the details.
-
Moneybox raises market-leading cash ISA to 5%
Savings and investing app MoneyBox has boosted the rate on its cash ISA again, hiking it from 4.75% to 5% making it one of top rates. We have all the details.
-
October NS&I Premium Bonds winners - check now to see what you won
NS&I Premium Bonds holders can check now to see if they have won a prize this month. We explain how to check your premium bonds
-
October’s NS&I Premium Bond winners revealed - have you scooped £1 million?
Two lucky NS&I Premium Bond winners are now millionaires this October. Find out here you are one of them
-
The best packaged bank accounts
Advice Packaged bank accounts can offer great value with useful additional perks – but get it wrong and you could be out of pocket
-
Energy bills to fall 7% under new price cap
Energy bills could fall by an average 7% from October under the new Energy Price cap announced today. We explain what the new cap mean for you and when it will come into play
-
Bank of Baroda closes doors to UK retail banking
After almost 70 years of operating in the UK, one of India’s largest bank is shutting up shop in the UK retail banking market. We explain everything you need to know if you have savings or a current account with Bank of Baroda
-
The best options to earn cashback on spending
From credit cards and current accounts to cashback websites, there are plenty of ways to earn cashback on the money you spend.
