Category Archives: Money

Jeremy Hunt defends pensions giveaway as Labour vows to scrap it

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Shadow chancellor says decision to axe lifetime allowance is ‘wrong priority at the wrong time for the wrong people’

The Labour party has vowed to reverse the chancellor’s £1bn budget pensions tax “gilded giveaway” for the wealthiest 1% if it wins the next general election, as Jeremy Hunt defended his decision to scrap the lifetime pensions allowance.

The shadow chancellor, Rachel Reeves, said Labour would seek to force a Commons vote next week on the decision, which critics argue will allow the wealthiest people to put a limitless amount into their pension pots, which can then be passed on to their heirs without paying inheritance tax.

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Jeremy Hunt makes U-turn on planned cut to energy support

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Campaigners unite with suppliers to call on ministers to give long-term help to struggling households

Ministers are under pressure to announce plans for a social tariff to help Britons struggling with their energy bills over the long term, after the government performed a U-turn on a planned cut to support for households.

On the morning of the chancellor Jeremy Hunt’s budget speech, the government confirmed the energy price guarantee would continue at its current rate, which limits a typical annual household bill to £2,500. It is being extended from April, when it was due to expire, for a further three months until the end of June.

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Budget pension shake-up is £4bn tax giveaway for wealthy, critics say

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Jeremy Hunt criticised for scrapping lifetime allowance and increasing annual contribution cap

The chancellor has been accused of unveiling a £4bn tax giveaway that will benefit the wealthiest people in the UK by dramatically increasing how much they can stash away in pensions while enjoying the full tax benefits.

Jeremy Hunt announced a major shake-up of the rules governing how much people can pay into their retirement pots, which will have no impact on the vast majority of the population but could lead to huge gains for the top few per cent of wealthy, older pension savers. Labour claimed it was a handout for “the richest 1%” and that someone with a £2m pension pot would pay up to £275,000 less in tax as a result.

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UK homeowners still better off than renters despite spike in interest rates

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Average monthly cost of owning 3-bed home is £500 a year less than renting, but the gap is narrowing

Homeowners in the UK are nearly £500 better off a year than renters, according to new research from Halifax.

The average monthly cost of owning a three-bed home for first-time buyers is now £971, which is £42 lower than the average cost of renting an equivalent property, the mortgage lender said. Renters pay on average £1,013 each month – 4% more.

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Extra costs for customers on prepayment meters to be scrapped in budget

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Treasury says move will save four million households £45 a year on their energy bills

Prepayment meter customers will no longer be charged more to receive their energy under reforms to be announced in the budget.

The chancellor is to end the “prepayment premium” from July, saving more than four million households £45 a year on their energy bills, according to the Treasury.

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UK house prices could be stabilising despite falls, say surveyors

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Rics data for February shows improvement in new buyer inquiries and sales

The UK housing market remains in decline but there are some signs of stabilisation, with an improvement in new buyer inquiries and sales last month, according to surveyors.

Many told the Royal Institution of Chartered Surveyors (Rics) that a return of optimism, and lower than expected interest rates, had given the housing market some hope for the coming months after a sluggish start to the year.

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UK shoppers slash spending as price rises and energy bills bite

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February figures from BRC highlight impact of cost of living crisis on British economy before budget

UK consumers sharply cut back their spending in February as soaring living costs damaged household finances, retailers have warned, despite strong sales of jewellery and fragrances for Valentine’s Day.

Highlighting the impact of the cost of living crisis on the economy before Jeremy Hunt’s budget next week, the British Retail Consortium (BRC) said sky-high energy bills and the rising cost of a weekly shop were forcing shoppers to cut back.

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UK government made £2.4bn from ‘mortgage prisoner’ loan sales, says Martin Lewis

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Tens of thousands of borrowers had their loans sold on to providers at which they were unable to switch

The UK government made a £2.4bn “profit” when it pushed tens of thousands of mortgage borrowers “into poverty” after selling their loans on to new lenders, the campaigner Martin Lewis has claimed.

The MoneySavingExpert founder was speaking at the launch of a report, which he funded, into the plight of “mortgage prisoners”: a group of borrowers caught up in the fallout from the 2007-08 financial crisis.

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Labour says it will urge UK firms to publish menopause action plan

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Menopausal women could be offered paid time off as part of efforts to support wellbeing of women

Menopausal women could be offered paid time off and working environments with temperature-controlled areas under Labour plans to support the wellbeing of women in the workplace.

About one in 10 women aged 45-55 left their jobs last year due to their symptoms and ultimately the lack of workplace support, according to research supported by the Fawcett Society.

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BBC to suspend licence fee for King Charles coronation ceremony

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One-off dispensation for weekend celebrations will allow venues to screen events without a TV licence

The BBC is to suspend the licence fee as part of a one-off dispensation for the king’s coronation weekend.

The move will allow venues to screen the live coronation ceremony coverage on 6 May and the coronation concert on 7 May without needing to buy a TV licence.

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Selfish or a godsend? Readers share their views on wood-burning stoves

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Demand for wood stoves is soaring in energy crisis despite research showing their harmful effects

Demand for wood-burning stoves, including in urban areas, has soared as households look for more affordable ways to stay warm during the energy crisis.

Campaigners have called for stricter legislation on their use because of their negative impact on air pollution and health, with wood burning in the UK gaining in popularity over the past decade.

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UK cuts back on cooking Sunday roasts as energy bills soar

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Cost of living has made more than a third of adults reconsider cooking end of week meal, survey finds

More than a third of people in the UK have cut back on cooking Sunday roasts because of the soaring cost of energy bills, according to a survey.

A total of 36% of UK adults said the cost of living crisis had made them reconsider a homemade roast dinner at the end of the week. The figure was even higher among those aged 16 to 34, with nearly half (47%) saying they have avoided cookingroasts.

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Texas students raise $250,000 for 80-year-old school janitor forced out of retirement

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After Mr James’s rent increased by $400, he had to go back to work, but students raised enough funds for him to retire again

After an 80-year-old janitor had to return to work after his rent was increased, Texas high school students raised more than $250,000 to help him retire.

The janitor, known to students as Mr James, returned to work in January after his rent shot up by $400 a month, according to KDFW. The students at Callisburg high school, about 80 miles (130km) north of Dallas, started their campaign last week and shared it on TikTok, hoping to raise $10,000. As of Friday afternoon, it had received nearly $270,000 from more than 8,000 donors.

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Lloyds accused of ‘stuffing bankers’ pockets’ after proposed pay hikes for top bosses

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Chief executive Charlie Nunn could receive £9.1m payout, while top performing bankers to share £446m bonus pot for work in 2022

Lloyds Banking Group has been accused of “stuffing the pockets of already overpaid bankers” after proposing increases for top bosses that could result in a £9.1m payout for its chief executive, Charlie Nunn.

The bank revealed on Wednesday that staff would share a £446m bonus pot – the highest in four years – for their work in 2022, despite reporting flat annual profits, after an increase in the money put aside for a potential jump in defaults.

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UK property demand declines as house prices in England fall

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Further slowdown likely amid interest rate rise and cost of living crisis, says surveyors’ body Rics

Property sales and house prices continued to decline across the UK in January, while new buyer demand and fresh listings were also down, surveyors have reported.

A net balance of -47% for new buyer inquiries was reported, down from -40% in December, according to the latest monthly snapshot from the Royal Institution of Chartered Surveyors (Rics). The January return marked the ninth successive negative monthly reading for new buyer inquiries.

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Sunak should expand free childcare to tackle workforce shortages, says CBI

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Business group says as much as £9bn of investment is needed to improve system

Rishi Sunak should funnel billions of pounds into free childcare to help get more parents into work to tackle acute workforce shortages, according to Britain’s leading business group.

The Confederation of British Industry (CBI) said the government urgently needed to announce extra funding and changes to childcare and early years support, arguing that a more accessible and affordable system was an immediate economic priority.

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Stop UK mobile and broadband firms ‘lining their pockets’, urge consumer experts

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Companies facing backlash amid warning of mid-contract price rises of up to 17% during cost of living crisis

Britain’s telecoms regulator is being urged to intervene over concerns that mobile and broadband operators are “lining their pockets” with £2.2bn of above-inflation price rises during the cost of living crisis.

While ministers have urged employees to show pay restraint, the mobile phone and broadband firms are facing a consumer backlash as they announce record price increases.

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Scams: FCA blocks more than 10,000 ads from Instagram, Facebook and YouTube

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Financial watchdog warns over rise of ‘fin-fluencers’ targeting younger people on social media

More than 10,000 misleading financial promotions and scams aimed at consumers via social media sites such as Instagram, Facebook, YouTube and TikTok have been identified and targeted by the financial watchdog during the past year.

The Financial Conduct Authority (FCA) said the use of social media marketing channels and the rise of so-called “fin-fluencers” – particularly directing investment products at younger age groups – exploded last year, resulting in a record number of takedown notices and alerts.

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Weaker economy, higher inflation: Bank of England’s dilemma

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Differing experts have urged the Monetary Policy Committee to both cut interest rates and to raise them

Turn up. Take the temperature of the economy. Raise interest rates. That’s the been the pattern from the responsible technocrats at the Bank of England for more than a year now – and they show no sign of stopping.

Between the depths of the global financial crisis in March 2009 and the start of the Covid-19 pandemic, interest rates were changed only five times, and three of those were in response to unexpected shocks: one after the Brexit vote in 2016, and two at the arrival of the pandemic in 2020. There was one period of more than seven years when interest rates were pegged at 0.5%.

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Gulf royals own more than £1bn of UK property via tax havens

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New government register shows how offshore jurisdictions used for ownership of nearly 200 properties including hotels and country estates

The royal families of Gulf states including Saudi Arabia, the United Arab Emirates and Qatar own more than £1bn of UK property via offshore jurisdictions, such as Jersey and the British Virgin Islands, the Guardian can reveal.

Nearly 200 properties, including hotels, London mansions and country estates, belong to a few small but super-rich dynasties, according to analysis of a new government register that reveals who is behind offshore companies that own UK property.

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