Category Archives: Money

More ‘banking hubs’ to open across UK to tackle branch and ATM closures

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Additional 13 hubs will bring total to 25, where customers of almost any bank can carry out transactions

More shared “banking hubs” are to be rolled out across the UK to help communities hit by branch and ATM closures to get continued access to cash.

A banking hub is a shared service that operates in a similar way to a standard branch, with a counter service run by Post Office staff where customers of almost any bank can withdraw and deposit cash, make bill payments and carry out regular transactions.

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Bus fares in England to be capped at £2 for three months, says DfT

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Plan costing £60m is intended to help passengers during cost of living crisis and will come into effect in January

Bus journeys in England will be capped at £2 for three months amid concerns about the cost of living crisis.

The Department for Transport said the £60m plan could save passengers more than £3 for a single ticket.

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Energy price inflation: how the UK and EU could fight it

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What can be done about rising prices – and would nationalising gas and electricity firms help?

Governments across Europe have been funding relief measures to help people with energy and petrol bills. The UK announced a £15bn package in May, largely in the form of cash payments to households, while EU member states are estimated to have spent €280bn (£243m) over the past year on everything from subsidies and price caps to one-off payments. But bills for households and businesses are reaching unsustainable levels, with further increases expected next year, sharpening the debate over whether ministers should be intervening directly in energy markets to help bring prices down.

As Russia threatens to further reduce gas supplies, politicians in Italy, Spain, Greece and the Czech Republic are among those pushing for coordinated action. The European Commission president, Ursula von der Leyen, said on Monday Brussels was considering measures to be adopted by the 27 member states. What are the options?

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UK food price inflation hits highest level since global financial crash

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Prices in shops rose by 5.1% in August, British Retail Consortium finds, as the war in Ukraine pushes up prices up for farmers

The rapidly rising price of food including milk, margarine and crisps pushed August shop price inflation to the highest levels since 2008 as the war in Ukraine raised costs for farmers.

Prices in shops rose by 5.1%, a big increase from 4.4% in July, as food producers passed on increases in the cost of fertiliser, wheat and vegetable oils, large amounts of which are produced in Ukraine and Russia, according to data from the British Retail Consortium (BRC) and market research firm NielsenIQ.

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Gypsies and Travellers fear missing out on energy bills support

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Government urged to ensure thousands living in park homes in Great Britain receive £400 payments

Gypsy and Traveller groups are calling on the government to ensure thousands of households living in park homes are not excluded from its energy bills support scheme this winter as bills soar.

The scheme will pay out a total of £400 to all households in Great Britain with a domestic electricity connection between October and March, with monthly payments administered by their energy supplier.

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UK credit card borrowing rises at fastest rate in 17 years

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Spike in inflation and threat of rising energy prices likely to add to cost of living crisis, say analysts

Credit card borrowing jumped in June at its fastest annual rate in 17 years as struggling households appeared to rely on extra borrowing to cope with the escalating cost of living.

Credit card borrowing rose by £740m month on month, 13% higher than the year before, according to Bank of England figures that showed the biggest year on year rise since October 2005.

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Unions threaten ‘waves of industrial action’ over UK cost of living crisis

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Move could see synchronised strikes in autumn as new prime minister takes office

Britain is facing a wave of coordinated industrial action by striking unions this autumn in protest at the escalating cost of living crisis, the Observer can reveal.

A series of motions tabled by the country’s biggest unions ahead of the TUC congress next month demand that they work closely together to maximise their impact and “win” the fight for inflation-related pay rises.

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People on £45,000 could struggle with bills, says chancellor

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Nadhim Zahawi says energy price hike will be ‘really hard’ for middle-earners, as well as society’s most vulnerable

People earning around £45,000 a year, as well as those on benefits, could need government help to pay their energy bills this winter, the chancellor has said.

Britain’s energy industry regulator, Ofgem, on Friday confirmed an 80% rise in the consumer price cap from October that will take a typical household’s gas and electricity bill from £1,971 to £3,549 a year.

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Economists demand urgent action on energy bills to avert ‘catastrophe’

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Millions of vulnerable people will be harmed without radical policies to ease cost of living crisis, say experts

Physical and financial harm will be caused to millions of vulnerable families unless the government takes action to avert a winter catastrophe by cutting energy bills, leading economists have warned.

In the run-up to the announcement of the new energy price cap tomorrow the Resolution Foundation thinktank said radical policies such as price freezes, solidarity taxes or lower social tariffs were needed to prevent the cost of living crisis worsening.

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Biden unveils plan to cancel $10,000 in student loan debt for millions

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President delivers on campaign promise and outlines debt relief measures for those on lower incomes in White House speech

Millions of Americans received welcome news on Wednesday when Joe Biden delivered on a campaign promise to provide $10,000 in student debt forgiveness.

Borrowers who earn less than $125,000 a year will be eligible for loan forgiveness, with those whose low incomes qualified them for federal Pell Grants receiving up to $20,000 in relief. About a third of US undergraduate students receive Pell Grants.

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Next PM could face £23bn autumn spend to cover £900 rise in energy bills

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Energy prices have soared above prediction and subsidies will require significant further spending

Ministers could face an additional £23bn price tag for covering extra household energy costs of £900 this autumn, rising to £90bn next year, a new paper by the Institute for Government has found.

The paper, looking at the options for Liz Truss or Rishi Sunak in No 10, also warned the government should plan for prolonged rises in energy bills by going a lot further in making public appeals to use less gas – for example by informing consumers about the cost savings from turning down thermostats – and in committing to building more energy efficient homes to help protect consumers.

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TUC picks opportune moment to call for rise in minimum wage

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Analysis: £15 an hour is ‘logical next step’ amid cost of living crisis but neither Labour or Tories likely to back campaign

• Minimum wage should be increased to £15 an hour as soon as possible, says TUC

The TUC has chosen its moment well. With Britain gripped by a cost of living crisis, the umbrella body for trade unions has called for the minimum wage to be raised from £9.50 to £15 an hour as soon as possible, and by 2030 at the latest.

It is an ambitious target, as the TUC openly accepts. The minimum wage is now 64% of median earnings. A £15-an-hour minimum wage by 2030 would be 75% of median earnings, the highest of any of the 38 members of the Organisation for Economic Co-operation and Development group of rich countries.

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UK consumer confidence weaker than during major recessions

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Monthly look finds deepening pessimism about personal finances and prospects for the economy

Consumer confidence in the UK is weaker than during the four major recessions of the past half century as rapidly rising inflation saps morale.

Although the UK is technically yet to enter recession, the latest barometer of sentiment from the data company GfK found the public gloomier than at any time since the survey began in January 1974.

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Labour to push energy price cap policy in campaign blitz

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Party aims to get out message on plan to tackle cost of living before new Conservative PM enters No 10

Labour is planning a campaigning blitz in order to take ownership of its new energy price cap policy in case the next Tory leader bows to pressure and cancels the 80% rise expected in October.

Keir Starmer has vowed that his party “wouldn’t let people pay a penny more” on their gas and electricity bills this winter, proposing freezing the price cap at current levels and preventing the average household bill from reaching £3,600.

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Interest-free loans to be rolled out in UK to help with food bills

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Supermarket Iceland is part of scheme to offer sums of £25 to £100 to buy everyday items

A zero-interest loans scheme aimed at helping thousands of people who are struggling to put food on the table is being rolled out across the UK.

The initiative, the result of a link-up between the supermarket chain Iceland and a charity-owned lender, is the latest interest-free loans scheme to launch in response to growing concern about households who find themselves at the sharp end of the cost of living crisis and are unable to access or afford existing forms of credit.

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Labour announces plan to freeze energy price cap with reinforced windfall tax

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Keir Starmer says people won’t pay ‘a penny more’ and that plan would reduce inflation

Keir Starmer has put a beefed-up £8bn windfall tax on energy company profits at the heart of a new plan to stop people having to pay “a penny more” on fuel bills this winter.

The Labour leader confirmed that under his plan the energy price cap would be frozen at the current level, meaning that an expected 80% rise in October – taking an average household bill to about £3,600 – would not go ahead.

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Cost of living crisis: some low-paid workers miss out on £326 help

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People on universal credit have payments reduced to zero because of a quirk in the system

Some low-paid workers on universal credit have missed out on the government’s first cost of living payment because of payroll quirks that removed their benefit entitlement during the key window set by the government.

“I was going to use it to load up my gas meter, get ahead on my electricity and fill up the freezer,” said David Evans, a 55-year-old IT apprentice, of his plans for the £326 payment that in recent weeks has been landing in the bank accounts of struggling Britons.

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UK energy bills – six ways to reduce the impact of soaring prices

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Be it a loft insulation drive or a lower price cap, there are many ways to help – but action must be swift and extensive

The UK government has been urged to take further action to alleviate the impact of soaring energy prices, and there are a number of measures it could take.

Any rescue package would need to be swift and extensive to prevent households being plunged into poverty this winter as home energy prices surge. Ministers will also need to dig deep to prevent more businesses hit by rising energy costs from defaulting on loans and declaring themselves bankrupt.

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Ed Davey calls for halt to energy price cap increase to avoid ‘catastrophe’

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Exclusive: Lib Dem leader says new PM should let government pay £36bn cost in new ‘energy furlough scheme’

Liz Truss or Rishi Sunak should cancel the £1,400 energy price cap increase in October in a new “energy furlough scheme” and government should absorb the £36bn cost of the hike, the leader of the Liberal Democrats has said.

Ed Davey said neither candidate appeared to have any policies that grasped the magnitude of what could happen this autumn. “We are facing a catastrophe this winter, a drop in living standards unlike anything we have seen in my lifetime,” he said.

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UK braces for even higher bills as Norway threatens electricity export cut

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Water levels in southern Norway so low domestic consumers may be prioritised over international customers

British consumers could face even higher bills and potential energy shortages this winter after Norway threatened to ration electricity exports.

The UK receives hydroelectric power from Norway through a subsea interconnector cable running beneath the North Sea.

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