Category Archives: Family finances

Gender pay gap for UK women aged 40 and over ‘will not close till they are pensioners’

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Equal Pay Day report from Fawcett Society blames lack of flexible working in well-paid high-quality jobs

UK women aged 40 and older will not experience the closure of the gender pay gap until after they reach state pension age, according to a report by the Fawcett Society.

The Equal Pay Day 2023 report, “Making flexible working the default”, found that on average working women take home £574 a month less than men – or £6,888 a year.

Forty per cent of unemployed women said access to flexible work would enable them to take on paid work. Almost a third of unemployed men said the same.

Women were significantly more likely to report working part-time (27%) compared with men (14%).

About 77% of women agreed that they would be more likely to apply for a job that advertised flexible working options.

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Autumn statement: Jeremy Hunt looks to cut UK taxes and ‘turbo-charge growth’

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Amid less gloomy OBR forecasts the chancellor is expected to take first steps towards cutting personal taxes

Jeremy Hunt will announce 110 measures to boost Britain’s stagnant economy and bow to demands from anxious Tory MPs for tax cuts when he delivers his second autumn statement on Wednesday.

In one of the last set-piece economic events before the general election, the chancellor will pledge to “turbo charge” growth while taking the first steps to cut personal taxes after recent sharp increases.

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Holiday pay ruling ‘entitles many UK workers to thousands in unfairly deducted wages’

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Unison says decision affects other types of employee payments and is ‘victory for underpaid workers’

Many UK workers could be entitled to thousands of pounds “unfairly” deducted from their pay after a supreme court decision, according to unions.

The judgment relates to a long-running row about holiday pay but Unison, which participated in the case, said the ruling affected all other types of payment to employees and called it a “victory for underpaid workers”.

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New £1bn government upgrade to plug Great Britain’s draughtiest homes

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Households could save £400 a year on energy bills via means-tested insulation scheme

Households could save up to £400 a year on energy bills under a new means-tested scheme to insulate more than 300,000 of Great Britain’s draughtiest homes.

The government is spending £1bn on grants for homes that have low energy efficiency ratings and are in lower council tax bands.

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Third of working tenants in England ‘lack savings to pay rent if they lose job’

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Half have maximum of a month’s worth of rent put by as costs rise, Shelter survey finds

A third of working tenants in England do not have enough savings to pay rent if they lose their job, putting them at risk of losing their home, according to research by the housing charity Shelter.

Record rents and the rising cost of other household bills are putting tenants’ finances under pressure and mean many are unable to set money aside for emergencies.

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Bailiffs making record profits collecting debt for councils in cost of living crisis

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Charities call for an end to the outsourcing of public debt as firms’ turnover rises nearly 50% in a year

Bailiffs hired by councils to recover unpaid debts have seen their profits rise to record levels during the cost of living crisis, company filings show.

Newlyn Group, which is hired by councils to recover unpaid traffic fines and council tax, saw its turnover from debt collection increase by 43.8% to £25.8m in the year to December 2022, while its gross profit rose to £15.5m. Company documents describe the figures as Newlyn’s “best ever results”.

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Poorest in UK have £40 a month less to spare than a year ago, study finds

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Richest have gained similar amount over same period, reflecting differing impacts of inflation

The UK’s least affluent households have almost £40 a month less spare cash than they did a year ago while the richest have gained a similar sum in the same period, according to figures exposing how inflation has hit the poorest the hardest.

The wealthiest 20% of households had £36 a month more in discretionary income in December compared with a year before, as they enjoyed record earnings growth which offset rising energy and food bills, analysts at Retail Economics found.

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FTSE 100 bosses paid more in three days than average UK worker for whole year

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CEOs pass milestone nine working hours earlier than last year, with pay up 39% on January 2022

The bosses of Britain’s biggest companies will have made more money in 2023 by Thursday afternoon than the average UK worker will earn in the entire year, according to analysis of vast pay gaps amid strike action and the cost of living crisis.

The High Pay Centre, a thinktank that campaigns for fairer pay for workers, said that by 2pm on the third working day of the year, a FTSE 100 chief executive will have been paid more on an hourly basis than a UK worker’s annual salary, based on median average remuneration figures for both groups.

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Bank branches ‘still vital’ as squeezed UK households seek cash and advice

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Quarter of consumers more likely to visit branches amid struggles with surging energy, food and housing costs, finds KPMG survey

Cost of living pressures have increased the number of customers relying on bank branches to help manage their squeezed budgets, research shows.

While the Covid-19 pandemic accelerated the adoption of online-only banking, particularly during lockdowns, research from the accountancy firm KPMG showed a quarter of UK consumers were more likely to visit bank branches now that households were grappling with surging energy, food and housing costs.

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Millions cannot afford to heat homes as UK faces Arctic cold snap

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As temperatures plunge, fears grow for households struggling to pay for heating, food and warm clothing

More than 3 million low-income UK households cannot afford to heat their homes, according to research, as a “dangerously cold” weather front arrived from the Arctic.

The UK Health Security Agency has issued a cold weather alert recommending vulnerable people warm their homes to at least 18C, wear extra layers and eat hot food to protect themselves from plummeting temperatures.

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Is the UK really facing a second winter of discontent?

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Comparisons with 1979 are misleading – strikes over pay now are smaller in scale and focus, and stoked by inflation

Britain is facing a winter of strikes, as industrial action on the railways spreads to the health service and other key sectors of the economy. Such is the wave of discontent that more than 1m working days could be lost to disputes in December, the most since 1989, during Margaret Thatcher’s final years in power.

With inflation at the highest rate in 41 years amid the cost of living crisis, it’s not difficult to see why workers are pushing for better pay. Coming after the worst decade for average wage growth since the Napoleonic wars, including deep real-terms pay cuts for many in the public sector, it’s even less surprising still.

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UK households have cut energy consumption by 10%, say suppliers

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E.ON reports up to 15% drop as Grant Shapps writes to firms customers cutting back on energy use should not face direct debit rise

Britons have cut their gas and electricity use by more than 10% since October in the first evidence of the impact of the energy crisis on household habits, according to two of Britain’s biggest suppliers.

E.ON, Britain’s second-largest supplier, and the owner of Utility Warehouse have reported “double-digit” declines in recent weeks.

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Sales boost for B&Q and Screwfix owner amid rush for energy-saving products

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Kingfisher says sales of loft insulation roll more than double while smart thermostats rose by nearly a third

The B&Q owner, Kingfisher, has reported higher sales as fears over higher gas and electricity costs boosted demand for energy-efficient products including insulation roll and smart thermostats.

The retail group, which also owns the hardware trade supplier Screwfix, said customers who invested in a raft of energy-saving DIY products helped increase group sales by 0.6% to £3.3bn in the three months to October. When stripping out the impact of the weaker pound, sales were up 1.7%.

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Annual UK energy bills would have hit £4,279 without emergency support, Ofgem says

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Regulator raises cap for start of 2023 by £730 but government limits typical bill to £3,000 from April

The energy regulator Ofgem has said its price cap will reach £4,279 from January – but households will be shielded by the government’s emergency intervention to keep a lid on bills.

Ofgem said the cap, which is adjusted every quarter, will increase by £730 for the three months from the start of next year. However, the government’s energy price guarantee (EPG) will limit typical household bills to £2,500. Analysts had expected the cap to sit at about £4,200.

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Energy bills: thousands of UK households in limbo over £400 support

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Concerns grow that people relying on communal heating may not receive state discount promised

Thousands of people living in homes with centrally supplied electricity are still waiting to hear if and when the UK government will pay them the £400 promised under the energy bills support scheme.

While those living in conventional homes with standard electricity meters are due to receive their second monthly payment of £66, concern is growing among some of the several hundred thousand households that receive their electricity via a communal supply that they will not see any of the money they have been promised.

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Cost of using electric car charging point in UK up 42% since May

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Soaring energy prices after invasion of Ukraine have added almost £10 to cost of charging family-sized car, says RAC

The price of charging an electric car using a public rapid charger has jumped by almost £10 since May because of soaring energy costs after Russia’s invasion of Ukraine.

The increased price of wholesale gas and electricity has pushed up the price to charge an average family-size car by 42% to above £32, according to analysis by the RAC. That was £9.60 more than in May, and £13.59 more than a year earlier.

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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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Labour sets out plan to link minimum wage to cost of living

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Exclusive: Earnings of lowest paid could rise by £832; lower rates for 18- to 22-year-olds to be scrapped

Labour has drawn up plans to put hundreds of pounds into the pockets of the lowest paid by instructing the Low Pay Commission to factor in living costs when it sets the minimum wage.

They also want to scrap the lower pay categories for workers aged between 18 and 22, so they would all be paid at the higher rate.

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UK food price rises could hit 15% over summer, report says

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Ukraine war, China lockdowns and Brexit help push up inflation, with products that rely on wheat worst hit

Food price rises in the UK could hit 15% this summer – the highest level in more than 20 years – with inflation lasting into the middle of next year, according to a report.

Meat, cereals, dairy, fruit and vegetables are likely to be the worst affected as the war in Ukraine combines with production lockdowns in China and export bans on key food stuffs such as palm oil from Indonesia and wheat from India, the grocery trade body IGD warns.

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From energy costs to TV bills: what has gone up in price today?

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Britons face a shock as household costs soar – and some unexpected items such as beer also go up

It’s been dubbed “bleak Friday” by some: pre-announced price rises for many household bills are to take effect on 1 April, adding to the misery for consumers who are already paying more for goods and food than this time last year.

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