17thMay
News article

Charity warns lowest income households will wait longest for council tax rebate

National Energy Action (NEA) has warned that the poorest households in the UK will wait the longest for the government's £150 council tax rebate.

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National Energy Action (NEA) has warned that the poorest households in the UK will wait the longest for the government's £150 council tax rebate.

The rebate forms part of the government's response to rising energy bills and provides a payment of £150 to households living in council tax bands A – D. Payments started to be made from April 2022 and will not need to be paid back.

Eligible households that pay council tax via direct debit will see the rebate paid to their direct debit bank account. Households that do not pay council tax by direct debit will be invited to nominate a method to receive the payment.

NEA stated that typically the poorest households do not pay council tax by direct debit, either because they do not have a bank account or because their finances are managed on a more ad hoc basis.

Analysis of the 331 council tax billing authorities in England and Wales carried out by the BBC revealed that there is a 'clear split' in timings of payments for households that pay council tax by direct debit and households that do not.

A spokesperson for the Local Government Association (LGA) commented: 'Some councils have begun making payments this month to allow software to be fully tested and to ensure April direct debit payments are not recalled and many are now also focusing on contacting those eligible who do not pay their council tax by direct debit.'

16thMay
News article

Almost 66,500 filed self assessment returns on 6 April

Nearly 66,500 taxpayers filed their 2021/22 self assessment return on the first day of the new tax year, according to figures from HMRC.

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Nearly 66,500 taxpayers filed their 2021/22 self assessment return on the first day of the new tax year, according to figures from HMRC.

In recent years, there has been an increasing number of 'early-bird' customers filing their completed self assessment tax returns at the start of the new tax year – almost 30,000 more customers filed their returns on 6 April this year, compared to 2018.

HMRC is encouraging others to change their filing habits and do it as soon as they can. Although many wait until nearer the annual filing deadline on 31 January, for some it is an opportunity to beat the last-minute rush and get it done as soon as they can, while they have the relevant information to hand.

Myrtle Lloyd, HMRC's Director General for Customer Services, said: 'You don't need to wait for the January rush to send us your tax return. More and more people are getting theirs out of the way early – search 'self assessment' on GOV.UK to get started.'

13thMay
News article

Pension regulator running spot checks on UK employers

Employers suspected of failing to meet their workplace pensions duties are being targeted with spot check inspections by the Pensions Regulator (TPR).

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Employers suspected of failing to meet their workplace pensions duties are being targeted with spot check inspections by the Pensions Regulator (TPR).

The majority of employers visited by TPR are those which have failed to make the correct pensions contributions for their staff. The compliance drive marks a return by TPR to larger scale in-person inspections targeting different areas across the UK following the lifting of coronavirus (COVID-19) restrictions earlier this year.

While TPR has continued with urgent ad-hoc inspections on employers suspected of serious breaches, its routine compliance drives were paused in response to COVID-19 social distancing restrictions.

TPR's Head of Compliance and Enforcement, Joe Turner, said: 'Despite the challenges of the past two years, the majority of employers have continued to meet their responsibilities, including paying contributions in full on time and recognising that automatic enrolment is business as usual.

'But where we are aware that an employer is failing to do the right thing, we will take action to protect savers, including on-site inspections. This means we could be knocking on an employer's door in any part of the UK.'

12thMay
News article

Inflation takes its toll as UK economy contracts in March

The UK economy contracted by 0.1% in March as surging inflation took a toll on demand, according to the latest figures from the Office for National Statistics (ONS).

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The UK economy contracted by 0.1% in March as surging inflation took a toll on demand, according to the latest figures from the Office for National Statistics (ONS).

The monthly figure compares to no growth in February and 0.7% growth in January. The figure for the first quarter of 2022 showed growth of 0.8%, which was down from 1.3% in the previous three months.

The ONS data was released following the Bank of England's warning last week that a recession now looms large as a result of the cost-of-living crisis gathering pace.

Rain Newton-Smith, Chief Economist at the Confederation of British Industry (CBI), said: 'The economy barely kept its head above the water during a volatile start to the year, but times look set to get that bit tougher.

'Cost pressures and rising prices have tightened their grip, with both businesses and households feeling the pinch. The end result is a weaker economic outlook.

'It's clear that the most vulnerable households and energy-intensive businesses may need further support, so the government should keep this under review.'

11thMay
News article

New law to protect access to cash announced in Queen's Speech

New laws to protect access to cash and help victims of financial scams were announced in the Queen's Speech at the state opening of parliament on 10 May.

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New laws to protect access to cash and help victims of financial scams were announced in the Queen's Speech at the state opening of parliament on 10 May.

The new Financial Services and Markets Bill will ensure the continued availability of withdrawal and deposit facilities across the UK.

The Bill will also enable the Payment Systems Regulator to require banks to reimburse authorised push payment (APP) scam losses, totalling hundreds of millions of pounds each year. This will ensure victims are not left paying for fraud through no fault of their own.

These measures form part of wider plans that the government says will maintain and enhance the UK's position as a global leader in financial services.

Economic Secretary to the Treasury, John Glen, said: 'We are reforming our financial services sector now we have left the EU to ensure it acts in the interests of communities and citizens, creating jobs, supporting businesses and powering growth across all of the UK.

'We know that access to cash is still vital for many people, especially those in vulnerable groups. We promised we would protect it, and through this Bill we are delivering on that promise.

'We are also sticking up for victims of financial scams that can have a devastating impact by ensuring the regulator can act to make banks reimburse people who have lost money through no fault of their own.'

10thMay
News article

Shoppers slow spending as consumer confidence dips

The soaring cost of living has seen consumers slowdown spending, according to the latest retail monitoring report from BRC-KPMG.

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The soaring cost of living has seen consumers slowdown spending, according to the latest retail monitoring report from BRC-KPMG.

Data showed total sales fell 0.3% in April - the first decline in 15 months. On a like-for-like basis, UK retail sales dropped by 1.7% as shoppers reduced their spending on big ticket items.

Non-food sales increased by 6.9% over the three months to April, compared with the same period last year, driven by higher inflation. Total food sales for the three-month period declined by 1.3%.

Helen Dickinson, Chief executive of the British Retail Consortium (BRC), said the rising cost of living had 'crushed consumer confidence and put the brakes on consumer spending'.

She added: 'Sales growth has been slowing since January, though the real extent of this decline has been masked by rising inflation.

'Big ticket items have been hit hardest as consumers reined in spending on furniture, electricals and other homeware, compounded by delays on goods coming from China.'

10thMay
News article

Average household to face £100 monthly shortfall by 2024

The average UK household will be short of £100 a month by 2024 as the cost-of-living crisis continues, according to a report from the Yorkshire Building Society and the Centre for Economics and Business Research (CEBR).

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The average UK household will be short of £100 a month by 2024 as the cost-of-living crisis continues, according to a report from the Yorkshire Building Society and the Centre for Economics and Business Research (CEBR).

The report says that weekly household spending is set to rise to £705 in just two years' time. However, it expects real weekly incomes to rise to just £680, leaving households short of £25 a week, or roughly £100 a month.

It also states that the rising cost of living has already forced nearly four in ten savers to dip into their savings in the last 12 months.

Stephen White, Interim Chief Executive of Yorkshire Building Society, said: 'We may be emerging from the global pandemic, but our figures indicate we are moving from one crisis to another.

'Inflation is already high and this, coupled with increasing energy price caps and fuel charges, means there could be challenging times ahead for many households.

'Families across the UK are already having to budget carefully in order to make ends meet. Some have accrued savings over the course of the pandemic, which can help foot monthly bills. Others simply do not have the financial resilience to withstand rising costs.'

9thMay
News article

FSB finds one in three business owners suffered COVID-related mental health decline

Research carried out by the Federation of Small Businesses (FSB) has found that 34% of small business owners had their mental health adversely impacted by the coronavirus (COVID-19) pandemic.

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Research carried out by the Federation of Small Businesses (FSB) has found that 34% of small business owners had their mental health adversely impacted by the coronavirus (COVID-19) pandemic.

The FSB's survey also found that 24% of respondents currently have a mental health condition such as anxiety, depression or post-traumatic stress. 16% of small business owners report having a mild mental health condition; 6% stated that they have a moderate mental health condition; and 2% said that they have a severe mental health condition.

Commenting on the issue, Tina McKenzie, Policy and Advocacy Chair at the FSB, said: 'Whether it's the migrant entrepreneur suffering post-traumatic stress, the aspiring start-up creator wrestling with depression as they struggle to find work, or the thousands of business owners who feel isolated and hopeless because of late payment, policymakers should reflect on the challenges faced by entrepreneurs during this Mental Health Awareness week.

'By building on, and promoting access to, the support that's already available to business owners and their teams, the government can make a real difference to mental wellbeing.'

6thMay
News article

Bank of England warns UK economy to shrink as interest rates rise

The Bank of England has warned that the UK economy will shrink this year as it raised interest rates to try to stem the pace of rising prices.

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The Bank of England has warned that the UK economy will shrink this year as it raised interest rates to try to stem the pace of rising prices.

Rates rose to 1% from 0.75%, their highest level since 2009 and the fourth consecutive increase since December.

Inflation, at its highest for 30 years, is set to breach 10% by the end of the year, with fuel, energy and food costs soaring.

The UK economy is now expected to contract in the final three months of this year.

Alpesh Paleja, CBI Lead Economist, said: 'Another rise in interest rates is warranted, given the persistence of high inflation. However, the Monetary Policy Committee are walking an increasingly fine line.

'Further action to curb price pressures needs to be weighed against the increasing need to protect growth, particularly in light of a historic cost-of-living crunch. Households are feeling it and so are businesses, with cost pressures across the board.

'While monetary policy is the appropriate first line of defence in tackling inflation, government needs to take further action to shore up the broader resilience of the UK economy. In the near-term, higher inflation will hit poorer households hardest, so support measures for this group will need to be kept under review.'

5thMay
News article

Drop online passwords to foil hackers

Both business and personal users need to 'drop passwords altogether' and move to other technology to protect private information from hackers, a cybersecurity expert has said.

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Both business and personal users need to 'drop passwords altogether' and move to other technology to protect private information from hackers, a cybersecurity expert has said.

Passwords are 'becoming increasingly insecure' and 'easily hacked', according to Grahame Williams, Identity and Access Management Director at defence firm Thales.

He called on the industry to move to other forms of log-in such as multi-factor authentication (MFA) - where users must provide an additional layer of identification to log in - or biometrics such as face or fingerprint scans to improve the general safety of personal and business data.

Williams said: 'Research has come out in the last few days showing the number of CEOs who are still using '12356' as their password is actually quite comical - the assumption is that we've moved away from that but actually the data really isn't supporting that.

'We know that people are using these ridiculously easy passwords, but the most alarming fact is that they're not actually just using them for one thing, they use that password over and over again.

'So, if somebody gets access to one of your passwords they get access to your crown jewels.

'With everyone working from home, with COVID and people going online for the consumption of everything, the threat landscape is getting worse and worse, and there are some seriously unscrupulous people out there.

'So, it really is in everyone's interest to take it seriously and make sure that we put as many hurdles up as we can.'