Pensioners have enjoyed a substantial rise in income since the financial crisis but young people have suffered a drop, according to the Institute for Fiscal Studies.
The BBC reports that pensioners are now the least likely group to be in income poverty. The IFS study also said that living standards were likely to get worse because of the UK vote to leave the EU.
On average, incomes rose by 2 per cent in real terms between 2007/08 and 2014/15, according to the IFS. However, that figure concealed very different experiences for different generations including: incomes for those aged over 60 rose by 11 per cent over the period, when measured before housing costs, and those aged 31 to 59 have had no change in incomes. But incomes for those aged 22 to 30 have fallen by 7 per cent.
Broadband
BT has been told it must ‘put it house in order’ by MPs who have accused the firm of ‘significantly under investing’ in its network infrastructure.
Its Openreach subsidiary provides BT’s rivals with access to its broadband network. The MPs on the Culture, Media and Sport Committee said the shortfall in investment’ could run into hundreds of millions of pounds a year.
BT made decisions that favoured its own ‘priorities and interests’, the MPs added. The report goes on to say that the quality of service offered by Openreach ‘remains poor’.
Water bills
The Telegraph reports that government plans to introduce competition into the domestic water market would offer households savings of just £6 a year – not enough for most people to bother switching supplier, water regulator Ofwat has found.
Currently, households and businesses in England get their water supplies from a monopoly regional supplier. However, from 2017 competition will be introduced in the business sector, allowing companies to switch between different water suppliers as they can with energy providers.
Savings
Thisismoney reports that savers are being mocked with rates as low as zero per cent if they fail to move their money into new, better accounts.
The Financial Conduct Authority put out the list of the worst rates available as part of its name and shame policy, which shines a light on its strategy towards long-standing customers.
For example, the Post Office is now paying 0 per cent interest on some accounts that were once available in its branches. Other providers including Danske Bank, Ulster Bank and Yorkshire Bank have accounts no longer available to new customers that pay just 0.01 per cent.
Savers who once put their cash in easy-access or cash ISA accounts may think they are leaving their cash to build up over time by prudently not spending it, but in fact are seeing its value eroded thanks to pitiful interest rates.
Family funding
The website also reports that over a third of grandparents across the UK make sacrifices in order to be able to give money to their families. Nearly 60 per cut down on socialising to help fund their families, while 24 per cent don’t go on holiday to ensure they have cash to spare for loved ones, the research from home purchase firm Homewise found.
Eighteen per cent have cancelled refurbishments to their home in order to provide money to younger relatives, while the same percentage have even reduced their food bill in order to help their loved ones.
Pensions
Commenting on the decision to make the role of pensions minister a junior ministerial post, Steve Webb, director of policy at Royal London, said: ‘The decision by the Department for Work and Pensions to make the role of pensions minister a junior ministerial post is a shock. The DWP is responsible for overseeing the automatic enrolment of ten million workers into workplace pensions, for policy on the multi-billion pound deficits in company pension funds, for making sure that the new ‘pension freedoms’ work effectively and many other pension issues which affect the lives of millions of today’s workers and retired people. These issues should be a central concern for the department going forward.
‘The DWP has lost a powerful voice in fighting the corner of workplace pensions with the resignation of Ros Altmann. This new decision is a demotion for pensions and sends a worrying signal to all who are concerned about the long-term financial health of the nation.’
Debt
Government departments, local authorities and bailiffs are among the most unfair when it comes to the treatment of people in problem debt, according to a new report from StepChange Debt Charity, Creditor and debt collector conduct: What’s making debt problems worse?
The report also highlights how some creditors are failing to take vulnerabilities such as depression and other ongoing mental health conditions into account. Other findings show how poor bailiff practices, such as intimidation and the addition of excessive fees, are still commonplace and are making people’s existing debt problems worse despite reforms implemented by the Ministry of Justice in April 2014.
The research indicates that where regulation is more robust, such as the Financial Conduct Authority’s regulation of consumer credit, there are better outcomes for clients.
Holiday woes
As millions of UK holidaymakers head off on their summer break, a new survey from Gocompare.com travel insurance has revealed that for many of them, checking into their holiday hotel will be a major disappointment.
In the survey of more than 1,400 people who’ve been on holiday abroad in the last five years, 39 per cent had checked into their holiday hotel and found it fell a long way short of the travel brochure or website description. Of those 50 per cent said the facilities provided by the hotel didn’t match the description, 43 per cent said the rooms were nothing like the photos, and 40 per cent disagreed with the star rating given to the hotel.
Alex Edwards, travel insurance spokesperson at Gocompare.com, said: ‘It’s shameful really that so many holidaymakers have felt utterly misled by travel companies’ brochures and websites. However, although it may not rescue your holiday you may be able to get some recompense if you take up your complaint with the travel company. If they’re an ATOL or ABTA member they should be operating to certain standards in the first place and will have set guidelines for dealing with complaints. If you booked with an ABTA member you’ll also be able to use their independent complaints ‘hub’ and arbitration service if you don’t feel you’ve been treated fairly by the travel company.’
In other holiday news, thanks to fluctuating exchange rates, buying £200 worth of Euros today means €49 less spending money than a year ago, and a similar picture can be seen when buying £200 worth of dollars, with almost $48 less back compared with 2015.
The latest research by Moneyfacts.co.uk shows that some debit cards can charge £9.50 for a £200 cash withdrawal, while credit cards can charge £11.96 for the same transaction – an unnecessary expense when there are fee-free cards specifically designed for use abroad.
Finally…
New research from the Co-op Insurance has revealed that the safety of a car is not on the shopping list for the majority of car buyers across the UK, with only 4 per cent placing car safety at the top of their buying criteria.
Appearance is miles ahead of safety when it comes to car buying decisions. Despite this, over three quarters of drivers are calling on the motor industry to be more proactive when it comes to highlighting both new and used vehicle safety features.
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