State Pension to Rise 4.7%
The State Pension is due to increase by 4.7% next April after the latest Office for National Statistics (ONS) figures were published on Tuesday, 16th of September. The ONS data confirmed the latest annual wage growth of 4.7% would be the deciding figure under the State Pension Triple Lock. This uplift, while lower than some recent past rises, still gives an inflation-busting boost to state pension incomes for millions of…
What is a Junior ISA?
A Junior ISA is a long-term, tax-free savings or investment account for a child under 18, that is opened by a parent or guardian on the child’s behalf. Each year, a maximum of £9,000 can be contributed to it. Any increase in its value is tax free as it is within an ISA wrapper, so at no point would tax need to be paid. If family members were to set…
Do you have a Will?
A Will is more than just a legal document. It is a way of ensuring that your wishes are respected after death. Without one, your estate will be distributed according to the strict rules of intestacy, which may not reflect your intentions. This could mean partners not legally recognised, or stepchildren or causes close to your heart receiving nothing. It can also lead to disputes between family members, adding…
Pound Falling
The pound has slipped in value in recent days against both the US dollar and the euro, with markets reacting to concerns over economic growth and interest rate expectations. Unfortunately, these shifts are not just abstract market movements. When the pound falls it has a tangible impact on individual finances. A weaker currency affects everything from the cost of a holiday abroad to the performance of pensions and investments. Here…
Mortgage Rates on the Rise
The UK Government bond or ‘gilt’ market is once again under pressure. In recent weeks, yields on long-dated gilts have risen sharply, with the 30-year gilt yield reaching above 5.61% (at the time of writing). That level has not been seen since 1998 and represents a significant increase in borrowing costs for the Government. The 10-year gilt, among other durations, has also been caught up in the move, trading…
Should there be a Wealth Tax?
With the Government’s finances under increasing strain and little room for Chancellor Rachel Reeves to move on other taxes, calls are rising to introduce a new ‘wealth tax’. Whilst the idea is purely speculative at the moment, it is increasingly difficult to get away from the suggestion that the Government may, at the very least, be considering it. Wealth taxes come in a variety of forms. Indeed, several ‘wealth’-targeted…
The Bank of Mum & Dad
Acting as the “Bank of Mum and Dad” (BoMaD) has become a vital role for many parents and grandparents in the UK, helping children or grandchildren with major life milestones like buying a home, attending university, or starting a career. Recent research from estate agent Savills suggests that half of first-time buyers get help from ‘BoMaD’ with an average of £55,572 given in loans or gifts to children or…
Should there be an Interest Rate Cut?
The Bank of England (BoE) is increasingly likely to cut the base rate despite rising inflation, as employment falls in the UK. The BoE’s Monetary Policy Committee (MPC) looks set to cut its base rate again when it meets later on today (7th August). Although not guaranteed, the latest employment data will have created rising concerns for MPC members, which includes BoE governor Andrew Bailey. This is despite a…
State Pension Age Currently Under Review
The Department for Work and Pensions (DWP), led by Minister Liz Kendall, has initiated a review of the state pension age to assess its sustainability and fairness. This review could lead to an increase in the age at which individuals with sufficient National Insurance Contributions (NICs) can claim their state pension. Currently, the state pension age is set at 66 for both men and women. This is scheduled to increase…
The Leeds Reforms
The Chancellor, Rachel Reeves, announced on 15 July a sweeping package of reforms to financial services called the ‘Leeds Reforms’ (based on Reeves’s parliamentary constituency of Leeds West and Pudsey). The reforms are a wide-ranging package of measures designed to make it easier for financial services to grow and prosper in the UK. They are widely seen as a significant reset after many years of tighter control after the 2008…
