Money news: page 30
- May 2024
Automatic referral to Small Claims Mediation Service for defended money claims
Defended money claims under £10,000 issued on or after 22 May 2024 are automatically referred to the Small Claims Mediation Service, though claims started online before 5 November 2024 are excluded.
Conservative Party announces 'triple lock plus' policy to uprate pensioner personal allowance with the triple lock
The Conservative Party has said that if re-elected it would raise the pensioner personal allowance in line with the triple lock, reaching £14,340 by 2029-30 and cutting tax for around 8 million pensioners.
Consumer Scotland responds to Ofgem Future Price Protection Discussion Paper
Consumer Scotland has told Ofgem that the Consumer Principles should shape the design of future energy price protection, in its response to the regulator's call for input on the future of the price cap.
Current account holding rises and unbanked population falls
The number of UK adults holding a current account rose to 52.5 million in May 2024 from 50.8 million in 2022, while the unbanked population fell to 0.9 million from 1.1 million.
DWP announces enhanced notification strategy for potential overpayments
The Department for Work and Pensions has announced an enhanced notification strategy for potential benefit overpayments, exploring targeted texts or emails to alert claimants, amid scrutiny of Carer's Allowance repayments.
Inflation falls to the Bank of England's 2.0% target
UK inflation fell to 2.0% in May 2024, the Bank of England's target, for the first time since July 2021, after peaking at 11.1% in October 2022.
Insurance policyholders report biggest rise in problems
The proportion of insurance policyholders who reported a problem rose to 16 per cent in May 2024 from 12 per cent in 2022, the largest increase of any product area, driven mainly by policies costing more than expected.
Leasehold and Freehold Reform Act became law
The Leasehold and Freehold Reform Act became law in May 2024, but most of its 125 sections remain unimplemented, with further reform promised in a new Bill.
Leasehold and Freehold Reform Act reforms introduced
The government introduced leasehold reforms in May 2024 under the Leasehold and Freehold Reform Act, including a 990-year standard lease extension term and standardised service charge bills.
Managed migration opens to Income Support claimants
People claiming Income Support begin receiving Migration Notices from May 2024, moving them onto Universal Credit under managed migration, with transitional protection for eligible claimants.
Mortgage arrears among StepChange clients up three percentage points year on year
StepChange reports that 18% of its clients responsible for a mortgage were in arrears in May 2024, three percentage points higher than the 15% recorded a year earlier.
Motor insurance switching rate rises to 61%
The FCA's Financial Lives 2024 survey found motor insurance had the highest switching rate of any product in the last three years, at 61%, up nine percentage points from 52% in 2022.
Treasury designates banks and building societies subject to access to cash rules
The Treasury has named the banks and building societies that will fall under the Financial Conduct Authority's access to cash rules, along with an operator of cash access coordination arrangements.
Vulnerability characteristics decrease since 2022
The FCA's Financial Lives survey found 26.4 million UK adults had characteristics of vulnerability in May 2024, down 0.9 million from 27.3 million in May 2022, while low financial resilience was unchanged.
Which? reports growing popularity of 40-year marathon mortgages
Which? reports that longer mortgage terms have grown more popular as first-time buyers respond to higher rates, with 20% of first-time buyers taking terms of 35 years or more by the time the base rate peaked.
- April 2024
Fair Repayment Rate comes into force
The Fair Repayment Rate took effect on 30 April 2024, capping deductions from Universal Credit at 15% of the standard allowance, down from the previous 25% limit.
Nationwide reported to stop lending on some high flood risk properties
Nationwide Building Society is reported to be declining mortgages on properties judged at high risk of flooding, using mapping technology, according to a Welsh Government committee report.
Publication of estimated claimant numbers affected by Work Capability Assessment reforms
The Department for Work and Pensions has published updated estimates of the number of claimants affected by Work Capability Assessment reforms announced at Autumn Statement 2023, revised to match Spring Budget 2024 forecasts.
Government announces reforms to ill-health test in Universal Credit
The Government has announced reforms to the ill-health test in Universal Credit, as a Resolution Foundation assessment finds 71 per cent of eligible families are worse off in real terms than under the legacy system.
Research shows older mortgaged homeowners struggling to save for retirement
Research published on 11 April 2024 found that 18% of mortgaged homeowners aged 55 and over say repayments are stopping them saving more for retirement, as equity release funds used to clear mortgages rose.
FCA publishes PS24/2 confirming final rules to strengthen protections for borrowers in financial difficulty
The Financial Conduct Authority has published final rules that move pandemic-era guidance on supporting borrowers in financial difficulty into its formal rulebook, taking effect on 4 November 2024.
Benefit cap earnings threshold rises to £793 a month
The earnings threshold used to decide whether the benefit cap grace period applies rose from £722 to £793 a month on 8 April 2024, affecting working age claimants who lose work.
Capital gains tax allowance cut to £3,000 and dividend allowance to £500
The tax-free capital gains allowance falls to £3,000 and the dividend allowance to £500 from April 2024, the second cut in two years, meaning more people owe tax on investments and second homes.
Employee and self-employed NICs main rates cut as of April 2024
The main rate of employee National Insurance fell from 10% to 8% and the main rate for the self-employed fell from 9% to 6% on 6 April 2024, under an Act that received Royal Assent on 20 March 2024.
Guidance updated with rates effective from 8 April 2024
Government guidance pages for the State Pension, Pension Credit and New Style Employment and Support Allowance were updated with benefit rates effective from 8 April 2024, the April uprating date for that year.
High Income Child Benefit Charge threshold increases to £60,000
The High Income Child Benefit Charge threshold rose from £50,000 to £60,000 on 6 April 2024, with the taper halved so the charge reaches the full Child Benefit amount at £80,000.
New ISA year begins with £20,000 allowance as Resolution Foundation publishes Spotlight on ISA costs and effectiveness
The Resolution Foundation marks the start of the new ISA year with analysis putting the cost of ISA tax relief at £6.7 billion in 2023-24 and questioning whether the policy raises saving.
ISA account opening age harmonised at 18 with transitional protections for younger investors
The Individual Savings Account (Amendment) Regulations 2024 raised the minimum age for holding a cash ISA from 16 to 18 from 6 April 2024, with transitional protection for existing younger holders.
Pensions lifetime allowance to be abolished from 6 April 2024
The pensions lifetime allowance was abolished from 6 April 2024 under the Finance Act 2024, removing the cap on total pension savings that could be built up without an extra tax charge.
15 hours free childcare for working parents of 2-year-olds from April 2024
Working parents of two-year-olds in England can access 15 hours a week of government-funded childcare from 1 April 2024, the first stage of an expansion reaching 30 hours by September 2025.