Financial matters

[SteveH]

f you plan on signing a mortgage deal with Santander, Lloyds, Nationwide or Barclays, then the latest advice is to wait a little bit longer. Reports suggest that a round of mortgage rate cuts is likely to come, following similar action from Natwest and HSBC.

Mortgage interest rates have been significantly higher since the mini Budget set out during former Prime Minister Liz Truss' brief stint in the top role back in late 2022. However, there are signs of home ownership starting to become a more affordable reality again.
cont https://www.dailypost.co.uk/news/north-wales-news/warning-santander-lloyds-nationwide-barclays-27670821

[SteveH]

Gas prices jump as strikes in Australia begin

Natural gas prices have jumped after strike action kicked off at two major liquefied natural gas (LNG) facilities in Australia.

The walkouts, in a row over pay and conditions, are taking place at Chevron's Gorgon and Wheatstone plants in Western Australia.

The US energy giant's two plants account for more than 5% of global LNG capacity.

On Friday, wholesale gas prices in the UK rose by about 10%.

cont https://www.bbc.co.uk/news/business-66749700

[SteveH]

Read your meter now or risk paying more for energy as Ofgem price cap changes
Martin Lewis has given some helpful advice to householders.

Next month the cost of gas and electricity will fall slightly, yet some customers may end up paying too much unless they take action now. Consumer rights expert Martin Lewis is advising people to read their meter or risk paying the incorrect amount.

The energy price cap, set by Ofgem for households in England, Wales and Scotland, will fall by ?151 to ?1,923 a year for a typical annual energy bill. It will be the first time it has dropped below ?2,000 a year in 18 months.

cont https://www.inyourarea.co.uk/news/read-your-meter-now-or-risk-paying-more-for-energy-as-ofgem-price-cap-changes/

[SteveH]

Triple lock means state pension set to rise by 8.5% in April

The policy means the increase in the state pension is the highest of average earnings, inflation or 2.5%.

Those earnings - which are total pay, including bonuses - were recorded at 8.5%, and the inflation figure is unlikely to be higher.

That means the state pension is likely to rise by 8.5%, which would be a weekly increase of ?13.30.

It means there is set to be an annual increase of ?691.60 on the basic state pension - taking the total for the year to ?8,814.

cont https://www.bbc.co.uk/news/business-66783922

[Hugo]

The Triple Lock is a good thing for state pensions as it protects the pensioners from the ravages of inflation but there is no such protection for people who are currently employed by local and national government.
For a number of years these employees have had no pay increases and that in effect is effectively a pay cut,    It's no wonder that there is such unrest in the UK at the moment with strikes, walkouts and other industrial actions.   
With an increasing population of pensioners the Triple Lock may become unsustainable and it wouldn't surprise me if the present government are considering ways of ending it

[Hugo]

I watched the evening news last night and the Triple Lock was mentioned and the Minister did say that the Government was looking at the Triple Lock as it was unsustainable in the long run.
The spokes person for the Labour Party said that their party would not guarantee keepin it either so it is a real issue for the future

[SteveH]

Strikes and wet weather cause UK economy to shrink

The UK economy shrank more than expected in July, driven by strike action by NHS workers and teachers, according to official figures.

Wet weather also hit the construction and retail industries, the Office for National Statistics (ONS) said, causing the economy to contract by 0.5%.

The figures were worse than analysts had predicted and continue a trend of weak economic growth in the UK.

But the ONS said the "broader picture" for the country looked "more positive".

cont https://www.bbc.co.uk/news/business-66785572

[Helig]

The media seem to be covering the government line on the Triple Lock very much at the moment. They state that this is unaffordable to keep it much longer. It looks as though they plan to remove this in the near future. I wonder how they can afford to pay ?6 million plus a day on illegal immigrants and say pensioners will have to accept lower increases to their state pensions? We are people who have contributed to this country and continue to do so by paying taxes in many cases.

There is also much disinformation being put out by the right wing think tanks. An article quoting one of them in my paper last week said that 1 in 4 people over 65 live in millionaire households. I wonder what planet they live on?

I have never voted Tory and never will. I wonder how many votes they will lose by their stand on the Triple Lock? It is to be hoped it will be enough to lose them the next election.

[Hugo]

The triple lock was introduced by the Conservative-Liberal Democrat coalition government in 2010. It was designed to ensure the value of the state pension was not overtaken by the increase in the cost of living or the working population's income.
Now the Conservatives want to do a U turn on their own policy stating that in the long term it is unsustainable!
What is unsustainable is paying for all these migrants who have entered the UK illegally.     The Government say it is costing 6 million pounds per day to pay for the needs of these asylum seekers or illegal migrants or whatever term for them is used but I think that that figure is under estimated and done so for political reasons.
 

[DaveR]

The Triple Lock is a good thing for state pensions as it protects the pensioners from the ravages of inflation but there is no such protection for people who are currently employed by local and national government.

Nor for those employees in the private sector whose taxes pay not only the pensions but also the wages of the public sector employees you mention?

[SteveH]

Interesting headline........Maybe the banks have got it slightly wrong......

Millions of people switch back to cash in cost of living crisis
The latest statistics show how often people are using cash, making cashless payments and using their mobile phones to pay

The number of people who rarely use cash fell last year as cost-of-living concerns grew, while the number of payments being made using physical coins and banknotes rose for the first time in a decade. UK Finance said that 21.6 million people across the UK used cash only once a month or not at all in 2022 ? falling back from 23.1 million the year before.

Growing fears about inflation and the rising cost of living have meant some people are making greater use of cash as a way of managing budgets, UK Finance said. With the rise in technology and a growing choice of ways to pay, the number of people who mainly rely on cash also fell back.

cont https://www.walesonline.co.uk/news/uk-news/millions-people-switch-back-cash-27710714?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[Hugo]

The Triple Lock is a good thing for state pensions as it protects the pensioners from the ravages of inflation but there is no such protection for people who are currently employed by local and national government.

Nor for those employees in the private sector whose taxes pay not only the pensions but also the wages of the public sector employees you mention?

We all have to pay taxes whether we are pensioners, public servants or employees in the private sector but if anyone disagrees with the Triple Lock then the blame rests with the Conservatives who introduced it

[Helig]

A report in yesterday's i paper stated, "The Home Office is anticipating making another request to the Treasury Reserve for cash, having claimed ?2.4 billion last year for asylum seekers' accommodation". This request relates to it needing more money for housing illegal immigrants.

[SteveH]

Slowing food prices drive surprise fall in inflation

Slowing food prices helped drive a surprise fall in inflation in August, with the cost of living now at its lowest level in a year and a half.

Inflation, which measures how prices change over time, fell to 6.7% in the year to August, down from 6.8% in July, official figures show.

It is the third month in a row that the figure has dropped.

Price rises for milk, cheese and eggs slowed the most, while fish and vegetable prices also eased.

There was also a drop in hotel and air fare costs, although fuel prices jumped.

When the rate of inflation falls, it does not mean prices are coming down, but that they are rising less quickly.     

cont https://www.bbc.co.uk/news/business-66844295

[SteveH]

Government borrowing was higher than economists had expected in August, new official figures show.
Borrowing - the difference between spending and tax income - rose to ?11.6bn last month, according to the Office for National Statistics (ONS).

That was ?3.5bn more than a year earlier and the fourth highest August borrowing since monthly records began in 1993.

Experts had predicted public borrowing would stand at ?11.1bn last month.
cont https://www.bbc.co.uk/news/business-66872233


Investors are split over whether interest rates will be raised again on Thursday after figures showed a surprise slowdown in price rises.
A 15th rise in a row to 5.5% from 5.25% was widely predicted, but now only half of investors are predicting a rise.

Expectations changed after inflation, which is the rate prices rise at, was revealed to have fallen unexpectedly to 6.7% in the year to August.

The Bank of England, which sets rates, will reveal its decision at midday.    cont https://www.bbc.co.uk/news/business-66866916