Latest news with #DWPStatePension
Yahoo
2 days ago
- Business
- Yahoo
DWP winter fuel payments to be paid to nine million pensioners this winter after u-turn
Nine million pensioners in England and Wales will receive the winter fuel payment this winter after a government u-turn, it has been announced. The £300 payment has been restored to the vast majority of pensioners who previously received it, Chancellor Rachel Reeves has said. Anyone with an income of under £35,000 a year will now get the payment automatically. READ MORE: DWP State Pension change for people born between these dates READ MORE: Full list of people eligible for free bus pass under new DWP rules Pensioners with an income above this threshold will also receive the payment - but it will then be reclaimed from them in tax. To be eligible for the winter fuel allowance, a person will need to have reached state pension age by the week starting September 15 this year. Chancellor Rachel Reeves said: 'Targeting winter fuel payments was a tough decision but the right decision because of the inheritance we had been left by the previous government. 'It is also right that we continue to means test this payment so that it is targeted and fair, rather than restoring eligibility to everyone including the wealthiest. 'But we have now acted to expand the eligibility of the winter fuel payment so no pensioner on a lower income will miss out. 'This will mean over three-quarters of pensioners receiving the payment in England and Wales later this winter.' The decision to limit the winter fuel payment to only those who claimed pension credit was one of Labour's first acts in Government, aimed at balancing what was described as a £22 billion 'black hole' in the public finances. This meant the number of pensioners receiving the payment was reduced by around 10 million, from 11.4 million to 1.5 million. Sir Keir Starmer announced there would be a partial U-turn on the policy in May, after it was thought to have contributed to Labour's drubbing in the local elections. The Treasury claims the new arrangement will cost £1.25 billion in England and Wales, while means-testing winter fuel will save the taxpayer £450 million. This is a breaking story. More soon
Yahoo
03-04-2025
- Business
- Yahoo
How Trump's tariffs may accidentally 'help UK buyers by lowering mortgage rates'
In an unexpected twist, President Trump's tariffs may actually be the thing that helps UK buyers by lowering mortgage rates, say experts. It's all down to SONIA swap rates (very broadly speaking, this is how much banks pay for sterling overnight), which have fallen this morning following Liberation Day in the US. According to Bloomberg, traders are now pricing in nearly 63 basis points of cuts from the Bank of England with the expectation of three rate cuts this year. The result? Potentially cheaper mortgages for UK homeowners - albeit with worse rates for savers if rates fall. 🚨 #TrumpTariffs: Economic genius or global disaster? 10% import tax + 34% on China = higher prices for YOU. Markets tank, jobs at risk—yet Trump calls it 'Liberation.' Thoughts? @zerohedge @MartiniGuyYT @Reuters @BBCBreaking — Daily Viral Clips. (@dailyviralclip) April 3, 2025 Pete Mugleston, Mortgage Advisor & Managing Director at Online Mortgage Advisor, explains: "Falling SONIA swap rates and expectations of multiple Bank of England rate cuts could be great news for the UK property market. "If Trump's tariffs slow global growth, prompting rate cuts, it may indirectly help UK buyers by lowering mortgage rates. First-time buyers and homeowners could benefit from improved affordability, potentially sparking a flurry of market activity, especially among those waiting for rates to fall. "While his intentions may not have been to boost the UK housing market, Trump's actions could result in a ripple effect that could create opportunities for buyers and encourage lenders to reprice products more competitively in the months ahead." Martin Lewis: Biggest factor to change mortgage rates Nationwide scam warning issued by bank's head of fraud DWP State Pension age will have to rise to 71 says report Riz Malik, Independent Financial Adviser at R3 Wealth agrees: "Trump's trade rhetoric may have rattled global markets, but it could end up offering a silver lining for UK mortgage holders. "Falling swap rates suggest lenders may soon reduce fixed-rate mortgage pricing, easing pressure on homeowners already hit by rising household bills and Reeves' budget. "While the full economic impact of US tariffs is still unclear, a more competitive mortgage market would be a timely boost for the UK housing sector. President Trump may have earned his state visit after all." But, it's not entirely good news, as Stephen Perkins, Managing Director at Yellow Brick Mortgages explains: "There has been an equilibrium between the desire to help an ailing economy with rate cuts and the need to keep inflation down with rate holds at the Bank of England of late, with predictions of only a couple of reductions in 2025. The delivery was pure Trump. Flanked by steelworkers and farmers, he railed against 'globalist sellouts' and past administrations. 'This is liberation from bad deals.' 'Biden wouldn't have the guts.' He's promising a manufacturing renaissance. — Riccardo (@Ric_RTP) April 3, 2025 "President Trump's tariffs have taken a sledgehammer to the scales of that equilibrium and damaged the world economy, so now there is growing pressure on more rate reductions this year to provide life support to the UK economy to compensate for the impact of the tariffs." Jason Hollands, managing director of investment platform Bestinvest by Evelyn Partners, says the Bank of England 'faces a dilemma – on the one hand, tariffs are going to lift the prices of some goods and it has a job to keep the lid on inflation so may keep rates higher for longer, but on the other hand it will want to support the economy from sinking into recession. 'My hunch is that they will regard price spikes related to the implementation of tariffs as a one-off shock and focus more on the risk of economic stagnation. We could therefore see interest rates come down more rapidly than expected. 'The hit to the economy from a global trade war could leave (Chancellor) Rachel Reeves' plans in tatters'. Mr Hollands suggested one option might be to freeze tax allowances and thresholds beyond 2028, 'leading to more and more people slipping deeper into income tax by stealth'.
Yahoo
18-02-2025
- Business
- Yahoo
Bad news for Premium Bonds holders as winning prize pot cut
Premium Bonds big winners will be cut as fewer £100,000 prizes will be available from the April 2025 draw, NS&I has announced. The prize winning fund rate is being slashed from 4.00% to 3.80% say Premium Bonds provider NS&I, a cut of around £20 million. There's more bad news for some savers with NS&I as its interest rate for the Direct Saver and Income Bonds will also drop. The changes mean that, for example, the estimated number of £100,000 prizes will decrease from 82 in February to an estimated 78 in April. The number of £50,000 prizes will fall from 164 in February to an estimated 157 in April, while the number of £25,000 prizes will reduce from 328 to around 313 over the same period. The number of £10,000 prizes will fall from 820 in February to an estimated 781 in April. The number of £1 million prizes up for grabs will remain the same, at two. There will be more chances to win a £25 prize, with the number increasing from 1,807,915 in February to an estimated 2,170,903 in April. The total value of the prize pot will reduce from £430,052,425 in February to an estimated £411,118,825 in April. The number of prizes will remain around level, at 5,864,354 in February and an estimated 5,901,229 in April. Martin Lewis: Biggest factor to change mortgage rates Nationwide scam warning issued by bank's head of fraud DWP State Pension age will have to rise to 71 says report As the end of the tax year approaches, NS&I has also increased the interest rate on its Direct Isa to 3.50% AER (annual equivalent rate) from Tuesday, from 3.00%. From March 5, the interest rate for NS&I's Direct Saver will fall to 3.30% AER from 3.50% and the rate on Income Bonds will decrease to 3.30% AER from 3.49%. Andrew Westhead, retail director, at NS&I, which is backed by the Treasury, said: 'We regularly review our products to ensure they reflect current market conditions. The changes we are making to Premium Bonds, Direct Saver and Income Bonds rates enable us to continue to balance the interests of savers, taxpayers and the stability of the broader financial services sector. 'Even with the change to the Premium Bonds prize fund rate, we are expecting more than 5.9 million tax-free prizes worth over £411 million to be won in the April 2025 draw.' The moves follow the recent quarter point cut in the Bank of England base rate to 4.5%. Sarah Coles, head of personal finance, Hargreaves Lansdown said: 'NS&I is testing the loyalty of its premium bond holders by slashing the prize rate to 3.8%. 'It was bound to happen, because the easy access savings market has been inching south ever since this month's Bank of England rate cut, and NS&I will be keen not to pay more than it has to. 'It's also slashing the rate on two of its easy access savings products. Cash Isas have dodged the scythe though, and the rate has actually risen.' She said of Premium Bonds: 'The cuts have focused on the bigger prizes, in order to keep the chances of a win the same. 'However, even then, the average bond holder will win nothing in the average month. It means your savings are likely to lose money after inflation, and with every sign that inflation is on the rise, you'll be paying an even bigger price. 'Whenever the rate is cut it's worth considering whether you're still happy with the deal, or whether you'd prefer the certainty of a strong rate in the wider savings market. It's worth checking what's available from online banks and saving platforms, where you'll usually find the strongest deals.' NS&I's announcement was made as financial information website Moneyfacts said the choice of cash savings products has reached the highest on its records going back to 2007. It counted 2,157 savings deals in February, including Isas. There were 582 cash Isa deals available, which was also a high on Moneyfacts' records. Rachel Springall, a finance expert at Moneyfacts, said: 'The arrival of more savings providers entering the market can encourage savers to seek new brands away from the more familiar high street banks, as new challengers are more eager to attract deposits to fund their future lending. 'However, the months ahead will be challenging for providers to keep ahead of their peers to entice new business, but also to adjust their rates as interest rates are expected to fall.' Ms Springall added: 'Savers must ensure they choose a deal which pays a competitive rate of interest but also provides a real return against the eroding impact of inflation, which is expected to rise this year.'
