Latest news with #NationalInsurance
Daily Record
2 hours ago
- General
- Daily Record
Parents who took time off work to look after kids 'could be owed thousands'
Martin Lewis has warned a certain group of people that they could be owed 'thousands,' and there's a way to check online whether you could be owed money as part of a scheme Martin Lewis has shared that if you're a parent who took time off to look after your children between certain dates you could be owed "thousands". He revealed "the decades-old error that could mean you're owed" the money, explaining what happened on ITV's This Morning. Some have hailed Martin Lewis a "saint" for sharing this information far and wide. The money expert explained that this information "primarily impacts women," but he did say it wasn't "solely women," but whoever is impacted will be between "the ages of 41 and 90". He did say, however, that "most generally they'll be in their 60s and 70s, but it could be of any age". He said: "It's those who took time away from paid work to look after their child or look after someone with a long-term disability or illness between 1978 and 2010. "But they also needed to have been claiming child benefit before May 2000, which is why we tend to be talking women in their 60s and 70s because they fit that age profile. "Or your partner could've claimed child benefit but you were then the one staying at home". Martin then went on to explain that there was a "thing called Home Responsibilities Protection," and he said: "What this did is, if you stopped working to look after your child or someone who was sick, it gave you the National Insurance contributions that you would've otherwise got from working. "And National Insurance Contributions are what's needed for you to get the full state pension. So there could be many women who are not getting the full state pension, because they should've got Home Responsibilities Protection, and they didn't get it because of an error". He continued: "So, this is what you need to do. If all of those things ring true - you took time off between 1978 and 2010, you claimed child benefit before 2000, you need to go onto You need to check your state pension forecast. "If you're not forecast to get a full state pension when you hit retirement age, then you need to go and look have you got any missing National Insurance years. "If those years are missing at the same time that you were off work to pay for the childcare or for the long-term, then you were probably due Home Responsibilities Protection and you need to go and check that". Martin then said that he was going to be "really honest," saying it's a "bit too complicated to do on the telly," referring to it as a "clarion call". "If that all rings a bell, go and look it up," he urged. In the comments, someone wrote: "What about if your national insurance contributions are missing after those dates - because you chose to not work so that you could look after your children?" Another replied: "Then there will be a shortfall in your pension, one would presume". Others said they found it "impossible" to fill in the form as they wanted precise dates when they were off work.
Daily Mirror
6 hours ago
- Business
- Daily Mirror
State pension payment changes for August as people told to 'be aware'
The DWP is making an early payment of state pension to some UK claimants in August - and it's important to be aware of the changes so that you're not caught off guard Certain pensioners are being alerted to unexpected payments landing in their bank accounts during August. According to the full new State Pension in the UK is £230.25 per week. However, the amount you receive can vary based on your National Insurance record - with the full amount normally needing 35 qualifying years of National Insurance contributions. However, it is now being warned that some state pension payments will be made at different times than usual. This change affecting individuals who are due to receive their pension payments on the Monday bank holiday of August 25. This comes after news that the state pension age could rise to 74 amid warning of UK 'tsunami of OAP poverty'. Instead, the cash should instead be paid earlier on Friday, August 22. Warning pensioners ahead of this payment so that they are not taken by surprise by the unusual timing, older individuals will also need to stretch their money further than usual until their next following payment date. Note that only those whose payments are due to fall on the bank holiday will be affected and that most everyone else should receive their money as usual. Households receiving benefits like Universal Credit and PIP will also be affected. Interestingly, the reason why these payments are moved forward is because the DWP does not process payments on bank holidays, therefore the nearest working day is most often picked, reports Birmingham Live. Money experts at Spencer Churchill said: "It's vital that pensioners and benefit claimants are aware of any changes to their payment dates, especially around bank holidays. Missing a payment due to a simple oversight can cause unnecessary stress, particularly for those living on a fixed income". Spencer added that "receiving your payment earlier might seem like a good thing, but it also means that you'll have to stretch that money further until the next instalment". Another significant change is that Labour has now confirmed there will be another review to discuss the state pension age. The last review was conducted by Baroness Neville-Rolfe in 2022. Benefits Consulting Leader at consultancy Gallagher, Mark Pemberthy, pointed out that the previous review referred to the possibility of further increases to the age threshold. He said: "The previous review of the state pension age in 2022 recommended that, on average, people should expect to receive the state pension for 31% of their adult life, and that the total cost of state pension related expenditure should be limited to 6% of GDP".
Yahoo
6 hours ago
- Business
- Yahoo
Private sector to shrink at fastest pace since pandemic
British business activity is expected to shrink at its fastest pace since the depths of the pandemic in 2020 amid growing pessimism since Labour took power. Economists warned the 'negative sentiment' had no end in sight, with activity across 'all parts' of the British economy expected to keep shrinking over the next three months, according to the Confederation of British Industry (CBI). Its latest barometer of private sector output showed businesses were still reeling from the impact of Rachel Reeves's autumn tax raid, with consumer-facing sectors hit hardest by the £25bn increase in employers' National Insurance. The response to the CBI's business barometer was the most negative since October 2020, when Boris Johnson, the former prime minister announced the second national lockdown during the pandemic. Bosses were also wary about the impact of global trade policy, even though the UK has escaped with one of the lowest additional tariffs from Donald Trump among major advanced economies. 'The outlook remains negative across the board,' the CBI said, as it warned of a toxic mix of slower growth and higher prices. 'Our surveys also suggest that headcount will be cut further in the three months to October, marking almost a year of weak hiring intentions,' it said. The decline in July means more businesses have reported a slump in output than an expansion since Labour won the general election in July last year. Expectations about future output have also dragged into negative territory since Ms Reeves's tax raid. Alpesh Paleja, the CBI's deputy chief economist, said: 'Firms continue to face testing conditions, with expectations pointing to another quarter of falling activity across the economy. 'While not worsening, the persistently negative outlook underlines the fragility of demand conditions. 'Against this backdrop, businesses continue to cite headwinds from adjusting to higher employment costs, energy prices and continued uncertainty from a volatile global environment. With few signs of recovery on the horizon, firms are focused on managing costs and streamlining processes in what looks set to be a subdued second half of the year.' It came as separate figures showed British households squirrelled away £8.8bn into banks, building societies and National Savings and Investment accounts amid signs that consumers remain cautious. The Bank of England said households' total liquid assets increased by £8.8bn in June, which was almost double the increase recorded in May and the £4.5bn average month-to-month increase in the two years before the pandemic. 'This suggests households are in the mood to save rather than spend,' said Ashley Webb at Capital Economics, adding that this 'casts a bit more doubt over [stronger] consumer spending growth' to support the economy. Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
7 hours ago
- Business
- Daily Mail
A red card for the Chancellor? Ex-footballer Gary Neville blasts Rachel Reeves' tax hike on businesses
Gary Neville has condemned Labour's tax hikes for deterring firms from employing people. The ex-England and Manchester United footballer hit out at Chancellor Rachel Reeves for increasing employers' National Insurance contributions. Neville, who is now a business owner and TV pundit, claimed the tax hike announced by Ms Reeves at last year's Budget 'probably could have been held back'. The criticism will sting both Ms Reeves and Prime Minister Sir Keir Starmer, following Neville's staunch support for Labour at the general election. The former defender told Sky News: 'I honestly don't believe that, to be fair, companies and small businesses should be deterred from employing people. 'So, I think the National Insurance rise was one that I feel probably could have been held back, particularly in terms of the way in which the economy was.' Neville also warned about the impact of a double whammy for under-pressure businesses at the start of April. This is when both the National Insurance rise and Labour's increase in the minimum wage came into effect, both of which hiked costs for firms. Neville said: 'I don't think we can ever criticise the Government for increasing the minimum wage. 'I honestly believe that people, to be fair, should be paid more so I don't think that's something that you can be critical of. 'I do think that the National Insurance rise, though, was a challenge.' A recent report found nearly 50,000 UK companies are on the brink of collapse as rising wage costs, due to Budget measures, put small firms under 'immense strain'. The latest Begbies Traynor red flag alert found that firms in critical financial distress rose by more than a fifth (21.4 per cent) year-on-year to 49,309 in the second quarter. Consumer-facing industries saw some of the most 'extreme' rises in critical financial distress, with a 41.7 per cent surge among bars and restaurants, a 39 per cent leap for travel and tourism and 17.8 per cent jump for general retailers. Begbies warned that many independent pubs will not have the scale to withstand the pressures for another year without action. Ric Traynor, executive chairman of Begbies Traynor, said: 'The sharp rise in critical distress underscores just how tough the economic environment is for UK businesses and it's abundantly clear that tens of thousands of firms are struggling to stay afloat. 'Small and medium sized businesses across the UK are being put under immense strain by the recent increases to employer's NI as well as the increase to the national minimum wage. 'With limited financial headroom to absorb rising costs, many businesses are now reaching a tipping point.'
Daily Mirror
7 hours ago
- Business
- Daily Mirror
UK homes taking steps not seen for two years amid Rachel Reeves tax rise fears
More people are saving amid worries potential tax rises are looming Brits are saving money at levels not seen in almost two years, spurred by worries over potential tax rises looming on the horizon. The Office for National Statistics has revealed that the savings ratio – the amount of disposable income that's left unspent – climbed to 11.1% in the first quarter of 2024. This leap from 9.3% in the last quarter of 2023 represents the highest peak since the third quarter of 2021. This uptick in savings coincides with new Chancellor Rachel Reeves ' vow of "iron discipline" on public purse strings, as she cautioned there's "no magic money tree", stating: "Every commitment we make must be fully funded. That's the approach I will bring to the Treasury." Although Labour has dismissed the idea of raising income tax, National Insurance and VAT, they've stopped short of making similar promises on capital gains tax, pension tax relief or inheritance tax – sparking concerns about possible tweaks to balance the books. The Institute for Fiscal Studies (IFS) warned that Labour had "not addressed the difficult choices on tax and spending that await". In its analysis following the election, the IFS said: "Without further tax increases or spending cuts, it is hard to see how Labour's plans will add up." Meanwhile, the same batch of ONS figures indicated that real household disposable income saw a surge of 2.5% in the first quarter of 2024 – the most significant rise in two years – yet consumer spending hardly moved, inching up a mere 0.2%. Consumer confidence remains 'fragile' Analysts believe the mixed signals in the market are due to a combination of falling inflation, better net wages, and persistent wariness among shoppers. Retail sector experts have also pointed out the prevailing uncertainty. Echoing this sentiment, the British Retail Consortium recently said: "Consumer confidence remains fragile as the country continues to adjust to the high cost of living." The Labour Party is gearing up to unveil a comprehensive tax plan for the Autumn Statement later in the year, which will shed light on how Ms Reeves plans to achieve her goals. The Chancellor has vowed to 'bring back economic stability', assuring industry leaders earlier in the month: "I want to send a message to businesses across the UK and around the world: Britain is open for business."
