Finance Reviews Blog

Carer’s Allowance could boost payments for Britons of state pension age - explained

2021-06-29T23:35:00.003+01:00

To be eligible for Carer’s Allowance a person, and the individual they care for, must meet certain criteria.

When it comes to the person being cared for, they must be in receipt of certain benefits.

These include PIP, Attendance Allowance, Disability Allowance, and others.

The person making the claim for Carer’s Allowance must spend at least 35 hours per week caring for someone.

This could include household tasks, helping someone to get out and about, and assistance with washing and cooking.

They must be 16 or over, and have been in England, Scotland or Wales for at least two of the last three years.

NatWest offers prize draw with a chance to win £10,000 - check eligibility now

2021-06-29T23:35:00.001+01:00

NatWest is a popular name on Britain’s high streets, offering a number of savings, credit and debit card options as well as other support such as mortgages. But although the name is a trusted one, many savers are looking for more - namely, a chance to grow their cash. Interest rates have tumbled within the last year and a half, making it difficult to get a decent return on one’s money.

However, the provider has offered its Digital Regular Saver option, which is available to current account holders.

It offers a three percent interest rate on savings up to £1,000 deposited into the account.

This, though, is not the only way for savers to potentially grow their finances with NatWest and its prize draw could be the best way to do so.

The bank’s prize draw is being made available to eligible NatWest customers, and it is worth checking to see if one could win big.

READ MORE: NatWest is offering 3% interest rate in leading savings account

But acts such as cash withdrawals, gambling transactions, money transfers and the purchase of foreign currency will not count.

Customers may also be able to enter the prize draw by writing to NatWest about the matter.

Those who are eligible should opt-in to the draw via the instructions they should receive in an email from the provider.

In total, across the NatWest Group, there are 16 prizes which are up for grabs.

The winners list, and reserve prize winners, are set to be drawn at random on August 9, 2021.

They can expect to be contacted either via email or by phone within 14 working days of the draw.

Different draws are taking place for credit and debit card users with NatWest, but both offer substantial prizes.

The top prize in each draw will offer one lucky winner £10,000.

There are also set to be a total of 15 runners-up prizes of £1,000 made available.

Aside from the prize draw, NatWest customers may still be intrigued by other savings options.

While the Digital Regular Saver is arguably the bank’s best offering, it also has other savings account.

Its Savings Builder offers an interest rate of 0.25 percent, while its Instant Saver has a 0.01 percent interest rate.

And for children, there is the First Saver account, allowing young people to start with just £1 and gain an interest rate of 0.35 percent.

'Cancel that cut to Universal Credit' DWP faces pressure to extend £1,000 boost

2021-06-29T14:35:00.005+01:00

This Universal Credit uplift had been due to last a year, having been first announced by the Chancellor of the Exchequer Rishi Sunak in March 2020 in response to the coronavirus pandemic. At the 2021 Spring Budget, it was later extended to the end of September this year.

She asked the Secretary of State for Work and Pensions Thérèse Coffey "what recent progress her Department has made on tackling child poverty".

Will Quince, the Parliamentary Under-Secretary of State for Work and Pensions replied: "Throughout the pandemic, our priority has been to protect the most vulnerable, which is why we spent an additional £7.4billion last year to strengthen the welfare safety support for working-age people.

"Our ambition is to help parents return to work as quickly as possible, as there is clear evidence of the importance of having parents in work for reducing the risk of child poverty.

"That is why we are spending over £30billion on a comprehensive plan for jobs."

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Ms Ali replied: "I thank the Minister for his answer, but 60 percent of kids in my constituency are living in poverty, and over 4.2 million live in poverty across the country.

"The numbers have gone up by 700,000 since 2010, and the Government’s limited extension to the local support grants does not make up for the cuts to universal credit, which will mean that families are £1,000 a year worse off from September.

"Is it not time that the Minister reconsidered that decision and made sure that families do not lose £1,000 from September, so that more children are not forced into poverty?"

Mr Quince said: "I thank the hon. Lady for her question. We are wholly committed to supporting families with children.

"We spent an estimated £111billion, including £7.4billion on Covid-related measures, on working-age welfare in 2020-21. In addition, as the hon. Lady referenced, we introduced the Covid local support grant.

"We have now extended that grant with an additional £160 million in funding between 21 June and 30 September. That brings the total funding package to £429 million.

"For the hon. Lady’s constituency—I reference Tower Hamlets London Borough Council—it means an overall funding package of over £3million."

Labour MP for Rochdale Tony Lloyd also asked about Universal Credit in the Commons yesterday.

Within her response to his question, Dr Coffey said: "As the House will well know, we are absolutely committed not only to making sure that this is a temporary measure, but to helping people get back into work.

"We believe that that continues to be the best way, especially as there are vacancies across the country, and we will strain every sinew to help make that happen."

The standard allowance for Universal Credit was increased by £20 per week, as was the basic element in Working Tax Credit.

The extension announced in March 2021 was for six months, meaning it will come to an end in September.

When will furlough scheme end? Major changes implemented in days

2021-06-29T14:35:00.003+01:00

The Coronavirus Job Retention Scheme (CJRS), commonly known as the furlough scheme, has been one of the Chancellor's flagship financial policies during the UK lockdown. The scheme has allowed employers to place employees on furlough during times of uncertainty, meaning employees keep earning and businesses can stay afloat. The scheme is due to end later this year, but there will also be some major changes to the way the scheme runs over the next few months.

What furlough scheme changes will come in for July?

Major changes will start from July 2021 with regards to the furlough scheme.

For May and June, the Government has contributed 80 percent of furloughed employees' wages, capped at £2,500 per month.

However, from July the amount of Government support is going to start tapering off.

READ MORE: State pension UK: Free bus pass qualifying ages will be changing

In July, the Government will contribute to 70 percent of an employee's wage, capped at £2,187.50 per month.

However, furloughed employees can still expect to get 80 percent of their wages up to £2,500 per month.

This means employers will have to start topping up their employees' wages by 10 percent, up to £312.50, in July.

For August and September, the Government's contribution to furloughed employees' wages will decrease even further.

So there is currently no suggestion that the full furlough scheme will be extended past September either.

The changes to the furlough scheme, along with the planned end in September, will likely cause some uncertainty for many businesses and employees.

Commenting on the changes, Anthony Morrow, co-founder of online financial advice service OpenMoney, said: “While parts of the economy are recovering well from the effects of the pandemic, other sectors are still getting back to normal, and some are yet to fully reopen."

Mr Morrow added: "For employees on furlough, these changes and the looming closure of the Coronavirus Job Retention Scheme will raise concerns over their future job prospects and the long-term impact of the pandemic on their finances."

Self-employed grant: What date will SEISS grant five open for applications?

2021-06-29T14:35:00.001+01:00

The Government guidance for SEISS states claimants can expect further information soon about how to work out how their turnover was affected.

But so far, it has been confirmed the fifth grant will be determined by how much a claimant's turnover was reduced in the year April 2020 to April 2021.

Other eligibility criteria remains in place for the fifth grant too, such as the requirement to have traded in the 2019/2020 and 2020/2021 tax years.

Claimants must also have submitted their tax return for 2019/2020 on or before March 2, 2021.

Claimants must also be currently trading but are impacted by reduced demand, or have been trading but are temporarily unable to do so due to coronavirus.

PIP: Britons may get up to £608 per month for arthritis or other conditions - check now

2021-06-28T21:35:00.007+01:00

PIP, or Personal Independence Payments as they are formally known, can help with some of the added costs which can arise while navigating health challenges. These costs can quickly rack up, leaving those with a condition or disability struggling to make ends meet. Financially, then, PIP could help a wide range of people throughout the UK with their needs.

They must also expect for these difficulties to continue for at least the next nine months.

PIP is made available to individuals who are over the age of 16, and they must usually be under state pension age to make a claim.

PIP claimants usually need to have lived in England, Scotland or Wales for at least two of the last three years, and be in one of these countries when applying.

Certain people who have recently returned from living in a European Economic Area (EEA) country, may be able to get a PIP payment sooner.

But for individuals who are living with arthritis, understanding whether a claim can be made will be key.

Versus Arthritis, an organisation which helps those living with the condition, has provided further guidance.

It has said PIP can be “important” for those who are living with arthritis, and urged people to investigate if they could receive further support.

Of course, whether those living with arthritis will be able to receive the payment, and what they get is determined by how the sum is broken down.

PIP is split into two key tiers to provide support to those living with a disability or health condition.

Firstly, the daily living part is set at either £60.00 or £89.60 per week for those who need this support.

The mobility part of PIP currently offers a rate of either £23.70 or £62.55 per week.

Individuals can expect to receive one or both, depending on how severely their condition affects them.

A maximum payment of £608 per month, then, is available through the higher rate of both components.

People will need an assessment in order to work out how much they will ultimately receive.

This is then reviewed on a regular basis to ensure everyone is receiving the correct amount of support.

PIP is a tax-free payment, and the amount someone receives is not based on income or savings.

NatWest is offering 3% interest rate in leading savings account - are you eligible?

2021-06-28T21:35:00.005+01:00

NatWest is a familiar name on Britain’s high streets, but is just one of the many banking providers savers can choose to opt for. What will be key to a large number of individuals is finding an account which helps them to grow their money. This has become a major preoccupation as interest rates across the board have plummeted over the last 18 months.

The shock effect of the pandemic saw the Bank of England lower its base rate to 0.1 percent, where it has kept it ever since.

With a knock-on effect on providers, it appears to be the case many are being encouraged to spend rather than save to offer a boost to the economy.

However, some individuals will be undeterred by this more challenging savings environment, and will still hope to grow their money in whatever way possible.

Thankfully, there do remain some options out there on the market which are still favourable for savers.

READ MORE: 'Huge discrepancy' between HMRC’s CEST & IR35 noted

The account offers an interest rate of 3.04 percent AER, and this is available on balances up to £1,000.

NatWest explains that above this amount, savers can expect an interest rate of 0.01 percent.

It is worth noting, though, that the interest rate on this account is variable, meaning NatWest can change it.

However, the bank has said it will give its customers at least 14 days’ notice before making this decision, as long as a person’s balance is at £100 or more.

NatWest has said the account is made available exclusively for its current account customers who are aged 18 and over.

Britons should be able to apply within a short amount of time, even “five minutes”, the bank has stated.

For those interested in opening the account, this can be done in a number of ways.

As this is a digital account, opening this online or via the bank’s mobile app is the best course of action.

From this point on, the account can be managed via mobile, online, in branch or by telephone.

When opening the account, individuals will need to provide their name, email address and mobile number so that important documents can be communicated.

Britons are only allowed to have one Digital Regular Saver and it is required to be in their name.

Universal Credit: You could get £15 internet & phone deal as package launched today

2021-06-28T21:35:00.003+01:00

Indeed, phone calls are also likely to be necessary, particularly when helping people into work.

Other options have been made available by alternative providers, such as Virgin Media, which offered a new price plan in November 2020 to help Universal Credit claimants in future.

Digital Infrastructure Minister, Matt Warman, commented on the new package.

He said: “In today’s digital world, everyone should be able to access fast, reliable and affordable internet.

Self-employment crisis as 'huge discrepancy' between HMRC’s CEST & IR35 noted

2021-06-28T21:35:00.001+01:00

HMRC first introduced changes to IR35 back in April 2021, after a year of delays due to the pandemic. IR35 is legislation which is designed to identify contractors and businesses which are not currently paying the correct tax due to avoidance measures. As a result of the changes, medium to large businesses have now been required to alter their processes when it comes to tax.

It means these organisations are required to assess the contractors they employ, as well as independently setting their tax status.

The changes, however, were resisted by some who suggested this would create harder work for organisations, who may consequently become reluctant to imply contractors or freelancers.

For IR35, even before changes took place, Britons were advised by the Government to use what is known as the Check Employment Status for Tax (CEST) tool.

CEST enables individuals to find out if they, or a worker on a “specific engagement” should be classed as employed or self-employed for the purposes of tax.

READ MORE: Furlough: Britons urged to prepare for potential ‘sudden shock’

Matt Fryer, Head of Legal Services at Brookson Legal, commented on the matter.

He said: “There is a huge discrepancy between the CEST usage data and the number of private sector contractor jobs being advertised as outside of IR35.

“As demand for skilled labour begins to outstrip supply, hiring businesses that are unable to guarantee outside IR35 status for these contractors will struggle to recruit the talent they need for economic recovery.

“According to CEST data, 49 to 56 percent of all contractor roles clearly fall outside of IR35, with another 19 to 21 percent in a grey area the tool is unable to determine.”

Data from Jobfeed, however, Mr Fryer added, currently indicates only 26 percent of contractor roles are being advertised as outside IR35.

This was true as of the week commencing June 7, 2021.

It is feared, then, that the CEST tool is not wholly doing the job it is meant to be doing, and many are concerned about potential ramifications.

Mr Fryer went into further depth to provide clarity on the situation.

He added: “This is a worker’s market, with REC reporting on rapid rises in hiring and intent to hire for temporary roles, coupled with a shortage of skilled talent.

“As the economy picks up, businesses that require skilled contractors will need to clearly demonstrate they can provide roles outside of IR35 to beat the competition.”

Mr Fryer concluded, however, by posing why more of these roles are not currently being advertised.

One potential answer to that question, he states, may lie in the idea that many businesses do not have faith in solutions they have put in place for meeting the deadline.

But in this case, Mr Fryer stated, hirers who have planned ahead and in detail, are likely to “reap the rewards” of their efforts.

Express.co.uk has contacted HMRC for comment on the matter.

State pension set to rise but nearly 500,000 British pensioners won't get boost

2021-06-28T12:35:00.009+01:00

If a person lives outside of these countries, they won't get the yearly increases.

Should the affected person return to live in the UK, then their pension will go up to the current rate.

The Department for Work and Pensions (DWP) issued guidance on the benefits and pension for UK nationals in the EU, EEA or Switzerland following the confirmation of a Brexit deal having been reached last year.

It states: "You can carry on receiving your UK State Pension if you move to live in the EU, EEA or Switzerland and you can still claim your UK State Pension from these countries.

State pension age: Britons urged to claim extra £64 per week as pensioners face 'poverty'

2021-06-28T12:35:00.007+01:00

State Pension age Britons will have to navigate numerous costs in later life, which can quickly rack up. With many struggling with finances in later life, there could be help at hand aside from the state pension sum. This comes in the form of Pension Credit, a payment made available to help pensioners with their living costs.

To qualify, a person must be of state pension age, and live in England, Scotland or Wales.

However, there has been concern expressed about the lack of people claiming this sum, despite being eligible for it.

As a result, it has been asserted, many are falling into difficult and challenging financial times, with a call for action recently expressed.

A cross-party letter has been penned to Guy Opperman, the Parliamentary Under-Secretary at the Department for Work and Pensions (DWP) on the matter.

READ MORE: Furlough pay to be changed by Rishi Sunak this week

And the older a person is, the more at risk they are of falling into poverty, with 22 percent of individuals over 85 deemed as living in poverty.

A solution, then, it has been put forward is encouraging the take-up of Pension Credit, which is currently under claimed by many.

Pension Credit will top up a person’s weekly income to £177.10, or £270.30 for those who are in a couple.

The top up and some extra amounts certain individuals may be entitled to is known as ‘Guarantee Credit’.

The other part of this payment, however, is made available to those who reached state pension age before April 6, 2016, and who saved some money towards their retirement.

Single people could get up to £14.04 per week, and those with a partner, £15.71 per week.

Individuals might still get some Savings Credit even if they do not get the Guarantee Credit part of Pension Credit.

The importance of the payment for up to one million people who are eligible but not claiming was stressed.

The letter continues: “For many in later life, this poverty is avoidable. Pension Credit is intended to support older people on very low incomes and brings many people out of poverty.

“We know living in poverty impacts on every area of someone’s life, including both their physical and mental health.”

The letter welcomed the efforts by the DWP to boost Pension Credit recently, but has said more needs to be done, and at a faster pace to help pensioners.

It has called upon the Government to allow the organisation to work alongside key stakeholders to devise a plan to increase the uptake of Pension Credit.

Guy Opperman recently estimated the Pension Credit payments are worth an average of £64 per week.

Writing in The Scotsman, he too urged Britons to claim if they feel they may be eligible, stating: “Anyone can use the Department for Work and Pension’s free online Pension Credit calculator to check eligibility and get an estimate of what they might receive. If the calculator shows you might be entitled, or even if you aren’t sure, then I strongly urge you to make a claim – this can be easily done online.

“This is worth hundreds or even thousands of pounds. And we don’t want your mum or dad to miss out.”

SEISS delay: When is grant five available? Key HMRC update delayed

2021-06-28T12:35:00.005+01:00

MoneySavingExpert founder Martin Lewis also confirmed on Facebook that further information on SEISS grant five has been delayed.

He wrote: “CONFIRMED: The detailed info on the SEISS 5, the Self Employment Grant, won’t now be out until early July.

“It had been expected in late June.”

The news of the SEISS guidance update being delayed has been met with some criticism on social media.

Savers mostly 'in the dark' about when they can retire - how to get your pension on track

2021-06-28T12:35:00.003+01:00

Thanks to auto-enrolment, many people will rarely think about the regular pension contributions they make. However, new research has highlighted just how many people aren't aware about where their pensions are invested.

Women, the self-employed, single people, and lower earners are most likely to be in the dark about pensions, Hargreaves Lansdown said.

Commenting on the research, Nathan Long, senior analyst at Hargreaves Lansdown, said: "Your pension is one of your biggest assets – and will likely be the deciding factor in how luxurious your retirement is – and yet so many people are confused and baffled by them.

"Most savers are in the dark when it comes to knowing how much they have squirreled away in pensions, what they’re invested in and when they can retire.

"They’re equally unsure what their retirement options are, and how much income they’ll need to live on when they finish work.

"But ignorance is not bliss.

"If you don’t get your head around pensions, you could pay a terrible price for it in your golden years. Think baked beans retirement, not smoked salmon retirement.

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"The good news is that getting to grips with pensions is simpler than you think."

Mr Long went on to signpost some places people can head to for more guidance on their pensions.

"There’s plenty of information out there, from providers, your employer, or organisations like the Money Advice Service or the Pensions Advisory Service," he said.

"Once you know how much you’ve got and when you’d like to retire, you can think about upping your monthly contributions or changing your investment strategy.

"Alternatively, some people consider that given the amount of money involved and what’s at stake, this is one of the times in life when it’s worth paying for advice.

"But whatever you do, don’t put it off – the sooner you shine a light on your pension pots, the quicker you’ll be out of the dark and on your way to securing the retirement you deserve.”

The analyst also put forward seven suggestions for getting a pension "on track".

1. Find your pensions

"Hunt down your pensions," he said.

"Check providers have your up-to-date details and correct address. Get online access set up on your pension pots, which will make it easier to monitor them.

"Think you may have lost one? Use the government’s free Pension Tracing Service."

2. Contribute more

"If you’re employed, ask your company whether it’ll match any extra contributions you pay in.

"If the answer is yes, it’s a no-brainer – not paying in more means you leave extra salary on the table.

"If the answer is no, just finding an extra £50 a month to put into your nest egg could pay serious dividends in retirement."

3. Check your investments

"Think about how much risk you’re prepared to take; this will help you decide the kinds of investments that should go into your pension.

"There may be a default fund, which is normally a mix of shares, bonds and cash. There will be other options too, such as emerging markets, ethical investments and property, so have a look at those (including fees)."

4. Get free help

"There’s lots of information online about how pensions work, including from providers like HL, but also The Money Advice Service and the Pensions Advisory Service.

"If you’re 50 or over, you can get free impartial guidance from Pension Wise. Even if you just use it as a second opinion, getting an hour with someone from Pension Wise could be really worthwhile."

5. Consider consolidating

"Combining your pension pots will make it easier to keep track of them. It’ll minimise the admin and paperwork, and could reduce the fees too.

"Remember to check that you’re not giving up any valuable benefits, and most people should avoid transferring a final salary scheme."

6. Review each year

"Set a date in your diary to check your progress – it’s a good habit to check in at least once a year.

"When you do, check how the investments are doing and if they are still right for your circumstances, plus have a think about whether you can increase your contributions."

7. Don’t forget other options

"A pension is not the only way to save for old age. Basic-rate taxpayers and the self-employed may find they get the biggest tax boost with a LISA, not a pension.

"You have to be under 40 to open one, so if that’s you, take a closer look at the product to decide if it’s right for you – before you’re too old (and it’s too late)."

Council Tax arrears soar at 'worrying rate' amid concerns over missed payment rule

2021-06-28T12:35:00.001+01:00

This outstanding amount of £4.4billion is a cumulative figure, and includes Council Tax arrears that may stretch back a number of years. It marked an increase of £841million over the the figure for 2019-20.

According to the Government, the amount in arrears is higher than in previous years due to the COVID-19 pandemic.

Figures show that in England last year, £1.5billion of council tax arrears were accrued, after any write off action had been accounted for.

However, The Money Advice Trust has warned that these outstanding amounts aren't "just a Covid problem".

It came as the charity, which runs National Debtline and Business Debtline, called for reform.

The Money Advice Trust also expressed concern over the current rules surrounding missed payments.

Joanna Elson CBE, chief executive of the Money Advice Trust, the charity that runs National Debtline and Business Debtline, said: “Today’s figures highlight the significant impact that the coronavirus pandemic has had on people’s ability to pay their council tax bills, with £1.5billion of arrears accrued in England last year alone.

“However, council tax arrears are not just a Covid problem.

"Arrears were rising at a worrying rate even before Covid-19 hit, and the total amount of arrears, which now stands at £4.4bn, is unsustainable both for local authorities and for individual households.

“The Government now need to move to reform council tax collection rules to end the practice of people becoming liable for their entire annual bill after one missed payment, and to ensure people are given the time they need to repay.

“More also needs to be done to prevent people falling behind in the first place.

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"Emergency Covid funding provided to local authorities to reduce council tax bills for those on low incomes has been a vital support for many and, without it, the overall arrears figure would likely have been much higher.

"The Government should now look to make increased funding for local council tax support permanent, to help ensure no low income household is tipped into financial difficulty by an unaffordable council tax bill.”

So what does happen if a person misses a Council Tax payment?

If a person doesn't pay their Council Tax, then they will first get a reminder from the council about two weeks after the payment is missed, The Money Advice Service explains.

If the money is then paid within seven days, one doesn't need to do anything else.

The Money Advice Service states: "The debt will be clear and you’ll be able to continue paying your Council Tax in instalments."

However, if the payment isn't made within seven days of the reminder or if it's the third time they've been late with Council Tax payments that year, then the council will send a "final notice".

This final notice tells a person to pay all of their Council Tax for the rest of the year, within seven days.

So, what happens if a person doesn't pay the entire sum within a week after receiving the final notice?

"If you don’t pay within seven days of the final notice your council will usually apply to the courts for permission to collect the debt from you - this is known as a ‘liability order’," The Money Advice Service explains.

After this, the council can get one's employer to pay the unpaid Council Tax directly from one's wages.

Money can also be taken from certain benefits.

This includes:

Employment and Support Allowance
Income Support
Jobseeker’s Allowance
Pension Credit
Universal Credit.

"If this isn’t possible, the council might send a bailiff to your home.

"You’ll have to pay court costs and possibly bailiff fees as well as your debt, which can add hundreds of pounds to your bill.

"If you’re in England, it’s also still possible to receive a prison sentence for getting behind with Council Tax."

TV Licence to be ‘reconsidered’ as Britons call for referendum on future of payment

2021-06-27T18:35:00.007+01:00

“We have been clear ahead of the next Charter we will undertake a detailed look at the Licence Fee model itself, and introduce any necessary reforms.

“In addition, the BBC has committed to consider and explore whether elements of subscription have a role to play alongside the core licence fee funding model, as it aims to develop and test the scope for additional sources of commercial review.”

The level of the licence fee from 2022 onwards is also set to be determined and will be announced in due course.

With regards to the decriminalisation of the TV Licence, the Government has said this is a matter which is also under review.

It published a response earlier in 2021 which addressed the matter of TV Licence evasion, and examined the stress and anxiety many cited the criminal sanction as causing.

Inheritance Tax: Britons warned 'don’t leave it too late' when it comes to gifting

2021-06-27T18:35:00.005+01:00

Inheritance tax is set at 40 percent and is made payable on the value of an estate above a certain threshold - usually £325,000. Many people loathe the idea of paying Inheritance Tax, usually due to viewing it as a “death tax” when they have already paid other levies throughout their lifetime. For those who want to reduce or totally eliminate their Inheritance Tax bill, though, action will need to be taken.

He said: “Most people aren’t aware they can gift money away to people on marriage, and that gift to potentially be exempt from Inheritance Tax with immediate effect.

“A gift is anything with value, such as money, property or even possessions such as jewellery or art.

“Any individual can gift an amount of up to £1,000 per person - so that can be anyone - completely exempt from tax.

“For a grandchild or great-grandchild, the amount is increased to £2,500, and if it is your child, you can gift £5,000.

“This isn’t restricted to how many children you can give this to, or how many people - you can make the same value of gifts to each of them, even in the same year and it would be allowed.”

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Mr Platt also highlighted another aspect of gifting, which is known as the small gifts exemption.

Individuals are able to give as many gifts of up to £250 per person as they would like in the same tax year.

This is the case as long as another exemption has not been used on the same person.

But looking at the bigger picture, there is also the annual exemption to take into account when thinking about gifting.

Mr Platt continued: “Anyone can gift a capital value of up to £3,000 per year, and that is within your annual gifting exemption with no IHT.

Although a gift can be an expression of love, congratulations, or otherwise, it can also serve as a perfect way for someone to avoid a tax bill, thus making it a win-win situation.

Mr Platt concluded: “The Government actually classifies Inheritance Tax as a voluntary tax for people.

“This is because while people are alive there are a lot of actions which can be taken to help to reduce the liability down - potentially to even nothing.

“But as we know, the vast majority of people are not actually taking any action at all when it comes to their estate.

“This may be because they haven’t had any access to advice, or they end up leaving it too late.

“The older you become, the fewer options which are on the table for you to use.

“So the real call to action here is to either seek advice, or investigate your options and take action sooner rather than later.”

What benefits can you claim when you have a baby? Four schemes you could be eligible for

2021-06-27T18:35:00.003+01:00

The costs of having a child are huge but if you are on a low income there are Government schemes to help you out financially. Here are the four types of benefit you may be able to claim if you need financial support to bring up a child.

Sure Start maternity grant

The Sure Start maternity grant is a one-off payment to help with the costs of having a baby.

You can apply for this grant if you or your partner already claim certain benefits and it's your first child, or if you are expecting multiple births such as twins.

To be eligible for this grant you must meet both of those criteria.

If you already have children you cannot apply for this grant, unless you are expecting a multiple birth.

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The grant comes in the form of a one-off payment of £500 - this means you don’t have to pay this back and it won’t affect your other benefits or tax credits so if you think you could be eligible this is an essential grant to claim.

You have to claim this grant within 11 weeks of the baby’s due date or within six months after the baby’s birth.

This grant only applies in England and Wales but, Scotland has a similar scheme called a Pregnancy and Baby Payment.

Healthy Start scheme

If you are pregnant or have a child under the age of four this scheme can help you buy essential foods.

The scheme is designed to help parents afford basic foods such as milk or fruit.

To be eligible for this schema you must already be receiving benefits.

The scheme will send you vouchers which can be used in more than 30,000 shops in the UK.

You can also get coupons to swap for pregnancy vitamins, breastfeeding vitamins and vitamins for children between six months to 5 years old.

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If you or your partner earn more than £50,000 you may have to pay back some of your Child Benefit in tax, this is known as the “High Income Child Benefit Charge.”

An added benefit to this scheme is that you can get National Insurance credits which count towards your State Pension - this is great for parents who may be out of work to raising their child full time.

Tax credits

If you have a baby you might be entitled to receive more money if you are already claiming Child Tax Credit or Working Tax Credit.

You can claim up to £3,390 per year in Child Tax Credits.

Working Tax Credits can even be claimed if you’ve stopped work to have a baby, you can continue to claim these for the first 39 weeks of maternity or adoption leave or if you are a father for the duration of your ordinary paternity leave.

To be eligible for this you must have been working at least 16 or 30 hours a week before your leave, the number of hours depends on an individual's circumstances.

There are further benefits you can claim if you have a disabled child or if you are a student with a baby.

This should enable you to continue your education whilst you care for your child.

Britons on a low income could get a bank account bonus of £1,200 tax-free - check now

2021-06-27T18:35:00.001+01:00

Universal Credit and Working Tax Credit recipients are usually on a low income, but working to make ends meet. It is often a challenge for people to put money aside with the costs of everyday life, however, many individuals could find they are rewarded for doing so. This can be achieved through a process known as Help to Save, an account dedicated to helping those on a low income.

Individuals can expect to receive two tax-free bonuses across a four year period.

These can be unlocked regardless of whether a person chooses to withdraw any money across the account’s term, or not.

After the first two years of saving, Britons can expect to receive their initial bonus, which is 50 percent of the highest balance someone has saved.

If continuing to save after this point, then after another two years a second and final bonus can be unlocked.

This therefore means the most someone can get in Government bonuses out of the Help to Save scheme is £1,200.

The bonus is paid directly into a person’s bank account, tax-free, rather than their Help to Save account.

A person can open a Help to Save account if any of the following apply

They are receiving Working Tax Credit
They are entitled to Working Tax Credit and receiving Child Tax Credit
They are claiming Universal Credit and they earned £617.73 or more from paid work in their last monthly assessment period

NS&I: What happens to Premium Bonds when you die? How Britons can receive money

2021-06-27T09:35:00.009+01:00

This means they could still win prizes, but understandably, individuals will want to know what happens if this is the case.

Once NS&I has been informed of a person’s death, any prizes won are to be paid by prize warrant to the person entitled to the money after a claim has been completed.

The organisation holds on to any prizes won by the customer before then, and will send them out once the claim is completed.

It is worth noting, though, that these prizes cannot be paid electronically, nor can they be consolidated to be paid at the end of the 12 month period.

'Completely two-faced' - Outrage as British pensioners miss out on state pension boost

2021-06-27T09:35:00.007+01:00

That's not to say everyone will end up receiving the increased amount, however. Some people who retire abroad may find they are not able to receive the uprated state pension due to where they live.

This is because the payment only increases annually if the recipient lives in a country on a list of ineligible areas.

According to the End Frozen Pensions campaign group, it's estimated nearly 500,000 British pensioners are unable to get the uprated amount.

A research briefing on frozen overseas pensions, available in the House of Commons Library, states in May 2020, there were 492,176 people overseas who are in receipt of a frozen UK state pension.

The vast majority (84 percent) of these people live in Australia, Canada or New Zealand.

It means their pension remains payable at the same rate as when they first became entitled to it, or the date they left the UK if they are already pensioners then.

Ian Andexser, Chairman of the Canadian Alliance of British Pensioners (CABP) and Nigel Nelson, the previous chair of The International Consortium of British Pensioners (ICBP), are among those are campaigning against the policy.

The campaigners, both of whom live in Canada, sat down - over Zoom - for an interview with Express.co.uk this week.

Frozen pensions, as the policy has become known, is an issue which has "been going on for many, many, many years", Mr Andexser explains.

"The policy goes back now I think over 74 years," he says, explaining the "active push" from the frozen pensions campaign group has been ongoing for just over 20 years.

"We've come a long way in that time. But we haven't hit the final goal."

The interview is taking place more than six months on since the confirmation of a Brexit deal being reached, back in December 2020 - days before the Brexit transition period came to an end.

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"And we have no problem with that, because that's the way it should be.

"The problem we have is that the UK Government has said for many, many years, they were not prepared to enter any new agreements," the campaigner continued.

"And that has been their argument with Canada, Australia, New Zealand, South Africa, and all of the frozen countries around the world.

"Predominantly, about 90 percent of frozen pensioners are living in the two countries Australia and Canada.

"So that's primarily where the push has been.

"And it just strikes us as being completely two-faced by the UK Government to continue to deny a request to index our pensions using the argument that they weren't making any agreements, and then turn around and make 27 new ones with EU countries, and not just EU countries."

Last year, the Canadian Government requested the UK change the policy on the frozen pensions issue.

Earlier this year, the UK Government responded.

"It was a flat out, 'No, we're not going to consider any change to the effective policies that we have in place'," Mr Andexser said.

A DWP spokesperson said: “We understand that people move abroad for many reasons and that this can impact on their finances.

"There is information on GOV.UK about what the effect of going abroad will be on entitlement to the UK state pension.

“The Government’s policy on the up-rating of the UK State Pension for recipients living overseas is a longstanding one of more than 70 years and we continue to uprate state pensions overseas where there is a legal requirement to do so.”

Furlough pay to be changed by Rishi Sunak this week - how will you be impacted?

2021-06-27T09:35:00.005+01:00

Furlough has helped millions of people who may have otherwise lost their jobs due to the pandemic. The scheme, first introduced by the in March 2020, involved the Government covering 80 percent of wages for those unable to work due to coronavirus restrictions. While the scheme was scheduled to end earlier, the Chancellor announced in his Budget that it would be extended due to ongoing restrictions.

However, as the scheme is gradually phased out, there is a major change which is set to kick in on July 1, which is worth noting.

On this date, the Government is to drop its contributions to the scheme from 80 percent to 70 percent.

This means that people who are still on furlough will be getting their pay split further between two sources.

A total of 70 percent will be covered by the Treasury, up to a value of £2,187.50 under the scheme.

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Some fear the financial burden will be too much for certain organisations, who may cut jobs as a result.

Certain Britons may be staring down the prospect of redundancies, and employment may be at risk.

The extension of restrictions means many companies have been unable to open and have therefore been put under further amounts of pressure.

And this may be exacerbated by the further responsibilities companies will be required to take on in the near future.

From August, the Government will drop its support to 60 percent of wages up to £1,875.

This means businesses will have to step up to the plate to provide 20 percent of wages for hours not worked, up to £625.

The same will be true in September, the final month of the scheme before its scheduled end.

Some organisations, however, may have more financial stability which can enable them to help their employees further.

The Government explains: “You can continue to choose to top up your employees’ wages above the 80 percent total and £2,500 cap for the hours not worked at your own expense.”

Some have expressed concerns about how over 50s will be impacted by furlough coming to an end.

Ian Atkinson, director of marketing at SunLife said: “The impact of coronavirus has affected all age groups and people over 50 are no exception. It has affected their working lives, their health, their happiness and their finances.

“While people over 50 face a higher risk of falling seriously ill from coronavirus, furlough and finances are also a real concern for many especially as nearly one in ten have already lost their job.

“We know that people over 50 can also experience ageism in the workplace and may find it harder to secure a new role. Furlough and job losses have had a knock-on effect to monthly pension contributions too with average monthly contributions falling by just over half since the pandemic began.”

Individuals who are concerned about how furlough coming to a gradual end will impact them are encouraged to speak to their employer about the matter.

Some may also wish to seek help from organisations such as Citizens Advice or the Money Advice Service.

Universal Credit claimants may be missing out on £62 per week - are you affected?

2021-06-27T09:35:00.003+01:00

Universal Credit is a payment designed to help people to cover the cost of day to day living when their finances might otherwise be a stretch. The payment is made available to individuals who have been out of work, on a low income, or unable to work. Each month, Britons can expect to receive a sum according to their circumstances and what they have been assessed as requiring.

The benefit cap may not affect someone’s payments, however, for the first nine months, which is known as the ‘grace period’.

One group, however, has suggested COVID-19 could be the cause of many people missing out in this way.

The Child Poverty Action Group (CPAG) has said newly capped households are likely to fall into the benefit cap due to losing jobs or working hours, which means their wages have dropped below what is known as the earnings exemption threshold.

The major concern, though, arises with the fact many are still unable to find replacement earnings due to the continual impact of the pandemic.

Figures from the Department for Work and Pensions (DWP) showed the number of households now subject to the benefit cap has jumped by 13 percent since November.

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This means that by February 2021, the number of households affected reached 200,000 - 180,000 of which were Universal Credit claimants.

CPAG has estimated average losses accumulated by the benefit cap are £62 per week for capped families.

After the end of the nine month grace period, the Government has said the amount of Universal Credit a person receives will usually go down.

Alison Garnham, Chief Executive of Child Poverty Action Group (CPAG), commented on the matter.

She said: “The benefit cap has always been an unjust punishment for families.

“Most families affected by it can’t work to escape it - often because they are looking after young children or can’t find affordable childcare they can combine with work and single parenting.

“Thousands more households who have lost jobs to COVID-19 are now subject to the cap even though in the pandemic, it is much harder to find ways to replace their lost earnings and become exempt.

“Especially in areas with high rents, capped families are losing large amounts of social security support and that is disastrous for the children concerned.

“The Government must abolish the benefit cap to prevent more children from being damaged by impoverishment.”

CPAG has argued the cap should be scrapped due to these reasons, and because it has not “incentivised work”.

The group said less than five percent of individuals have moved into work because of it.

A DWP spokesperson said: “The benefit cap, up to the equivalent salary of £24,000, ensures fairness for hard-working taxpaying households and a strong work incentive, while also providing a much needed safety net of support. The proportion of households impacted remains low in comparison to the overall number claiming Universal Credit even after the temporary uplift to Universal Credit and increases to Local Housing Allowance rates.”

What are the Benefit Cap amounts?

The benefit cap outside Greater London is:

£384.62 per week (£20,000 a year) for couples
£384.62 per week (£20,000 a year) for single parents whose children live with them
£257.69 per week (£13,400 a year) for single adults

The benefit cap inside Greater London is:

£442.31 per week (£23,000 a year) for couples
£442.31 per week (£23,000 a year) for single parents whose children live with them
£296.35 per week (£15,410 a year) for single adults

Childcare costs petition response 'nonsensical' - the Government rejects funding review

2021-06-27T09:35:00.001+01:00

Childcare costs have reached eye watering levels in the UK in recent years, with analysis from the charity Pregnant Then Screwed highlighting British people face the second most expensive childcare system in the world. In light of this, Joeli Brearley, the founder and CEO of Pregnant Then Screwed, launched a UK Government and Parliament petition pushing for change.

The petition called for an independent review of childcare funding and affordability, as it detailed: "We have the second most expensive childcare system in the world. A full time place costs, on average, £14,000 per year, making it completely unaffordable for many families.

"Parents are forced to leave their jobs or work fewer hours, which has a negative impact on the economy and on child poverty.

"Childcare workers are paid so badly that one in 10 are officially living in poverty.

"Meanwhile, a lack of funding has resulted in 2,087 childcare settings closing in England in the first three months of 2021 when provision was already low.

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"Without an adequate and affordable childcare system, I do not believe we can achieve equality in the workplace as the majority of women still bear greater responsibility for childcare by comparison with men.

"I believe this is one of the biggest barriers for women and their career progress. It is clear that a change is long overdue. However, in the meantime, employers can help employees who are hampered by unaffordable childcare, by offering ad hoc flexible working or implementing simple adjustments for employees who need to work around school drop offs and pick-ups or other childcare arrangements or even permitting flexibility to enable them to integrate their work and family time.

"Employers could also help women through subsidy or an on-site facility which may encourage women to return to work because the barriers to doing so will not be as high. This initial investment to support employees makes business sense due to the long-term pay off in terms of engagement, retention and productivity.”

Despite these realities, many will be disappointed by the Government's response to the petition.

The Government then went on to list some of the childcare support that is currently available to families, which includes:

30 hours of free childcare has been available for working parents of three and four year olds in England since 2017, which the Government claims benefited around 345,700 children in January 2020
All the department’s entitlements provide free early education for parents across 38 weeks of the year
The Chancellor announced on November 25 2020 a £44million investment for 2021-22, for local authorities to increase hourly rates paid to childcare providers for the Government’s free childcare entitlement offers
A tax-free childcare scheme is also available for children from birth up to their 11th birthday. This specific scheme means that for every £8 parents pay their provider via an online account, the Government will pay £2
Working parents on a low income may also be eligible for help with up to 85 percent of their childcare costs through Universal Credit
In February 2021, the Government announced a further £10million for a pre-reception early language recovery programme to support early years staff in settings, and in June, it announced a further investment of up to £153million over three academic years, including funding for training early years staff to support the very youngest children’s learning and development

In responding to the Government's decision, Joeli had the following to say: "The response form the Government to 110,000 concerned parents was not only insulting but it was nonsensical.

"The petition was asking for evidence that our childcare sector is both affordable and that it is properly funded; this response essentially informed us that there isn’t a problem with the Government’s childcare investment, or it’s affordability, whilst also refusing to collect the evidence that would prove that statement correct. Since receiving the email, we have been inundated with messages from furious parents who feel dismissed and ignored.

"The Government is gaslighting parents, childcare providers and childcare workers. We all know that the investment is not enough, that the childcare sector is on its knees, that there are hundreds of thousands of mothers who want to work but can’t because of the cost of childcare thereby preventing them from contributing to their families and the economy. We would have appreciated an open and adult conversation about this, but instead we have been met with obfuscation and nonsense.

"The debate will still take place in Westminster Hall in September, and if the Government refuses to collect the relevant evidence about our childcare sector, then we will just have to do that ourselves."

PIP: Britons may get up to £152 weekly to help in 'retirement crisis' - are you eligible?

2021-06-27T00:35:00.001+01:00

PIP, or Personal Independence Payments, offer support to individuals who are living with a long-term disability or health condition. As these conditions often come with additional costs, PIP can help to alleviate some of the burden Britons may otherwise face. And in a similar vein, many individuals are staring down challenging financial circumstances in their later life.

“This is because PIP cannot be honoured if you or your loved one is in a care home, so live-in care may be a better option in this case.”

As Mr Rado highlights, people can be eligible for two types of tax-free payment under PIP - daily living and mobility.

For the daily living element, the weekly rate is set at either £60.00 or £89.60 under current DWP rules.

The mobility part, however, has a weekly rate of £23.70 or £62.55 for those eligible to receive it.

Whereas others may need support in getting out and about and moving around the home.

Thankfully, all PIP claims involve a health assessment where the level of support is determined and measured.

Overall, then, PIP could provide important support to the individuals who need it most.

Mr Rado concluded: “Personal Independence Payment is great.

“It can be given on top of other forms of benefits and incomes, and having a job doesn’t mean you won’t be entitled to it.

“We have seen it really help financial situations for families choosing live-in and at-home care solutions - as opposed to care homes.

“This extra entitlement enables families to make adjustments needed to keep loved ones comfortable and relatively independent within their own home.”

Lloyds Bank issues alert as ‘criminal gangs’ attack Britons through unsuspecting call

2021-06-26T15:35:00.009+01:00

Lloyds Bank is determined to keep its customers, and other Britons, safe, and has warned of a dangerous scam which has recently been circulating. The bank has observed a rise in computer takeover scams, saying individuals will need to be on their guard this summer. A scam of this kind can usually occur when the victim receives a phone call, often from out of the blue.

One form of this scam which is resurging uses the name of Amazon as a front to lull Britons into a false sense of security.

As a result, individuals must remain alert to the threats, and take steps to protect themselves.

Philip Robinson, Retail Fraud Prevention Director at Lloyds Bank, commented on the issue.

He said: “Organised criminal gangs are forever inventing new ways to dupe unsuspecting victims out of their money.

“But they’re always ready to re-use tactics that have worked for them before, hoping people have forgotten previous warnings.

“Fortunately, we are able to stop many of these scammers in their tracks with sophisticated monitoring of our customers’ online banking accounts.

“But sadly, the fraudsters only need to be successful once to make off with thousands of pounds of someone’s hard-earned cash, which can leave a devastating impact.

“That’s why we want people to stay alert to the threat of this scam. Be wary of any messages you receive which you weren’t expecting, and don’t click on links in emails or texts.

“If you receive a phone call out of the blue, never download software or make a payment because someone asks you to, even if it seems they already know all about you and are trying to help.

“Always hang up and report it to your bank immediately.”

To avoid this scam, and others like it, there are a series of steps Britons should take, with these considerations potentially saving them heartache, stress, and of course, money.

Firstly, with emails and texts, individuals should never click on a link, unless they know and trust the sender.

With calls, a similar approach should be taken, with people putting the phone down if they are unsure of who is calling.

And they should always use a number they trust, rather than one a caller uses or may give them.

Often Britons may be prompted to download software, but this should never be done out of instruction from an out of the blue phone call.

Individuals are encouraged to never share any of their personal or banking details, keeping their information private.

And finally, in order to protect one’s account, a person should never log on to their online banking for someone who calls.