Financial matters

[SteveH]

Water bills in England and Wales are set to rise by an average £19 per year until 2030, industry regulator Ofwat has said.

Although this will put more pressure on households, it is a third less than the amount requested by water companies.

The bill hike is intended to fund investment for improvements such as replacing leaking pipes and reducing sewage discharges into rivers and seas.

It comes as suppliers face increasing scrutiny over their environmental and financial performance over the past years, as well as anger over executive pay.

The bill hike varies by region, with Thames Water customers facing an increase of £99 or 23% over the nest five years, Anglian customers looking at £66 or 13%, and Southern Water customers facing £183, an increase of 44%.

Welsh Water / Dŵr Cymru: £603 - up 29%

cont https://www.bbc.co.uk/news/articles/cyx0jxrq7y4o

[SteveH]

She's made her opening gambit. What's the chancellor's long game?

It's an opening move designed to open up the board for later in the game - and one the chancellor used often as a junior chess champion. It's “particularly good when you want to go on the attack," she suggests.

At No 11, Reeves is now applying the mathematics of constantly changing trade-offs to running the country’s economy.

cont https://www.bbc.co.uk/news/articles/cjjw6l53xe2o

[SteveH]

This subject came up during a conversation yesterday, which raises a few questions..............It would appear that it affects businesses only, however it was mentioned during my conversation that it could include non business owners....any comments ?

From April 2026, self-employed individuals and landlords with an income of more than £50,000 will be required to keep digital records and provide quarterly updates on their income and expenditure to HMRC through MTD-compatible software.

cont https://dmoaccountants.co.uk/making-tax-digital-the-transition-to-quarterly-tax-returns-2024-25/#:~:text=From%20April%202026%2C%20self%2Demployed,HMRC%20through%20MTD%2Dcompatible%20software.


GOV.UK Making Tax Digital for Income Tax Self Assessment for sole traders and landlords
https://www.gov.uk/government/publications/extension-of-making-tax-digital-for-income-tax-self-assessment-to-sole-traders-and-landlords/making-tax-digital-for-income-tax-self-assessment-for-sole-traders-and-landlords

[SteveH]

Pay is rising at its slowest rate in almost two years as the job market continues to cool.
Wages grew at an annual pace of 5.7% in the three months to May, but are still outpacing rising prices.

The number of job vacancies has fallen while growth in the number of employees on payrolls has slowed, the Office for National Statistics (ONS) said.

The unemployment rate remained at 4.4% in the three months to May.
cont https://www.bbc.co.uk/news/articles/cw5ykyzdzezo


Pound hits highest level against dollar for a year
Fresh data on Wednesday showed the rate of inflation was proving more stubborn than expected by some analysts.

This prompted traders to cut bets on an easing of rates in August, and sent the pound above $1.30 for the first time since last July.

The pound has also been boosted by market hopes that the new Labour government will offer economic stability.
cont https://www.bbc.co.uk/news/articles/c80e9k4wegno

[SteveH]

The chancellor has hinted that she may give public sector workers above-inflation pay rises this summer.

Rachel Reeves' comments come after independent pay review bodies recommended an increase of 5.5% for teachers and some NHS workers.

In her first interview from No 11 Downing Street, she said: "I really value public service workers, in our schools, in our hospitals, in our police as well...

"There is a cost to not settling, a cost of further industrial action, and a cost in terms of the challenge we face recruiting."

But Ms Reeves told Sunday with Laura Kuenssberg that "we will do it in a proper way and make sure the sums add up" - emphasising that her spending rules are "non-negotiable".

The new chancellor promised a decision on public pay this month, saying "people won’t have long to wait".

cont https://www.bbc.co.uk/news/articles/c4ng5n0my0zo

[SteveH]

HMRC to send 7.5 million letters to Brits who've overpaid tax - what to look out for and how to claim
A huge number of Brits could be in line for a tax refund as HMRC sends out P800 tax calculation letters

 "HMRC's PAYE system is an extraordinary machine of tax collection, but it isn't perfect and millions of mistakes are made every year. However, HMRC's internal check and balances system means that it often spots these mistakes in hindsight and does all it can to ensure people are either refunded, or top up what they owe."

The expert has urged the public to keep an eye on their post for what could be "very good news coming your way". He highlighted that while HMRC can spot the more straightforward cases, those with complex tax affairs might want to consider "appointing some tax refund experts to ensure that they receive every penny that is owed to them".

cont https://www.inyourarea.co.uk/news/hmrc-to-send-7-5-million-letters-to-brits-whove-overpaid-tax-what-to-look-out-for-and-how-to-claim?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

About £7.2bn in old bank notes has not been cashed in across the UK, even though the paper £20 and £50 stopped being legal tender in October 2022.

Paper banknotes have been replaced with plastic notes  with a series of security features.

The Bank of England said the withdrawn bank notes could still be deposited or exchanged.

There are also 76 million old £1 coins that have not been returned, according to the Royal Mint.

Details of the cash still in circulation or hiding in homes was revealed in Freedom of Information requests by BBC Wales.

The Bank of England said 395 million paper banknotes remained in circulation:

110 million £5 notes

62 million £10 notes

171 million £20 notes

52 million £50 notes

While the paper notes are no longer legal tender, a spokeswoman said “all genuine Bank of England banknotes that have been withdrawn from circulation retain their face value. There is no expiry on the period in which we will exchange banknotes”.

cont https://www.bbc.co.uk/news/articles/cx924nklw4yo

[SteveH]

The chancellor is set to announce immediate cuts worth billions of pounds, aimed at plugging a "black hole" in the public finances, when she addresses Parliament on Monday.

Rachel Reeves’ plans are expected to include the cancellation of some road and rail projects, a reduction in spending on external consultants and a drive to cut public sector waste.

cont https://www.bbc.co.uk/news/articles/c724g07qwdwo

[SteveH]

A decision by the Bank of England on whether to cut interest rates later is "on a knife-edge", according to analysts.

Traders have bet on a 60% chance that the UK's central bank will lower rates from 5.25% to 5%, but others believe another hold is on the cards.

Borrowing costs are currently at a 16-year high, putting pressure on household finances, although returns on savings are also greater.

cont https://www.bbc.co.uk/news/articles/cx72dpxy25do

[SteveH]

Figures from the Government suggest more than 800,000 state pensioners are missing out on financial support they are entitled to. Pension Credit is the most under-claimed benefit - it's designed to provide extra financial support for older singles and couples on a low income.

Almost 1.4 million receive this means-tested benefit, that can offer up to £4,000 in additional support. Department for Work and Pensions (DWP) figures suggest that there are still 880,000 pensioners eligible for benefits they aren't yet claiming.

cont https://www.inyourarea.co.uk/news/huge-numbers-of-pensioners-arent-claiming-4k-boost-they-are-entitled-to?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

Good news for those who paid into the system since leaving school, in most cases between 35/50 years.

Millions of pensioners could be set for a £655 increase in 2025.

Under the triple lock – which guarantees an increase in line with average earnings, inflation or 2.5%, whichever is highest – pensioners would have been in line for a rise linked to wages from April.

The highest of the three figures is the increase in average earnings, which was measured by the Office for National Statistics (ONS) at 5.7%.

A 5.7% rise in the full new state pension could take it from around £221 per week to £233, or from around £11,500 to around £12,157 annually.

cont https://www.northwalespioneer.co.uk/news/24492921.state-pensions-increase-600-2025/

[Hugo]

That is good news and will help cushioning the blow of losing the Winter fuel allowance.               I've heard no mention of the Christmas bonus that we have been receiving for years, that'll be on the list soon once they realise that it still exists

[SteveH]

Over the past few days, global stock markets have been plummeting.

Trading screens across the US, Asia and, to a certain extent, Europe are awash with blinking red numbers heading south.

The sudden turn comes as fears grow that the US economy - the world's biggest - is slowing down.

Experts say the main reason for this fear is that US jobs data for July, released on Friday, was much worse than expected.

However, for some, talk of an economic slowdown - or even a (whisper it) recession - is a little premature.

So, what did the official figures show us? As always with economics, there is good news and bad news.

cont https://www.bbc.co.uk/news/articles/cvgdd0xvxd7o

[SteveH]

Money Saving Expert's key phrases to use when haggling to get lower bills
Sophie Buchan learns how to slash the cost of broadband and other contracts

If you're willing to haggle, you could slash the cost of monthly bills, according to consumer champion, Martin Lewis. When contracts end, companies bank on us staying with them – even if there's a pretty steep rise.

However, by using the right phrases – and remaining polite – there are big savings available, particularly on broadband and line rental costs. Most people already have a provider, so competition to keep existing customers is fierce.

cont https://www.inyourarea.co.uk/news/money-saving-expert-share-key-phrases-to-use-when-haggling-to-get-lower-bills?IYA-mail=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

The UK's inflation rate has risen for the first time this year, official figures show, external.

Overall prices rose by 2.2% in the year to July, slightly above the Bank of England’s target of 2% where the rate had been since May.

An increase was widely predicted and is largely due to prices of gas and electricity falling by less than they did a year before.

The latest figures mean that prices are now rising faster across the UK than in previous months, but still at a slower pace than in 2022 and 2023 when households were hit especially hard by higher energy and food bills.

cont https://www.bbc.co.uk/news/articles/ceq59pqr9qxo