Money news: page 28
- May 2024
Managed Migration rollout extended to Tax Credits claimants with Housing Benefit
Managed migration to Universal Credit opened to Tax Credits claimants with Housing Benefit from 13 May 2024, with further legacy benefit groups in Northern Ireland invited through to September 2024.
Universal Credit rollout invites tax credit claimants with Housing Benefit
Northern Ireland's next phase of Universal Credit migration began on 13 May 2024, inviting people who claim Tax Credits together with Housing Benefit to move to the new benefit.
Government proposes abolishing Direct Pay and reducing Collect and Pay fees
The government has proposed abolishing Direct Pay and cutting Collect and Pay fees at the Child Maintenance Service, opening a 12 week consultation on the changes.
Regulations made abolishing tax credits for state pension age claimants
Regulations made on 7 May 2024 end tax credit awards for claimants who have reached state pension age, moving some to universal credit and others to pension credit with transitional protection.
Administrative Earnings Threshold rise took place in May 2024
The Administrative Earnings Threshold rose in May 2024, a change the Department for Work and Pensions says should be read alongside the shift in Universal Credit conditionality recorded in 2024.
Administrative Earnings Threshold rises to £892 and £1,437 per month
The Administrative Earnings Threshold for Universal Credit rose to £892 a month for single people and £1,437 a month for couples in May 2024, following an earlier April increase.
Annual survey of English Council Tax Reduction schemes for 2024/25 published
entitledto's annual survey of English Council Tax Reduction schemes found 41 of 296 local authorities changed how they calculate support for 2024/25, with more raising help than cutting it.
Automatic referral to Small Claims Mediation Service for defended money claims
Defended money claims under £10,000 issued on or after 22 May 2024 are automatically referred to the Small Claims Mediation Service, though claims started online before 5 November 2024 are excluded.
Conservative Party announces 'triple lock plus' policy to uprate pensioner personal allowance with the triple lock
The Conservative Party has said that if re-elected it would raise the pensioner personal allowance in line with the triple lock, reaching £14,340 by 2029-30 and cutting tax for around 8 million pensioners.
Consumer Scotland responds to Ofgem Future Price Protection Discussion Paper
Consumer Scotland has told Ofgem that the Consumer Principles should shape the design of future energy price protection, in its response to the regulator's call for input on the future of the price cap.
Current account holding rises and unbanked population falls
The number of UK adults holding a current account rose to 52.5 million in May 2024 from 50.8 million in 2022, while the unbanked population fell to 0.9 million from 1.1 million.
DWP announces enhanced notification strategy for potential overpayments
The Department for Work and Pensions has announced an enhanced notification strategy for potential benefit overpayments, exploring targeted texts or emails to alert claimants, amid scrutiny of Carer's Allowance repayments.
Inflation falls to the Bank of England's 2.0% target
UK inflation fell to 2.0% in May 2024, the Bank of England's target, for the first time since July 2021, after peaking at 11.1% in October 2022.
Insurance policyholders report biggest rise in problems
The proportion of insurance policyholders who reported a problem rose to 16 per cent in May 2024 from 12 per cent in 2022, the largest increase of any product area, driven mainly by policies costing more than expected.
Leasehold and Freehold Reform Act became law
The Leasehold and Freehold Reform Act became law in May 2024, but most of its 125 sections remain unimplemented, with further reform promised in a new Bill.
Leasehold and Freehold Reform Act reforms introduced
The government introduced leasehold reforms in May 2024 under the Leasehold and Freehold Reform Act, including a 990-year standard lease extension term and standardised service charge bills.
Managed migration opens to Income Support claimants
People claiming Income Support begin receiving Migration Notices from May 2024, moving them onto Universal Credit under managed migration, with transitional protection for eligible claimants.
Mortgage arrears among StepChange clients up three percentage points year on year
StepChange reports that 18% of its clients responsible for a mortgage were in arrears in May 2024, three percentage points higher than the 15% recorded a year earlier.
Motor insurance switching rate rises to 61%
The FCA's Financial Lives 2024 survey found motor insurance had the highest switching rate of any product in the last three years, at 61%, up nine percentage points from 52% in 2022.
Treasury designates banks and building societies subject to access to cash rules
The Treasury has named the banks and building societies that will fall under the Financial Conduct Authority's access to cash rules, along with an operator of cash access coordination arrangements.
Vulnerability characteristics decrease since 2022
The FCA's Financial Lives survey found 26.4 million UK adults had characteristics of vulnerability in May 2024, down 0.9 million from 27.3 million in May 2022, while low financial resilience was unchanged.
Which? reports growing popularity of 40-year marathon mortgages
Which? reports that longer mortgage terms have grown more popular as first-time buyers respond to higher rates, with 20% of first-time buyers taking terms of 35 years or more by the time the base rate peaked.
- April 2024
Fair Repayment Rate comes into force
The Fair Repayment Rate took effect on 30 April 2024, capping deductions from Universal Credit at 15% of the standard allowance, down from the previous 25% limit.
Nationwide reported to stop lending on some high flood risk properties
Nationwide Building Society is reported to be declining mortgages on properties judged at high risk of flooding, using mapping technology, according to a Welsh Government committee report.
Publication of estimated claimant numbers affected by Work Capability Assessment reforms
The Department for Work and Pensions has published updated estimates of the number of claimants affected by Work Capability Assessment reforms announced at Autumn Statement 2023, revised to match Spring Budget 2024 forecasts.
Government announces reforms to ill-health test in Universal Credit
The Government has announced reforms to the ill-health test in Universal Credit, as a Resolution Foundation assessment finds 71 per cent of eligible families are worse off in real terms than under the legacy system.
Research shows older mortgaged homeowners struggling to save for retirement
Research published on 11 April 2024 found that 18% of mortgaged homeowners aged 55 and over say repayments are stopping them saving more for retirement, as equity release funds used to clear mortgages rose.
FCA publishes PS24/2 confirming final rules to strengthen protections for borrowers in financial difficulty
The Financial Conduct Authority has published final rules that move pandemic-era guidance on supporting borrowers in financial difficulty into its formal rulebook, taking effect on 4 November 2024.
Benefit cap earnings threshold rises to £793 a month
The earnings threshold used to decide whether the benefit cap grace period applies rose from £722 to £793 a month on 8 April 2024, affecting working age claimants who lose work.
Capital gains tax allowance cut to £3,000 and dividend allowance to £500
The tax-free capital gains allowance falls to £3,000 and the dividend allowance to £500 from April 2024, the second cut in two years, meaning more people owe tax on investments and second homes.