Money news: page 36
- August 2023
NIESR publishes report on impact of rising interest rates on housing costs
The National Institute of Economic and Social Research has published analysis of how fast-rising interest rates affect housing costs for mortgage holders and renters across the United Kingdom.
Cabinet Office confirms McCloud remedy regulations will proceed
The Cabinet Office has confirmed it will proceed with regulations implementing the second phase of the McCloud remedy for the Civil Service Pension Scheme, with the rules expected to take effect from 1 October 2023.
Which? reports on FCA findings that millions cancelled insurance policies during the cost of living crisis
Which? has reported FCA survey findings that 3.6 million people cancelled, reduced or switched an insurance policy in the six months to January 2023 to cut costs.
AJ Bell projects 2.7m savers to pay tax on savings interest in 2023-24
AJ Bell predicts 2.7 million savers will pay tax on savings interest in 2023-24, up from 1.8 million last year, as rising rates meet a frozen personal savings allowance.
HM Treasury publishes cash access policy statement
HM Treasury published a policy statement in August 2023 setting minimum expectations for cash deposit and withdrawal services, under powers in the Financial Services and Markets Act 2023.
Housing Loss Prevention Advice Service introduced
The Legal Aid Agency introduced a Housing Loss Prevention Advice Service on 1 August 2023 for people at risk of losing their home, with no legal aid financial eligibility test.
Mortgage Charter agreed by Government, FCA and lenders
The Government, the Financial Conduct Authority and mortgage lenders agreed a Mortgage Charter in August 2023, signed by lenders representing around 90% of the mortgage market.
Plan 5 applies to courses started on or after 1 August 2023
Students who began undergraduate courses through Student Finance England on or after 1 August 2023 are on repayment Plan 5, with a £25,000 income threshold and a 40-year write-off.
PSR to consult on claim excess and reimbursement cap
The Payment Systems Regulator will consult in August 2023 on the claim excess banks may charge fraud victims, the maximum reimbursement cap and guidance on the gross negligence test.
Student loan repayment rules changed for new students from August 2023
Students starting university from August 2023 face a lower repayment threshold of £25,000, a 40 year write-off period and interest capped at RPI, under repayment rules that differ from earlier cohorts.
- July 2023
FCA guidance on insurance customers in financial difficulty comes into force
The Financial Conduct Authority's guidance on how insurers should treat customers in financial difficulty took effect on 31 July 2023, sitting alongside the Consumer Duty.
FCA sets out 14-point action plan on cash savings
The Financial Conduct Authority has launched its Consumer Duty rules and set out a 14-point plan on cash savings to make banks and building societies pass on interest rate rises to savers.
Consumer Duty implementation deadline for firms
The Financial Ombudsman Service says its Consumer Duty engagement work will continue past the 31 July implementation deadline, as the new rules start to apply to firms' acts and omissions.
JRF publishes summary arguing inadequate Universal Credit is a barrier to work and calls for an Essentials Guarantee
The Joseph Rowntree Foundation has published a summary arguing that inadequate Universal Credit acts as a barrier to work, and calling for an Essentials Guarantee setting support against the cost of essentials.
Tax information and impact note published on abolishing the pensions lifetime allowance
HMRC has published a tax information and impact note on abolishing the pensions lifetime allowance from April 2024, limiting tax-free cash to £268,275 and lump sums before marginal rate taxation to £1,073,100.
Government, FCA and TPR publish Value for Money consultation response
The government, the Financial Conduct Authority and the Pensions Regulator have published their response to a consultation on disclosing, assessing and comparing the value for money of workplace pension schemes.
Government publishes CCA reform consultation response
The government has published its response to the first stage consultation on reforming the Consumer Credit Act 1974, saying stakeholders backed an overhaul, with a second consultation planned for 2024.
Participating lenders to offer rate lock up to six months ahead of expiry
From 10 July 2023, lenders signed up to the Mortgage Charter began letting borrowers lock in a new mortgage rate up to six months before their existing fixed deal ends.
Which? finds six of top 10 instant-access accounts restrict penalty-free withdrawals
Which? analysis of Moneyfacts data has found that six of the ten highest-paying instant-access savings accounts limit withdrawals or require a minimum balance before penalties apply.
End of £400 universal winter Government energy support
The £400 universal Government energy support paid to households over the winter ended as the Ofgem price cap replaced the Energy Price Guarantee, cutting typical annual bills to £2,074 from July.
Energy price cap reductions began lowering domestic fuel budgets
Reductions in the energy price cap from July 2023 cut the domestic fuel element of the Pensions UK Retirement Living Standards budgets by more than a quarter for every household type, new research shows.
Energy Price Guarantee coverage narrowed to prepayment meter customers
Households without a prepayment meter lost Energy Price Guarantee support from July 2023, while prepayment customers remain covered so their costs align with Direct Debit customers.
Energy Price Guarantee made less generous, rising to £3,000 a year
The Energy Price Guarantee became less generous in July 2023, rising to £3,000 a year, but a fall in the price cap meant it no longer set maximum prices and bills fell.
FCA Consumer Duty comes into force
The Financial Conduct Authority's Consumer Duty came into force in July 2023, setting higher standards of consumer protection and supporting the Mortgage Charter agreed with lenders and the Chancellor.
Government announces plan to let employed customers pay the HICBC through their tax code
The government has set out plans to let employed parents pay the High Income Child Benefit Charge through their tax code rather than registering for Self Assessment.
HM Treasury published policy statement proposing contract termination reforms
HM Treasury has published an explanatory memorandum to 2025 regulations requiring payment firms to give at least 90 days' notice and specific reasons before terminating an indefinite-period payment contract.
Lower energy price cap commenced
The lower energy price cap that took effect in July 2023 pushed the headline rate of CPI down materially again, as UK Finance reported in its Q2 2023 household finance review.
Ofgem cuts typical domestic consumption values used in price caps
Ofgem has cut the typical domestic consumption values used to calculate the typical household bill in the energy price cap, reducing assumed gas use by 17 per cent and electricity use by 7 per cent.
Ofgem lowers energy price cap to £2,074 for England, Wales and Scotland
Ofgem has lowered its energy price cap for England, Wales and Scotland so that a typical household bill falls to £2,074 a year from July, £426 less than under the Energy Price Guarantee.
Prepayment price premium removed
Households with prepayment meters have not been charged more for their energy than comparable direct debit customers since 1 July 2023, when a long-standing price premium on prepayment tariffs ended.