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Risk of declining consumption, house price falls and defaults as tighter policy finally has impactBusiness live – latest updatesThe high proportion of UK homeowners on fixed-rate mortgages means the Bank of England should be wary of keeping interest rates too high for too long, the International Monetary Fund has warned.The IMF said many borrowers had been sheltered until now from the impact of higher...

‘Motherhood penalty’ appears to be worsening, with pay gap for median hourly pay growing by 93p an hour since 2020The “motherhood penalty” is wreaking havoc on women and the economy, according to campaigners, as fresh analysis reveals that the pay gap between mothers and fathers in the UK has grown by nearly £1 an hour since 2020.A study of the hourly earnings of mothers...

Report calls for overhaul of rules on loan affordability and repayment, and more flexible mortgage productsMortgage reforms introduced after the 2008 banking crisis have “tilted too far” in support of financial stability to the point that first-time buyers are being excluded from the housing market, building societies have warned.A report commissioned by the Building Societies Association has called for an overhaul of affordability and...

In London, Tube and bus fares are being frozen and prices reduced during rush hour and on FridaysRail fares in England and Wales will rise by 4.9% on Sunday, adding hundreds of pounds to annual travel costs for many commuters.Campaigners said passengers would be “rightly angry” at the latest increase, above the current inflation rate of 4%, despite the government arguing that it had...

David Willetts suggests policy would help spread wealth among millennials amid deepening inequalitiesMinisters should hand all 30-year-olds a £10,000 “citizens inheritance” amid fears a £1.5tn wealth transfer to millennials will deepen inequalities, a Conservative peer has urged.David Willetts, who leads the Intergenerational Centre thinktank, called for the next government to implement a major new policy to spread wealth in Britain. Continue reading...

Average cost of a home increased to £260,420 in February, up by 1.2% on a year earlier, says NationwideBusiness live – latest updatesUK house prices grew for the first time on an annual basis in more than a year in February, as a decline in borrowing costs prompted an uptick in the housing market, according to a survey.The average price of a home rose...

First-year vehicle excise duty is a fraction of that in countries such as France and the NetherlandsLow taxation on petrol SUVs in the UK compared with much of Europe is inviting a glut of large, polluting luxury cars, according to an analysis by a green thinktank.The tax paid when buying a new petrol or diesel SUV in the UK is only a fraction of...

Watchdog says there is need for ‘significant intervention’ over supply and quality of new homesBusiness live – latest coverageThe UK competition watchdog has opened an investigation into eight housebuilders after evidence they may be sharing commercially sensitive information.The Competition and Markets Authority (CMA) launched the investigation amid concerns it could be affecting the development of sites and prices of new homes. Continue reading...

December figures pose dilemma for Bank of England, dampening hopes of early interest rate cutBusiness live – latest updatesPay growth slowed less than expected in December as workers continued to bid up their wages amid skills shortages and a record number of people with long-term sickness.The Office for National Statistics (ONS) said annual growth in regular earnings, excluding bonuses, was 6.2% in October to...

Annual letter from Teachers’ Pensions, which administers scheme for DfE, asks about new relationshipsPartners of retired teachers who have died are repeatedly being asked to confirm whether they are in a new relationship, in a process described as “humiliating and intrusive” by teaching unions.Those who fail to reply promptly face losing their dependant’s pension. Continue reading...

Out-of-court settlement reached with law firm acting for customers who have been left owing big sumsOne of Britain’s biggest high street banks has agreed a payout to settle a case involving “unfair” mortgages – giving hope to thousands of people who have been left owing huge sums.On the eve of a trial set to last six weeks, Bank of Scotland – part of Lloyds...

Regulator says bank failed to properly implement Financial Services Compensation SchemeBusiness live – latest updatesHSBC has been fined £57m by the Bank of England’s financial stability arm for failing to protect customer deposits in the event of a banking collapse.It is the second-highest fine imposed by the Bank’s Prudential Regulation Authority (PRA) and reflects the seriousness of the failings, the watchdog said. The highest...

While some banks and building societies scrap system, others report increase in usage by customersWhile some banks are scrapping passbook savings accounts amid suggestions they are past their sell-by date, other providers have reported an increase in their usage as people turn to cash to help them manage the cost of living.Newcastle building society said that in 2023 it issued about three times as...

‘Poverty premium’ penalises drivers who cannot pay one-off lump sum, say campaignersCar owners who pay for their insurance monthly rather than with a one-off lump sum are being charged interest of more than 30%, research has found, in what has been described by campaigners as a “poverty premium”.Insurers give customers the choice of paying one annual premium or breaking it up and paying over...

Payments halted four times and left Eileen McGrath without income over ChristmasA retired teacher has had her pension payments stopped four times because her pension provider repeatedly refuses to accept that she is not dead.Eileen McGrath, 85, was left without income over Christmas when Teachers’ Pensions, which administers payments on behalf of the UK government, wrongly matched her with a deceased stranger. Continue reading...

Bank of England forecast to make as many as four interest rate cuts in 2024, which will slash returnsIf Christmas hasn’t cleaned you out financially, now could be the last chance to grab one of the UK’s highest-paying fixed-rate savings accounts.With the money markets convinced that interest rates are heading on a downward trajectory, the smart savings cash is heading for a fixed-rate bond...