Households disposable income

Families suffered their longest-ever squeeze on disposable incomes even before Vladimir Putin’s invasion of Ukraine compounded the shock by sending energy bills soaring. Disposable incomes unexpectedly slipped 0.2pc in real terms during the first three months of 2022, falling for a record fourth consecutive quarter, according to the Office for National Statistics. Economists had expected a rise and incomes are down 1.3pc compared to a year earlier with much worse to come. The figures indicate that households had a smaller buffer to cope with the looming bigger income shocks caused by the war in Ukraine, stoking recession fears. Incomes are being squeezed by wages failing to keep pace with inflation, which hit a 40-year high of 9.1pc in May. However, households are not yet reducing the rate of saving to cushion the shock to incomes , official figures showed. The household saving ratio - how much disposable income is being saved - was unchanged at 6.8pc in the first … [Read more...] about Household incomes suffer longest fall on record – and worse is to come

If there is a house price crash coming , it doesn't seem to be much bothering Barclays, which has agreed to pay an eye-watering £2.3bn to buy the specialist mortgage lender Kensington Mortgage Company. The acquisition significantly extends the bank's exposure to mortgage provision and more broadly can therefore be read as a vote of confidence in the resilience of the UK property market. Nevertheless, to be buying at this stage of the cycle, with the economy seemingly on the cusp of recession, interest rates rising sharply to counter surging inflation, and household disposable income under acute pressure, looks odd – and that's putting it mildly. A rising interest rate environment theoretically makes mortgage lending more profitable, but not if it leads to rising defaults. After a brief hiatus during the first lockdown – when the housing market was essentially closed – both the supply of mortgages and the demand for them has boomed, with banks scrambling for market share in what … [Read more...] about Financial crisis rules are pushing house prices to the edge of a crash

More than three years after the first complaint was filed, the Duchess of Sussex bullying row has ended just as it began: in silence. Then, it was an email sent between two close colleagues, raising quiet concerns over the treatment of palace staff. Now, it is a secret report blocked not only from the public but even to those who took the time to contribute. Buckingham Palace has confirmed that an official investigation into the handling of bullying allegations made against the Duchess will be kept under wraps. Royal editor Hannah Furness says Meghan is unscathed but unvindicated over the alleged bullying she has vehemently denied. And associate editor Camilla Tominey writes in her analysis that it suggests, for the Firm, family still comes first despite the claims of staff . to avoid being stuck in traffic . No 10 fears Prime Minister faces 'kangaroo court' If you thought partygate was over, prepare for the next stage. The inquiry into whether Boris Johnson … [Read more...] about Thursday morning news briefing: Secrecy of Meghan bullying inquiry

The Bank of England Governor has warned that Britain faces a faster and steeper downturn than other rich countries as households are battered by a “very large national real income shock”. Andrew Bailey said the UK economy is at a “turning point” after Covid, the energy price surge and the war in Ukraine combined to trigger spiralling inflation and the worst drop in disposable incomes for decades. Opening the door to a bigger hike in interest rates to tame price pressures, he vowed to act “more forcefully” if painfully high inflation - forecast to hit 11pc in October - persists. Speaking at a conference in Portugal, Mr Bailey said: “The UK economy is probably weakening rather earlier and somewhat more than others . I think that’s been somewhat evident now for a few months.” It came as a slew of retail industry chiefs warned of a looming plunge in consumer spending in a survey shared with The Telegraph. Stefano Pessina, the head of Boots owner Walgreens Boots Alliance, has … [Read more...] about Britain suffering faster and steeper downturn than Europe, warns Andrew Bailey

Martin Lewis advises on checks to help reduce council tax Get pensions news and advice plus latest money alerts for FREE now SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Rishi Sunak has been tasked with leading the UK’s economic response to the COVID-19 crisis, and has unveiled a package of support. However, the Chancellor has also made tough decisions in various aspects, which are likely to have a palpable impact on the everyday lives of Britons. One such decision relates to Council Tax, with people potentially facing a rise in their bill next year. Trending READ MORE Martin Lewis helps Briton save over £3,000 on council tax bill The government has provided local councils with freedom to raise Council … [Read more...] about Rishi Sunak set to increase Council Tax by five percent – how Britons will be affected

This Morning: Martin Lewis discusses top easy access savings Get pensions news and advice plus latest money alerts for FREE now SUBSCRIBE Invalid email We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info Savings rates are, broadly, seeing all-time lows at the moment. This is due to a range of economic factors but when examining recent months, it’s clear to see that coronavirus, the recent recession and the Bank of England’s decision to keep the base rate low are having obvious impacts on savings providers. Trending READ MORE Pension: What ‘everyone should be looking to do’ with their savings This has been put into clearer perspective by Moneyfacts, whose “UK Savings Trends Treasury Reports” have been analysing the UK savings market for … [Read more...] about Savings rates: Best rate revealed but you need to act fast before banks ‘pull offers’

Benefits and state pension to see largest increase in 32 years Tories are now party of big spending, says Sunak How the PM brought in top economists to persuade Sunak Camilla Tominey: True-blue Tories are shuddering Fraser Nelson: Tax grabs have put Britain on road to recession Russia-Ukraine latest: PM calls for new weapons for Ukraine A Tory MP has quit his Government job and criticised the “toxic culture” in No 10 as Boris Johnson’s premiership continues to be rocked by the partygate scandal. Paul Holmes, the Conservative MP for Eastleigh, said in a statement published on his website that he had resigned as Parliamentary Private Secretary at the Home Office. A PPS is the lowest rung on the ministerial ladder but the resignation is likely to prompt alarm bells in Downing Street as the Government struggles to move on following the publication of the Sue Gray report on Wednesday. Mr Holmes said the report had "clearly showed a culture in No 10 … [Read more...] about Tory MP Paul Holmes quits Government job over ‘toxic culture’ at No 10