Tag: personal finance

Scottish Building Society commits to passbook accounts

SCOTTISH Building Society has doubled down on its commitment to offering Edinburgh customers passbook accounts, in a bid to support them with their financial needs.

With more than 67 percent of Scottish Building Society members across Edinburgh holding a passbook, they will continue to have access to the account, which can play a crucial role in helping them to manage their finances.

The move comes after several major banks across the UK announced they would be removing passbooks, which provide a paper record of banking transactions, from their services.

Recently Virgin Money announced it would remove passbook savings accounts, resulting in 100,000 customers across the UK being told they will no longer be able to use them to pay in or withdraw cash in person.

Despite several banks now no longer offering the service, Scottish Building Society believes passbooks still have an important role to play in helping customers manage their finances.

Feeling reassured by physical evidence of how much they hold in their accounts many customers prefer to bank this way to manage their finances.

The rise in the cost-of-living crisis has prompted many people to revert back to using physical money in a bid to help them budget, with passbook savings accounts serving as a valuable tool in helping them to manage this.

Removing this service alongside many local branches closing risks leaving many customers feeling alone, particularly during this economic climate Scottish Building Society warned.

Scottish Building Society has made significant investment in its high street branches to provide accessible banking for all and enhance its physical presence in communities, with the society most recently opening a new relationship centre in Edinburgh in June last year.

Meanwhile, as part of its 175th anniversary celebrations, the building society launched the Scottish Building Society Foundation in May last year, an initiative designed to give back to Scottish communities with an incredible £175,000 designated to local charities and good causes across Scotland.

Paul Denton, CEO at Scottish Building Society, said: “As a mutual organisation owned by and run for the benefit of our members, we want to make sure we are providing customers with everything they need to manage their finances in a way which is easy for them and stress free.

“While online services are the main stay for a lot of customers, there is a large portion of people who are not confident in using online banking or simply don’t want to, and they can rightly feel aggrieved that they are facing the prospect of having to do so.

“At Scottish Building Society our purpose is to serve the local community, and this is why we will continue to offer passbooks as a vital tool for customers, as well as investing in our branches to provide accessible, in-person facilities which will serve their local communities. Simply put, we want to ensure our members have choice when it comes to managing their finances, and we believe in offering them that.”

Lisa McKay, Edinburgh Relationship Manager, Scottish Building Society, said: “”At Scottish Building Society we understand how important it is for members to have options, which works for them, for managing their finances. For many, this means having a physical passbook which helps them keep up to date on their accounts. 

“Our passbook savings accounts can be a really useful tool in this regard and that’s why we are committed to continuing them. If you are interested in learning more about how passbook savings accounts, please give us a call or visit your local branch and we will be happy to support.”

Income tax changes today

People urged to check their tax code as new financial year begins

Progressive changes to Scottish income tax will raise valuable revenue for investing in public services, Deputy First Minister Shona Robison has said.  

From today (Saturday 6 April 2024) a new Advanced income tax band will apply a 45% rate on annual income between £75,000 and £125,140. An additional 1pence will be added to the Top rate of tax meaning income over £125,140 will be taxed at 48%.

There are no changes to the Starter, Basic, Intermediate and Higher tax rates for earnings under £75,000. The Starter and Basic rate bands will increase in line with inflation and the Higher rate threshold will be maintained at £43,662.

The independent Scottish Fiscal Commission estimates that overall income tax will raise £18.8 billion in 2024-25.

Scottish taxpayers are being encouraged to check to ensure the tax code on their first payslip in the new financial year is accurate. People paying Scottish income tax should have a tax code that begins with an S.

Deputy First Minister Shona Robison said: “Scotland has the most progressive income tax system in the UK. The new Advanced band builds on that progressive approach, protecting those who earn less and asking those who earn more to contribute more.

“Only 5% of Scottish taxpayers will pay a higher tax rate this year compared to last year and the majority of taxpayers are still paying less than they would elsewhere in the UK.

“The money raised through income tax allows people in Scotland to benefit from a wide range of services and social security payments not provided elsewhere in the UK, including free prescriptions and free higher education. Council tax is less in Scotland than in England, even before factoring in a council tax freeze for 2024-25.

“I encourage everyone to check their first payslip in April to make sure their address is correct and that their tax code starts with an ‘S’. This will ensure that people are paying the right amount of tax on their income.”

The Scottish Fiscal Commission estimates that the cumulative impact of Scottish Government income tax policy decisions since 2017 will raise an additional £1.5 billion in 2024-25, compared to the position if UK Government tax policy had been matched during that time.

The new Scottish income tax bands and rates for the financial year 2024-25 are:

 2024-25
BandRate
Starter£12,571 – £14,87619%
Basic£14,877 – £26,56120%
Intermediate£26,562 – £43,66221%
Higher£43,663 – £75,00042%
Advanced£75,001 – £125,140*45%
TopAbove £125,14048%

Policies related to National Insurance Contributions and the Personal Tax Allowance remain reserved to the UK Government. Scottish Ministers continue to call for further tax powers to be devolved so decisions affecting the people of Scotland are decided by the Scottish Parliament.

The UK Government confirmed in the 2023 Autumn Statement that the UK-wide Personal Allowance will remain frozen at £12,570.

*Under the UK Government’s Personal Allowance policy, those earning more than £100,000 will see their Personal Allowance reduced by £1 for every £2 earned over £100,000.

Virgin Money and Good Things Foundation team up to support millions of households facing digital exclusion

Virgin Money and the UK’s leading digital inclusion charity, Good Things Foundation, have teamed up to help millions of people facing digital exclusion across the nation by introducing the National Databank programme into Virgin Money’s full network of stores.

Latest data1 compiled by Good Things Foundation shows that although 77% of people in the UK believe having internet access is an essential need, 1 in 14 households have no home internet access at all, more than 2.5 million households struggle to afford broadband and 10.2 million people lack the most basic digital skills to use the internet.

Aiming to help reduce the digital divide, Virgin Money – the first and only bank in the UK to take part in the programme – has worked with Good Things Foundation to introduce the National Databank2 into its 91 UK stores.

The National Databank works like a foodbank, but provides free mobile data, texts and calls for people in need. Through the programme, which was founded by Good Things Foundation and Virgin Media O2, digitally excluded people (anyone that doesn’t have regular access to the internet) can visit their nearest Virgin Money store and pick up an O2 sim card loaded with 20GB of free data – enough for around 220 hours of internet browsing per month. The free data allowance renews every month for six months.

Good Things Foundation has also provided specialist training to the bank’s customer service colleagues to help them better identify and support individuals impacted by digital exclusion and signpost them to a nearby National Databank, whether it is a Virgin Money store or not. In addition, through a range of initiatives colleagues across the bank will help to raise awareness and secure donations to Good Thing Foundation’s National Device Bank programme, which works alongside the National Databank to provide free smart devices to people who are unable to afford them. 

Finally, to help bridge the digital skills gap, Virgin Money and Good Things Foundation will work with Learn My Way, an online digital skills platform, to provide training to anyone looking for help to improve their knowledge of using the internet. The sessions, which can take place both in store and online, will cover various topics, including advice on how to stay safe when browsing and information on how to access essential online services.

James Peirson, General Counsel & Purpose Officer at Virgin Money, said: “Digital exclusion is a real issue in the UK and one that needs prioritising.

“For many low or no-income households, paying for broadband is often seen as a luxury that they can’t afford, but in reality, it is an essential purchase – especially in this digital age. That’s why we are proud to support the vital work of Good Things Foundation by making the National Databank programme easier for people in need to access across the UK.

“We are also keen to encourage other organisations that are in a position to help to join the initiative. Whether that’s by becoming a National Databank themselves or donating their old smart devices that would otherwise go to waste.

“Each small gesture goes towards making a huge difference, and by working together we can try put an end to the digital divide.”

Helen Milner OBE, Group CEO, Good Things Foundation, said: “We’re delighted to help tackle digital exclusion by extending our partnership with Virgin Money to make the National Databank available to its full network of 91 stores.

“There are still 2 million households that struggle to afford internet access in the UK today, and 10 million adults lack the most basic digital skills. We need to act now.

“We urge organisations to apply to become a National Databank and become part of our National Digital Inclusion Network, helping local communities access data, devices and digital skills through the National Databank, the National Device Banks, and the Digital Skills platform Learn My Way.

“By the end of 2025, our ambition is to engage 1 million people helping them benefit from the digital world and support 5,000 Digital Inclusion Hubs across the UK. Together we can fix the digital divide.”

For details of Virgin Money store locations, visit: Store Finder | Virgin Money UK | Virgin Money UK

To find out more about Good Things Foundation or to locate the nearest community organisation taking part in the National Databank programme, visit: https://www.goodthingsfoundation.org/databank/.

Debt surge: How much are UK households saving?

Recent reports state that UK households are to face a forecasted 11% increase in credit card and loan debt in 2024, as well as warnings of a £17,600 debt surge by 2026.

In a recent study by CityIndex, UK households are saving just 3.25% of their disposable income amid the soaring cost of living crisis – a figure that is expected to change if debt levels reach their predicted peak.

The study analysed global data on household savings, including mean disposable income, mean household savings and long-term interest rates, to ultimately discover the countries with the highest household savings in the world.

Key findings:

  • UK households save an average of 3.25% of their earnings per annum.
  • Households in the United Kingdom make almost as much as those in Sweden, but they get to save three times less 
  • Switzerland leads the rating with a total savings score of 9.83/10, and the lowest mean long-term interest rates
  • Sweden stands out for lower than average long-term interest rates

The countries with the highest household savings:

 County Mean household disposable income in USD*Mean household savings in USD from disposable income*% of disposable income put toward savingsMean long-term interest ratesTotal savings score
1.Switzerland$35,311$590817%1.449.83
2.Luxembourg$40,395$30288%2.359.69
3.United States of America $42,592$29617%3.219.67
4.Chile$14,004$153211%5.199.63
5.Germany$32,997$356811%2.289.62
6.Austria$31,792$305810%2.619.55
7.Netherlands $31,304$24758%2.479.51
8.France$29,663$287610%2.629.49
9.Belgium$29,837$27789%2.759.48
10.Sweden$28,611$281410%2.559.47
17.United Kingdom$28,222$9183.25%39.26

Data is calculated between 2000-2022. *Mean household disposable income & savings are calculated per annum. Exchange rates may have an impact on the final rankings; for clarification, see the methodology.

The United Kingdom ranked 17th out of the 35 countries analyzed. While UK households have a mean household disposable income of $28,222 (£22,956), which is not far from Sweden, which made it into the top 10, only a mere 3.25% is put towards their savings. 

Amid the ongoing cost of living crisis, essential expenses like housing, utilities, and groceries are dwindling the funds available for savings.

With food prices experiencing their most rapid increase in the last 45 years and utility bills soaring, households find themselves with limited support, unsurprisingly resulting in scarily low savings rates. Furthermore, the substantial debt obligations, encompassing loans and mortgages, absorb a significant portion of the income of UK residents, especially now when mortgage rates have peaked.

Top 3 Countries With The Highest Savings Per Household 

Switzerland residents have the highest household savings with a total savings score of 9.83 out of 10. Households in Switzerland save 17% of their gross income, with $5,908 per year saved on average between 2000-2022. This is 48% higher than the neighbouring country of Austria ($3,058) in the same time period, despite having a similar population size. Switzerland also has the lowest long-term interest rates at 1.44 since 2000 — 63% lower than the long-term interest rates in Luxembourg (2.345).

Luxembourg ranks second with a total savings score of 9.69/10. The country has the second-highest household disposable income between 2000-2022 ($40,398), 35% higher than in the neighbouring country of Belgium ($29,837). Luxembourg residents have mean household savings of $3,028, with 8% of their disposable income put toward savings. Not only this, Luxembourg’s long-term interest rates stand at 2.35, which are the third lowest interest rates globally behind Switzerland (1.44) and Germany (2.28).

The US ranks 3rd, with a total savings score of 9.67 out of 10. With the dollar exchange rate taken into account, the USA has the highest mean household disposable income in the ranking  ($42,592), 45% higher than Canada ($29,442) and 3 times higher than Mexico ($14,102). CityIndex found that American residents have a mean average household savings of $2,961, with 7% of their disposable income going into their savings.

Other countries with notable savings findings  

Chile ranks fourth with a total savings score of 9.63 out of 10. Chile has one of the highest long-term interest rates (5.19) and the lowest mean disposable income at $14,004. Despite this, Chile residents manage to put 11% of their disposable income towards their savings — 3% more than Luxembourg in second place — equating to $1,532 in mean household savings.

Germany, which ranks 5th, was found to have the second highest mean household savings ($3,568), 21% higher than in the neighbouring country of France ($2,876). Not only this, but  the country has the fourth lowest long-term interest rates on the list (2.28), 19% lower than in Belgium (2.75).

Sweden stands out for lower than average long-term interest rates. The country ranks 10th, with a total savings score of 9.47 out of 10. Swedish households have a mean household disposable income of $28,611, over double that of Poland ($16,736), putting 10% of this toward their savings on average.

Sweden has a lower-than-average long-term interest rate compared to other countries in the ranking (2.55) along with impressive mean household savings ($2,814), 12 times more than Finland ($242).

 https://www.cityindex.com/en-uk/.

Consumer spending on holidays and  socialising on the rise 

• Lloyds Bank data unearths how different generations and regions spend on  making memories 

• Non-essential spending on holidays, restaurants and recreation rising

• Non-essential spending increase is slowest in London  

• Gen Z holiday spending growing quicker than Millennials and Generation X 

Non-essential spending in the UK is on the rise despite the cost-of-living crisis,  according to data from Lloyds Bank. 

Every region in the UK, including Scotland, Wales and Northern Ireland, is spending  more on non-essentials like holidays, restaurants and recreational activities but  London is the slowest-growing region for this type of spending. 

Lloyds Bank has revealed the data following the launch of its new credit card, the World Elite Mastercard®, which enables customers to earn cashback on every card purchase  made, alongside enjoying a range of travel benefits. 

With millions of customers across the UK, Lloyds Bank touches nearly every  community and household in the country. The analysis, based on card spending of  the bank’s customers, provides live insight into the state of the nation. 

Non-essential purchases – like holidays and restaurant spending – have been in  positive growth, year-on-year, since May 2021.  In 2023 alone, year-on-year non-essential spending has grown more than 3% every single month, peaking at a 10% increase in January.  

The data indicates the trend is largely being driven by wanderlust – particularly  amongst the over 65s, who have increased spending in this category by 21% in  October. Millennials (people aged 25 to 34) meanwhile, are displaying the slowest  growth among generational holiday spenders year-on-year, up 11.8%, while Gen Z  consumers (aged 18 to 24) have seen holiday spend grow 16.9% over the last  year. 

Taking a regional view, consumers in Wales are leading the charge in holiday spending – up by more than a fifth compared to last year (21.6%), while Scottish  holidaymakers and those in the South West have increased travel card spending  by 19.5% and 19.1% respectively.  

Spending from people living in London shows the slowest growth at 12.5%, with  those in the North West spending 16.5% more year-on-year.

Overall, year-on-year holiday spending is up 17.1%, restaurant spending is up 6.2% and recreational  spending is up 3.3%. 

Looking at regional growth around non-essential spending more broadly, you see London showing the  slowest growth – up just 1.8% compared to the previous year. 

Meanwhile, consumers in Yorkshire and the Humber, which is the fastest-growing region, spent more  than 6% on non-essentials when compared with the previous year and Scottish consumers also spent over 5% more. 

The data also shows that spending on restaurants and going out to socialise account for the biggest non essential spending growth across all generations and all regions across the UK in October. 

Marc Lien, Credit Cards Managing Director at Lloyds Bank, said: “Despite understandable concerns  around the cost-of-living crisis, people still want to socialise and have a holiday to look forward to.

“We’ve  come through a challenging few years, and it’s positive to see that consumer spending is on the rise.  

“After listening to our customers it’s clear that spenders up and down the country want more from their  credit and debit card providers, and this is more important than ever at times like these – that’s exactly  why we launched the Lloyds Bank World Elite Mastercard®, to provide better, more easily accessible rewards. 

“The new Lloyds Bank World Elite Mastercard® offers cashback on every card purchase – no matter how big or small – and great benefits for travellers, including the luxury of skipping airport security queues and  access to over one thousand airport lounges worldwide.” 

Customers using the World Elite Mastercard® will earn 0.5% cashback on each card purchase up to and including £15,000. When total card spending reaches over £15,000, each card purchase will earn 1% cashback, paid into the account each month. 

World Elite Mastercard® customers will also receive benefits which add a touch of luxury when travelling: 

o Access to over 1,300 airport lounges, including lounges at London Heathrow, Edinburgh  International, Orlando International, Dubai International and many more, through Priority Pass. (Owned and operated by Collinson.) 

o Cardholders will be able to skip airport security queues and upgrade their airport security  experience at participating airports, powered by DragonPass. 

o Direct access to Mastercard’s priceless.com experiences and content in the UK and around the  world. 

World Elite Mastercard® also provides one additional cardholder with all the card benefits at no extra cost to the initial £15 per month.

Cashback earned by the additional cardholder will be added to the main  cardholder’s running total, and will be included in the monthly cashback payment made to the account. 

The main cardholder will be able to view or manage their World Elite Mastercard® and travel benefits  through online banking and the mobile app.

One in five UK adults say they’ll be saving less in 2024

  • Majority of those that will be saving less blame the increased cost of consumer staples and rising energy prices
  • Young adults aged 34 and under are four times more likely to be saving more in 2024, compared to over 55s

One in five (19%) adults in the UK say they’ll be saving less money in 2024, new independent research* carried out on behalf of Handelsbanken Wealth & Asset Management shows.

For those planning to save less next year, almost two thirds (64%) said this was down to increased energy prices while the same proportion (63%) blamed the increased costs of consumer staples, such as food and other household goods. Over half (57%) agreed that high inflation was a factor too, according to the study.

This is further supported by recent data from the Office for National Statistics (ONS)**, which found that around 4 in 10 (41%) of energy bill payers are struggling to afford payments, and revealed that just under half (48%) of adults in Great Britain are using less fuel, such as gas or electricity, in their homes because of the rising cost of living.  

While 30% of British adults say their intentions are to save more next year, many are doing so to prepare for tough times in the future. More than a quarter (28%) believe they’ll need a savings ‘safety net’ due to the rising cost of living, for instance – with more women planning for this than men (32% vs. 24%). This is unsurprising, with ONS data revealing that around three in 10 (30%) were already having to dip into existing savings to meet rising costs.

The Handelsbanken data shows it is younger people who are most likely to be saving next year, with those aged 18-34 four times more likely (57%) to in 2024, compared with those over 55, at just 14%. Of those that are planning to save more, around one in five said this is because they’ll be starting a job which pays more.

PK Patel, Head of Wealth Management at Handelsbanken Wealth & Asset Management said: “With many feeling the strain after months of increased prices and increased outgoings, it’s no surprise that people are less than optimistic when it comes to augmenting their savings or maintaining their existing pots.

“But while dipping into your nest egg or saving less than usual is sometimes unavoidable, it can have lasting consequences on your long-term financial planning goals.

“It is therefore more important than ever to seek financial advice to ensure you’re putting the best plan for yourself in place, and keeping an eye on key upcoming personal finance dates, such as the ISA deadline on the 5th April.

“This is the final date you must pay into your ISA to take advantage of that financial year’s tax benefits, for instance, and a significant event in the savings calendar.”

Funding boost for Castle Community Bank

Social Investment Scotland support for Leith credit union

CASTLE Community Bank, based in Leith, has received £1 million investment from Social Investment Scotland. 

The credit union received the £1M sub-ordinated loan to support their growth and ambition to be a ‘business of scale’, providing ethical and affordable loans and excellent returns for savers.  

Colour photo head and shoulders of bank Chief Executive Adrian Sargent

Castle Community Bank Chief Executive Adrian Sargent said: “I’m delighted that Social Investment Scotland has confidence in Castle Community Bank and has invested £1 million.

“This fantastic investment will reap benefits for not only our organisation but also the communities and members we support in Leith and beyond. This is another important step in our journey to grow the credit union sector and promote financial inclusion in the UK.”

Social Investment Scotland Head of Investments Chris Jamieson, said: “We’re very happy to be supporting Castle Community Bank and its ambitious programme of targeted growth, which will positively impact people in Leith and the surrounding area.

“We see the important role that credit unions play in building a wellbeing economy, particularly when many individuals and households are struggling with the rising cost of living.

“That’s why we are committed to supporting organisations such as Castle Community Bank, who are providing fair and affordable access to finance for the people and communities who need it most.” 

British public are missing out on £17 billion a year from banks profiteering by offering low interest rates

  • Brits have on average £24,500 in savings account, after putting away £260 every month
  • UK savers say that their average interest rate is 3.3%, 1.95% below the Bank of England’s rate
  • Despite this, only 23% of savers have switched accounts in the last year to capitalise on better interest rates
  • 7 out of 10 brits (71%) feel that banks profits are too high

Smart money app Plum is calling out banks for profiteering from high interest rates and not passing interest back onto savers.

Despite recent hikes in the Bank of England’s base interest rate, which currently stands at 5.25%, many UK banks have been slow to adjust their savings account rates accordingly. This has left consumers feeling short changed and struggling to make the most of their money.

New research from Plum shows that the average UK saver is putting away £260 in savings each month, with a total of £24,500 in their savings accounts. In addition, the research found that the average Brit is getting 3.3% interest on their savings account, 1.95% under the base rate. This means that on average, customers are losing out on £478 in interest per year1, equating to a hefty £17 billion across UK savers2.

Despite savers being able to gain higher interest rates by switching, the majority of savers (77%) hadn’t done this. They cited similar rates between banks (28%) and liking their current banks (30%) as the biggest barriers, even though 71% of people felt that banks profits were too high.

The biggest motivator for saving was for an emergency fund (49%), with holidays coming in second (44%). Saving up to buy a house or for home improvements was the biggest motivator for people under 45 (47%) and for the 55-64 age bracket, saving for retirement was their biggest priority (51%).

In July this year, the FCA set out a 14-point action plan to ensure banks and building societies are passing on interest rate rises to savers appropriately, with those that fail to justify their pricing decisions by the end of 2023 set to face robust action from the FCA.

Victor Trokoudes, Founder and CEO of Plum, said: “While banks have been quick to increase interest rates on loans and mortgages, they have been sluggish in boosting interest rates on savings accounts.

“We are in the midst of a cost-of-living-crisis and consumers are continuing to face financial pressures. So it’s really disappointing to see that many banks are not passing more of this money back onto customers, effectively devaluing their hard earned savings.

“While the FCA has pledged to take action against this behaviour by the end of 2023, it’s by no means a silver bullet. Borrowers are paying more while savers see minimal benefits, highlighting that the business models of the major banks are inherently misaligned with the interests of their customers. 

“The Bank of England has raised rates 14 times since December 2021, and they are expected to remain high. That’s why it’s so important that the public know that they don’t need to stand for this and allow banks to take their deposits for granted. We’ll be offering a new service that better reflects these base rate changes so their money can work harder.”

Plum, which has already helped people to set aside £2bn, is launching a new product that allows people to earn higher returns that are more closely aligned to the Bank of England base rate

Over a quarter of women have no pension savings

  • Male pension pots are two thirds larger than women’s on average
  • Only 23% of women are confident they will be able to retire comfortably

Fewer women than men have pensions, and those who do are saving less than their male counterparts, reveals independent research conducted on behalf of Handelsbanken Wealth & Asset Management. 

Handelsbanken Wealth & Asset Management’s report, Can we solve the gender wealth gap? highlights the disparity in retirement savings between men and women, revealing that over a fifth (26%) of women have no formal pension savings at all, compared to just 16% of men.

Women’s pension pots were found to be substantially smaller too. The average pension across amounts for all respondents stood at £103,037. However, male respondents’ pension pots were found to be significantly higher, averaging at £142,234, while women’s came in at just over a third of this, at an average of £51,384.

It is therefore unsurprising that only 23% of women surveyed stated they are confident that they will be able to retire comfortably, with over a third (35%) believing they won’t be able to.

However, there are signs that things could be turning around for the next generation. While women over the age of 40 are generally less likely to have a pension than men of a similar age (63% vs 80%), men and women in their 30s were found to be equally likely to have a pension (77%). For adults under 30, women were found to be more likely to have a pension than men (76% vs 59%).

The research also revealed that most people tend to leave the management of their pension to their workplace pension provider (45%). Men were slightly more likely than women (43% versus 37%) to manage their own pensions, such as via a self-invested personal pension scheme (SIPP).

However, more than half (56%) of those who self-manage their pensions admitted that they seldom check their retirement savings – of which 64% were female.

Christine Ross, Head of Private Office (North) & Client Director at Handelsbanken Wealth & Asset Management, said: “Women on average continue to remain a long way behind men in pension savings, with the problem at its most acute among older generations who are closer to retirement.

After decades of gender disparity, it’s encouraging to finally see clear evidence of change, with pension take up reaching parity among thirtysomethings, and women in their twenties ahead of their male counterparts.

The recent steps taken at a government level have the potential to further close the gender pensions gap, including the free childcare scheme expansion announced at the Spring Budget, which should allow more working mothers to return to the workplace and build their pension savings.

“But despite signs of progress, there is still considerable work to be done. Education around pensions needs to be improved, as does women’s confidence in financial products. We strongly encourage seeking advice on long-term financial planning where possible, to ensure that the plans you have in place are fit for purpose on an ongoing basis.

“Generally, it is important to review your pension regularly and to top up your workplace pensions where possible. If you’re unable to pay into a formal pension, there are plenty of other options to consider, including ISAs, which offer tax-free savings.”

Help available to boost family incomes

Edinburgh parents urged to seek help with employment

A new campaign will encourage families living on a low income to access local support with finances and work.

It encourages people to take the first step towards relieving these pressures with help from the Parent Club website. This can guide them towards tailored support to help them improve their situation by starting work after unemployment, returning to work or improving earnings.

The campaign which includes TV, radio and online advertising, highlights the pressures of everyday life and shows parents feeling the ‘walls closing in’ on them as they juggle family life with bills and other costs.

Cllr Joan Griffiths, Education, Children and Families Convener for the City of Edinburgh Council, said: “We know that many families in Edinburgh are finding it hard to make ends meet at the moment and are looking for advice on things like finding work and applying for benefits.

“Taking the first step at ParentClub.scot can help find services that offer free, confidential and tailored advice that can really make a difference for families across Scotland.

“For anyone that’s feeling worried, stressed and overwhelmed, but aren’t sure where to start, please know you’re not alone and that help is available.”

Social Justice Secretary Shona Robison said: “We understand the anxiety and stress, that low-income families could be living with and the impact of the cost-of-living crisis is likely to be making even worse.

“Parent Club can guide people to free and confidential tailored advice from local authority employment services, where they can access support relevant to their own work and family situation.

“It also offers information on how to get help from the Money Talk Team who can advise on areas such as maximising income and dealing with debt. Parent Club also provides sources of support with mental health and stress. 

“Tackling child poverty is our national mission. We want to make sure parents know what help is out there and claim any support they should be getting.” 

Citizens Advice Scotland CEO Derek Mitchell said: “When times are difficult it can be easy to feel overwhelmed by bills mounting up – but our advice is free, confidential, and impartial.

“The Citizens Advice network is working with the Scottish Government to deliver the Money Talk Team service. We can check to see what payments you might be missing out on or any cheaper deals are available to you. If you are struggling with debt we can help with that too.

“Don’t delay, you could be missing out on money that could make a huge difference to you and your family’s finances.”