The next review of State Pension age has been launched by the government today.The review will consider whether the rules around pensionable age are appropriate, based on the latest life expectancy data and other evidence.
The Pensions Act 2014 requires government to regularly review State Pension age, and in accordance with law, this latest Review must be published by 7 May 2023.
State Pension age is currently 66 and two further increases are currently set out in legislation: a gradual rise to 67 for those born on or after April 1960; and a gradual rise to 68 between 2044 and 2046 for those born on or after April 1977. The first Review of State Pension age was undertaken in 2017 and concluded that the next Review should consider whether the increase to age 68 should be brought forward to 2037-39 before tabling any changes to legislation.
As the number of people over State Pension age increases, due to a growing population and people on average living longer, the government needs to make sure that decisions on how to manage its costs are, robust, fair and transparent for taxpayers now and in the future. It must also ensure that as the population becomes older, the State Pension continues to provide the foundation for retirement planning and financial security.
Therefore, this review will consider a wide range of evidence, for example, it will:
examine the implications of the latest life expectancy data
provide a balanced assessment of the costs of an ageing population and future State Pension expenditure
consider labour market changes and people’s ability and opportunities to work over State Pension age
and develop options for setting the legislative timetable for State Pension age that are transparent and fair
As set out in the 2014 Act, the Secretary of State is commissioning two independent reports to contribute to the evidence considered during this review: a report from the Government Actuary and a report on other factors.
The Government Actuary will provide a report which must assess the age of entitlement in legislation by analysing the latest life expectancy projections;
The report on other relevant factors will consider recent trends in life expectancy and the range of metrics we could use when setting State Pension age. This is to ensure the way we set State Pension age is robust, transparent and provides fairness to both taxpayers and pensioners. This report will be led by Baroness Neville-Rolfe DBE., CMG.
The UK Government agreed during the passage of the Pensions Act 2014 that the State Pension age Review would consider evidence from across the UK. The review will therefore consider differences across countries and regions, including Northern Ireland; it will also consider the effects for individuals with different characteristics and opportunities, including those at risk of disadvantage.
The report on other relevant factors will consider recent trends in life expectancy and the range of metrics we could use when setting State Pension age. This is to ensure the way we set State Pension age is robust, transparent and provides fairness to both taxpayers and pensioners. This report will be led by Baroness Neville-Rolfe DBE., CMG. The Terms of Reference for this report can be found here.
Medium- to long-term ambitions to create new jobs (47%), set up new products and services (36%) and increase online sales (30%)
83% of firms expect the next 20 years to be more challenging than the previous two decades
Businesses call for government to encourage sustainable practices through tax changes
Almost half (47%) of UK businesses said taking on new staff is their key ambition in the medium-term, according to new research to mark the 20th anniversary of Bank of Scotland Business Barometer.
The survey asked 600 businesses about the major challenges and opportunities faced in the last two decades and anticipated challenges up to 2040 and beyond.
Companies also highlighted developing new products and services (36%) and increasing online sales (30%) as major ambitions and priorities.
The survey found that businesses expect online purchasing (20%) and demand for instant products and services (18%) to be the biggest changes in consumer behaviour in the next 20 years, forcing them to be more creative and innovative in order to adapt to deliver quickly.
These predictions mirror the factors which businesses cited as having had the biggest impact on their operations in the past 20 years – chiefly greater access to information (24%) and more online purchasing (22%) changing customer behaviour.
However, firms are optimistic about further changes to consumer behaviour, with 38% reporting that advances in technology have had the biggest positive impact on their business in the past 20 years.
Challenges ahead
Despite a clear drive towards growth, a net balance of 83% of firms anticipate the next 20 years will be more challenging than the past two decades – which included the financial crisis and resulting credit crunch, recession, the Brexit referendum and the global pandemic.
Some of the challenges that businesses see themselves facing can be linked back to the pandemic, including rising costs (23%) and the ability to recruit staff (11%). In addition, one in ten (11%) businesses see the need to keep up with technological developments as their biggest challenge in the next two to three years.
Government provision of greater access to more vocational-based learning was seen by 44% of firms as being a way to help mitigate these challenges. However, companies believe that future growth opportunities will need to be supported by more favourable taxation to encourage sustainable business practices (52%) and new trade agreements with major trading partners (48%).
Paul Gordon, Managing Director for SME and Mid Corporates, Lloyds Bank Commercial Banking, said:“The Business Barometer has provided unique insights into the views of British businesses for 20 years.
“In that time, we have seen a seismic shift in the economic context in the UK, as well as the extraordinary ability of business leaders to adapt and evolve to meet changing market needs.
“Perhaps it is not unsurprising that, having faced a quite unprecedented period of late and enormous change over the last twenty years, the majority of business leaders feel the next twenty years will be more challenging.
“To help them through this, businesses are looking for support on skills, finance, trade and taxation to navigate in this environment. One thing that is clear is that our businesses and business leaders are incredibly resourceful and resilient and are adept at facing into constant change.
“They tell us they are gearing up for growth and expect to increase headcount, enhancing their service offering or utilising new technologies. We’ll be by their side over the months and years ahead as they deliver on their ambitions.”
Heart Research UK has awarded a research grant of £115,000 to a project at the University of Glasgow for developing a risk score to help guide investigation for atrial fibrillation. This will allow more people to benefit from anticoagulant drugs to prevent second strokes.
After a stroke, heart rhythm monitors are worn for three days to look for an abnormal heart rhythm called atrial fibrillation (AF) that increases the risk of blood clots forming and second strokes.
If the monitor shows that a patient has AF, then blood thinning drugs, called anticoagulants, can greatly reduce the risk of a second stroke. However, there are often long waits for these tests and only four out of every 100 people who have a three-day heart rhythm monitor are found to have AF.
New heart rhythm monitors that are worn for longer find many more people with AF, but these tests are not necessary for everyone who has suffered a stroke. It has also been difficult to implement them in the NHS, as a lot of time and resources are already required to perform the three-day heart rhythm monitors.
The new project, led by Professor Jesse Dawson (above), aims to develop a risk score that identifies people who are unlikely to have AF after stroke and therefore do not need heart rhythm monitoring for three days or longer. This would free up resources so that longer heart rhythm monitoring can be focused on people who are more likely to have AF.
675 people admitted with a stroke to the Queen Elizabeth University Hospital Glasgow will take part in the study. The team will collect clinical and genetic information, heart rhythm recordings, and blood to measure levels of a new blood marker.
All participants will have a 30-day heart rhythm monitor to test for AF and the data will be analysed to develop a risk score that identifies people who do not have AF after the 30 days of monitoring.
The results have the potential to improve care for people affected by AF and stroke by developing a more personalised model of care. This could help to avoid unnecessary tests for people who are unlikely to have AF, during what can be a challenging time for stroke survivors and carers.
It would also mean that longer heart monitoring can be focused on people who are more likely to have AF. This would increase AF detection rates and allow more people to benefit from anticoagulant drugs to prevent second strokes.
Kate Bratt-Farrar, Chief Executive at Heart Research UK, said: “This is an exciting project where a successful outcome would enable the healthcare system to focus resources for heart rhythm monitoring after a stroke, on those who really need it.
“Anticoagulants are vital in preventing people from suffering a second stroke and we are proud to be able to support Professor Dawson and team in helping more people to benefit from them.”
You can read more about Heart Research UK’s Research Grants here.
Aldi has supported local charities, community groups and food banks in the Lothians by donating 9,224 meals to people in need this Christmas.
The supermarket paired up its stores with local organisations to make the most of unsold fresh and chilled food after stores closed on both Christmas Eve and New Year’s Eve, as part of its pledge to donate 1.8 million meals to families experiencing food poverty during November and December.
Around 550,000 meals were donated nationwide and more than 700 UK causes benefitted from the initiative over the festive period,
The initiative is part of Aldi’s successful partnership with Neighbourly, a community giving platform that links businesses to charitable organisations. Thanks to this, all of Aldi’s over 950 UK stores now donate surplus food to good causes seven days a week, all year round.
This year’s Christmas donations have helped Aldi to meet its pledge to donate 10 million meals to families in need in 2021 through its partnership with Neighbourly.
Mary Dunn, Managing Director of Corporate Responsibility at Aldi UK, said:“The festive season is always a hard time for people affected by food poverty, so we are incredibly proud to have supported so many amazing causes in the Lothians this Christmas.”
Since beginning its partnership with Neighbourly in April 2019, Aldi has donated more than 20 million meals across the UK.
Steve Butterworth, from Neighbourly, added: “This Christmas was without a doubt one of the busiest on record for the UK’s charities and food banks. The sizeable donations from Aldi would have been a massive lifeline for so many of them.”
Aldi has been working with Neighbourly since early 2019. As part of the partnership, Aldi introduced community donation points in all stores last year, offering customers the opportunity to donate any food or household products to local causes all year round.
Hidden Door Festival returns in June, breathing life into a secret new location in Edinburgh. As the planning continues, we are now inviting submissions for our DANCE programme.
We’ve found a stunning, forgotten complex in the city centre which we plan to transform into live music venues and performance spaces for theatre, dance and spoken word, alongside pop-up bars and a multitude of art exhibition and installation spaces.
We are delighted to now be accepting submissions for our dance programme. This is an open call, inviting proposals for ambitious, innovative and experimental performances, works in development, and re-workings of shows that have already been performed.
The deadline for dance submissions is Monday 31 January – please help us spread the word and share this with the creatives in your life!
We’ll be revealing more about the venueand launching our calls for theatre, spoken word and local bands very soon – stay tuned!
Amidst fears that hundreds of Syrian refugees and local Lebanese families could face disaster in freezing winter conditions in the mountains near the Syrian border, officials in the town of Arsal have declared a fuel emergency and appealed for urgent outside help to buy heating oil so they can survive the harsh months ahead.
At an altitude where temperatures can drop to minus 15oC, around 70,000 Syrian refugees, most of them living in tents, and 40,000 local Lebanese residents lack fuel for the diesel stoves that could help them through the winter, the worst of which is still to come.
Around 1400m up in the mountains, Arsal is the highest and most vulnerable of the refugee settlements in Lebanon.
The perils facing refugees trying to keep warm in the winter were highlighted in early January by the death of a Syrian mother and her three young children, asphyxiated by burning coal in their shelter in a coastal village in south Lebanon – at a much lower altitude than Arsal.
Many of the refugee families in Arsal have survived previous winters, but this one is different. Because of the Lebanese economic crisis, fuel prices in the collapsing local currency are now something like 20 times higher than they were 12 months before.
And because of budget cuts, the refugee agency UNHCR and other NGOs are only able to provide funding for less than 30% of the needs.
Each refugee family is left to find around $350 or more to buy the 700 litres of diesel they need to see them through the winter – an impossible sum for them to raise themselves.
Faced with potential disaster, the mayor of Arsal, Basel al-Hujairi, has taken the unusual step of declaring a winter fuel emergency and issuing an appeal, backed by local schools, health centres and NGOs, calling on the international community to step forward to help bridge the drastic funding gap.
“Please reflect on the consequences of leaving thousands of families in flimsy tents without heating in temperatures far below zero and biting winds,” the appeal said.
It needs to raise altogether some $5.5m, which would provide winter heating for 8,500 families huddled in tents, 3,000 in housing, and local Lebanese inhabitants in need, as well as schools, health centres and the municipality.
Issued by Edinburgh Direct Aid (https://edinburghdirectaid.org), a non-profit NGO which is one of the few to maintain a permanent presence in Arsal, running schools, a vocational centre and other projects.
From today (Friday) people travelling to Scotland from abroad who are fully vaccinated or under the age of 18 will no longer need to take pre-departure Covid tests, and will also no longer be required to self-isolate on arrival until they’ve received a negative result.
Travellers in this group will still need to take a test on or before day 2 after arriving in the UK – which can be a lateral flow device rather than a PCR test from Sunday.
Anyone who tests positive on their lateral flow test will need to isolate and take a free confirmatory PCR test.
The new measures apply across the UK after agreement between the UK Government and the three devolved administrations of Scotland, Wales and Northern Ireland.
Pre-departure Covid tests, the requirement to self-isolate and mandatory PCR tests were re-introduced in December to help stem the spread of the Omicron variant, but are now seen as less necessary because Omicron is now the dominant strain in the UK.
In addition, Ministers have agreed to approve vaccine certificates for a further 16 countries and territories from 0400 on 10 January to allow quarantine-free travel to Scotland. The red list of highest risk countries will remain unchanged with no countries currently on the list.
All four nations are also discussing what the requirements should be for border travel in the future.
Cabinet Secretary for Net Zero, Energy and Transport Michael Matheson said: “Given the rapid spread of Omicron last year it was essential that we took immediate steps to protect public health in Scotland, particularly with regards to international travel.
“We still have significant concerns over Omicron, but we recognise that, now it is the most dominant strain in Scotland and across the UK, it is sensible to review the measures currently in place.
“We also fully understand the impact of the restrictions on staff and businesses in the travel and aviation sectors and these changes demonstrate our commitment not to keep measures in place any longer than necessary.
“However, people still need to be extremely careful when travelling and to remember that both our and other countries’ COVID-19 requirements can change at short notice as things can evolve very quickly.
“People should therefore ensure they have travel insurance and carefully check their booking terms and conditions, as well as ensuring compliance with the latest regulations for the country being visited.”
Which? is calling for stronger safeguards to stop online shoppers from choosing Buy Now Pay Later to pay for products without knowing the risks, as new research from the consumer champion reveals many people do not think that they are taking on debt when using this payment method.
Buy Now Pay Later (BNPL) has soared in popularity in recent years as a way for consumers to pay for goods and services, with the biggest provider Klarna now boasting 13 million customers in the UK.
But Which?’s research, carrying out in-depth interviews with 30 typical BNPL users, has raised concerns that shoppers do not fully understand the risks of choosing a ‘pay later’ option at the checkout.
Many of the BNPL users interviewed by Which? did not think of BNPL schemes as a form of credit, meaning they could unwittingly be exposing themselves to serious risks of missing repayments, such as late fees, marked credit reports or referral to a debt collector.
Instead, participants described the schemes as a ‘way to pay’ or a ‘money management tool’, rather than a credit provider. One user said: “It allows payments to be spread out for budgeting. It made things possible which in one go would have been extremely difficult and I would have probably had to borrow money from elsewhere.”
Though BNPL schemes are a form of credit, they work differently to more traditional methods of borrowing such as credit cards. Not all BNPL schemes run hard credit checks, for example, and users can normally sign up to a BNPL scheme in a matter of clicks.
Which? research found it was precisely this speed and simplicity when selecting BNPL at the checkout that contributed to users’ misunderstanding. Another user said: “It seems really convenient and no hassle. It just asks a few questions so it doesn’t feel like you’re committing to a credit agreement.”
The research also revealed low engagement with BNPL providers’ terms and conditions. Most BNPL users said they either skimmed the T&Cs or simply ticked a box to say they had read them in full.
As a result, some users had a limited understanding of the consequences of missing payments, and the safeguards and checks carried out by BNPL providers. Some participants were not aware there were late payment fees at all.
Throughout the research, Which? also found that BNPL users do not consider the prospect they might struggle to make repayments. In fact, using BNPL schemes made some consumers feel less concerned about making purchases they would not otherwise view as necessary or affordable.
“It softens the blow psychologically. It almost doesn’t feel like I’m blowing £100 on shoes,” said one participant.
Concerningly, many of the participants wrongly assumed the schemes were regulated. “I am surprised, I am shocked, they should be regulated. If you have a service that is not regulated you have no protection for consumers,” one participant said.
This lack of understanding around BNPL products is particularly concerning given previous Which? research that found people are more likely to be using BNPL at stressful and challenging times in their lives.
Missing a credit repayment or bill or experiencing a major life event – such as getting married, having a baby, moving home or being made redundant – increases the odds of using BNPL by around a third (38% and 35%, respectively).
That is why Which? is calling for stronger safeguards to protect consumers, including steps in the checkout process to ensure people understand they are borrowing money when using BNPL, and warnings about the risks of using the schemes.
Key information, such as payment terms, late fees and the potential consequences of missed payments, should be communicated at the point of transaction to help consumers make informed choices. Given the immediate risk, BNPL providers should proactively make their key terms and conditions more accessible, rather than waiting for regulation.
Affordability assessment should also be carried out for all BNPL transactions ahead of regulation being introduced.
As the government’s consultation into regulation of the BNPL market closes, the consumer champion wants no delay in regulating these schemes to ensure that those who use it are properly informed and protected.
Rocio Concha, Which? Director of Policy and Advocacy, said:“Buy Now, Pay Later (BNPL) schemes can offer speed and convenience at the checkout, but our research shows that many users do not realise they are taking on debt or consider the prospect of missing payments.
“That is why there must be stronger safeguards to protect consumers and warn about the risks of using the schemes. Payment terms, late fees and the potential consequences of missed payments should be communicated at the point of transaction.
“There must also be no further delay to plans for BNPL regulation, which should include much greater marketing transparency, information about the risks of missed payments and credit checks before consumers are cleared to use BNPL providers.”
HM Revenue and Customs (HMRC) is waiving late filing and late payment penalties for Self Assessment taxpayers for one month – giving them extra time, if they need it, to complete their 2020/21 tax return and pay any tax due.
HMRC is encouraging taxpayers to file and pay on time if they can, as the department reveals that, of the 12.2 million taxpayers who need to submit their tax return by 31 January 2022, almost 6.5 million have already done so.
HMRC recognises the pressure faced this year by Self Assessment taxpayers and their agents. COVID-19 is affecting the capacity of some agents and taxpayers to meet their obligations in time for the 31 January deadline. The penalty waivers give taxpayers who need it more time to complete and file their return online and pay the tax due without worrying about receiving a penalty.
The deadline to file and pay remains 31 January 2022. The penalty waivers will mean that:
· anyone who cannot file their return by the 31 January deadline will not receive a late filing penalty if they file online by 28 February, and
· anyone who cannot pay their Self Assessment tax by the 31 January deadline will not receive a late payment penalty if they pay their tax in full, or set up a Time to Pay arrangement, by 1 April.
Interest will be payable from 1 February, as usual, so it is still better to pay on time if possible.
Angela MacDonald, HMRC’s Deputy Chief Executive and Second Permanent Secretary, said: “We know the pressures individuals and businesses are again facing this year, due to the impacts of COVID-19.
“Our decision to waive penalties for one month for Self Assessment taxpayers will give them extra time to meet their obligations without worrying about receiving a penalty.”
Lucy Frazer, Financial Secretary to the Treasury, said: “We recognise that Omicron is putting people under pressure, so we are giving millions of people more breathing space to manage their tax affairs.
“Waiving late filing and payment penalties will help ease financial burdens and protect livelihoods as we navigate the months ahead.”
The existing Time to Pay service allows any individual or business who needs it the option to spread their tax payments over time. Self Assessment taxpayers with up to £30,000 of tax debt can do this online once they have filed their return.
Other COVID-19 grants and support payments such as self-isolation payments, local authority grants and those for the Eat Out to Help Out scheme
The £500 one-off payment for working households receiving tax credits should not be reported in Self Assessment.
HMRC urges everyone to be alert if they are contacted out of the blue by someone asking for money or personal information.
Taxpayers should always type in the full online address www.gov.uk/hmrc to get the correct link for filing their Self Assessment return online securely and free of charge. HMRC sees high numbers of fraudsters emailing, calling or texting people claiming to be from the department.
If in doubt, HMRC advises not to reply directly to anything suspicious, but to contact them straight away and to search GOV.UK for ‘HMRC scams’.
58% of firms expect their prices to increase in the next three months, the highest on record. 66% of businesses cited inflation as a concern, also a record high
1 in 4 (27%) firms were worried about rising interest rates, as concerns over rate hikes among manufacturers reach record high
Just under half of firms (45%) reported increased domestic sales in Q4, compared to 47% in Q3
The BCC’s Quarterly Economic Survey (QES) – the UK’s largest independent survey of business sentiment and a leading indicator of UK GDP growth – has shown the recovery stalled in the fourth quarter, with firms facing unprecedented inflationary pressures.
The survey of almost 5,500 firms showed that some indicators also revealed a continued stagnation in the proportion of firms reporting improved cashflow and increased investment. Inflation is the top issue for firms, while a rise in the interest rate was also a cause for concern for many.
Business activity
45% of respondents overall reported increased domestic sales in Q4, down from 47% in Q3. 16% reported a decrease, unchanged from Q3.
In the services sector, the balance of firms reporting increased domestic sales dropped to +26% in Q4, from +31% in Q3.
In the manufacturing sector, the balance of firms reporting increased domestic sales was +22% in Q4, down from +28 in Q3.
Prior to the surge in Omicron infections, hotels and catering had been most likely to report increased domestic sales (55%). This represented the beginning of a potential recovery as the sector was also the most likely to report decreased sales throughout the rest of the pandemic.
94% reported decreased sales and cash flow at the start of the pandemic in Q2 2020. Worryingly, a similar decline is now possible in the face of the Omicron variant and the implementation of Plan B which led to new restrictions for some.
Unprecedented Inflationary Pressures
58% of firms expect their prices to increase in the next three months, the highest on record. Only 1% expected a decrease.
The percentage expecting an increase rises dramatically to 77% for production and manufacturing firms, 74% for retailers and wholesalers, 72% for construction firms, and 69% for transport and distribution firms. These are the highest on record.
When asked whether firms were facing pressures to raise prices from the following factors, 94% of manufacturers cited raw materials, 49% cited other overheads, 30% cited pay settlements, and 13% cited finance costs.
When asked what was more of a concern to their business than three months ago, 66% of firms overall cited inflation (compared to 52% in Q3 and 25% in Q4 2020), the highest on record. For production and manufacturing firms, this rises to 75%.
Concerns over higher interest rates rise sharply
The percentage citing interest rates as a concern rose in the quarter. 1 in 4 firms (27%) reported interest rates as a concern, up from 19% in Q3.
The percentage mentioning interest rates as worry among manufacturers stood at 28% in Q4, the highest seen since the metric was first collected in Q4 2009 and up from 21% in Q3.
The percentage citing interest rates a concern among service sector firms stood at 29% in Q4, the highest seen since Q3 2014 and up from 22% in Q3.
Little recovery to Cash Flow
For firms overall, 31% reported an increase to cash flow, while 46% reported no change and 23% reported a decrease.
Given these figures were reported before the full impact of Omicron and the introduction of Plan B, this metric is a cause for concern, as some firms are still struggling to recover from large scale losses incurred since the start of the pandemic.
Most firms still not investing
Investment in plant, machinery, or equipment also continued to flatline in Q4, with 29% overall reporting an increase, while 60% reported no change, and 11% a decline. This was largely unchanged from Q3 and Q2.
Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:“Our latest survey suggests that UK’s economic recovery slowed in the final quarter of 2021 as mounting headwinds increasingly limited the key indicators of activity.
“The persistent weakness in cash flow is troubling because it leaves businesses more exposed to the economic impact of Omicron, rising inflation and potential further restrictions.
“The record rise in price pressures suggests that a substantial inflationary surge is likely in the coming months. Rising raw material costs, higher energy prices and the reversal of the VAT reduction for hospitality are likely to push inflation above 6% by April.
“The notable uptick in concerns over higher interest rates underscores the need for the Bank of England to proceed with caution on further rate rises to avoid undermining confidence and an already fragile recovery.
“The UK economy is starting 2022 facing some key challenges. The renewed reluctance among consumers to spend and staff shortages triggered by Omicron and Plan B may mean that the UK economy contracts in the near term, particularly if more restrictions are needed.
“Rising inflation is likely to limit the UK’s growth prospects this year by eroding consumers’ spending power and squeezing firms’ profit margins and their ability to invest.”
Responding to the findings, Director General of the British Chambers of Commerce, Shevaun Haviland, said: “Our latest survey paints a challenging picture for the UK economy as we start 2022.
“Many businesses were facing a struggle to improve their cashflow and raise investment even before the Omicron variant surged and Plan B was imposed.
“Supply chain disruption is continuing to persist, inflation is soaring, and rising energy costs are presenting firms with a huge headache.
“With companies now having to grapple with the impact of Omicron and further changes to the rules on imports and exports of goods to the EU, there are significant hurdles for businesses in the months ahead.
“The Government has listened to our previous calls for support, and it must do all it can to steady the ship and steer the economy through these uncertain times. If the current restrictions persist or are tightened further then a more comprehensive support package that matches the scale of any new measures, will need to be put in place.
“The focus must be on creating the best possible environment for businesses to grow and thrive. By supporting firms, they can begin to generate wealth, create jobs and support communities.
“That is by far the best way to sustainably deliver the tax revenue the government needs to support public services and the wider economy.”
