Tag: finance

Council allocates additional cash

City councillors have agreed options for investing around £21m in one-off additional funding. 

In February, the Council set a balanced budget for 2021/22, addressing and shaped by the key priorities of the Council Business Plan – tackling poverty, promoting sustainability and enhancing residents’ wellbeing.

Following confirmation by the Scottish Government of additional funding for local authorities and, after making provision for the anticipated on-going financial impacts of the pandemic over the next two years, Council officers identified up to £21m which could be made available to address budget pressures, anticipated shortfalls in savings delivery and other member priorities in 2021/22 and 2022/23.

At yesterday’s meeting of the Full Council, political groups on the Council put forward and debated motions outlining their proposals for directing these monies. The motion by the SNP-Labour ‘Capital Coalition’ was carried, meaning the £21m will be invested as below. 

Councillor Rob Munn, Finance and Resources Convener, said: “When our Council budget was agreed in February, the final local government settlement was not known in full. At the time we set a prudent Budget in the knowledge that we would have other decisions to make following clarification of the final settlement. 

“That final settlement was more than we had anticipated and I’m very pleased that we’ve been able to agree these investments in Council today, helping us to meet our commitments and to ensure that we address poverty, well-being and the climate challenge.”

Councillor Joan Griffiths, Finance and Resources Vice Convener, said: “The Covid19 pandemic has had a very significant impact on local government budgets so it’s very welcome to be able to invest more money now towards our core priorities for Edinburgh.

“The proposals now approved will give a real boost to our work to achieve our core ambitions for the Capital – tackling poverty and inequality, boosting sustainability and enhancing wellbeing for everyone who calls the city home.

“I particularly welcome our decision to invest £250,000 in a fund to support carers after the extremely challenging time they’ve faced during the pandemic, as well as our £600,000 investment in prevention services and community engagement to support residents at risk of poverty.”

AGREED INVESTMENT OPTIONS:

Roads and Pavements Infrastructure – recognising the impact of prolonged winter weather the Council will invest an additional £2m extra in repairs to the roads and pavements network including local residential areas and an extra £4m to improve surface condition for all users – those walking, wheeling, cycling, using public transport and motorists.

Street Cleaning and gritting – we will invest £300k to improve both street cleansing operations and winter gritting making our streets cleaner and safer.

Communal Bins – £1.1 million in this programme to improve organisation and capacity in communal bins across the city, bringing forward investment to improve the service and address the funding shortfall in delivering the programme in full.

Public Conveniences – the £450,000 Council has already approved to invest will ensure a temporary network of public conveniences at key locations, meeting accessibility needs in premier parks and other locations where people need facilities.

Estate Energy Reduction – a further £500,000 to improve Council estate carbon performance to meet the climate challenge by identifying shovel-ready projects.

Carbon net zero engagement – £700,000 to take forward citizen communication and engagement to bring about behaviour change assisting the city in reaching carbon net zero target.

EV Infrastructure – £250,000 to expand EV charging infrastructure for the Council’s own fleet, ensuring that the Council leads by example by making our vehicle fleet carbon zero.

Up Recycling – £200,000 to improve the Council’s recycling performance.

20-minute neighbourhoods – £500,000 to drive forward the delivery of 20-minute neighbourhoods, making it easier for people to get to and access the services they need in their community.

Food Growing – £130,000 to be invested, recognising the increase in demand for local food growing opportunities. This is investment to expand provision.

Looked after Children – recognising the pressures of out of authority placement, the Council will invest £1.5m to improve the service and help ensure vulnerable children are accommodated in authority wherever possible.

Children & Families Development officers – £124,000 to provide service for disabled children in terms of holiday provision and positive destinations.

Carers’ Recovery Fund – recognising the extra challenge for carers during the pandemic, the Council will invest £250k in a fund providing additional support to carers 

Edinburgh Summer Festivals – £300,000 to support resumption of festivals this summer including support for local community festivals

Books for libraries – £50,000 increase in this year’s allocation for new books in our libraries, improving choice and service to Edinburgh residents

Embedding Prevention and Community Engagement – £600,000 investment to improve delivery of prevention services through empowering frontline staff to co-produce service redesign across departments, reform current practice, and create a preventative service and community engagement model and develop a plan for wider roll out.

Diversity and inclusion – £100,000 to accelerate and embed the Council’s diversity and inclusion strategy, including training and development training

Taxi and Licence enforcement – £160,000 to meet demand and ensure robust enforcement.

Edinburgh Integration Joint Board – £2.5m funding to EIJB to address base budget pressures for social care.

Independent inquiries – £400,000 funding for these inquiries to bring them to their conclusion.

Place fees and charges reduced income – £559,000 to address issues with reduced income due to the Covid-19 pandemic changing behaviours and the impact on fees and charges.

Home to School Travel Demand – £600,000 to meet demand in this service while working to reshape and achieve savings.

Development and Business Services Loss of Income – invest £187,000 to cover loss of Planning, Building Services and Regulatory Services income.

Early Years Deferral – The Council will allocate up to £270,000 over the full academic year (two financial years) to offer the 40 nursery children who applied for deferral and were not among the 66 approved through application of appeal a funded place for another year due to lost time through COVID-related nursery closures.

All Ability Bike –  Work is ongoing to find a solution to ensure the service is still available and the Council is investing £71,000 to help facilitate this and ensure transport is inclusive.

In addition to these investments, further funding has been set aside to address the following:

Edinburgh Bike Hire Scheme – the approved Coalition motion states: “We recognise the popularity of the current scheme and seek to continue with a cost-effective and robust scheme fit for the future.”

Trams Concessionary travel – the approved Coalition motion states:  “Trams contribute to Edinburgh’s clean air and net zero strategy and will continue to press the Scottish Government to recognise this in its concessionary travel funding. We will continue dialogue with the Scottish Government on delivering free tram journeys for young people on the same terms as bus travel as we feel an integrated public transport system is key to Edinburgh’s future. If this is unfunded at a national level, we will look into the possibility of expanding free provision to young people in Edinburgh subject to affordability.”

Homelessness – the approved Coalition motion states: “We recognise the pressure on the service in the past year due to Covid and that pressures are expected to exceed the additional £10m allocated in February’s budget. We also recognise that should legislative protections change as restrictions ease, there may be a requirement for even further resources to improve outcomes for temporary homeless accommodation. We will continue to make the case for additional resources equivalent to those allocated to other local authorities for homelessness support from IBJ budgets. Following that process and depending on in-year position due to service demand, we will agree that left over monies can be used to meet the required supply to get the outcomes right for people finding themselves at risk of homelessness.”

Employability for disabled people – the approved Coalition motion states: “to plug the gap left by the loss of the European Social Fund due to Brexit and the lack of a direct replacement fund from the UK government”

Councillors to allocate additional £20 million funding windfall

An update to the budget framework is under way at the Council after the publication of a report outlining a range of proposals for investing approximately £20m of one-off additional revenue funding.

The report will be considered by the Council’s Finance & Resources Committee at their meeting on Thursday before being referred to Full Council on Thursday 27 May, when political groups are expected to submit motions setting out their proposals for investment.

In February, the Council set a balanced budget for 2021/22, addressing and shaped by the key priorities of the Council Business Plan – tackling poverty, promoting sustainability and enhancing residents’ wellbeing.

Following confirmation by the Scottish Government of additional funding for local authorities and, after making provision for the anticipated on-going financial impacts of the pandemic over the next two years, Council officers have now identified up to £20.15m which could be made available to address budget pressures, anticipated shortfalls in savings delivery and other member priorities in 2021/22 and 2022/23.

Finance and Resources Convener Councillor Rob Munn said: “We were very pleased to have been able to set a balanced budget back in February despite the ongoing challenges and pressures brought about by the Covid19 pandemic.

“It’s welcome, therefore, to now have this opportunity to invest further in this financial year and the next and I’m looking forward to a thorough and, I hope, constructive debate among elected members over the next couple of weeks on the best ways to direct this funding.

“Ultimately, we want to ensure we’re targeting the extra investment in line with our core priorities and the services most valued by the people of Edinburgh.

Finance and Resources Vice Convener Councillor Joan Griffiths said: “I’m sure this opportunity to collectively agree priorities for investing this funding will be unanimously welcomed across the chamber.

“Committee will have its say on 20 May first of all and thereafter it’s over to the full complement of Councillors to arrive at a set of agreed spending options which support our priorities – tackling poverty and inequality, boosting sustainability and enhancing wellbeing in the city.

“I’m confident we’ll be able to approve a revised budget framework that takes Edinburgh forward positively.”

Scots to lose £42.6million to online fraud

  • Scots expect to lose a staggering £42.6million to online fraud, with 13% of Scots expecting to become a financial victim losing an average of £600
  • Although 13% of Scots expect to lose money to online fraud in the future, the average they expect to lose is the lowest in the entire UK at just £600, compared to the UK average of £1,574.
  • Over half of Scots (54%) admit to using easy to guess personal information in their secure online passwords, with 14% using their birthday, and almost one in five (18%) admitting to including their pet’s name. 
  • Scots should ‘paws for thought’ with one in five admitting to using their beloved pet’s name as their supposedly secure passwords. 
  • Two thirds (66%) of Scots confess to sharing personal information, passwords and memorable words publicly on social media, without realising the risk they put themselves at.
  • Scots are amongst the most security conscious in the UK, with 59% saying they would change their password after a single breach had been detected, compared to a UK average of just 53%

ClearScore, the UK’s leading free credit score and credit marketplace, has launched ClearScore Protect Plus, offering round-the-clock online identity protection and fraud defence, alongside nationally representative research revealing that Brits expect to lose a staggering £15.7billion in the future due to online fraud.

With a first-to-market personalised security score, Protect Plus Cover and access to a dedicated fraud support manager if you do become a victim of fraud, ClearScore Protect Plus offers peace of mind, helping you to get ahead of fraudsters and stay ahead.

With Covid-19 restrictions beginning to ease and life beginning to feel a little more normal, fraudsters are preparing to take advantage as Britons begin planning to spend more freely in a post-lockdown era.

With the Bank of England governor Andrew Bailey predicting a post-covid spending binge, 65% of people have said that they are waiting for the Covid-19 crisis to ease before making big spending commitments.

Whilst planning their post-covid purchases, it seems people are also preparing to become the victim of an expected surge in online identity theft, with the average Brit expecting to lose an astonishing £1,574 to online fraud. With 15% anticipating losing money in the future, online fraud is predicted to cost the UK £15.7billion.

However, in spite of the large numbers of people who believe they’ll be a future victim of fraud, there is a disconnect between expectation and reality. Whilst the majority (53%) believe that they would change their password after one security breach being detected, internal data from ClearScore demonstrates that in reality, a staggering 94% of people take no action after a password breach has been flagged.

Worryingly, over half of people (55%) admit to using easy-to-guess personal information in their supposedly secure online passwords, with one in ten including their name, 9% their children’s name, 12% their birthday, and 17% including pet’s names in passwords.

With such a high proportion admitting to using easy-to-remember, but less secure, personal information in their online passwords, a staggering two-thirds (66%) confess to posting their secure personal information, including passwords and memorable words publicly on social media. Combined, these two traits make Brits a hacker’s dream. 

ClearScore Protect Plus provides round-the-clock identity protection, using advanced web scanning to find breaches of your personal data on the dark web and beyond. Searching for instances where passwords, email addresses, phone numbers and your date of birth might have been shared by fraudsters.

With daily credit report monitoring, users will receive instant alerts both when personal information or a password breach is detected, along with any upcoming changes to a credit report, so unexpected activity can be checked and verified instantly.  

ClearScore Protect Plus features include: 

  • Dark web scanning for passwords, breaches and personal information
  • Deep web scanning passwords, breaches and personal information including phone numbers, home addresses and date of birth
  • Credit report alerts in case of any unexpected activity on your report
  • Security tips and tailored actions in the event of a breach being detected
  • Personalised first-to-market security score out of 1000 to help you understand your personal risk of identity fraud
  • Dedicated fraud case manager  to help you get back on track step-by-step if you ever do become the victim of fraud 
  • Protect Plus Cover including access to a specialist team who’ll help replace lost or stolen cards on your behalf, up to £200 towards replacing a stolen passport or driving license, and expert help to resolve cybersecurity issues
  • Credit freezing as standard if you believe you’ve been the victim of fraud, meaning anyone taking credit out in your name must provide extra documentation (such as a passports or driving licence)

CEO and Co-founder of ClearScore, Justin Basini says, “Since launching ClearScore Protect in April 2020, we have helped over 2.6million people protect themselves from online fraud.

“The launch of ClearScore Protect Plus supercharges that level of protection, providing people with a complete round-the-clock support package, from identification of instances of fraud, to supporting you in improving your online security, to helping you deal with the fallout of any instances of password breaches or identity fraud.

“Having fallen victim to identity theft myself, I understand how it can impact a person’s financial and mental well-being, and ClearScore Protect Plus is here to give personal and tailored support to ensure your online security is protected, always.”

ClearScore Protect Plus costs £4.99 a month (or £49.99 a year).

For more information on ClearScore Protect Plus visit: 

www.clearscore.com/protectplus

Nearly half of Edinburgh people lack basic financial literacy, new study reveals

A new study has revealed how a lack of financial education has left people across the United Kingdom confused by their own money with detrimental effects on their confidence, mental health and financial wellbeing.

Investment app Freetrade created the Great British Financial Literacy Test – 18 questions about savings, investment, ISAs and retirement that everybody will likely encounter at some point in their lives.

How did Britons perform in the financial literacy test?

Asking 2,000 British people to complete the test, Freetrade discovered that almost half of them (48%) could not answer basic questions about personal finance including what an ISA stands for, the difference between fixed rates and variable rates, and what your annuity provider does when you retire.

Retirement was the area of personal finance that people struggled to understand the most with 80% of Brits unable to correctly answer this part of the test. This figure was 81% among respondents aged 55+ approaching retirement age.

The pass rates for questions about investment were the second lowest at 44%. This was followed by savings at 34% and ISAs at 32%.

Do British people lack confidence in their finances?

Equally as alarming as the low pass rates across the UK were people’s lack of confidence around aspects of personal finance. Overall, 88% of Brits say they lack confidence with their money, and one third of Britons (32%) said this also led to a negative impact on their mental health.

An overwhelming majority of respondents (91%) told Freetrade they lack confidence in investment. 90% of Brits similarly lack confidence in managing their retirement money, according to the study. 88% of the UK also lack confidence when it comes to ISAs.

Dan Lane, senior analyst at Freetrade, said: “The greatest advantage you can give your investments is time. So it’s concerning that the cohort with the most time on their hands feels so ill-equipped.

“Whether we realise it or not, investing early on in life could be the difference between reaching our eventual financial goals or missing them entirely. Getting to grips with the basic concepts later in life might just be too late.

“There should be alarm bells ringing about the fact that 90% of Brits lack confidence with their pensions. With advances in medical technology and increased life expectancies we’re likely to live longer in retirement than ever before.

“But a massive gap in our understanding of how to invest for our third age, or even how to access those investments suitably later on, means we really aren’t prepared for a sizable portion of our lives. Unless we’re thinking about investing for retirement long before we get there, we could end up in the awful position of regretting the simple financial decisions we made 30 years ago.

“It’s a real sign of the nation’s lack of financial education when a huge portion of the population doesn’t know the name of one of the most common savings products. The frustrating thing about the lack of confidence around ISAs is just how helpful, accessible and easy to use ISAs can be. Chances are, if we’re unsure about the headline facts around ISAs, we’re not using them to help us as much as we could.”

Which areas of the UK have the highest and lowest financial literacy rates?

Brighton was the city discovered to be the most financially literate, according to Freetrade’s study. Pass rates there were 55%, much higher than the national average. Sheffield, however, was discovered to be the city with the lowest financial literacy with only a 47.6% pass rate.

The five highest and lowest scoring cities in the UK are:

Top 5 CitiesPass RateBottom 5 CitiesPass Rate
Brighton55%Sheffield47.6%
Manchester54.1%Belfast48.5%
Edinburgh53.8%Birmingham51.8%
Southampton53.5%Nottingham51.9%
Cardiff53.5%London52.4%

Dan Lane, senior analyst at Freetrade, continued: “There are regional differences on show but the overall takeaway is that we still need a greater focus on financial literacy all across the UK.

“Basic concepts like compound interest might be ticked off in the National Curriculum but setting us up to deal with that in the real world takes more than a textbook exercise.

“These results should be a wake-up call for the nation’s education system to equip young people well enough to put theory into practice.”

Where are we turning to for financial education?

Struggling to understand finance, Britons are turning to the internet for help. 23% of us make Google their first stop for learning about personal finance—the most popular answer among respondents. The second most common answer was social media with 16% of people saying they would get financial education from platforms like Instagram, TikTok or Facebook.

Dan Lane, senior analyst at Freetrade, concluded: “Young people are taking their future into their own hands and being proactive in addressing the gap in their financial knowledge.

“The results show that previous generations have clearly muddled through to retirement without ever getting a firm grip on their money management and the youngest Brits have said enough is enough.

“Social media can make the headlines for the strangest of reasons but dismissing these platforms means ignoring the truly valuable educational content young people are finding on them. These are free resources and guidance tools dealing with money matters in a way that engages and informs a generation who left school without a firm financial foundation.

“Those who diminish the efficacy of these resources have to ask themselves ‘what else is on offer to help?’”

One in three Scots experience financial shock during pandemic

Financially shook: 19.8 million people have experienced a financial shock since the pandemic began – with an average decrease in income of £538 per month

•    Two out of five UK adults (38%) have experienced a financial shock as a result of the pandemic

•    Those who experienced a financial shock saw their income decrease by £538 per month on average– almost a full week of spending for the average household2 according to the ONS – and equating to £11 billion3 nationally

•    Over half (51%) of UK consumers have not taken steps to protect themselves against a potential financial shock

New research from Yolt, the award-winning smart money app, reveals that almost 20 million UK adults have experienced a financial shock, such as a pay decrease, job loss or a drastic change in financial situation, since the beginning of the pandemic.

Those who have had to deal with a financial shock saw their income decrease by over £530 per month on average – which almost equates to one full week of spending for the average family in the UK, according to the Office for National Statistics (ONS). Despite this, over half (51%) of UK consumers revealed they have not taken steps to protect themselves against a sudden change in income, or a shift in their finances that would mean they couldn’t cover their usual outgoings.

The research found that in many cases (19%) people had seen their income decrease and one in ten (11%) have been furloughed during the pandemic. In responses to these shocks, over a third (34%) have dipped into their savings and a quarter have turned to credit card spending (26%). One in five people who experienced a financial shock (20%) tried to raise money by selling things online and one in seven (16%) borrowed money from their family.

Experiencing a financial shock makespeople much more likely to put precautions in place in the future, as three out of four (74%) who had previously experienced a financial shock have taken action – compared to a third (33%) who hadn’t faced a shock.

Amongst all UK adults, these preventative steps included, reviewing theirmonthly outgoingstosee where cutbackscanbe made (23%), putting money aside in a rainy day fund (15%) and a focused approach to paying off debts (12%) to help ease financial pressure.

In fact, one in four of Brits (25%) said that the pandemic has made them finally look totackle their debt – as evidenced by recent data from the Bank of England which found that UK households repaid a total of £16.6bn on credit cards and loans in 20205.

Financial uncertainty continues to fuel consumer anxiety in the UK. Almost two out of five UK adults (38%) are extremely worried about their financial future and half (54%) want to protect their family financially more now, than ever before.

Pauline van Brakel, Chief Product Officer at Yolt, said: “Our research shows that the impact of the pandemic on people’s finances has been far reaching.

“There is no uniform financial experience or response tothe current economic climate and we’re unfortunately seeing a widening wealth gap, with some people able to save during this period, as the opportunity to spend has declined, and other people unfortunately having suffered a significant reduction in income at an average cost of £538 per month.

“With the UK still experiencing great levels of uncertainty there could be further financial shocks on the horizon for many – especially with government support schemes such as furlough due to come to an end in the coming months.

It’s no doubt a challenging time for all but engaging with your finances and looking to see where you could make cutbacks to save even a small financial cushion can be a lifeline if you do experience a financial shock.

“At Yolt, our recently launched evolution of the app is designed to help you manage your finances and take the hassle out of saving – by helping people save while they spend and making creating savings habits easier.”

£30 million for charities and social enterprise

A new £30 million fund is being established to support small businesses within the third sector, helping them to grow as Scotland recovers from the impacts of coronavirus.

The fund will be designed to respond to a need for third sector organisations to access loans to help grow and explore new forms of social investment and finance. It will also help support the sector to meet the challenge of the pandemic and to become more sustainable in the long-term.

Communities Secretary Aileen Campbell said: “We have worked hard to support the third sector throughout the pandemic. This new fund will focus on those organisations with the potential to grow, contributing to jobs and making a positive contribution to our communities and the wellbeing economy. 

“It also goes some way towards our commitment to explore other strands of social investment, including capital loans, to build upon Scotland’s world leading position in social enterprise.

“The fund will help this sector to ensure that it not only supports our communities, but is at the very forefront of our recovery, leading our communities and our country through recovery.”

Yvonne Greeves, Board member at Firstport & Chair of Catalyst Fund, said: “The Catalyst Fund is an exciting new addition to the social investment arena in Scotland.

“The patient, revenue-based repayment model is well placed to help certain social enterprises obtain the capital they need to start-up and grow, whilst offering them a more flexible repayment approach to match their ambitions.

“We welcome the support from the Scottish Government in backing this innovative model and we look forward to supporting social enterprises with potential for high-growth to enter new markets and deliver significant social impact.”

The Third Sector Growth Fund will build on more than £1 billion which has been invested in communities since the start of the pandemic, which includes a recent commitment to a further £14 million to allow the Communities and Third Sector Recovery Programme to continue to the end of June.

The Third Sector Growth Fund will have three elements:

  • The Social Catalyst fund, which totals £15 million, will help growing organisations which are not able to access finance through standard loans, offering investment which can be repaid based on turnover, rather than growing interest rates. This would suit small businesses and start-ups whose income is variable.
  • The Circular Economy Fund will support activity which builds on sustainability of social enterprises and enables growth through investment loans. Together with The Long Term Third Sector Finance Fund which will offer loans for social enterprises and Third Sector organisations over a period of 18-24 months. a total of £10 million will be available.
  • The Social Impact Venture Portfolio will offer investments of equity into mission-driven businesses, encouraging organisations to adopt a social enterprise model. This is worth £5 million.

The delivery partners are The Social Impact Venture Portfolio and Social Investment Scotland, a social enterprise and a charity offering loan funding and business support across the sector to make a positive impact on lives, society and the environment.

Social Investment Scotland will manage The Circular Economy Social Enterprise Fund and Long Term Third Sector Finance Fund.

The Impact Investment Partnership Scotland (IIPS), an entity owned equally by Firstport and Social Enterprise Scotland (SES), will manage the Social Catalyst Fund.  

Access to the funds will be by application. Further details of the funds and how to apply will be published on the partner organisations websites later this Spring. 

What are the best Cashback Apps?

HOW TO SAVE HUNDREDS ON YOUR ONLINE SHOPPING

Cashback apps and coupon sites can provide a quick boost when times are tough, but how do you sort the savers from the scammers?

Due to the disruption of Covid-19, purse strings are a little tighter right now for many, meaning people are using cashback apps to claw back some much-needed cash.

However, not every app is worth investing your time in, with some not being exactly what they appear. 

Watch out for sites that charge a hefty sign-up fee, or that ask for more personal information than you should need to provide. If a site doesn’t have clear, easy to read FAQs that spell out how to get your money and what their privacy policy is, don’t trust them. 

To help consumers get the from their apps, the personal finance experts at money.co.uk have provided expert tips on some of the best cashback apps to download now.  The definitive guidance will help save money on your online shopping, sorting the must have apps from the technical time wasters. 

The cashback apps to download now

  1. Shoppix

One of the most popular new reward apps, Shoppix works by building up tokens that can be exchanged for gift vouchers or cash prizes. To earn tokens, users have to take pictures of their receipts on their phone and upload them. Additionally, you can complete surveys each day to collect tokens. Tokens can be exchanged for £5, £10, or £20 prizes on the app, which are paid into your account via PayPal or in gift card format. 

Top Tip: Bonus tokens are awarded for scanning receipts on the same day you make your purchase, so snap them quickly to save more!

2.            TopCashBack

Unlike other apps which require you to snap receipts, TopCashBack is remarkably low effort. To earn cashback, you simply have to make purchases from select retailers (brands include everything from Carphone Warehouse, to Plusnet, Sky, PrettyLittleThing, RAC and more), and you’ll receive your reward via gift cards or PayPal. The percentage of cashback you receive varies depending on the brand you’re shopping with and can also be affected by seasonal offers – so make sure to check the site regularly for the latest deals. 

Top Tip: Cash isn’t always better – the amount you earn using vouchers can be 20% more than the cash equivalent, so check both options before you pick your reward. 

3.            Quidco 

Quidco is TopCashBack’s main rival and works in much the same way – giving you cashback on purchases through major retailers. The only real difference between the two apps is the brands that are available: Quidco has a number of household names as partners including Amazon, Argos, Boots, Just Eat and more. If you can, it’s more than worth downloading both Quidco and TopCashBack, to ensure you don’t miss out on any savings. 

Top Tip: Check the estimated times on your cashback – some brands take longer than others when going through Quidco to process rewards, so make sure to factor this in when budgeting to avoid being caught short. 

4.            SwagBucks

SwagBucks is another app that gives you rewards (or ‘SB points’) through online purchases that can then be redeemed for cash or vouchers. The big difference with SwagBucks is that as well as cashback through purchases, SB points can be awarded from completing a huge variety of surveys, games and reviews. 

Top Tip: Many of the surveys and video reviews are incredibly short, so you don’t have to dedicate hours in order to save, just check in a few times a day and spend a few minutes on the app each time.

5.            Honey

Honey is completely different to other cashback apps, in fact it’s not even an app at all – it’s a free Chrome extension – that automatically searches for discount codes and coupons when you checkout at major retailers. In essence, you don’t have to do any work at all, just download and start saving. 

Top Tip: Aside from the discount code function, Honey also sends you rewards such as gift cards based on your purchases – make sure to check your inbox (and your junk) to avoid missing out.  

Ask the Expert 

On cashback apps, Salman Haqqi, personal finance expert at Money.co.uk says: “Cashback apps make their own money in a variety of ways; some get a commission on transactions made via major retailers, and some sell shopping trends data to third parties to make profit.

“Whichever app you use, make sure you check out their website first to identify how they use your data to check you’re happy with the terms.

“While it is possible to earn hundreds, or even thousands in some cases via cashback apps, the total saving usually boils down to how much time you’re willing to commit to using them.

“If you are time poor, try one of the apps that gives rewards on direct purchases such as TopCashBack or Quidco. However, if you do have the time to organise and scan your receipts, Shoppix or a similar receipt scanning brand will be the most profitable for you in the long run.

“Finally, if you take your rewards in gift card form, always make a note of the expiry dates, as the date might not be the same as a physical card bought in store. If you take your rewards in cash via PayPal, make sure to transfer it into another account immediately, to avoid being caught out by a refund or cancelled transaction.”

For more information on how you can use mobile apps to keep track of your cash, make money or even boost your credit rating, visit this handy guide put together by the personal finance experts at money.co.uk: 

https://www.money.co.uk/guides/best-apps-for-managing-money

Scottish Government launches Community Lenders Fund

Affordable credit as we emerge from COVID-19

A new £15 million fund has been announced to support affordable lending services.

The fund will support Credit Unions and Community Development Financial Institutions (CDFIs) which offer financial help to those who have poor credit and are often turned away from high street banks.

Communities Secretary Aileen Campbell said: “We know the pandemic has had a financial impact on many people in Scotland and we want to strengthen services that support people with managing their money.

“Credit unions and CDFIs provide ways of saving, lending, and accessing affordable credit.

“They can be a financial lifeline for people who can’t always access what they need from high street banks, helping them to avoid riskier ways of dealing with debt, like going to pay day loan companies.”

The funding will support work which:

  • promotes the availability of affordable credit
  • strengthens the balance sheet of affordable credit providers

Organisations are being invited to submit applications by 3 March 2021, and they will be informed of funding decisions during the week commencing 8 March.

Successful applicants will receive funding by 31 March. 

Ghosts of Budgets past (passed?)

UNISON: ‘Local government is at the point of collapse’

UNISON City of Edinburgh branch, has raised fears about the further budget cuts being presented to the city’s full council meeting today and condemns both the Scottish and UK governments for the continuing underfunding of Local Government. 

Over the past 10 years the council has seen hundreds of millions of pounds slashed from its budget resulting in hundreds of job losses, cuts to services, and the closing of third sector organisations. 

“Local government is at the point of collapse and the Scottish and UK Governments have done very little to prevent its demise while at the same time due to COVID-19 has asked it to do more,” said the union’s branch secretary Tom Connolly. 

“Providing services from the cradle to the grave, local government and the services it provides impact on all citizens. The continuing underfunding can have a serious impact on the effectiveness of the services being provided.” 

UNISON, the biggest union representing workers in Edinburgh council,  says that those employed in local government are fire fighting to keep services running, they feel undervalued and the increasing high levels of stress amongst staff is an example of the negative impact on the health and wellbeing of those staff. 

UNISON’s Plug the Gap campaign https://www.unison-scotland.org/protect-our-council-services/ has called on the government to bridge the £1 billion funding gap in local Government. COSLA has also called for the action to be taken to bridge the Funding Gap. 

“Everyone suffers if Local Government is not provided the funding that it needs to provide meaningful services across our communities,” added Tom Connolly. 

“Staff in local government need to be rewarded and paid well for the jobs that they do, there are many low paid workers in local government providing face to face support to or most vulnerable children and adults, in school, care homes etc.  

“Other council staff keep our public buildings clean, keep our roads clear, clean our streets and empty our bins, administrative and clerical workers dealing with benefits and other essential administrative tasks, all examples of low paid and undervalued workers who have continued to keep the city running.   

“These workers now need to be given the value that they have always deserved and rewarded with decent pay and conditions. Clapping does not pay the bills.”

As the city council’s budget meeting gets underway, some images from budgets past:

Buy Now, Pay Later schemes: financial regulator to intervene

The FCA has published a report on change and innovation in the unsecured consumer credit market following a Review by its former Interim Chief Executive, Christopher Woolard CBE.

Read the Woolard Review

The Woolard Review sets out how regulation can better support a healthy market for unsecured lending, taking into account the impact of the coronavirus (Covid-19) pandemic, changing business models and new developments in unregulated buy-now pay-later (BNPL) unsecured lending. The Review was commissioned by the FCA Board.

Christopher Woolard, Chair of the Review, said: ‘Most of us will use credit at some point in our lives. So, it’s vital that we have a fair market that works for everyone. New ways of borrowing and the impact of the pandemic are changing the market, with billions of pounds now in unregulated transactions and millions of consumers at greater risk of financial difficulty.

‘Changes are urgently needed: to bring BNPL into regulation to protect consumers; to ensure that there is secure provision of debt advice to help all those who may need it; and to maintain a sustained regulatory response to the pandemic.

‘Alongside these urgent issues the Review sets out a series of recommendations for how the FCA, working with partners, can build a better market in future.’

UK households have nearly £250 billion of outstanding consumer credit debt and more than 42.5 million people used consumer credit in 2019.

The Review sets out 26 recommendations to the FCA, sometimes working with Government and other bodies, to make the unsecured credit market fit for the future, including:

  • The regulation of unregulated buy-now pay-later: BNPL products which are currently exempt from regulation should be brought within the regulatory perimeter as a matter of urgency. The use of BNPL products nearly quadrupled in 2020 and is now at £2.7 billion, with 5 million people using these products since the beginning of the coronavirus pandemic. The emergence and expansion of unregulated BNPL products gives consumers a significant alternative to more expensive credit, but this also comes with significant potential for consumer harm. For example, more than one in ten customers of a major bank using BNPL were already in arrears. Regulation would protect people who use BNPL products and make the market sustainable.
  • Debt advice: The provision of debt advice will be critical to a sustainable market in the long term, especially through the recovery from coronavirus. Free debt advice services need secure, long-term funding as demand increases to as many as 1.5 million additional cases, following the pandemic. Funding needs to be in place to help the poorest pay fees when applying for debt relief orders.
  • Forbearance: The FCA responded quickly and effectively in the emergency phase of the pandemic – it needs to sustain this response through the recovery, for example by looking at whether it should revise its rules and guidance to drive greater consistency in the type of support firms offer consumers struggling to pay.
  • Alternatives to high-cost credit: A sustainable credit market needs more alternatives to high-cost credit. The FCA should work with the Government and Bank of England to reform the regulation of credit unions and Community Development Finance Institutions. More should be done to encourage mainstream lenders into this space.
  • Outcomes focused: Regulation should be driven by the outcome being sought and how consumers use products in the real world. Regulation should deliver similar protections where consumers face similar harms. In addition to making sure products are affordable, there should be an increased focus on lenders meeting consumers needs’ for as long as they hold the product. The FCA should review repeat lending. 

The FCA welcomes the Woolard Review report into change and innovation in the unsecured credit market and supports the recommendations directed to the FCA. The Board agrees that there is a strong and pressing case to bring buy-now pay-later business into regulation.

Charles Randell has written to the Economic Secretary to the Treasury setting out the Board’s view and proposing that the FCA works with the Government to design the appropriate regulation.

Ensuring consumer credit markets work well is one of the FCA’s five priorities. The Board has asked the FCA executive to build the Review’s recommendations into its business planning. The FCA will publish its 2021/22 Business Plan in April, and will give further details of the response to the Review.

Charles Randell, Chair at the FCA, said: ‘Unaffordable credit can damage the lives of people who are already struggling to manage everyday expenses. While we have made progress in reducing unaffordable debt in the years before coronavirus, the pandemic has had an unequal impact on households.

“Many people have been able to reduce their debts, but some of the poorest in our society have exhausted any savings or run up more debts. All the authorities which cover debt and debt advice must act together systematically to prevent problem debt and to help people get out of a spiral of debt through properly funded debt advice.

‘Regulation should be consistent and the Review shows how we can ensure high standards in consumer credit regardless of the form of credit.

‘The Review has powerful recommendations on debt advice and insolvency including on the IVA market. We are ready to work with other regulators to reduce the harm that IVAs can produce for people that use them, and to reduce the scope for unscrupulous operators to prey on vulnerable indebted people through for-profit debt packaging.

‘As the market innovates and changes, regulators and legislators need to respond quickly and decisively to protect consumers by facilitating credit where it is beneficial and clamping down on it when it does harm. The FCA agrees that there is a strong and pressing case to bring buy-now pay-later business into regulation.’