In a landmark case which established the modern law of negligence and the principle of duty of care (Donoghue v Stevenson, 1932), Donoghue sued a ginger beer manufacturer after becoming seriously ill and finding a decomposed snail in her bottle.

The court ruled in her favour, concluding manufacturers owe a duty of care to consumers even in the absence of a contractual relationship.

The application of a common-sense approach to customers’ rights is the same judgement the Financial Conduct Authority intends for firms when applying Consumer Duty.

Proportionality is a watch word for skilled persons as well as regulators – and it should be for firms

Both the FCA and the new government have recently signaled a desire to encourage growth in UK financial services and to promote competition. In part, this can be achieved through more principles-based regulation such as Consumer Duty.

This summer, the FCA announced it would seek to “reduce burdens on firms and support growth” using the opportunity of the Duty and the move to an outcomes-based approach to streamline its rulebook.

A willingness to streamline detailed rules is likely to be welcomed by firms – but it is not without risks when it comes to interpretation and application.

The tension between securing consumer protection and promoting a healthy market is a balancing act which has always existed for the regulator.

The new focus on growth and principles-based regulation could lead to greater uncertainty around interpretation of the rules

On a micro level, we have seen it play out in the skilled person reviews. There’s always a consideration as to how far an intervention should go when balancing the risk of harm to consumers versus unnecessarily damaging a viable firm if the rules are interpreted too stringently.

Proportionality is a watch word for skilled persons as well as regulators – and it should be for firms.

Implications of new ‘growth’ agenda

The regulator has been fairly stringent in its demands over the last five years at firm supervision level around controls and the timeline for embedding these into practice.

Emphasising growth and competition, even as secondary objectives, may result in a reduction in the time required by the regulators for newly enhanced controls to be embedded – for example, three to six months, rather than six to 12 months.

In addition, the principles-based approach of Consumer Duty might point the way in other areas traditionally heavy on prescriptive application, such as Client Assets (CASS) Rules.

We’ve seen high staff turnover at firms and the FCA, which risks inexperience and inconsistency making these calls

In applying CASS, we have seen very specific rules – such as the need to delete square brackets that denote where text is to be added to a template document – resulting in the regulator instructing firms to reissue and re-execute the documents, at significant cost and effort.

So, the new focus on growth and principles-based regulation could lead to a reduction in cost for firms and, in extreme cases, avoid insolvencies. It will, however, also lead to greater uncertainty around interpretation of the rules.

Interpretation will require a higher level of skill and experience from both firms and the regulator to form judgement calls around principles-based regulation.

We’ve seen high staff turnover at both firms and the FCA over the past few years, which risks inexperience and inconsistency when it comes to making these calls. As the new direction becomes embedded, it will be important for the regulator and regulated firms to have experienced personnel in key roles.

What should firms do?

Firms should train and upskill both staff and board members to be able to apply more principles-based regulation.

Staff should be made aware they are doing more than simply following a set of rules, but rather thinking through the intention behind the regulation.

The new direction from the regulator should create opportunity for financial services firms

There will also be a greater requirement from non-executive directors (NEDs) to raise challenging questions at board meetings around achieving regulatory purpose, rather than simply tracking key performance indications or key risk indicators.

The board should also be able to challenge management information they receive along these lines.

In addition, NEDs can bring invaluable experience of how other firms are interpreting principles. While a “me too” approach is not helpful, an understanding of the range of peer interpretations is valuable input.

We see a lot of small firms without independent NEDs (iNEDs) on the board. While costs can be an issue (sometimes more perception than market tested reality), an iNED can help avoid regulatory missteps.

Ultimately, the new direction from the regulator, enabled by the government’s pro-growth and competitiveness agenda, should create opportunity for financial services firms. But it will also require a more nuanced and enquiring mindset around the application and intention of regulatory requirements.

John Higgins is chief executive of Pathlight Associates

A STUNNING 3-bedroom coastal home in Devon worth over £2 million could be yours in the Omaze Million Pound House Draw.

One lucky winner will get the keys to this beautiful contemporary home – you can purchase entries from as little as £10.

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Devon Omaze Million Pound House Draw

This two-tiered West Country residence comes complete with countryside views, a guest annexe and a heated pool.

In addition to the property itself, the Omaze winner will receive £250,000 in cash to help them settle in.

Along with the prize comes huge financial flexibility: the winner has the option to move straight into this gorgeous Devon retreat, rent it out, or even put it back on to the market.

An estimated monthly rental income of £4,000 means that this home could also serve as a seriously lucrative investment.

One of the most attractive aspects of the Million Pound House Draw is that there are no hidden costs.

Not only will you not have to worry about paying stamp duty, but mortgage fees and conveyancing costs are also covered.

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The house also comes with all the furnishing included, so you’re completely free to move in without digging into that quarter-million cash prize.

This luxe three-bed and two-bath home is situated in the scenic town of Exmouth, which is 12 miles from Exeter, Devon’s second-largest town.

It strikes the perfect balance between coastal living and quick city access.

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Devon Omaze Million Pound House Draw

You’ll get amazing countryside views thanks to the floor-to-ceiling glass that’s in every room, which fills each space with natural light.

The property is also close to Orcombe Point, a UNESCO World Heritage site famous for its dramatic landscape.

Then there’s the annexe, which contains its own kitchen area and boasts stunning views: the perfect place for guests to stay.

Anyone who works from home will also be happy to find a dedicated study space, with Scandinavian-inspired decor and space-saving ladder shelving.

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Devon Omaze Million Pound House Draw

What’s more, by entering early, you’ll give yourself a chance to win not one but two luxury cars.

Alongside the dream Devon home and the £250,000 cash prize, early entrants are also in the running to win BOTH a Porsche Cayenne E-Hybrid and a Porsche Boxster S. 

The Cayenne is a perfect family four-by-four, while the Boxster is a sleek sports car. The total cost for both cars totals over £170,000.

The Omaze Draw isn’t just about changing one lucky winner’s life, however, it also makes a significant impact on society.

A minimum donation of £1m from the Devon House Draw will be given to Campaign Against Living Miserably (CALM). 

CALM’s mission is to help people struggling with life find hope and a reason to stay. 

This substantial contribution will help fund CALM’s suicide prevention helpline for six months, allowing the organisation’s staff to answer over 80,000 calls and provide crucial support to those in their time of need. 

Terms and conditions: Over 18s and UK residents only. No purchase is necessary. Visit omaze.co.uk for full terms and to enter. House closes 27/10/2024.

As the 30 October UK Budget approaches, speculation and uncertainty about potential reforms are rampant.

The Labour government, facing significant political and manifesto constraints, appears to be gearing up for major tax policy announcements, despite not running on a tax reform mandate.

The Office for Budget Responsibility has warned UK debt is on an unsustainable path, and chancellor Rachel Reeves has pledged no return to austerity and no changes to major taxes like income tax, National Insurance (NI) and VAT.

This leaves her with little room for manoeuvre in addressing the daunting task of an apparent £22bn ‘fiscal black hole’.

By focusing on the fiscal black hole without a clear roadmap, the government fostered a backdrop of fear ahead of its first Budget

This approach has created a fertile ground for rumours and conjecture, unsettling clients.

By focusing on the fiscal black hole without a clear roadmap, the government inadvertently fostered a backdrop of fear three months ahead of its first Budget.

Stability and predictability are crucial for sound financial decisions, yet the current approach offers neither. The recent dip in UK consumer confidence, highlighted by the latest British Retail Consortium data, reflects this uncertainty, especially among older generations who fear the Budget’s impact.

Confidence among business leaders in September was also at its weakest since December 2022, according to the Institute of Directors’ Economic Confidence Index.

I have written to the chancellor expressing the immense pressure financial advisers are under

This vacuum has led to speculation about potential policy reforms, particularly regarding pensions. Over the past months, theories have ranged from plausible to alarming, affecting those planning for retirement.

I have written to the chancellor expressing the immense pressure financial advisers are under to second guess potential Budget outcomes due to the lack of government communication regarding pension plans, and to ask that any reforms to pension policy are introduced with a clear roadmap, ensuring the public is well-informed and well-prepared for changes.

Advisers tell me they have been inundated with calls from concerned clients, many of whom are at risk of making knee-jerk decisions that could derail their long-term plans.

Advisers have been inundated with calls from concerned clients, many of whom are at risk of making knee-jerk decisions

Who knows what actions might have been taken by those choosing not to take the counsel of an adviser. The current approach seems likely to result in foreseeable harm to retail customers.

So, where might the ‘tax axe’ fall?

Labour seems to have adopted the Tory strategy of freezing income tax thresholds for at least the next three years, which will continue to raise revenue as earnings increase.

Additionally, the government may reassess inheritance tax reliefs, potentially removing, capping or redefining benefits like agricultural property relief and business relief.

This is all very well but think tanks don’t have the experience of implementation

Alarmingly, given pensions have only recently seen major reforms to the lifetime allowance and tax-free cash entitlement, reports from think thanks and research houses are urging HM Treasury to consider restrictions on the 25% tax-free cash lump sum on pensions or changes to pensions tax relief.

This is all very well but think tanks don’t have the experience of implementation and, without consultation and clear communication, such plans could lead to unintended consequences and ill-considered withdrawals.

The government must provide more clarity on long-term pension policy to prevent speculation and poor decisions. Denying access to previously promised benefits would distress savers who have structured their retirement strategies around existing rules.

Advisers, who are on the frontline fielding calls from anxious and confused clients, need clear assurances about long-term policy

There is more recent speculation that the government may remove the NI exemption on employer pension contributions. While this may be more politically acceptable after the backlash over the winter fuel policy, as it does not directly impact consumers, it is not a pro-growth policy.

In time, the move would risk impacting working people due to employers potentially passing on the increased costs by reducing the level of contributions they make on behalf of employees.

Similarly, the benefit of salary sacrifice arrangements used by employees will yield a lower eventual pension contribution impacting what they put away.

The government must balance managing expectations with encouraging business investment, consumer spending and investor confidence

Financial planners, who are on the frontline fielding calls from anxious and confused clients daily, stopping them from making hasty decisions, such as prematurely withdrawing pension funds, need clear assurances about long-term policy direction ahead of fiscal events.

With the UK showing no growth in June or July and waning sentiment, the government must balance managing expectations ahead of 30 October with encouraging business investment, consumer spending and investor confidence.

Steven Levin is chief executive of Quilter

MARTIN Lewis has warned Brits to stock up on first-class stamps before next week’s 22 per cent price hike.

The price of first-class stamps will rise by 30p to £1.65, the second rise in a year, Royal Mail confirmed.

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The delivery giant revealed that the price hike will be in effect from Monday 7.

Martin Lewis is urging Brits to bulk-buy first-class stamps in advance as they are “still valid after the hike”.

He said: “For years, every time stamps go up in price I’ve suggested people stock up and bulk-buy in advance, as provided the stamp doesn’t have a price on it and instead just says the postage class, it’s still valid after the hike.

“So you may as well stock up now, even if it’s just for Christmas cards for the next few Christmases.”

The founder of Money Saving Expert has also warned Brits against buying fake stamps when stocking up.

He recommended buying from reputable high street stores and making sure to keep the receipt.

Stamps can also be bought directly from the Royal Mail online shop, but you have to spend £50 to get free delivery.

In April, the UK postal service announced it had paused the £5 penalty for anyone receiving a letter with a fake stamp.

However, you still risk facing charges if caught sending mail with counterfeit stamps.

Royal Mail has introduced a new stamp scanner, available for free via their app, to check if stamps are genuine.

The price increase for first-class stamps is the second one this year after they rose by 10p to £1.35 in April and by 10p to 85p for second class.

The company has frozen the cost of second-class stamps at 85p until 2029 in a bid to keep the sending of letters affordable.

Royal Mail says it has tried to keep price increases as low as possible in the face of declining letter volumes, and inflationary pressures.

When announcing the price rise earlier this month, it also cited the costs associated with maintaining the so-called Universal Service Obligation (USO) under which deliveries have to be made six days a week.

Royal Mail said letter volumes have fallen from 20billion in 2004/5 to around 6.7billion a year in 2023/4, so the average household now receives four letters a week, compared to 14 a decade ago.

The number of addresses Royal Mail must deliver to has risen by 4million in the same period meaning the cost of each delivery continues to rise.

Nick Landon, Royal Mail’s chief commercial officer, said: “When letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.

“The universal service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future.”

How prices have changed

Royal Mail previously raised the price of first-class stamps from £1.10 to £1.25 last October, before boosting them again in April.

Right now, a first-class stamp costs £1.35, which covers the delivery of letters up to 100g.

Historically, the cost of stamps has seen a steady increase over the years, reflecting inflation and operational costs. For example, in 2000, a First Class stamp was priced at 41p.

A second-class stamp is priced at 85p and also covers letters up to 100g.

The stamps can be bought individually if you buy them at a Post Office counter.

Otherwise, you can typically buy them in sets of multiple stamps.

The first class service typically delivers the next working day, including Saturdays, while the second class service usually delivers within 2-3 working days, also including Saturdays.

For larger letters, the cost of a first-class stamp is £2.20 for items up to 100g, and a second-class stamp for the same weight is £1.55.

Parcel delivery prices vary based on size and weight, starting from £3.69 for small parcels.

Additional services include the “signed for” option, which requires a signature upon delivery and adds an extra level of security.

The cost for first class signed for is £3.05, and for second class signed for, it is £2.55.

The “special delivery” service guarantees next-day delivery by 1pm with compensation cover, with prices starting from £7.95.

Royal Mail periodically reviews and adjusts stamp prices, so it is advisable to check the latest rates on their official website or at your local post office.

Other Royal Mail changes

Royal Mail has urged the Government and Ofcom to review its obligations, arguing that it is no longer workable or cost-effective, given the decline in addressed letter post.

In its submission to Ofcom in April, it proposed ditching Saturday deliveries for second-class post and cutting the service to every other weekday.

Lindsey Fussell, Ofcom’s group director for networks and communications, said: “If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.

“So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.

“But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”

Royal Mail owner International Distribution Services (IDS), which agreed to a £3.57billion takeover by Czech billionaire Daniel Kretinsky in May, said “change cannot come soon enough” to the UK’s postal service.

Royal Mail also ousted old-style stamps and replaced them with barcoded ones last July.

The business said the move would make letters more secure.

Anyone who still has these old-style stamps and uses them may have to pay a surcharge.

Best Budgeting Apps for Families in 2024 

Managing family finances can be overwhelming with all the daily expenses, savings goals, and unexpected costs that come with raising children. Whether it’s keeping track of grocery bills, school fees, or saving for a family vacation, it’s essential to have a clear and organized system. That’s where budgeting apps can come in handy. These tools offer an easy way to manage household expenses, plan for long-term goals, and ensure everyone in the family is aligned financially.  

Why Families Need Budgeting Apps 

Budgeting is a key tool for any household and when there are children involved this tool can become even more helpful. With multiple expenses, income streams and the need to plan for the future, keeping your finances in check can become challenging.  

Budgeting apps are there to help you; 

• Track Shared Expenses: From groceries to utilities, a budgeting app allows families to monitor how much they’re spending and on what. 

• Plan for Long-Term Goals: Whether it’s saving for your child’s education, a family vacation, or a new home, apps make it easier to set savings targets and see progress. 

• Manage Daily Costs: Families can stay on top of routine expenses like transportation, food, and healthcare while preparing for unexpected costs. 

By using a budgeting app, families can collaborate, manage expenses in real-time, and build better financial habits together. Let’s explore some of the top budgeting apps that are perfect for families. 

Best Budgeting Apps for Families in 2024 

1. You Need A Budget (YNAB) 

You Need A Budget (YNAB) is known for its focus on giving every dollar a job. This app allows families to assign money to specific categories like bills, groceries, and savings. Its real-time syncing feature ensures that every family member is on the same page, no matter who is making the purchases. 

YNAB encourages correcting prioritizing and is especially useful for families who are trying to pay off debt or build their savings. You can set targets for anything you like and track your progress over time. 

YNAB also has educational resources and debt management tools integrated within the app making it easy for families to improve their finances. 

2. EveryDollar 

EveryDollar follows a zero-based budgeting system, meaning every dollar of income has a purpose. The app is simple and user-friendly, making it a great choice for busy families who want an easy way to manage their finances without complicated features. 

EveryDollar allows families to plan for monthly expenses, track spending, and adjust budgets as needed. The free version offers basic budgeting features, while the paid version, EveryDollar Plus, offers automated bank transactions and other premium features. 

Use EveryDollar to ensure every penny is accounted for, making it easier to cover all expenses and save for future goals. Its simplicity is ideal for families new to budgeting. 

3. Honeydue 

Honeydue is a budgeting app designed for couples but works perfectly for families as well. It allows users to track shared expenses, sync multiple bank accounts, and assign different spending categories. Honeydue shoes members exactly where the money is going and avoid confusion or financial disagreements. 

Honeydue also sends reminders for upcoming bills, which is great for families managing multiple payments each month. The app’s chat function encourages communication around money, making it easier for family members to discuss finances openly. 

4. Goodbudget 

If you’re a fan of the envelope budgeting method, Goodbudget is a fantastic digital tool for families. The app helps families allocate money into virtual “envelopes” for categories like food, rent, and entertainment. It’s a great way to visually manage how much you have left to spend in each category throughout the month. 

Goodbudget is perfect for families who want a simple, structured way to stay on top of their finances. It also allows multiple family members to track and manage spending across various envelopes, ensuring accountability and coordination. 

Goodbudget provides a structured approach to budgeting and will help families manage their finances. The app can also be used to teach children about budgeting, beginning to build healthy habits early on. 

How Budgeting Apps Help Families 

Budgeting apps not only help families stay on top of their expenses but also provide long-term financial benefits. By using these apps, families can: 

• Create Financial Transparency: Budgeting apps offer a shared view of household finances, which encourages open discussions and ensures everyone is aware of spending habits. 

• Plan for Big Goals: Saving for future goals becomes more manageable, whether it’s setting aside money for a vacation or a child’s education. 

• Manage Day-to-Day Finances: Apps provide real-time updates, allowing families to adjust their budgets on the go, whether for groceries, bills, or unexpected expenses.