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The Morning Briefing: 4.1% rise for state pension and Platinum growth plans

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The Morning Briefing: Phoenix Group scraps plans to sell protection business; advisers tweak processes

Good morning and welcome to your Morning Briefing for Wednesday 16 October 2024. To get this in your inbox every morning click here.


4.1% rise for state pension

The state pension is set to rise by 4.1% in April 2025 – more than double the September inflation rate of 1.7% announced today (16 October).

The rise, which is subject to official confirmation, is due to the triple lock formula.

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Under this, pensions increase each April by the highest of three measures – earnings growth (the year-on-year rise in average earnings for the period May to July), price inflation for the year to September (which was announced this morning as 1.7%) or 2.5%.


Platinum growth plans

Belfast-based financial planning and wealth management firm Platinum Financial Planning has laid down plans to embark on a new and ambitious five-year growth strategy as it celebrates two decades in business.

Headquartered in Belfast, the independent financial planning firm also has a London office, allowing it to cater to clients across the UK.

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It celebrates its 20th anniversary this month.


Tick tock, TikTok

A growing number of young investors are turning to financial influencers — or ‘finfluencers’ — on social media platforms, such as Instagram, TikTok and YouTube, for investment information and advice, says Simplify Consulting’s Giang Hughes.

TikTok alone has seen a 373% rise in financial content videos over the past year.

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This highlights a gap in financial literacy among young people and a need for accessible financial guidance.



Quote Of The Day

Five of the most dangerous words when it comes to money (and life in general) are: ‘it won’t happen to me’.

Tim Bennett, partner and head of education at Killik & Co, comments on the recent rise in scams as we approach Scam Awareness Week next week



Stat Attack

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Defaqto has identified the top 10 most recommended Multi-Asset investment solutions by value for the year to date to the end of Q3 2024. Surprisingly, the top 10 has remained exactly the same compared with Q2, albeit there have been some positional changes within the top six positions, with three solutions climbing up a place and three dropping a place.

Rank Proposition Name Position end of Q2 2024 Movement up/down % Share of Top 10
1 HSBC Global Strategy Balanced 2 +1 15.64
2 Vanguard LifeStrategy 80% Equity 1 -1 15.63
3 HSBC Global Strategy Dynamic 4 +1 14.74
4 Vanguard LifeStrategy 60% Equity 3 -1 14.30
5 Artemis Monthly Distribution 6 +1 8.75
6 BNY Mellon Multi-Asset Balanced 5 -1 8.68
7 BNY Mellon Multi-Asset Growth 7 5.86
8 Royal London Sustainable Diversified 8 5.61
9 VT AJ Bell Balanced 9 5.46
10 Vanguard SustainableLife 60-70% Equity 10 5.28

Source: Defaqto



In Other News

Financial services technology provider EV has appointed Sam Turner as director of systems innovation to advance EV’s comprehensive financial planning and advice solutions.

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He will focus on the continued evolution of EV’s multichannel solutions and work on streamlining its clients’ advisory processes, helping them navigate challenges and deliver advice more efficiently and effectively.

Designed to support financial institutions and advisory firms with a blend of digital and human advice solutions, EV’s solutions empower firms to deliver a wide range of services to their customers.

Spanning guidance, digital and hybrid advice, through to traditional advice models, EV’s technology helps firms meet diverse customer needs.

Turner brings extensive experience to the role having spent more than 20 years working in financial services, with particular expertise in platforms, pensions investment propositions, and automated financial planning.

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He joins EV from Altus Consulting, where he spent eight years, and has also held key consultancy roles with James Hay Partnership and Aegon UK.


Wealthy non-doms lobby UK for Italian-style tax regime (Financial Times)

Trump defends tariff plan while pressing for more Fed influence (Bloomberg)

Jamie Dimon charts JP Morgan expansion plan into Africa (Reuters)

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Did You See?

Reassured’s Phil Jeynes says he read Kevin Carr’s latest opinion piece on his recent underwriting experience with interest and “immediately messaged him for two reasons”.

“First, to remind him he remains significantly older than me but also to point out that, much as I agreed with the premise of his writing, I found it a bit heavy on problem and light on solution,” he writes.

“That said, I had to concede I couldn’t really think where the next leap in underwriting evolution was likely to come from either.

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“People Kev and my age saying “it’s probably AI” must sound like middle-aged people back in the 1990s suggesting “the internet” as the panacea to all life’s ills. Without context or insight, it’s meaningless rhetoric.”

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You’re storing food in your fridge all wrong and it’s adding to your weekly shop -five tips to help you save cash

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You're storing food in your fridge all wrong and it's adding to your weekly shop -five tips to help you save cash

AN expert has revealed the foods you should never put in the fridge if you want to prolong their lifespan.

Storing your food correctly could reduce the chance of you being sick, improve the quality of your meals, and help you save money.

Storing your food in the wrong place could be causing you an unnecessary food bill

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Storing your food in the wrong place could be causing you an unnecessary food bill

Plumbworld, the bathroom and kitchen expert, has highlighted the top five foods which should never be stored in the fridge.

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The foods they listed were tomatoes, potatoes, onions, garlic, and bread which should be kept elsewhere to prolong their life-span.

The expert said: “Storing food correctly isn’t just about taste—it can also save you money and prevent waste – the less often you have to replace spoiled items, the more you can stretch your grocery budget.

“Proper storage keeps your food fresher for longer, meaning fewer trips to the supermarket and more value from what you buy.”

Knowing which foods to keep at room temperature could therefore cut your food bill by a huge sum across the year.

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For example – if your food was to last two weeks rather than one you could slash your spending by half.

You should also remember that prices will depend where you shop, and food will last different amounts of time based on its quality, country of origin and sell by date.

You should always check the sell by date on your items before you buy so that you’re not disappointed by food that goes off quickly.

It always helps to reach for the items at the back of the shelf as these are usually the most recently stocked and the most fresh.

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What are Aldi Specialbuys?

To learn how to make your cash stretch further, read the expert’s top tips below.

Tomatoes

Plumbworld revealed that tomatoes kept in the fridge can lose their flavour and texture.

This is because cold temperatures stop them from ripening and developing their sweet flavour and causes them to develop a wrinkly texture.

The best way to keep them fresh is by storing them at room temperature and away from sunlight.

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You can place them in a cooler spot in your kitchen if they are very ripe, but you should pretty much avoid the fridge at all costs.

Tomatoes can typically last up to two weeks when stored correctly.

A pack of tomatoes usually costs around £1, with six classic round tomatoes selling for 95p in Tesco and a family pack from Aldi costing £1.29.

If you bought tomatoes every week you would spend approximately £52 a year – whereas if you did this every two weeks you’d spend £26.

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It also helps not to cut open a tomato unless you plan to use the whole thing, as exposing it to air can cause it to expire quickly.

Plumbworld recommended: “If you’ve got a batch of tomatoes that are almost too ripe, make them into a sauce or soup straight away.”

This will mean you don’t have to throw anything out and provide you with meals for the week.

Potatoes

According to Plumbworld potatoes are best stored in a cool, dark and dry place – like a pantry or cellar.

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The expert said this was because: “Storing potatoes in the fridge can cause their starch to turn into sugar more quickly.”

This causes them to develop a dark colour and an overly sweet and gritty texture.

You should also make sure you put them in a breathable bag (such as a paper or mesh) to prevent any moisture building up causing them to sprout.

A bag of potatoes typically lasts one to two months and costs £1.35 for 2KG in Tesco and Sainsbury’s.

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But left in the fridge they last only one to two weeks, according to Eatingwell.com.

Onions

Plumbworld warned that onions tend to absorb moisture which means they easily become mushy and mouldy in the fridge.

It said: “To keep onions fresh and crunchy, store them in a cool, dry, and well-ventilated area.”

The expert also warned not to store them near potatoes as the gases and moisture they release can cause each other to spoil.

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Onions stored correctly in a cool dry place typically last two to three months.

And according to Allrecipes.com they can last up to eight months in the freezer.

You can buy 1KG of brown onions from Aldi for 99p and 1KG of red onions for 71p in Lidl.

This makes it a cheap option for your dinners, but doesn’t also mean you shouldn’t also save each week where you can.

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Garlic

A garlic can cost as little as 24p in Sainsbury’s and will last up to six months.

However the moist environment of the fridge can cause garlic to sprout, develop mould or become rubbery, according to Plumbworld.

The expert recommended: “The best way to store garlic is in a cool, dark place with good air circulation.

“A dry spot in your pantry or a garlic keeper works well to maintain its flavour and texture for longer.”

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A garlic keeper is a pot which allows airflow and provides the perfect conditions for storage.

You can buy one from Dunelm for £8 or Amazon for £9 – which is more expensive than just finding a cool place but can also be a stylish addition to your kitchen.

Bread

Keeping your bread fresh in the fridge might seem like a good idea, but Plumbworld said this isn’t the case.

It said: “The reality is that cold temperatures cause bread to go stale much faster.

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“The fridge accelerates the process of starch crystallisation, which dries out the bread and makes it tough and hard.”

Instead the expert recommended storing bread at room temperature in a bread box or a paper bag to maintain its softness.

It also recommended freezing bread if you have more than you can eat within the few days of its life-span.

It said: “The freezer will preserve its freshness without the texture changes caused by refrigeration.”

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A bread bin is a useful investments and costs £15 in Tesco – which over the year would save you money on bread waste.

According to the charity Love Food Hate Waste, UK households waste approximately 20 million slices (equivalent to around one million large loaves) of bread every day.

The ‘right’ way to store food

1. Use Airtight Containers

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This helps to prevent exposure to air which can cause your food to go off. A glass container can help to be more hygienic and a sustainable option.

2. Label Everything

By labelling your food it helps to keep track of expiry dates and avoid food waste.

3. Store Like Items Together

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This makes it easier to find what you are looking for. Use fridge dividers or reusabale bags to help section your fridge.

4. Use the Fridge and Freezer Wisely

Keep raw meat on the bottom shelf to avoid contamination, and use the freezer for longer-term storage.

5. Rotate Your Stock

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Place newer items at the back and bring the older ones forward. This will mean you will be able to notice the foods that need eating first.

Other ways to keep your food fresh for longer

These aren’t the only foods which can be stored efficiently.

Plumbworld also recommended: “To avoid waste, try creating a rotation system for all room-temperature foods.

“Keep newer items behind older ones so you use up what’s ripest first.”

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In August The Sun wrote an article on the best ways to store food according to Robert Morris, managing director of food safety consultants, Complete Food Safety.

Salad items (besides tomatoes) should be kept in the drawer at the bottom of your fridge.

Whereas anything which grows in soil is more susceptible to bacteria so should be kept separate from salad ingredients.

Meanwhile it always helps to keep food in its supermarket packaging before you use it to keep it thriving for longer.

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And placing certain foods in zip lock bags or wrapping up the end of a cucumber will prevent it from spoiling due to contaminated air.

To learn more tips read the article here.

Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.

Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories

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Town Centre Securities turns focus to redevelopment programme after ‘business reset’

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Town Centre Securities turns focus to redevelopment programme after ‘business reset’

Since the group’s disposal and asset management programmes over the past three years, it has reduced its borrowings and refined the focus of the portfolio.

The post Town Centre Securities turns focus to redevelopment programme after ‘business reset’ appeared first on Property Week.

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Quilter platform inflows hit record £1.5bn

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Quilter platform inflows hit record £1.5bn

Quilter has published record quarterly platform net inflows of £1.5bn, which represents 7% of opening assets.

The firm’s latest results, published today (16 October), show group assets under management and administration (AUMA) rose to £116.2bn at the end of September.

This was up from £101.4bn during the same period last year.

The high-net-worth segment of Quilter’s business saw significantly improved quarterly net inflows of £284m, the highest level since the third quarter of 2021.

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The affluent segment of Quilter’s business also performed well, recording year-on-year increases in gross inflows of 50% to £3.3bn, from £2.2bn in 2023.

Meanwhile, IFA channel gross inflows onto the platform increased by 76% year-on-year.

In its results, Quilter also said it expected to be able to give an update on its ongoing advice review in early 2025.

It conducted an independent review in June after it was one of the 20 firms the FCA wrote to.

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Quilter chief executive officer Steven Levin praised the firm’s excellent performance in “what is traditionally the slower summer quarter”.

However, he added: “While we look to the future with confidence, the upcoming UK Budget has introduced an unwelcome degree of uncertainty to the market.”

Levin said any meaningful changes proposed to the structure of UK pensions and savings should only be implemented after industry-wide consultation.

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Hope for thousands hit by shock benefit repayment demands of up to £20,000 as DWP launches review

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Hope for thousands hit by shock benefit repayment demands of up to £20,000 as DWP launches review

AN independent review brings fresh hope for thousands of carers forced to repay up to £20,000 worth of benefit payments.

Households on carer’s allowance continue to face substantial repayment demands after exceeding a critical weekly earnings limit.

The DWP has announced new plans to help claimants avoid falling into this trap

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The DWP has announced new plans to help claimants avoid falling into this trap

Figures in August revealed that over 134,500 unpaid carers are collectively repaying £251million in benefit overpayments.

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The Sun has previously highlighted cases where some individuals were required to repay up to £20,000 after unknowingly breaching carer’s allowance rules.

In an effort to reform the system and prevent more people from being caught out, the Department for Work and Pensions (DWP) has initiated an independent review on the matter today.

Carer’s allowance is paid to those providing at least 35 hours of unpaid care a week, in most cases to disabled or sick relatives.

It is currently paid at a weekly rate of £81.90, and anyone on the benefit can earn a second income from a job.

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However, you can’t earn more than £151 a week, or you’ll lose all of your benefit allowance.

This is a different approach to other benefits, like Universal Credit, which has a tapered approach to earnings so that those working don’t lose all their money at once.

The DWP, which pays the benefit, also looks to get any overpaid benefits back.

So, if you breach the £151 a week “cliff edge”, you’ll also be forced to repay any carer’s allowance payments you’ve been issued.

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But in some cases, Department for Work and Pensions (DWP) systems don’t flag earnings limit breaches for several years, seeing people overpaid massive sums that must be repaid.

In response to the overwhelming number of repayment demands issued to claimants, the DWP’s independent review, in collaboration with the former chief executive of Disability Rights UK, aims to investigate the causes and mechanisms behind the overpayments.

It will then recommend “operational changes” to minimise the risk of future overpayments and outline how the DWP can best support those affected by overpayment issues.

Commenting on the launch of the review Liz Kendall, work and pensions secretary, said: “I have been a lifelong champion of family carers and know many have been pushed to breaking point looking after the people they love.

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“This is not okay. We’re determined to learn lessons and put this right.”

Liz Sayce, chair of the review and former chief executive of Disability Rights UK, added: “My work aims to get to the bottom of how overpayments have occurred and how to prevent people who devote such time and care to others facing these difficulties in future.”

The outcome of the review will be published in due course, but for now, anyone hit with a repayment demand will still need to pay up.

A recent Sun Money investigation revealed that thousands of people on other benefits have been hit with repayment demands even though they do not owe a penny.

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What is carer’s allowance?

CARER’S allowance is a UK benefit designed to help people who have caring responsibilities for more than 35 hours each week.

Those eligible get £81.90 a week paid directly into bank accounts.

To qualify, the person you care for must already get one of these benefits:

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  • Personal independence payment (PIP) – daily living component
  • Disability living allowance – the middle or highest care rate
  • Attendance allowance
  • Constant attendance allowance at or above the normal maximum rate with an Industrial Injuries Disablement Benefit
  • Constant attendance allowance at the basic (full day) rate with a war disablement pension
  • Armed forces independence payment

You don’t have to be related to the person or live with them to apply.

But if you share caring responsibilities with someone else, only one of you can make a claim.

The type of care you provide can vary, but includes things such as helping with washing or cooking, taking the person to medical appointments or helping out with household tasks such as shopping or organising bills.

To get the benefit, you must also meet a certain set of criteria:

  • You must be 16 or over
  • You have to spend at least 35 hours a week caring for someone
  • You need to have been in England, Scotland or Wales for at least two of the last three years (this does not apply if you’re a refugee or have humanitarian protection status)
  • You must normally live in England, Scotland or Wales or live abroad as a member of the armed forces (you might still be eligible if you’re moving to or already living in an EEA country or Switzerland)
  • You cannot be in full-time education
  • You must not be studying for 21 hours a week or more
  • You cannot be subject to immigration control
  • You will also have to meet certain earnings criteria in order to get the benefit.

Your earnings must also be £151 or less a week after tax, National Insurance and expenses.

You can apply for the carer’s allowance online by visiting www.gov.uk/carers-allowance/how-to-claim.

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TOO LITTLE TOO LATE

According to the government, as of May 2024, there are 134,800 people with an outstanding carer’s allowance debt – a total value of £251m.

Carers reported receiving overpayments between £150 and £20,000, with the average overpayment being £4,000.  

There’s no time limit on how far back the DWP can go to spot erroneous carer’s allowance payments and demand money back.

Karina Moon, 62, is just one example of the thousands asked to repay the benefit.

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The Department for Work and Pensions (DWP) told the single mother of one from North Wales that she must repay £11,292.75 of her carer’s allowance or face fraud charges.

In another shocking case, a father who looks after his ill son had to sell his home to pay back £20,000 in carer’s allowance.

George Henderson, 64, from Leyland in Lancashire, was told he would have to repay the eye-watering sum due to a mistake he made when first applying for the benefit.

Henderson wrongly ticked a box saying he was unemployed when, in fact, he was earning £7.50 an hour as a self-employed taxi driver.

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However, the DWP failed to notify Henderson, blaming it his responsibility to notify the department of any changes in circumstances.

DON’T GET CAUGHT OUT

If you breach the £151 earnings limit, you should try and proactively report it to the DWP as it is classed as a change in circumstances.

You can report any change in circumstances online via the government’s website.

But you’ll need your National Insurance (NI) number to hand, details of the person you’re caring for and details of the change.

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If you have been overpaid carer’s allowance, you must pay it back in full or in instalments via the DWP Debt Management platform.

This is also on the Government’s website.

If you don’t do this, the DWP can take deductions from your work salary or even pass your case on to a debt collector.

If you don’t engage with the debt collector, it may then take your case to the county courts.

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You can dispute an overpayment if you disagree with it, but you’ll need evidence as to why you claim not to have overpaid.

You can do this through what’s known as a “mandatory reconsideration,” which you can submit to the DWP online, by phone, or by letter.

The decision letter you receive from the DWP will contain the specific contact details to which you must send correspondence.

Once the DWP has received your mandatory reconsideration, you will receive a “mandatory reconsideration notice” informing you whether it has changed its decision.

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If you disagree with that outcome, you can appeal to the Social Security and Child Support Tribunal.

A judge will listen to both sides of the argument before making a decision.

Are you missing out on benefits?

YOU can use a benefits calculator to help check that you are not missing out on money you are entitled to

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Charity Turn2Us’ benefits calculator works out what you could get.

Entitledto’s free calculator determines whether you qualify for various benefits, tax credit and Universal Credit.

MoneySavingExpert.com and charity StepChange both have benefits tools powered by Entitledto’s data.

You can use Policy in Practice’s calculator to determine which benefits you could receive and how much cash you’ll have left over each month after paying for housing costs.

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Your exact entitlement will only be clear when you make a claim, but calculators can indicate what you might be eligible for.

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PHP points to £3m-plus rental income rise during 2024

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PHP joins key South African stock exchange

The GP surgery group added that an additional £2.4m of income was generated in the period from 241 reviews that have been settled.

The post PHP points to £3m-plus rental income rise during 2024 appeared first on Property Week.

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Consumer Duty: The good, the bad and the unsaid

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Advisers tweak processes in light of retirement income review
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I am always excited to see what the Financial Conduct Authority considers to be good and bad practice with respect to the price and value outcome under Consumer Duty.

With the latest update published last month, my quivering anticipation has proved to be well founded.

Although the work carried out by the regulator focuses on cash accounts (including platforms) and GAP insurance, there are clear messages for firms in other financial services sectors.

Much of the dark art of compliance is interpreting regulatory missives not directly related to one’s own sector, and there are elements of this publication that are plainly relevant outside its area of primary focus.

Much of the dark art of compliance is interpreting regulatory missives not directly related to one’s own sector

The first key signal is the very positive approach the FCA is taking. There is clear recognition that Consumer Duty is a developing beast, not something where everything could be perfect on day one. There have been so many examples of poor practice in the industry over a long period of time that the culture that led to those incidents cannot be turned on its head in a matter of a few months. That’s just unrealistic.

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I am also greatly encouraged by the FCA’s use of words such as ‘appropriate’ and ‘proportionate’ and by its acknowledgement of the need to make continual improvements. Any firm that views the implementation of Consumer Duty as a one-off exercise will find itself in regulatory hot water sooner or later.

Proportionality is hard to define but it seems a small firm with a limited range of services will not be expected to take the same steps a financial behemoth will need to undertake – that would be disastrous for any new entrant and all markets need such firms to innovate and shake up established norms.

Any firm that views the implementation of Consumer Duty as a one-off exercise will find itself in regulatory hot water sooner or later

But what of those messages?

Well, the paper starts with a clear statement that the price and value outcome should not be considered in isolation, so we are not simply involved in a race to the bottom in terms of price. It is of little overall benefit to clients if they get a cheap product they don’t understand, or if they receive little or no support and poor service.

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Nevertheless, it does seem the FCA has focused initially on price, because the price point must be the very foundation of value.

The other outcomes remain important, but it is quite impossible for the overall objectives of Consumer Duty to be met if prices are set unjustifiably high. That is always going to represent a fundamental misalignment of interests. While all businesses must make profits, those with the best chance of long-term success are the ones that do so fairly. From that stems a clear correlation between the best long-term interest of business and those of their clients.

Surely, good practice is to set charges which break the mould, recognise economies of scale and really focus on client interests?

As for specific examples, the first one that leaps out and that has bedevilled the industry for a very long time is unnecessarily complex pricing structures. The regulator even suggests some of these may have been established with the intention to confuse clients. I’d be surprised if that situation is deemed acceptable for any length of time.

The regulator is at pains to stress its role is not to set prices. However, there is evidence of price clustering around a comfort zone (as has been the case for many years in retail funds).

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The FCA’s director of competition Graham Reynolds was recently quoted as saying firms should benchmark their prices against an appropriate peer group, which, to me, doesn’t do anything to encourage competition.

While price isn’t everything, it is very much the starting point

Surely, good practice is to set charges which break the mould, which recognise economies of scale, and which really do focus on client interests?  There are myriad examples in other sectors of companies which have done just that, and which have thrived as a result.  Look at the budget airlines, which democratised air transport a generation ago.

There may be some compromises to be made, but provided those are understood at the outset, many will welcome price savings.

While price isn’t everything, it is very much the starting point. There are plenty of good reasons why more expensive products or services may be chosen, but any adviser doing so must always be clear about why such a choice is in the best interest of their clients.

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David Ogden is head of compliance at Sparrows Capital

 

The post Consumer Duty: The good, the bad and the unsaid appeared first on Money Marketing.

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