The discussion around the UK’s proposed industrial strategy and Prime Minister Sir Keir Starmer’s apparent broadside against the competition regulator, which online carried the headline “‘We’ve got a real problem’: Keir Starmer takes on the regulators” (Report, October 17), misses an important tension.

The industrial strategy green paper offers a warm welcome to overseas investors and highlights the need for this, given the relatively low level of domestic investment. But neither the prime minister’s remarks at last week’s investment summit, nor the green paper discuss how the new strategy interacts with the government’s investment scrutiny powers under the National Security and Investment Act 2021.

A number of the green paper’s target sectors for investment (advanced manufacturing, clean energy industries, creative industries, defence, digital and technologies, financial services, life sciences and professional and business services) are also core areas of focus for the NSIA. Investors will be pleased to hear any clarification from the government whether this is a proviso to the warm welcome or whether they can expect a streamlined review under the NSIA.

Perhaps now is the time to consider a fast track, pre-approval process for investors from countries considered allies (outside the most sensitive transactions) and a specific carve-out for UK domestic investors. Such reforms could serve to reduce regulatory barriers to low-risk deals, thereby supporting the government’s initiative to stimulate further vital investment in the UK. If the government’s priority is to reduce red tape around investment, the NSIA needs to be part of the discussion.

Nicole Kar
Global Co-Chair, Partner,
Paul, Weiss, Rifkind, Wharton & Garrison, London W1, UK

A WARNING has been issued over an easy state pension mistake that could mean you miss out on £3,900.

Deferring your pension is often seen as an easy way to boost your savings pot when you do decide to retire.

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That’s because for every year you delay, you boost your pension by just under 5.8%.

But for some, it might be a big mistake, because it may then put you over the threshold for Pension Credit – a handy benefit worth up to £3,900 a year which also unlocks the Winter Fuel Payment.

The Sun was inundated with calls from hard-up pensioners during its Winter Fuel SOS phone-in last week who fear they will be unable to heat their homes without the payment this year.

Many had been disappointed to find that because they had put off taking their state pension, they were now over the limit for Pension Credit.

Now, people who might find themselves in the same position are being urged to not take the decision lightly.

The single-person Pension Credit rate is £218.15, while the full new state pension is £221.20 so if you get the full amount then you already are over the threshold.

The people who would be affected by this are those who get less than the full amount of state pension, due to the number of “qualifying” National Insurance years they have.

However, if your pension is below the full rate then if you take it on time you might get Pension Credit – as well as the WFP and cold weather payments.

Under current rules, you need 35 qualifying years to get the full amount of state pension.

For example, someone who has 34 qualifying years gets 34/35 of a full pension or £214.88.

If this person takes their pension on time, they are entitled to Pension Credit and everything that comes with it. We have explained all the perks you can get here.

But, if they defer for just one year, the extra 5.8% takes them up to £227.34 per week – above the Pension Credit level.

So, this means they then lose out for good on all the extras that come with Pension Credit.

Former pensions minister and partner at LCP told The Sun that “the lesson to learn” is that if your state pension is short of the full amount and you might therefore otherwise qualify for Pension Credit in retirement, “you should think very hard before deferring”.

He also pointed out that those who are perhaps working past pension age might think of deferring their pension for tax reasons.

This group could inadvertently end up worse off than if they had simply taken their pension on time.

Mr Webb said: “Not everyone takes their state pension as soon as they reach pension age, and the reward for deferring is an extra 5.8% on your pension for each year you defer.

“But for people whose pension is short of the full amount, there can be a sting in the tail.

“If your normal pension figure is below pension credit then claiming at retirement means you will get a top-up and all the extras which come with pension credit such as keeping your winter fuel payment.

“But if you defer even for one year, you might find your pension is now over the pension credit line and that you have lost all of that additional help – potentially for the rest of your retirement.”

Mr Webb believes that the Department for Work and Pensions (DWP) should flag to people who are thinking of deferring that they need to “think very carefully about the potential knock-on effects” of benefit entitlement before they make a decision.

If you’re not sure if you will be able to get Pension Credit, you can use our handy tool to check what benefits you’re eligible for.

What is Pension Credit and who is eligible?

Pension Credit is a government benefit designed to top up your weekly income if you are a state pensioner with low earnings.

The current state pension age is 66.

There are two parts to the benefit – Guarantee Credit and Savings Credit.

Guarantee Credit tops up your weekly income to £218.15 if you are single or your joint weekly income to £332.95 if you have a partner.

Savings Credit is extra money you get if you have some savings or your income is above the basic full state pension amount – £169.50.

Savings Credit is only available to people who reached state pension age before April 6, 2016.

Usually, you only qualify for Pension Credit if your income is below the £218.15 or £332.95 thresholds.

However, you can sometimes be eligible for Savings Credit or Guarantee Credit depending on your circumstances, even if you’re over these limits.

For example, if you are suffering from a severe disability and claiming Attendance Allowance, as well as other benefits, you can get an extra £81.50 a week.

Meanwhile, you can get either £66.29 a week or £76.79 a week for each child you’re responsible and caring for.

The rules behind who qualifies for Pension Credit can be complicated, so the best thing to do is just check.

You can do this by calling the Pension Service helpline on 0800 99 1234 from 8am to 5pm Monday to Friday or by using free online calculators.

Those in Northern Ireland have to call the Pension Centre on 0808 100 6165 from 9am to 4pm Monday to Friday.

It might be worth a visit to your local Citizens Advice branch too – its staff should be able to offer you help for free.

Pension Credit is known as a “gateway” benefit which means it opens up a host of perks, like theWinter Fuel Payment and a free TV licence if you are 75 or over.

It also unlocks discounts on your council tax and the Warm Home Discount, if you are on the Guarantee Credit part of the benefit.

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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The UK will provide $3bn as part of a G7 loan to Ukraine, leaving only the US and Japan to agree their contributions to the $50bn lending package, which will be repaid with profits generated by future profits from frozen Russian state assets.

Rachel Reeves, Britain’s chancellor of the exchequer, said she hoped the “other parts of the jigsaw would fall into place” when G7 finance minister gather at the end of this week on the sidelines of the IMF and World Bank meetings in Washington.

G7 countries have been racing to agree on the structure of the loan and the amounts they will contribute so that Ukraine, which has faced repeated attacks on its energy infrastructure, can count on the funding before the end of the year.

They are also conscious that if Donald Trump wins the US election, Washington’s aid to Ukraine could be cut off in January when he’s sworn in.

Reeves told reporters that the UK tranche could be released without other countries having to sign on. “But the idea is that this is a co-ordinated aid package . . .[by] the G7 and the European Union,” she said.

John Healey, the UK defence secretary, added that Ukraine would be able to use the UK funds solely for military purposes, but that other “other countries may . . . take different decisions” as to how their money is used, such as paying for economic reconstruction.

The central aims of the $50bn loan are twofold. First, that it will be repaid by Russia rather than by Ukraine or western taxpayers. Second, because it is secured against frozen Russian state funds, it is essentially risk-free and would not need approval by lawmakers, especially the US Congress.

However, designing the package has been a tortuous process. The EU pledged up to €35bn towards the loan package earlier this month, while Canada has said it would contribute $3.6bn.

The US last week indicated it was willing to provide up to $20bn. But it also has concerns about how it would be repaid after the EU failed to guarantee that the Russian assets it holds would be immobilised for at least three years.

Hungary earlier this month vetoed a decision to extend the bloc’s sanctions regime against Russia that would have provided that assurance.

Most of Russia’s frozen central bank assets are held in the EU and are expected to generate about €3bn in profits per year. The EU would need to contribute less if the US provided the full $20bn.

Reeves said she did not expect the UK portion of the loan would face any legal challenges, and that further detail on how it would be repaid would be in next week’s autumn budget, the first by Britain’s new Labour government.

There has been an “unprecedented shift” in the variety of fee models used by financial advice firms, a new report from NextWealth suggests.

Percentage of assets remains the most common charging structure, used by 71% of respondents’ firms.

The study shows that while this charging model continues to dominate, its use is in decline – with popularity of all other charging structures rising.

Of “particular interest” is the marked rise in the use of subscription fees, which are used by 22% of financial advice firms all or most of the time, up from just 1% in 2023.

A growing number of firms are experimenting with alternative models, the report shows.

The cost of advice

The report also reveals the average basis point fee paid by clients for ongoing advice, funds, platform and portfolio management.

The total client cost increased in the past year from 1.75% to 1.89%, as estimated by financial advice professionals who participated in the survey.

Platform fees remain consistent and both funds and portfolio management are slowly trending down.

The average cost of ongoing advice is 77 bps, up 13 bps from 2023, and remains the largest share of total client costs.

Platform fees represent the smallest share at 27 bps – broadly consistent with the previous three years.

NextWealth data show that ongoing fees are fairly consistent across various firm sizes.

However, product charges tend to be higher in large firms.

Clients of financial advice firms with more than 10 advisers are paying 68 bps for funds, compared to an average of 43 bps.

NextWealth said it believes this difference is down to a higher allocation to active rather than a more expensive like-for-like product.

Initial fees

The proportion of respondents citing that they charge an initial advice fee decreased slightly by 6% compared with last year.

The big change is in the proportion that aren’t charging an initial fee, up two-fold to 23%.

Respondents from larger firms with over six financial advice professionals are more likely not to charge an initial fee.

Over half of these respondents say they do not charge an initial advice fee.

Among those that charge an initial advice fee, the average is £1,995 up from £1,800 last year.

The report revealed that the average portfolio size of clients in 2024 is £369,689.

In fact, 79% of respondents said that that clients are required to have £100,000 or more to be a client.

NextWealth said this shows an interesting dynamic – regulation is pushing financial advice professionals to provide more value for their clients but according to a significant proportion of respondents, this isn’t viable for those with under £100,000.

Confident in delivering value for money

Advisers and planners have high confidence in the service they provide their clients, but are much less impressed by some issues that are not in their immediate control.

Overall, 92% are confident in their firm’s ability to deliver good value for money, while 89% are confident in their ability to meet the advice needs of clients.

Only 26% are confident in the capability of the regulator, while under half 46% are confident in the stability of the economy.

Harrods has told the BBC it is in the process of settling more than 250 claims for compensation brought by women who allege historical sexual misconduct by Mohamed Al Fayed.

The department store said the women have come forward since the release of a BBC documentary more than four weeks ago. The investigation exposed decades of serious sexual abuse allegations against the former Harrods owner.

Harrods has previously said it has already settled a number of claims.

Fayed owned Harrods between 1985 and 2010. Its new owners have previously said they are “appalled” by allegations of sexual abuse by Al Fayed and have been investigating since last year whether any current members of staff were involved.

The company said it would not provide a “running commentary” of its internal review.

Harrods has a compensation scheme for ex-employees who say they were attacked by Al Fayed, which is separate from a legal case against the luxury department store being brought forward by several different law firms.

Justice for Harrods Survivors group, who represent the accusers of the former Harrods boss, said their lawyers were working with 147 women. It is unclear if there is some overlap between the women seeking compensation from Harrods and those pursuing legal action.

The billionaire businessman, who died last year aged 94, is accused of multiple counts of rape and attempted rape by several women who worked for him – many of whom felt unable to report what had happened until recently.

At the time of many of the alleged attacks, Fayed was the owner of Harrods, the Ritz Paris hotel and football club Fulham FC.

He was a well-known public figure who had links to senior figures in Parliament and courted royalty and celebrities alike.

The BBC heard testimony from more than 20 female ex-employees at Harrods during its investigation for the documentary and podcast – Al Fayed: Predator at Harrods.

The documentary, which aired last month, found that during Fayed’s ownership, Harrods not only failed to intervene but helped cover up abuse allegations.

Responding to the investigation, Harrods’ current owners said they were “utterly appalled” by the allegations and that his victims had been failed – for which the store sincerely apologised.