MILLIONS of households face a £218 a year bill rise as part of a huge TV shake-up.

A new report has revealed that households currently reliant on terrestrial TV could face additional costs of £18.17 per month if forced to switch to internet-only TV.

1

Free-to-air, terrestrial broadcast TV, which millions watch daily using an aerial, is only secure until the early 2030s, when current licences expire, according to consultancy firm EY.

Some industry experts believe the government should actively phase out terrestrial TV to encourage a broader shift to online viewing which is provided solely via a broadband connection.

They argue that this approach is warranted, given that the share of total TV viewing via linear platforms (aerial and cable) has fallen below 50% for the first time.

And in a report released in May, regulator Ofcom said that broadcasters had “voiced concerns” about the commercial viability of maintaining the current terrestrial infrastructure beyond the mid-2030s.

However, EY said internet connections are generally less reliable than terrestrial TV, and millions remain disconnected.

The consultancy firm’s report estimates that in 2040, there will be 4.3million households without high-speed broadband.

A full switchover to internet-only TV viewing would cost £888million in additional annual fixed broadband subscription costs for these households who otherwise would not take it, equivalent to £18.17 per month per household, or £218 per year.

As well as the ongoing costs of a fixed broadband connection, millions of households could also face the upfront costs of new TV equipment and installation support.

David Coulson, partner, economic advisory at EY, said: “If a switch were made to distribute TV exclusively over the internet, even by 2040 approximately four million homes would still need broadband and set-top-box upgrades.

“This is forecast to cost government and consumers over £2billion to set-up, plus a further £900million each year to cover ongoing broadband fees and to support vulnerable users.”

Broadcast 2040+, a coalition of 35 organisations, is urging the UK government to publicly commit to safeguarding terrestrial TV and radio services until 2040 and beyond.

A spokesperson for the campaign said: “This report lays bare the hidden cost of any proposed switch-off of terrestrial TV.

“It would mean vulnerable people being asked to pay more, risk disconnecting millions from universal access to TV.

“The report also makes clear that this costly disruption is not necessary.

“The UK’s current hybrid model of TV, with terrestrial operating alongside online streaming as complementary services, works well and gives us the best of both worlds.”

CHECK FOR A FREE TV LICENCE

Watching live TV without a licence can land you in hot water, but you could be entitled to a discounted – or even free – licence.

The price of a TV licence rose from £159 to £169.50 a year in April.

This fee can be paid in one sum or in quarterly or monthly instalments.

You must have a TV licence if you watch TV as it is broadcast – live TV – on any channel, or watch programmes on catch-up on the BBC iPlayer.

You don’t need a TV licence to use streaming services or to watch any other channel’s catch-up service.

You can claim a free TV licence if you’re 75 or older and either receive pension credit yourself or live with a partner who gets the benefit.

You can apply for a free licence when you’re 74, but will still have to pay until the end of the month before your 75^th birthday.

You can apply for your free licence online or by calling 0300 790 6071.

Other individuals could also be eligible for a discounted TV licence if they live in residential care or sheltered accommodation or if they’re registered blind.

If you live in sheltered accommodation or residential care and are over 60 or disabled, you can get a licence for just £7.50.

If you’re registered blind or live with someone who is, you’re in line for a 50% discount.

The licence must be in the name if the person registered blind, but if your existing licence is not in their name you can make an application to transfer it.

You can apply for the discount online by visiting tvlicensing.co.uk/reducedfee.

Beginning law school is sure to be exciting. But it’s crucial that you effectively manage your finances from the start.

Staying on top of your money ensures you experience less stress and more focus on what truly counts – your education.

By proactively tackling financial aspects, you will set the stage for a stable future in the legal world. Small steps taken today lay down a solid foundation for tomorrow’s success.

1. Master Financial Literacy Early On

Understanding your finances sets a strong foundation for future success. Financial literacy extends beyond just tracking expenses. It’s about learning key concepts like compound interest and credit scores.

Here’s how you can start:

• Gain familiarity with essential financial terms.
• Use apps that track spending and set savings goals.
• Read books focused on financial planning for students.
• Attend in-person workshops or utilise online courses.

2. Strategically Explore Student Loans

Managing student loans is crucial for aspiring lawyers. Before borrowing, research different loan types and interest rates to make informed decisions.

In the US, federal loans often offer better terms than private options.

Familiarise yourself with repayment plans early, so you’re prepared once the grace period ends.

Consider these strategies:

• Evaluate loan forgiveness programs that cater to public service roles.
• Calculate potential monthly payments post-graduation to avoid surprises.
• Keep an eye on interest accrual while in education.

Proactively managing loans now helps ensure financial stability when entering the legal field as a professional lawyer.

3. Create a Sustainable Budget

Developing a budget tailored for law school life ensures financial stability and reduces stress.

Start by listing your fixed expenses like tuition, housing, and utilities. Then, estimate variable costs such as groceries, transportation, and study materials.

Prioritise essentials but leave room for occasional leisure to avoid burnout.

Regularly review your budget to adjust it based on any changes in income or expenses.

Make sure you:

• Identify all sources of income including loans and scholarships.
• Track monthly spending using apps designed for budgeting.
• Set aside an emergency fund for unexpected costs.

By maintaining this approach, you will cultivate sound financial habits that benefit you throughout your legal education journey.

4. Consider Working Part-Time

Working part-time while in law school offers valuable experience and additional income.

However, it can be challenging to balance part-time work with your studies – but not impossible. Efficient time management is key. Prioritise tasks by setting clear schedules for both work hours and study sessions.

Here are some ideas to help you maintain the balance:

• Choose jobs offering flexible hours or remote work.
• Communicate clearly with employers about your academic commitments.
• Allocate specific times for job duties separate from personal downtime.
• Use effective study resources (like a Florida bar study guide) that help you focus your efforts on essential topics without overwhelming you with excess information. Such resources can be used during break times at work.

Balancing work and study well ensures steady financial progress alongside academic success.

5. Explore Legal Internship Stipends

Finding paid internships during law school is a strategic way to gain valuable experience while earning extra income.

Start by researching firms and organisations known for offering stipends or compensation. Many legal offices, especially those in the public sector, provide financial support as they recognise the need to nurture future talent.

Engage with career services at your institution; they often have listings of paid opportunities tailored for students.

And don’t overlook networking events – personal connections can lead to internship offers that aren’t widely advertised.

Keep an eye on deadlines and prepare strong applications highlighting relevant skills and academic achievements.

6. Implement Smart Saving Habits

Lastly, even with limited funds, saving money during law school could be achievable.

Start by identifying areas where you can cut back without sacrificing quality of life. Simple changes make a significant difference in the long run.

Use student discounts whenever possible.

Automate savings by setting up regular transfers to a separate account, even if it’s just a small amount each month.

Here are some practical tips:

• Prepare meals at home rather than dining out.
• Buy or rent used textbooks instead of new ones.
• Share living expenses with roommates to reduce costs.

Developing these smart saving habits helps build financial resilience, easing the transition from student life to professional practice after graduation.

Good morning and welcome to your Morning Briefing for Monday 21 October 2024. To get this in your inbox every morning click here.

Social enterprise to solve the advice gap

Financial advice firms are increasingly aware of their social responsibilities and are meeting them in numerous ways, from pro bono and charity work to B-Corp certification, which assesses the social and environmental impact of business practices.

Some firms are focusing their efforts on addressing the ‘advice gap’, where people who would benefit from financial advice cannot afford it.

But could social enterprises — businesses that trade for a social and/or environmental purpose — provide a longer-term solution?

MM Talks with Kim, Lois an Tom

Join Kimberley Dondo, Lois Vallely and Tom Browne from the Money Marketing team for the third episode of MM Talks.

This episode explores the FCA’s consolidation review, and speculation of the upcoming budget’s impact on financial advisers, and shares chillingly true finance horror stories from the internet. Listen now:

Quote Of The Day

Remember how your granny always told you that if something seems too good to be true then it probably is? You’d do well to apply this advice to investments too.

– Victoria Hasler, head of fund research at Hargreaves Lansdown, talks about how to avoid investment scams, in honour of Scams Awareness Week, which starts today

In Other News

Janus Henderson today announces the launch of its first active ETF in Europe: the Janus Henderson Tabula Japan High Conviction Equity UCITS ETF (JCPN).

The launch of this active ETF provides investors with an alternative way of accessing the firm’s “deep knowledge and insights” in this market.

The fund will adopt a high conviction approach and invest in an actively managed all-cap concentrated portfolio of 20 to 30 holdings, providing exposure to companies that are set to benefit from structural themes and trends in the Japanese Equity market, and showcasing the best of Janus Henderson’s stock selection skills.

The launch of this active ETF represents an important milestone for Janus Henderson, allowing the firm to cater to client demand globally for its investment strategies to include a UCITS ETF wrapper.

It also builds upon the firm’s active ETF proposition in the US where it is fourth largest provider of actively managed fixed income ETFs.

Europe markets watchdog bids to become EU’s version of SEC (Financial Times)

Chinese banks slash lending rates to bolster ailing economy (Bloomberg)

UBS sells its 50% stake in Swisscard to American Express (Reuters)

Did You See?

It has been 10 years since financial education was introduced to the national curriculum for secondary schools in England.

At primary school level, the national curriculum provides a framework for young children to recognise coins and learn how to use money through simple ‘number problems’ in maths lessons.

The ‘real life’ context comes later, during citizenship or ‘personal, social, health and economic’ education from age 11.

However, says Amanda Newman Smith, some schools do not follow the national curriculum, adding weight to the criticism that financial education is inconsistent in England.

Earlier this year, a report by the House of Commons Education Committee found widespread evidence that financial education in England’s primary schools was “insufficient and should be expanded”.

So, how should financial education be presented to younger children and what role do financial advisers have in this?

A MAJOR high street bargain retailer has confirmed it will shut all its stores on Boxing Day to give staff a well-earned break.

Poundland, which runs over 800 UK stores, said it will close shops on December 25 and 26.

1

The discounter said all its locations will also shut on New Year’s Day as a thank you to staff.

Meanwhile, workers will be given a £25 voucher to spend in their local Poundland branch on any Christmas shopping.

Simon Wells, people director at Poundland, said: “We have brilliant colleagues here at Poundland & Dealz who work incredibly hard throughout the year, bringing our brands to life every day and supporting our customers.

“But we know they all particularly shine at Christmas, bringing the magic to our stores that our customers know and love. 

“We’re delighted to be able to support them with a well-earned rest once the festive season is over.”

It comes as Poundland launches a drive to employ 1,000 new seasonal staff to cover the busy festive period.

The majority of the shop floor roles will end on Christmas Eve while some will be extended until early January.

You can find out more by visiting Poundland’s website.

It is common practice for retailers to close their stores on Christmas Day but not all shut branches the following day.

Some also shut branches on New Year’s Day to give staff an extra day off over the Christmas period.

A number of other retailers have already confirmed they will shut on Boxing Day as well as Christmas Day this year.

Aldi confirmed it will shut on December 25 and 26, as will Home Bargains, John Lewis and Waitrose.

DIY retailer Homebase has also said it will shutter branches over the two-day period.

If you’re keen to find out whether your favourite retailer will close its branches on Boxing Day, it’s worth keeping an eye on social media.

Chains often publicise their festive opening hours on X and Facebook.

You can also try using a retailer’s store locator tool which should tell you the opening hours for your local branch.

Most of the time, it will also feature a number you can call to find out opening times.

The latest two announcements from Poundland come after the bargain chain launched its loyalty scheme UK-wide.

It is now rolling out its Poundland Perks rewards scheme to all branches and online.

The bargain discounter had been trialling the phone-based loyalty scheme at around 100 stores in Northern Ireland, Scotland, and the Isle of Wight since last year.

Shoppers can download the Poundland Perks app on to their smart phone via the Google Play and Apple App store.

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

Money makes the business world go around, but there is more to successful businesses than profits.

Financial advice firms are increasingly aware of their social responsibilities and are meeting them in numerous ways, from pro bono and charity work to B-Corp certification, which assesses the social and environmental impact of business practices.

Some firms are focusing their efforts on addressing the ‘advice gap’, where people who would benefit from financial advice cannot afford it.

It starts off about financial advice, but it will have a social impact. That’s why, for us, social enterprise is a win-win

But could social enterprises — businesses that trade for a social and/or environmental purpose — provide a longer-term solution?

A different approach

Social enterprise entrepreneur Nicole Bremner — who qualified as a non-practising financial adviser in Australia — is setting up a community interest company, Your Prosperity Group, to tackle the UK’s advice gap.

Bremner was motivated by seeing how distressed an elderly customer in a high-street bank had been as he insisted on making a payment to the bank or risk losing his life savings.

He did not receive the support he needed from the bank, and Bremner could not get this out of her mind.

Social enterprises rely on volunteers — but how do you maintain the quality and consistency of what is provided?

Drawing inspiration from the business model of family lawyer Jenny Beck, co-founder of Beck Fitzgerald, Bremner thought about partnering with financial advisers and other professionals to provide guidance to people who could not afford advice, supported by a reasonable fixed-fee model for those who could afford to pay.

At Your Prosperity Group, guidance will be free where a person’s net assets or household income are less than £35,000 a year — the average UK income.

Above this amount, a one-off fee of £1,499 is applicable, with follow-up meetings at £499 or an optional subscription of £35 a month.

“There is a mass of clients with less than £30,000 to invest who don’t need regulated financial advice,” says Bremner. “For them, it’s about debt and whether they should pay down their mortgage — it’s financial guidance, not advice.

If you’re improving financial literacy within communities, cities and countries, what is the social return on that investment?

“It’s very early days [with the company], but the way I want to do it is, if [someone goes] to a financial adviser and has only £10,000 to invest, the adviser can say, ‘We can assist you,’ and refer the client to us.”

If the client’s circumstances change, says Bremner, and they need regulated advice — for example, if they inherit a large pot of money — they will be referred back to the financial adviser.

She also wants to create a panel of trusted financial advisers for clients who go directly to Your Prosperity Group but need regulated advice later on.

The challenges

Chris McCullam, investments director at consultancy firm Altus, says the social enterprise route is an interesting way of tackling the advice gap.

However, he thinks it is not without challenges, such as delivering at a price that works for the mass market, and the availability of people who can deliver the service.

“Social enterprises rely on volunteers — but how do you maintain the quality and consistency of what is provided?” he asks.

There will be more prosperity, less crime and less vandalism as people understand the role of job creators and the role that business plays

“There are plenty of professional services that do pro bono work, but the nature of the work we’re in is a commercial enterprise.”

McCullam says people do what they can to help while making a living for themselves, but there comes a point where that becomes unsuccessful.

“It’s about getting the balance right,” he says.

Benefits for all

Practical considerations aside, we would all potentially stand to benefit from better access to financial guidance or advice.

“If you’re improving financial literacy within communities, cities and countries, what is the social return on that investment?” says social entrepreneur Claudine Reid.

There are plenty of professional services that do pro bono work, but the nature of the work we’re in is a commercial enterprise.

“There will be more prosperity, less crime and less vandalism as people understand the role of job creators and the role that business plays.”

As Reid points out, if local businesses are prosperous, they will create jobs for people, provide work experience for those in education, and so on. From a financial adviser’s perspective, this could increase the number of paying clients.

“It starts off about financial advice, but it will have a social impact,” says Reid. “That’s why, for us, social enterprise is a win-win.”

This article featured in the October 2024 edition of Money Marketing. 

If you would like to subscribe to the monthly magazine, please click here.



Join Kimberley Dondo, Lois Vallely and Tom Browne from the Money Marketing team for the third episode of MM Talks! This episode explores the FCA’s consolidation review, and speculation of the upcoming budget’s impact on financial advisers, and shares chillingly true finance horror stories from the internet! Listen now: