Chancellor Rachel Reeves’ Budget last month represents “the biggest shake-up to financial planning in a long time”, according to Quilter’s head of technical sales Roddy Munro.

Munro made the comments at the PFS Rewired conference in Manchester today (November 12).

He also warned advisers not to “underestimate the historical importance of this Budget”, particularly bringing pensions into the scope of inheritance tax (IHT) and changes to capital gains tax (CGT).

The chancellor, Munro also observed, “has flagged her intention openly” by allowing frozen IHT allowances to remain through to 2028 but not to 2030.

This will drag 11.5 million people into higher rates of income tax over the next four years, enough to “fill Wembley Stadium several times over”.

However, Munro pointed out that 42% of those people are aged between 50 and 79 – the target market ‘heartland’ of clients heading towards retirement decisions.

The government has stated in the Budget that “pensions should not be a vehicle for the accumulation of capital sums for the purposes of inheritance”.

It also established that IHT will apply to all pension wealth that is transferable on death.

Therefore, said Munro, redefining the primary purpose of a pension will require a massive shift in advice for those with substantial defined contribution (DC) pots.

Munro also said that changes to CGT had “drained the life” out of general investment accounts (GIAs).

For disposals after October 30, the lower rate of CGT will rise from 10% to 18%. The higher rate will rise from 20% to 24%, while trusts have increased to 24%.

In addition, business asset disposal relief (BADR) and investors’ relief (IR) will rise gradually to 14% from April 6, 2025, to align with the lower rate of 18% by April 6, 2026.

This makes it less attractive to transfer ownership to a spouse than before, with GCT annual exempt amounts falling from £12,300 in 2020/21 to £3,000 in 2024/25.

The tax-free dividend allowance also fallen from £5,000 in 2016 to 2018, to £500 in 2024 to 2025.

The layering effect of all these fiscal changes has hit hard, said Munro, with tax now potentially the biggest cost to a client.

As a result, tax-wrapper optimisation is now paramount, as wrapper selection could have the biggest impact on total net costs.

Munro illustrated this point using a graph that showed platforms representing 25 basis points (bps), investment 60 bps, advice 50 bps and tax 88 bps (or 65% of the total 223 bps).

As previously flagged at last year’s PFS conference, these changes to IHT and CGT are likely to increase the attractiveness of bonds.

Munro pointed to Quilter’s ongoing tax-comparison tool to assess the ‘here and now’ tax position of retaining an existing CIA/GIA compared to moving to an onshore bond.

Bonds, he emphasised, are “a critical tax-planning tool” in terms of rewrapping client wealth

He also said that quality financial advice in this new tax landscape would be vital.

“Clients are going to need your help,” he concluded, “so your value has gone through the roof.”

SHOPPERS are thrilled after Aldi has stocked its shelves with a dupe of a much-loved Christmas treat from Greggs.

The bakery chain’s new festive menu left fans thrilled when it confirmed the return of a firm favourite – the Festive Bake.

4

4

Advertisement

But, rather than queue outside the bakery waiting to snag one, many are turning to their local Aldi.

The German-based retailer is offering a dupe of the Greggs Festive Bake for a fraction of the cost.

The Crestwood Festive Bakes found in the freezer section from November 27 are made with chicken, beechwood smoked bacon and cranberries.

They come with a sage and onion sauce which is all wrapped in puff pastry with a parsley and breadcrumb topping.

“Look What’s Back In Aldi!” one excited shopper exclaimed on Facebook after snagging the product early.

“If you see these clear the shelf,” one person said in the comments, tagging a friend.

“They are just as delicious as usual too!!” another said.

For a pack of two weighing 154 grams each, Aldi shoppers can scoop the Greggs dupe for just £1.75, saving them 56% compared to Greggs.

However, before shoppers go “clearing the shelves,” at Aldi there is a maximum number of boxes you can buy in one go.

To be able to spread as much festive joy as possible, there is a maximum purchase quantity of 10 boxes.

Just one Greggs Festive Bake is £2 or can be part of a savoury and hot drink deal for a total of £2.85.

The puff pastry bake is filled with pieces of chicken breast, sage and onion stuffing, Sweetcure bacon and a creamy sage and cranberry sauce.

Like the Aldi dupe, the Greggs version is also topped with breadcrumbs.

GREGGS FESTIVE FOOD

There is also a vegan option for those who are on plant-based diets which is made with vegan puff pastry, Quorn pieces, sage and onion stuffing balls, vegan bacon and cranberry and red onion sauce.

This is also just £2 or can be part of the same meal deal detailed above.

But, Aldi is also selling its Plant Menu Festive Bakes fir £1.19 for two made with vegan pastry, seasoned soya protein, sweetened dried cranberries and a sage and onion stuffing.

These are 70% cheaper than the Greggs version.

The North East-based bakery released its Christmas menu in bakeries on November 7.

For the first time ever, Greggs launched a Christmas advert to highlight its seasonal offerings.

The cosy ad features none other than celebrity chef Nigella Lawson who was seen devouring a number of the seasonal bakes and drinks on offer from the bakery.

She described the festive bake as a “rapturous riot of flavour” with a “succulent filling”.

The advert parodies Nigella’s famed use of superlatives, which viewers of her popular cooking shows will be familiar with.

Greggs fans can also look forward to mince pies, gingerbread lattes, Christmas baguettes, festive flatbreads and much more.

A second menu launch will be revealed later this month, the chain has confirmed so keep your eyes peeled.

OTHER CHRISTMAS OFFERINGS

As more and more retailers announce their Christmas menus and products, shoppers will be spoilt for choice.

At Aldi, there are three limited edition festive crisps which are flavoured: Beef Wellington, Turkey and Stuffing, and Pigs in Blankets.

4

4

Shoppers can also bag Bailey’s dupe, the Specially Selected Irish Cream Liqueur for just £7.99.

Others will be rushing to M&S to get their hands on the Christmas version of Colin the Caterpillar.

The Sleigh Ride Colin the Caterpillar features “Colin as you’ve never seen him before,” M&S claims.

With 46% more chocolate than the traditional caterpillar cake, Colin is getting into the spirit of Christmas, oozing both joy and indulgence.

Festive Colin wears a red Santa hat and is pulling a present-filled sleigh with candy canes and white and milk chocolate gifts.

But, once again, Aldi is offering shoppers a dupe with their own festive Cuthbert the Caterpillar which will be available from November 24.

Unlike Colin, Cuthbert Christmas is not in a sleigh, but wearing a Santa hat, a green bow tie and has white chocolate stars down his back.

Best Balance Transfer Credit Cards in the UK for November 2024.

Transferring credit card debt to a balance transfer card can help you save on interest, allowing you to pay off your debt faster. Discover how balance transfer cards work and find our top picks for the best deals available, tailored to various credit scores.

If you’re paying interest on your credit card, moving the debt to a balance transfer card could save you money. Many cards offer an introductory period with 0% interest for a set timeframe—ranging from a few months to over two years—so you won’t pay interest if you clear the balance before the promotional period ends.

The Best 0% Balance Transfer Cards

If you’re new to balance transfer cards, choose one that suits your financial situation. Generally, seek a card with the lowest APR (ideally 0%), the longest interest-free period, the lowest transfer fee, and a credit limit high enough to cover your existing debt.

Longer 0% deals are often available to those with higher credit scores. Using an eligibility checker can give you a sense of your chances for approval, along with an estimate of your potential credit limit and APR. This check is quick, easy, and won’t appear on your credit report.

Longest 0% Interest-Free Balance Transfer Cards

These cards are ranked by the longest 0% interest period, followed by balance transfer fee, and then APR. Your specific offer may vary.

Note: We regularly update this table to reflect accurate information, but always double-check terms as they may change. Credit card data is provided by Finance Monthly.

Longest 0% Interest-Free Period with No Fee

For those looking to avoid a balance transfer fee, the following cards offer interest-free periods without one.

Balance Transfer Cards for Bad Credit

If you have a lower credit score, you might still qualify for a balance transfer card. Though you may not receive the longest 0% deals, some providers offer low or 0% interest cards for individuals with limited credit history.

Be sure to check the APR once the promotional offer ends. If you’re not likely to clear the balance by that time and the APR is higher than your current card, consider waiting to transfer until you’re eligible for a better deal. Alternatively, consider transferring only part of your balance that you can clear before the 0% offer expires.

How Do 0% Balance Transfer Cards Work?

With a balance transfer card, you use one card to pay off another. The primary benefit is the ability to clear debt faster, without accruing interest charges. For instance, if you owe £2,000 on a card with 25% interest, a substantial portion of your monthly payment goes toward interest. By moving this debt to a 0% balance transfer card, you’ll only be paying off the principal for the introductory period. However, keep in mind that many 0% cards charge a transfer fee, typically up to 5%.

Once the 0% period ends, interest reverts to the card’s standard rate. Aim to clear the debt before this occurs, or you could apply for a new balance transfer card to keep the interest-free momentum going.

Advantages of 0% Balance Transfer Cards

The main benefits of a balance transfer card include:

• Reduced or eliminated interest charges.
• Accelerated debt repayment by focusing payments on the balance, not interest.
• The ability to consolidate multiple debts onto one card, simplifying payments.
• A potential boost to your credit score, provided you don’t add new charges.

Disadvantages of 0% Balance Transfer Cards

Consider these drawbacks:

• A balance transfer fee is common, typically a percentage of the balance transferred.
• Interest rates revert to the card’s standard rate after the 0% period.
• If you make purchases or cash withdrawals, these may incur interest immediately unless specified otherwise.
• A temporary dip in credit score may occur, as each new application prompts a hard credit check.
• Risk of financial setbacks if you’re not disciplined with spending and debt management.

Am I Eligible for a Balance Transfer Card?

Although the best deals usually require a good credit score, there are balance transfer cards available for individuals with lower scores. These typically have a lower credit limit, shorter promotional period, and a higher APR after the introductory period ends. Even without a 0% offer, transferring to a lower-APR card could reduce costs.

Before applying for a balance transfer card:

• Check Eligibility: Most providers require you to be over 18, a UK resident, with a permanent address and a minimum income. Avoid recent bankruptcies, IVAs, or CCJs. An eligibility checker from a provider or broker can help gauge your likelihood of approval without affecting your credit report.
• Check Your Credit Score: Your score can influence the success of your application. Factors like missed payments and high credit usage impact it, so review your score for free with agencies like Experian, Equifax, ClearScore, or Credit Karma.

How to Apply for a Balance Transfer Card

You can usually apply for a balance transfer card online or in-branch. The provider will run a credit check, so be prepared to provide:

• Your contact information
• Address history (last three years)
• Bank details
• Income

If applying online, you may get an instant decision, though approval times vary. Upon approval, review your credit limit, APR, fees, and minimum payment. Only sign if you’re satisfied; you can still walk away without obligation. After signing, you’ll have a 14-day cooling-off period during which you can cancel the agreement.

If denied, avoid reapplying immediately, as repeated applications can harm your credit score. Instead, review your credit report and use eligibility checkers before applying again.

How to Transfer a Balance

After your account is open, transfer your balance as soon as possible to start saving on interest. Follow these steps:

1. Request the transfer from your new provider (typically online or by phone) and provide account numbers and transfer amounts.
2. Wait for the transfer to complete—this may take minutes or a few days, depending on the provider. Once done, you can close the old account if you’ve cleared the balance.
3. Make timely payments on your new card to maintain the 0% offer and protect your credit score. If your new credit limit doesn’t cover the full balance, continue paying the remaining balance on the old card as well.

Best Two-Year Variable Mortgage Deals by Monthly Repayment For November 2024

A “swivel-chair approach” to technology is stifling adviser productivity and stunting firms’ ability to grow, Timeline CEO Abraham Okusanya has warned.

At the Personal Finance Society’s Rewired conference today (12 November), Okusanya said that in the five years following RDR, adviser productivity grew by over 50%.

However, in the last five, he said research showed it has declined by 10%.

Part of the problem, he believes, originates from “the way our technology stack is set up”.

“Twenty-five years ago, a gentleman from Australia had an idea to bring a piece of technology to the UK that would liberate the financial adviser.

“What has happened over the subsequent years is that we have numerous technology tools built around this ecosystem.

“As a result, we have ended up with a swivel-chair approach to technology.”

“Stop and think how many tools you now have to log into just to deliver advice to your clients,” Okusanya told delegates.

He said the next generation of platform – platform 3.0 – “is going to be an integrated ecosystem of all the main tools an adviser needs”.

He added that this new generation of platform, where everything can be done in a single place, “isn’t a prison, it’s actually easier to leave”.

This is because “you can click a button, download all your information and off you go”. He added: “Try doing that today, you can’t.”

This next generation of technology, he said, will “change the way we deliver advice”.

Okusanya also said advisers aren’t seeing as many clients as they could due to “admin overload” caused by increased regulatory pressure.

Financial advisers currently only serve 8% of the country, despite over 30% of households having a net worth of more than £500,000.

“Someone said to me ‘you’ve got to remember, Abraham, that the average financial adviser is 53 and running down the clock’. I can’t get my head around that.

“But it gets worse, because when I speak to younger advisers who are running their own businesses there doesn’t seem to be a huge amount of desire for growth.”

He said there “seems to be this perception that if you want to grow then you are going to destroy your lifestyle in the process”.

“I just cannot get it, because if there is demand for what we do, if we have capacity to do good in the world – to make a difference and make a little bit more money while preserving our lifestyle – why would you not do it?”

“If you are on the south side of 53, you have an incredible opportunity to make a difference because you have the best gift of all, which is time.

“If you are on the north side of that, you have something that the other side doesn’t – wisdom.”

Okusanya said the average adviser creates £160,000 of revenue per year for their firm.

Consolidation “doesn’t seem to make this significantly better”, he claimed, because “even when you are really big, the improvement is only around £5,000 per annum”.

He said there are “outliers out there doing significantly better than this” and referenced a wealth-management firm whose advisers are turning over £1m a year.

He said just spending 10% less time in the back office can translate into over half a million more in revenue.

“That’s how a small improvement in how you spend your time in your operation translates to bigger, better productivity and profitability.”

THOUSANDS of low-income households will receive cash after losing out on their Winter Fuel Payments.

Introduced during the cost of living crisis, the Household Support Fund has been extended this month and will run until March next year.

2

2

Advertisement

Part of the scheme has already been set to send vouchers worth £100 to pensioners.

This means that those who have a low income but no longer qualify for winter fuel payments may still be able to receive financial aid during the cold months.

Those eligible due to their low income will start receiving the added support from January if living under the remit of Stockton-on-Tees Borough Council.

The local authority has posted on Facebook to inform their residents that pensioners over 66 could be entitled to receive “up to £180 worth” of “extra support” in January.

Added financial aid has been allocated for those most in need of help to afford their essentials, with local councils being allocated the funding from central government.

The scheme has been rolled out to benefit those who are struggling to afford winter essentials such as energy and water bills, food, and wider essentials.

Introduced in October 2021, the latest support has seen a number of ways those eligible may be entitled to claim further help.

For instance, Stockton-on-Tees Borough Council have offered those already receiving a Council Tax Reduction, to be automatically sent an £80 voucher.

This is meant to go towards the cost of energy and food payments and the vouchers could even be exchanged for cash, just in time for Christmas.

From the end of November, there will be no need to contact the local authority, with PayPal outlets allowing the swap to take place.

Anyone not receiving a Council Tax Reduction may still be able to get hold of a discretionary payment of £80 if they are eligible.

This requires them to be living in the Borough of Stockton-on-Tees, not already receiving the Council Tax Reduction, liable to pay the household energy bills or prepayment meters.

Their total net weekly household income should also not exceed £425 for a single person, £525 for a couple or £625 for a family.

Individuals unsure of whether they are entitled to claim support under the latest extension of the scheme should contact their local council to find out more.

Previously, the winter fuel payment was worth up to £300 and could be claimed by everyone over the state pension age.

However, Rachel Reeves recently revealed in the Budget that this payment would no longer be automatic and instead be limited to retirees on pension credit.

Some means-tested individuals may also continue to be entitled to the payments but the vast majority of those who would usually rely on the cash will not be able to do so.

Martin Lewis, the founder of Money Saving Expert, recently offered some advice for those left at a loss from the Chancellor’s announcement.

He said: “Do you have earnings of under around £220 a week? If it’s under that level, apply for pension credit.

“It’s worth an average of £3,900 a year, and you will get your winter fuel payment.”

How do I apply for pension credit?

Advertisement

You can start your application up to four months before you reach state pension age.

Applications for pension credit can be made on the government website or by ringing the pension credit claim line on 0800 99 1234.

You can get a friend or family member to ring for you, but you’ll need to be with them when they do.

You’ll need the following information about you and your partner if you have one:

• National Insurance number
• Information about any income, savings and investments you have
• Information about your income, savings and investments on the date you want to backdate your application to (usually three months ago or the date you reached state pension age)

You can also check your eligibility online by visiting gov.uk/pension-credit first.

If you claim after you reach pension age, you can backdate your claim for up to three months.

Advertisement

By any measure, the recent Budget felt like a major political set piece and one that may define much of this parliament.

The lead up to it was characterised by division and adversarial politics and, at this point, I think it is helpful to take a step back and look at the positive impact cross-party agreement has had in the past and look forward to how we can work with new policy challenges to deliver for our clients.

The Beveridge Report was published more than 80 years ago in an effort to slay the five evils of the day: idleness, ignorance, disease, squalor and want. It set up the welfare state pretty much as we know it today.

The state pension was intended only to be a safety net – a minimum income below which no one should fall

The state pension scheme was one of the report’s key recommendations and the idea was that everyone should contribute to a system through their working life and receive a pension in return.

The contributory principle was essential: individuals would earn their state pension by paying into the system, avoiding any sense of charity or welfare stigma.

What is not always well understood, however, is that the state pension was intended only to be a safety net – a minimum income below which no one should fall.

The idea was always that savers would keep an eye on how much they would need in retirement and take action to supplement the state scheme with other savings where necessary to build the right standard of living for them.

So what?

Phoenix Group has worked with Frontier Economics to assess the position as we understand it today. Our work highlights that the years 2040 to 2044 will mark a critical period as it suggests, at that point, nearly 60% of those with defined contribution pension schemes will retire with inadequate savings.

Plain and simple, we are not saving enough.

This is a difficult message to get across, especially given the boost auto-enrolment (AE) continues to deliver in terms of the number of people saving for their retirement.

2040 to 2044 will mark a critical period. At that point, nearly 60% of those with defined contribution pension schemes will retire with inadequate savings

Today, nearly 80% of workers are in private or work-related schemes, saving £116bn a year. That number will only rise once changes to the AE rules are made, increasing the number of workers qualifying for AE contributions and bringing the level of those contributions to a more realistic level.

The problem is that timing is crucial. The more the implementation of changes is delayed, the more the benefits to savers evaporate.

People continue to rely on the state pension. It is paid to about 13 million people annually and costs about half the UK’s total benefits budget.

The problem is that the state pension is paid from today’s contributions. This is not an issue if there are enough taxpayers to cover the costs. But as we know, life expectancy has increased in the UK meaning that, eventually, tax paid will be unable to cover the pensions demand.

The state pension is paid to about 13 million people annually and costs about half the UK’s total benefits budget

The implication is covered succinctly by a survey we commissioned in 2022, which found over half of those below 50 years of age said they did not believe there would be a state pension by the time they retire.

Pensions policy is built on security and reliability, not on short-term tinkering. The saver who loses faith in the pensions system might move to other strategies to source a suitable income in retirement – and miss out on employer contributions payable to their AE pot, making the shortfall in their long-term savings even more acute.

A new saver needs to be sure of the benefits they will be building up and how they can be accessed. The fear that someone will pull the rug out from under them just as they are ready to take their income in a way that suits them is a sure-fire way to stop people engaging.

Over half of those below 50 years of age said they did not believe there would be a state pension by the time they retire

In short, we must give certainty – the adviser community is key to this in making sure savers understand what they have and how it can be used to provide a good financial outcome for their future. Working with the rest of the financial services industry to a common goal of making information available and easily understood is crucial.

We must balance the yin and yang of pensions policy: a state scheme to deliver a minimum level of retirement income and a supplementary proposition in which savers can have confidence, and for which they are willing to pay. Balance long-term stability and short-term affordability.

And help minimise the pensions crisis that looms in the next 15 years.

Andy Curran is chief executive of Standard Life, part of Phoenix Group