THOUSANDS of disabled Brits could lose up to £5,000 a year as Rachel Reeves is set to push through brutal welfare cuts.

The Chancellor is expected to slash £3bn from the welfare bill in the Budget – with £1.3bn of that coming from disability benefits.

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The changes, first introduced by the Tories, will tighten access to sickness benefits through tough new rules under the Work Capability Assessment.

The Office for Budget Responsibility said the move would save £3bn over four years and the sum is already factored into Treasury spending assumptions.

But the tougher criteria could see 420,000 disabled or ill people lose vital financial support, with experts warning some will face devastating cuts of up to £5,000 annually.

The Resolution Foundation, an independent think tank, has warned that slashing the benefits will leave these people struggling to make ends meet, calling on the Chancellor to rethink the plan.

But Work and Pensions Secretary Liz Kendall yesterday said the benefits system needs the most far-reaching reform in a generation to get millions back into work.

Her department is preparing to roll out a radical overhaul of welfare, promising a pro-work, pro-opportunity agenda.

There are 2.8 million people off work due to long-term sickess, with the cost of benefits for working age people set to reach £64bn by the end of the Parliament.

This figure will be an increase of £30bn on pre-pandemic levels.

Before the election, former Work and Pensions Mel Stride unveiled plans to tighten welfare rules to require an extra 400,000 people signed off long-term to go back to work.

They would automatically lose some of their benefits payments, with the hope being that they would eventually enter the workforce, cutting the welfare bill even further.

Ms Reeves has committed to delivering the £3bn in savings, but it will be up Ms Kendall to determine the specific changes needed to achieve that target.

A Government source said: “We have always said that the Work Capability Assessment is not working and needs to be reformed or replaced alongside a proper plan to support disabled people to work.

“We will deliver savings through our own reforms, including genuine support to help disabled people into work.”

Advisers’ provider selection significantly changed when considering value and price in line with Consumer Duty Regulations, according to latest data from Protection Guru.

The data, published today (18 October), shows a divergence between traditional market shares and adviser product recommendations when value and price are considered.

It looks at recommended products by those UK-based advisers using the Protection Guru Pro (PGP) service in the first two quarters of 2024 (January-March/April-June).

PGP is the only service that allows advisers in the UK to look at quality and price to assess value across the full suite of protection products, covering life insurance, critical illness, income and business protection.

By combining these measurements, advisers can filter the vast number and variations of protection products, and only compare the products that meet their clients’ needs.

The data highlights that when quality and price are considered, providers such as Royal London and Guardian attract a considerable share of recommendations.

It also shows that adviser recommendations for Vitality products increased quarter-on-quarter.

The analysis found that across all products, advisers using PGP tend to recommend the fourth or fifth best product that fared 9th or 10th by price alone. This suggests an increasing shift to quality products in the market.

This demonstrates that when advisers follow the FCA’s Consumer Duty requirements and identify value by assessing quality and price, they are typically balancing both factors to get the optimal client outcome, according to Protection Guru.

Ian McKenna, founder of Protection Guru, said: “By taking price and quality into account across the full range of protection products, we give advisers the tools to do their job in the best possible way, and follow the FCA’s guidance under the Consumer Duty Regulations. The data demonstrates our service is driving real changes in adviser behaviour – leading to better consumer outcomes.”

Good morning and welcome to your Morning Briefing for Friday 18 October 2024. To get this in your inbox every morning click here.

Provider selection significantly changed by value and price

Advisers’ provider selection significantly changed when considering value and price in line with Consumer Duty Regulations, according to latest data from Protection Guru.

The data published today (18 Oct.) shows a divergence between traditional market shares and adviser products recommendation when value and price are considered.

It looks at recommended products by those UK-based advisers using the Protection Guru Pro (PGP) service in the first two quarters of 2024 (January-March/April-June).

Delivering financial education to young children

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

Quote Of The Day

The ECB stopped short of forward guidance, but we expect quarter point cuts every meeting between now and April.

-Mahmood Pradhan, head of global macro economics, Amundi Investment Institute, comments on the ECB interest rate decision.

In Other News

Morningstar today (18 Oct.) published its European Asset Flows data and commentary for September 2024. The data revealed that EUR 36.5 bn of net inflows were drawn by Europe-domiciled long-term funds in September, and EUR 121 bn in the third quarter.

Valerio Baselli, senior international editor, Morningstar, said: “Asset classes recovered swiftly from the volatility seen at the start of August. Investors continued to show positive sentiment, arguably driven by the decisions of the US Federal Reserve and the European Central Bank to cut interest rates and poured EUR 36.5 bn into long-term Europe-domiciled funds in September.

“Between July and September, global equities surged to all-time highs despite pronounced volatility on several occasions. Emerging markets performed strongly, supported by the announcement of new stimulus measures in China. In the quarter, equity funds took in EUR 41.7 bn (EUR 11.8 in September). This was a one-sided story: September marked the 18th month of net outflows of the past 19 for active equity strategies.”

UK businesses remain wary of Labour after charm offensive (Bloomberg)

Amazon AWS CEO: Quit if you don’t want to return to office (Reuters)

Companies House to stop fraudsters joining up under fake names like ‘Darth Vader’ (The Guardian)

Did You See?

Pensions providers and industry experts are having their final say on the FCA’s value for money framework proposals ahead of the consultation closing date (17 October).

In August, the FCA laid out plans to provide millions of pensions savers with better value for money.

Under the proposals, defined contribution (DC) pension schemes will be required to publicly disclose how they are doing across the three key metrics.

These are investment performance, quality of service and cost.

Each will be assessed against a red, amber and green ‘traffic light system’ to determine which – if any – need attention.

Poorly performing schemes will be required to provide an action plan of how they will improve or if they don’t, “protect” savers by transferring them to better schemes.

Daniel Cooper has the full story.

YORKSHIRE Tea has discontinued its popular “Toast and Jam” teabags – leading sweet-toothed fans to plead for them back.

The flavour was launched in 2020 as “a strong breakfast blend with all of the loveliness of jam on toast without the crumbs.”

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But after years at the breakfast table, the comforting brew is gradually being phased out in shops, leaving customers desperately scrambling for the final boxes.

One said on social media site X.com: “Please tell me that you are still doing Jam on Toast teabags? I can’t get them in the supermarket!!!!! And need them badly.”

Another added: “Is your toast and jam tea still a thing? Tried 3 different supermarkets in North Devon and it isn’t anywhere. Send help, or jammy tea! The search continues!””

A third said: “Have you stop making jam and toast… I need my morning fix! Help this is a genuine emergency! Asda and Sainsbury’s online stopped stocking it! Helllllppppp.”

Meanwhile, Dr Rachael Door joked: “There appears to be a national shortage of @YorkshireTea Jam and Toast and I’m nearly at breaking point.”

It’s understood that the blend is now being replaced by the brand’s new “Caramelised Biscuit Brew” – which is designed to stop you from craving biscuits with tea.

The new flavour is available to buy from Ocado and Sainsbury’s for £2.30.

Yorkshire Tea periodically introduces new flavours to keep its range fresh and innovative, with “Malty Biscuit Brew” being another sweet flavour in the range.

Tom Church, co-founder of LatestDeals.co.uk, said: “By making space for the new Caramelised Biscuit Brew, Yorkshire Tea is showing that being inventive is just as important in the tea aisle as it is for chocolate or sweets.

“Innovation is marketing, as they say. I think they will have found most people probably try these different flavours once or twice for novelty.

“There will be some die-hard fans who keep drinking, but the majority probably tail off.

“Adventurous tea flavours gives Yorkshire Tea and chance to stand out, not just on the aisle but in the important social media space too.

“Biscoff biscuit recipes have been trending on TikTok and Instagram for years, and a tea bag that tastes as if you’ve dunked a Biscoff in it? Well, yes please.”

Yorkshire Tea has not commented on the disappearance of Toast and Jam teabags to Sun Money.

But this week it responded to one desperate fan saying: “We’re afraid it’s being discontinued but it’s still available in Tesco, Amazon and Ocado for a little while.”

The Sun had a look at various different retailers and can confirm it is available to buy from Ocado, while stocks last, for £2.30.

Tesco is also still selling the product for £2.

Meanwhile, Amazon is still advertising a multipack of four boxes for £19.98.

It does not appear to be available to buy from Sainsbury’s, Morrisons or Asda.

It’s not the only disappointment for fans of sweet treats.

Earlier this month we revealed how fans of Smarties Buttons were distraught after the loved snack was axed.

Meanwhile, M&S fans have had a series of disappointments recently after the brand decided to axe Connie the Caterpillar sweets and Percy Pig Phizzy Pig Chews.

Why are products axed or recipes changed?

ANALYSIS by chief consumer reporter James Flanders.

Food and drinks makers have been known to tweak their recipes or axe items altogether.

They often say that this is down to the changing tastes of customers.

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There are several reasons why this could be done.

For example, government regulation, like the “sugar tax,” forces firms to change their recipes.

Some manufacturers might choose to tweak ingredients to cut costs.

They may opt for a cheaper alternative, especially when costs are rising to keep prices stable.

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For example, Tango Cherry disappeared from shelves in 2018.

It has recently returned after six years away but as a sugar-free version.

Fanta removed sweetener from its sugar-free alternative earlier this year.

Suntory tweaked the flavour of its flagship Lucozade Original and Orange energy drinks.

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While the amount of sugar in every bottle remains unchanged, the supplier swapped out the sweetener aspartame for sucralose.

CADBURY has shrunk the size of a popular Christmas chocolate and shoppers will be disappointed.

The iconic treat manufacturer has reduced the size of its Buttons selection box from 375g to 340g.

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When launched last year the pack contained Caramilk Buttons, Orange Giant Buttons and Salted Caramel Button.

This year it has been tweaked to include, Caramel Nibbles and White chocolate buttons, alongside the classic Milk Chocolate Buttons.

At the time, shoppers went crazy for the box, with one commenting in a social media post that they “needed this in their life”.

Representatives from Mondelēz International, the parent company of Cadbury, have confirmed to The Sun that the product has been reduced in size.

A spokesperson blamed higher cocoa and sugar costs for the reduction in the amount of chocolate in each box.

They said: “This means that our products continue to be much more expensive to make and while we have absorbed these costs where possible, we still face considerable challenges.

“We understand the economic pressures that consumers continue to face and any changes to our product sizes is a last resort for our business. “

While the amount of chocolate shoppers receive has reduced the price remains about the same.

Asda is still charging £5 for the selection box, the same price it set last year.

Meanwhile, Tesco is charging £6 for the 340g box or £5 if you buy it using your Clubcard.

The UK’s biggest supermarket charged Clubcard shoppers £4.50 for the selection box last year.

This is not the only case shoppers have witnessed of chocolates shrinking in size.

The Sun revealed this week that the Cadbury selection box now weighs just 125g, down by 14 per cent from 145g last year.

It is more than a quarter smaller than the box was in 2018 when it was 169g.

However, the price has also increased. 

In 2021 – when it was bigger – it was available in supermarkets for between £1.25 and £2. 

This year, it costs between £1.75 and £2.75 at the UK’s four main supermarket chains.

It also includes small versions of Fudge, Wispa and Crunchie, a treat-size pack of mini-buttons and small Dairy Milk bar and the caramel Freddo, axing the Double Decker bar.

When approached by The Sun, the chocolate giant also cited supply chain issues as the cause.

What is shrinkflation?

Shrinkflation is causing massive problems for shoppers across the world.

It is when manufacturers shrink the size or quantity of a product while keeping the price the same.

This means that consumers will be paying more per given amount.

Rising the price per gram is a well-oiled strategy used by companies to stealthily boost profit margins or to cement them in times of rising input costs.

Companies will often engage in shrinkflation when their production costs begin to rise.

A heavy hit to profit margins may force the company to simply shrink its products rather than increase the sticker price.

One of the best ways to notice shrinkflation is by spotting a redesign on the packaging or a new slogan.

This may mean the company has made a change and that change may just be the size of the product.

It is mainly seen in the food and beverage industries but can also happen in almost all markets.

It is a form of hidden inflation as shrinkflation often goes unnoticed by customers.

Companies run the risk of turning customers away from a product or brand if they notice they are getting less for the same price.

In recent weeks, pet owners were enraged after multipack Purina Felix Original cat food shrunk by 15 per cent.

How to save money on chocolate

We all love a bit of chocolate from now and then, but you don’t have to break the bank buying your favourite bar.

Consumer reporter Sam Walker reveals how to cut costs…

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Go own brand – if you’re not too fussed about flavour and just want to supplant your chocolate cravings, you’ll save by going for the supermarket’s own brand bars.

Shop around – if you’ve spotted your favourite variety at the supermarket, make sure you check if it’s cheaper elsewhere.

Websites like Trolley.co.uk let you compare prices on products across all the major chains to see if you’re getting the best deal.

Look out for yellow stickers – supermarket staff put yellow, and sometimes orange and red, stickers on to products to show they’ve been reduced.

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They usually do this if the product is coming to the end of its best-before date or the packaging is slightly damaged.

Buy bigger bars – most of the time, but not always, chocolate is cheaper per 100g the larger the bar.

So if you’ve got the appetite, and you were going to buy a hefty amount of chocolate anyway, you might as well go bigger.