Transact has become the first intermediary platform to adopt an electronic Cash Isa transfer service via Pay.UK (BACS) and Equisoft.

This simplifies the transfer process by enabling seamless information exchanges between Transact, banks and building societies, removing the need for paper-based transfers.

Previously, transferring a Cash Isa required sending paper instructions to banks, locating processing teams and manually completing the steps.

With this new service, clients no longer need to wait for cheques, and funds can settle in their accounts faster. The system ensures secure, reliable transfers, adhering to best practices and industry regulations.

Seventy-two leading banks and building societies are now using the service, which automates Cash Isa transfers, including Junior Isas. This is expected to significantly reduce transfer times across the industry.

For example, Transact’s cash/electronic transfers now take an average of nine days, compared to 42 days for manual or in specie transfers.

Transact’s recent survey reveals that 90% of financial advisers support electronic messaging to speed up transfer times, urging regulators to encourage wider adoption by legacy providers.

The platform has seen year-on-year improvements in transfer services, including the creation of regional transfer specialists, the introduction of an online transfer tracker and enhancements to the online transfer application process.

Tom Dunbar, chief development officer at Transact, said: “We are obsessed with trying to improve transfers and this latest development links our commitment to improve transfer times with our digitalisation programme.

“We expect thousands of cash Isa transfers onto Transact to benefit from this new, faster service each year.

“We remain committed to personal service but where automation or integrations can speed up processes, we are keen to adopt new solutions.”

The amount of money invested into Cash Isas in the last tax year increased by 50% compared to 2022-2023.

Pensions technology provider iPipeline has reported a significant rise in demand for annuities among financial advisers.

In the first half of 2024, annuity quotes increased by 12% compared to the same period in 2023, marking the highest demand since iPipeline began tracking in 2013.

This follows a record 60% year-on-year rise in adviser annuity comparisons on its platform in 2023.

iPipeline’s annuities portal now accounts for 25% of all quotes in the UK retirement market.

The company’s November 2023 ‘Building a Better Retirement’ report, produced with Retirement Review, revealed that the average UK saver aged 40 to 66 targets a pension pot of £223,503, yet many fall short.

The average total value of personal pension pots is £167,891, with 23% of savers holding less than £50,000, and 37% having no savings target at all.

The findings highlight the growing importance of annuities in retirement planning.

Greg Neall, chartered financial planner at Wake up your Wealth, said: “This clearly shows a continued return to the annuity market by advisers, which comes as no surprise as annuity rates for those in their mid to late sixties are comparable to sustainable drawdown rates.

“If this higher interest rate environment persists, I believe the rates of annuity quotes will continue to increase particularly for those investors over 70 who have deferred taking their pension pots or have used a drawdown to transition towards a secure income later.”

Paul Yates, product strategy director at iPipeline, said: “We’ve seen advisers are searching for annuities during a time of higher interest rates. We assume, that now rates have started to fall and may continue to do so, these annuity numbers will start to slowly reduce.

It will be interesting to see what happens in the second half of the year (especially with the current market volatility levels). We are unlikely to see a return to interest rates under 1% again, so annuities should remain a key part of an adviser’s retirement toolkit, especially for older retirees who need income guarantees.

“We would also expect to see growth as the number of people with drawdown pots increases and as the age profile of holders grows.

“At the same time, we have a new government that could start to make major changes, and that may impact the way we save for, and spend in, retirement.”

Fundment has launched a cash Isa and cash Lifetime Isa, backed by a fully digital cash investment system.

It has partnered with Investec Bank to offer a 12-month fixed rate deposit within its cash Isa and cash Lifetime Isa options, with plans to expand cash investment choices in the future.

This follows the July launch of the Fundment stocks and shares Lifetime Isa (Lisa) and addresses growing adviser and client demand for cash options.

Fundment founder and chief executive Ola Abdul said: “We’re expanding our Isa range in line with adviser demand.

“This move, coupled with the full digitisation of our underlying cash investment functionality, demonstrates our commitment to providing advisers with the tools they need to serve their clients effectively.”

The platform has also fully digitised its cash investment process, streamlining operations for advisers.

From digital account opening and client approval to automated payments of fees, income, and dividends, the process is intuitive and designed to save time, allowing advisers to focus on delivering value to their clients.

Investec head of funding partnerships David Hunt said: “Our collaboration with Fundment aligns perfectly with our commitment to tech-driven, digitally-enabled financial solutions.

“By leveraging our API, Fundment has created a frictionless experience for advisers and their clients.”

Beyond the 12-month FRD in cash Isas and cash Lisas, Fundment offers fixed term deposits within pension and general investment wrappers.

These Investec Bank products are available in three-, six-, 12-, and 24-month terms.

Income Protection Awareness Week (IPAW 2024) kicked off today (23 September) with a seminar for advisers exploring the current income protection (IP) market.

The awareness week is being organised by the Income Protection Task Force (IPTF) to raise the profile and grow sales of IP products.

The week will comprise a series of online keynotes, panel debates, case studies and presentations and will tackle various themes across income protection.

Today’s session looked at the case for income protection and what advisers are seeing in the market and in client conversations.

It also looked at how advisers include IP in their advice process and the impact that consumer duty has had on adviser behaviour.

Jo Miller, co-chair, IPTF, said the IP market has seen a rise in sales, with a record number of sales on advice.

However, she urged the sector to keep up the momentum as more work needed to be done.

The adviser panel – consisiting of Mike Douglas, protection specialist, Woodside Financial Services, Nina Brown, protection specialist at Pam Brown Mortgages, and Hannah Murray, financial adviser, St. James’s Place Protection Planning – expressed similar sentiments.

For his part, Douglas urged advisers to make the IP advice process simple by explaining the benefits and pitfalls of not having IP cover.

Meanwhile, research from protection and employee benefits provider MetLife UK has found that while one in five (20%) consumers see the benefit of financial protection, 12% don’t understand the difference between the various offerings.

The study, published today, found one in ten (9%) customers admitted they only thought about financial protection once it was too late and they needed to claim.

MetLife said IPAW provides the chance for advisers to talk to clients and review what protection they do and don’t have in place.

Free School Breakfasts in the UK: How Much Can Parents Save? 

The Labour party promised in their manifesto to introduce free breakfast clubs in primary schools. Now, its time to see if they will keep to their promises. This could alleviate a substantial financial burden on parents and families in the UK.  

For many parents, the daily struggle of balancing work, childcare, and school schedules adds both stress and expense. A free breakfast program could reduce these pressures, particularly for those already paying for school breakfasts or before-school care. 

What Can I Save with a Free Breakfast Club? 

Parents who currently pay for school breakfasts can expect to save around £400 per year when they receive access to the free clubs.

These savings are based on the typical costs that parents pay for breakfast services in schools, which often range from £1.50 to £2.50 per day.  

For families who currently rely on childcare before school, the potential savings are even greater. The savings could be as high as £2000 per year as the need for early morning childcare could be eliminated.  

The free breakfast initiative is particularly beneficial for parents of children with disabilities. A study by Pro Bono Economics found that couples with a disabled child earn, on average, £274 less per week compared to those without. This reduced income often means parents face added financial challenges, so the introduction of free breakfasts could provide meaningful assistance by reducing both food and childcare expenses. 

When Can I Expect to Have Free Breakfast Clubs? 

Labour has committed to investing £315 million in breakfast clubs by the 2028-29 school year, meaning parents can expect to see these changes rolled out in the coming years. 

The Chancellor has now announced that up to 750 schools with primary aged students will be invited to take part in a £7million breakfast club pilot.

This funding will allow those schools to run free breakfast clubs for pupils in the summer of 2025. Given the scale of the investment and the need for proper infrastructure, a phased rollout is likely, which means parents might see the gradual introduction of free breakfast clubs in some areas before the national launch. 

Will Free Breakfasts Include Schools for Disabled Children? 

One of the main questions parents are asking is whether this free breakfast scheme will cover all schools, including those catering to children with disabilities. Labour’s commitment to inclusivity in education suggests that the free breakfast initiative will extend to special education needs (SEN) schools. Given that parents of disabled children face higher costs across the board—including additional childcare and schooling expenses—the inclusion of these schools would be critical in alleviating financial pressures for these families. 

We are still waiting for confirmation that this initiative will also be launched in SEN schools. 

Free School Breakfasts—A Lifeline for Parents 

Parents and families are waiting for this initiative to begin as rising costs of childcare and school-related expenses make it more challenging. Although the full rollout is slated for 2028-29, parents can look forward to this much-needed support in the coming years. By easing the financial strain on working families and ensuring that all children start their day with a healthy meal, this policy promises to make a meaningful difference in the lives of many UK families. 

Let us know below if you are waiting for the roll out of free school breakfasts….