MARTIN Lewis has warned Brits to stock up on first-class stamps before next week’s 22 per cent price hike.

The price of first-class stamps will rise by 30p to £1.65, the second rise in a year, Royal Mail confirmed.

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The delivery giant revealed that the price hike will be in effect from Monday 7.

Martin Lewis is urging Brits to bulk-buy first-class stamps in advance as they are “still valid after the hike”.

He said: “For years, every time stamps go up in price I’ve suggested people stock up and bulk-buy in advance, as provided the stamp doesn’t have a price on it and instead just says the postage class, it’s still valid after the hike.

“So you may as well stock up now, even if it’s just for Christmas cards for the next few Christmases.”

The founder of Money Saving Expert has also warned Brits against buying fake stamps when stocking up.

He recommended buying from reputable high street stores and making sure to keep the receipt.

Stamps can also be bought directly from the Royal Mail online shop, but you have to spend £50 to get free delivery.

In April, the UK postal service announced it had paused the £5 penalty for anyone receiving a letter with a fake stamp.

However, you still risk facing charges if caught sending mail with counterfeit stamps.

Royal Mail has introduced a new stamp scanner, available for free via their app, to check if stamps are genuine.

The price increase for first-class stamps is the second one this year after they rose by 10p to £1.35 in April and by 10p to 85p for second class.

The company has frozen the cost of second-class stamps at 85p until 2029 in a bid to keep the sending of letters affordable.

Royal Mail says it has tried to keep price increases as low as possible in the face of declining letter volumes, and inflationary pressures.

When announcing the price rise earlier this month, it also cited the costs associated with maintaining the so-called Universal Service Obligation (USO) under which deliveries have to be made six days a week.

Royal Mail said letter volumes have fallen from 20billion in 2004/5 to around 6.7billion a year in 2023/4, so the average household now receives four letters a week, compared to 14 a decade ago.

The number of addresses Royal Mail must deliver to has risen by 4million in the same period meaning the cost of each delivery continues to rise.

Nick Landon, Royal Mail’s chief commercial officer, said: “When letter volumes have declined by two-thirds since their peak, the cost of delivering each letter inevitably increases.

“The universal service must adapt to reflect changing customer preferences and increasing costs so that we can protect the one-price-goes anywhere service, now and in the future.”

How prices have changed

Royal Mail previously raised the price of first-class stamps from £1.10 to £1.25 last October, before boosting them again in April.

Right now, a first-class stamp costs £1.35, which covers the delivery of letters up to 100g.

Historically, the cost of stamps has seen a steady increase over the years, reflecting inflation and operational costs. For example, in 2000, a First Class stamp was priced at 41p.

A second-class stamp is priced at 85p and also covers letters up to 100g.

The stamps can be bought individually if you buy them at a Post Office counter.

Otherwise, you can typically buy them in sets of multiple stamps.

The first class service typically delivers the next working day, including Saturdays, while the second class service usually delivers within 2-3 working days, also including Saturdays.

For larger letters, the cost of a first-class stamp is £2.20 for items up to 100g, and a second-class stamp for the same weight is £1.55.

Parcel delivery prices vary based on size and weight, starting from £3.69 for small parcels.

Additional services include the “signed for” option, which requires a signature upon delivery and adds an extra level of security.

The cost for first class signed for is £3.05, and for second class signed for, it is £2.55.

The “special delivery” service guarantees next-day delivery by 1pm with compensation cover, with prices starting from £7.95.

Royal Mail periodically reviews and adjusts stamp prices, so it is advisable to check the latest rates on their official website or at your local post office.

Other Royal Mail changes

Royal Mail has urged the Government and Ofcom to review its obligations, arguing that it is no longer workable or cost-effective, given the decline in addressed letter post.

In its submission to Ofcom in April, it proposed ditching Saturday deliveries for second-class post and cutting the service to every other weekday.

Lindsey Fussell, Ofcom’s group director for networks and communications, said: “If we decide to propose changes to the universal service next year, we want to make sure we achieve the best outcome for consumers.

“So we’re now looking at whether we can get the universal service back on an even keel in a way that meets people’s needs.

“But this won’t be a free pass for Royal Mail – under any scenario, it must invest in its network, become more efficient and improve its service levels.”

Royal Mail owner International Distribution Services (IDS), which agreed to a £3.57billion takeover by Czech billionaire Daniel Kretinsky in May, said “change cannot come soon enough” to the UK’s postal service.

Royal Mail also ousted old-style stamps and replaced them with barcoded ones last July.

The business said the move would make letters more secure.

Anyone who still has these old-style stamps and uses them may have to pay a surcharge.

Best Budgeting Apps for Families in 2024 

Managing family finances can be overwhelming with all the daily expenses, savings goals, and unexpected costs that come with raising children. Whether it’s keeping track of grocery bills, school fees, or saving for a family vacation, it’s essential to have a clear and organized system. That’s where budgeting apps can come in handy. These tools offer an easy way to manage household expenses, plan for long-term goals, and ensure everyone in the family is aligned financially.  

Why Families Need Budgeting Apps 

Budgeting is a key tool for any household and when there are children involved this tool can become even more helpful. With multiple expenses, income streams and the need to plan for the future, keeping your finances in check can become challenging.  

Budgeting apps are there to help you; 

• Track Shared Expenses: From groceries to utilities, a budgeting app allows families to monitor how much they’re spending and on what. 

• Plan for Long-Term Goals: Whether it’s saving for your child’s education, a family vacation, or a new home, apps make it easier to set savings targets and see progress. 

• Manage Daily Costs: Families can stay on top of routine expenses like transportation, food, and healthcare while preparing for unexpected costs. 

By using a budgeting app, families can collaborate, manage expenses in real-time, and build better financial habits together. Let’s explore some of the top budgeting apps that are perfect for families. 

Best Budgeting Apps for Families in 2024 

1. You Need A Budget (YNAB) 

You Need A Budget (YNAB) is known for its focus on giving every dollar a job. This app allows families to assign money to specific categories like bills, groceries, and savings. Its real-time syncing feature ensures that every family member is on the same page, no matter who is making the purchases. 

YNAB encourages correcting prioritizing and is especially useful for families who are trying to pay off debt or build their savings. You can set targets for anything you like and track your progress over time. 

YNAB also has educational resources and debt management tools integrated within the app making it easy for families to improve their finances. 

2. EveryDollar 

EveryDollar follows a zero-based budgeting system, meaning every dollar of income has a purpose. The app is simple and user-friendly, making it a great choice for busy families who want an easy way to manage their finances without complicated features. 

EveryDollar allows families to plan for monthly expenses, track spending, and adjust budgets as needed. The free version offers basic budgeting features, while the paid version, EveryDollar Plus, offers automated bank transactions and other premium features. 

Use EveryDollar to ensure every penny is accounted for, making it easier to cover all expenses and save for future goals. Its simplicity is ideal for families new to budgeting. 

3. Honeydue 

Honeydue is a budgeting app designed for couples but works perfectly for families as well. It allows users to track shared expenses, sync multiple bank accounts, and assign different spending categories. Honeydue shoes members exactly where the money is going and avoid confusion or financial disagreements. 

Honeydue also sends reminders for upcoming bills, which is great for families managing multiple payments each month. The app’s chat function encourages communication around money, making it easier for family members to discuss finances openly. 

4. Goodbudget 

If you’re a fan of the envelope budgeting method, Goodbudget is a fantastic digital tool for families. The app helps families allocate money into virtual “envelopes” for categories like food, rent, and entertainment. It’s a great way to visually manage how much you have left to spend in each category throughout the month. 

Goodbudget is perfect for families who want a simple, structured way to stay on top of their finances. It also allows multiple family members to track and manage spending across various envelopes, ensuring accountability and coordination. 

Goodbudget provides a structured approach to budgeting and will help families manage their finances. The app can also be used to teach children about budgeting, beginning to build healthy habits early on. 

How Budgeting Apps Help Families 

Budgeting apps not only help families stay on top of their expenses but also provide long-term financial benefits. By using these apps, families can: 

• Create Financial Transparency: Budgeting apps offer a shared view of household finances, which encourages open discussions and ensures everyone is aware of spending habits. 

• Plan for Big Goals: Saving for future goals becomes more manageable, whether it’s setting aside money for a vacation or a child’s education. 

• Manage Day-to-Day Finances: Apps provide real-time updates, allowing families to adjust their budgets on the go, whether for groceries, bills, or unexpected expenses. 

The recent announcement by the Treasury and the FCA that it will temporarily ban the “double counting of costs” for investment trusts was welcomed by the sector.

However, the immediate removal of the requirement to provide costs disclosures has left a “potential vacuum”, according to Abrdn.

The company has released a ‘Statement of Operating Expenses’ (SOE) template as an interim measure to deal with this issue.

The new template document is for disclosing expenses incurred by investment trusts.

The Treasury also said it will lay out legislation to provide the FCA with the appropriate powers to deliver reform – the new Consumer Composite Investments (CCI) regime.

It said the new CCI regime will deliver more tailored and flexible rules to “address concerns across industry with current disclosure requirements, including for costs”.

The UK’s new retail disclosure regime is expected to be in place in the first half of 2025, subject to Parliamentary approval and following a consultation from the FCA.

Due to the time gap with the new regime not being in place until 2025, Abrdn said that “investors need clarity and consistency among data providers and publishers in the meantime”.

Both Abrdn and industry campaigners have always been clear that the “end objective should be more transparency, not less”.

This is why Abrdn is suggesting the SOE as an interim measure.

Abrdn explained the SOE provides more “relevant and transparent information”, with the added advantage that the underlying data will have been audited, although the SOE itself will not be an audited document.

The SOE is the result of a consultation with data providers and industry participants over recent months.

The rule, to “double counting of costs”, was inherited by the European Union (EU) and makes it appear that investment trusts are more costly to invest in than they actually are.

The disclosure rule required trusts to publish the costs of financing, operating and maintaining real assets.

However, many of these costs were already published in regular company updates and reflected in the value of the share price for all investment companies.

This “double counting of costs” is putting investors off, and an estimated £7bn a year is not being invested due to this issue.

Association of Investment Companies chief executive Richard Stone labelled this issue “misleading” and that the cost disclosure regime was an “unnecessary hindrance to investment trusts”.

Abrdn head of investment companies Christian Pittard said: “The forbearance measures announced on 19 September were a huge leap forward for the investment company sector, but there’s a long way to go yet.

“A potential vacuum has been created by the immediate removal of the requirement to provide costs disclosures.

“There is yet to be agreement on what could and should replace the disclosures, and clarity could be months away.

“Abrdn believes that the sector can and should improve cost disclosure for the benefit of investors.

“That’s why we are proposing a stand-alone cost disclosure template – a SOE, that Key Information Documents (KIDS) and factsheets could refer to.

“While the announcement on exempting investment trusts from cost-disclosure rules was hugely positive, we now see a risk that either an information vacuum on costs develops or conflicting information will emerge – creating confusion and eroding confidence among investors.”

THOUSANDS of unpaid carers can unlock winter fuel payments, as well as £2,370.

People over the state pension age and who are on a low income can grab the benefits through Pension Credit.

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The benefit will also entitle carers to the winter fuel payment this year, worth £300 – as well as the top-up “carer addition”.

Charity Carers UK is encouraging pensioners to check their eligibility, as they could receive up to an extra £2,370 a year as well as housing benefit and council tax support.

Pension Credit is a weekly payment from the government to those over the state pension age who have an income below a certain level.

Unpaid carers may be eligible for a higher minimum amount because the carer addition is factored into the Pension Credit calculation.

But in order to get the carer top-up to Pension Credit, carers must first apply for a Carer’s Allowance.

To claim this benefit, they must be spending at least 35 hours a week caring for someone with an illness or disability receiving a disability benefit such as Attendance Allowance or Personal Independence Payment (PIP) at the right levels.

It’s important to note that current benefit rules state that if someone’s State Pension is more than Carer’s Allowance, they cannot get the benefit.

But, carers still need to apply for Carer’s Allowance to get the addition so they can prove they have an “underlying entitlement”.

This would increase their chances of being eligible for Pension Credit and would increase the award.

Rule changes announced in July mean that only pensioners who claim Pension Credit or certain other benefits will receive the £300 Winter Fuel Payment this year.

Carers UK says it is concerned that pensioners who are unpaid carers and on low incomes will struggle this winter if they don’t get the benefit.

It says that carers often face high social care costs and extra costs, like for travel when accompanying the person they care for to appointments.

The charity’s research shows that 20% of carers aged 65 and over live in poverty, compared to 13% of non-carers.

Just 100,000 unpaid carers who are pensioners get Pension Credit and the Carer Addition, it found.

Carers UK is concerned that there could be many more who could be missing out.

There’s no exact figure for just how many carers are missing out but with half a million missing out on Carer’s allowance and 880,000 on Pension Credit – according to the latest data – we can assume it’s likely thousands of carers.

Emily Holzhausen CBE, director of policy and public affairs, at Carers UK, said: “There’s no time to lose to make sure that carers apply for Pension Credit when we know that so many are struggling in poverty in retirement. With the winter coming, and fuel prices still high, they need every penny they can get.

“For pensioners who are unpaid carers, understanding your entitlements is complicated. We’re worried that many more carers will be missing out, but we just don’t know how many.”

She went on to urge pensioners who are carers to apply for Carer’s Allowance.

While they are very likely to be told it won’t be paid, it is the first step to getting Pension Credit and Carer Addition. 

Ms Holzhausen added: “This shines a light on the urgent need for reform of the system when applying for benefits. We’ve seen the devastating impact of Carer’s Allowance overpayments due to poor systems for working-age carers.

“The mind-boggling complexity of benefits for older carers prevents them from getting the help they are entitled to and could be drastically simplified by Government.”

What is the Winter Fuel Payment?

Consumer reporter Sam Walker explains all you need to know about the payment.

The Winter Fuel Payment is an annual tax-free benefit designed to help cover the cost of heating through the colder months.

Most who are eligible receive the payment automatically.

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Those who qualify are usually told via a letter sent in October or November each year.

If you do meet the criteria but don’t automatically get the Winter Fuel Payment, you will have to apply on the government’s website.

You’ll qualify for a Winter Fuel Payment this winter if:

• you were born on or before September 23, 1958
• you lived in the UK for at least one day during the week of September 16 to 22, 2024, known as the “qualifying week”
• you receive Pension Credit, Universal Credit, ESA, JSA, Income Support, Child Tax Credit or Working Tax Credit

If you did not live in the UK during the qualifying week, you might still get the payment if both the following apply:

• you live in Switzerland or a EEA country
• you have a “genuine and sufficient” link with the UK social security system, such as having lived or worked in the UK and having a family in the UK

But there are exclusions – you can’t get the payment if you live in Cyprus, France, Gibraltar, Greece, Malta, Portugal or Spain.

This is because the average winter temperature is higher than the warmest region of the UK.

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You will also not qualify if you:

• are in hospital getting free treatment for more than a year
• need permission to enter the UK and your granted leave states that you can not claim public funds
• were in prison for the whole “qualifying week”
• lived in a care home for the whole time between 26 June to 24 September 2023, and got Pension Credit, Income Support, income-based Jobseeker’s Allowance or income-related Employment and Support Allowance

Payments are usually made between November and December, with some made up until the end of January the following year.

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.

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 using the Government’s pension credit calculator on its website.

Or, you can call the Pension Service helpline on 0800 99 1234 from 8am to 5pm Monday to Friday.

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.

One additional and major perk of pension credit is that it is known as a “gateway” benefit in that it opens up a host of other freebies and perks.

This includes a free TV licence worth £169.50 a year if you are 75 or over and council tax discounts.

And of course, if you are on the guarantee credit part of pension credit, you also qualify for the Warm Home Discount.

What is Carer’s Allowance and who is eligible?

To be eligible for carers allowance you must be aged 16 or over and not be in full time education.

You also must not be earning over £151 a week from employment or self-employment after tax deductions.

Carers will also not be paid more if they look after more than one person.

If you qualify for the benefit you can choose to be paid weekly in advance or every 4 weeks.

You can apply for the carer’s allowance online by visiting www.gov.uk/carers-allowance/how-to-claim.

You can also request a form by calling the Carer’s Allowance Unit on 0800 731 0297.

Processing time usually takes up to 12 weeks to get a decision on your claim.

Carer’s Allowance can be backdated for up to 3 months if you were eligible during that time.

If your state pension is less than the Carer’s Allowance amount of £81.90, you can claim Carer’s Allowance to top it up to that level.

But if your state pension is more than £81.90, you won’t receive any of the benefit.

This is because the State Pension and Carers Allowance are classed as ‘overlapping’ benefits, which can’t be paid at the same time.

If the government recognises that you are struggling financially as a carer on a pension you can get extra money on other benefits you claim such as Housing 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

Good morning and welcome to your Morning Briefing for Friday 4 October 2024. To get this in your inbox every morning click here.

FCA’s advice guidance boundary review ‘is a huge mistake’

While realising I am probably in the minority in this industry, I fear the Financial Conduct Authority is about to score a major own goal that will have dire consequences, writes Ian Mckenna, founder of FTRC.

Changing the advice guidance boundary will cause a huge dilution of consumer protection. It will make it easier for manufacturers and others to sell products without advice, avoiding the inconvenience of being responsible for the consequences of their actions.

This risks setting consumer protection back decades. I passionately believe the advice guidance boundary is in the right place. Now is exactly the wrong time to change it.

Solving ‘vacuum’ caused by cost disclosure rule removal

The recent announcement by the Treasury and the FCA that it will temporarily ban the “double counting of costs” for investment trusts was welcomed by the sector.

However, the immediate removal of the requirement to provide costs disclosures has left a “potential vacuum”, according to Abrdn.

The company has released a ‘Statement of Operating Expenses’ (SOE) template as an interim measure to deal with this issue.

The new template document is for disclosing expenses incurred by investment trusts.

Honesty is key to staff retention

Being honest with your employees is key to staff retention, Cairn Independent operations director Laura Young has insisted.

She was responding to an audience question about the best way to keep people within advice businesses at the Lang Cat’s HomeGame 4 event in Edinburgh yesterday (3 October).

“In terms of retaining the team, the only constant is change,” Young said.

“People’s needs and wants evolve, and what they initially say they want might not be the same as what they desire by the end of the process.”

Quote Of The Day

No one seems to be talking about inflation anymore, and that could be a mistake. While attention is on the ECB and the Fed, investors ought to look more closely at developments in China.

-Eric Vanraes, head of fixed income at Eric Sturdza Investments, says the ECB’s policy of monetary easing risks allowing recession to take hold.

In Other News

Bupa has launched its health and wellbeing subscription service, Bupa Well+ Silver, to UK consumers. It provides fast access to affordable digital healthcare services.

The Silver tier subscription service follows the launch of Bupa’s GP subscription service – the Bronze tier in Bupa’s Well+ portfolio, in June.

Alongside the access to digital GP and nurse appointments, customers with Bupa Well+ Silver will be able to book digital consultations with physiotherapists and mental health specialists, starting from £20 per month.

Customers will also be able to use digital wellness services including gym classes and wellbeing programmes like guided meditation.

Sacker & Partners LLP has announced that Andy Lewis will be joining the firm as a partner.

Lewis joins the specialist law firm for pensions and retirement savings from Travers Smith.

He is well known in the industry as an ESG, sustainability and productive investment expert and is also a strong supporter of EDI initiatives. He trained and qualified at Hogan Lovells before moving to Travers Smith where he became a partner in 2019.

David Saunders, senior partner at Sackers, said: “Andy is a highly regarded pensions lawyer in the DB and DC space, with extensive experience of advising the trustees and sponsors of large pension funds. He is a perfect fit for Sackers, and we are delighted he approached us.”

Pension funds rethink hedging tactics after UK crisis (Reuters)

Italy seeks to raise more windfall taxes from companies (Financial Times)

Carmakers dangle £2bn in EV discounts to boost UK sales (Bloomberg)

Did You See?

The cost-of-living-crisis is the single biggest driver of people seeking financial advice or guidance, a new report from St James’s Place (SJP) has found.

Major life events or milestones are the biggest prompts for people to seek financial advice or guidance, SJP’s Real Life Advice Report shows.

Almost half (48%) of those who have accessed advice or guidance – 12.5m people – did so following a key moment.

This includes buying a property, getting married, or dealing with an unexpected change like divorce.