Sadly, new figures from the Insolvency Service indicate that for an increasing number of pensioners, that’s just not the case.
The Insolvency Service, which has this week linked up with charities Citizens Advice, the Consumer Credit Counselling Service (CCCS) and the Money Advice Trust to run a Dealing with Your Debt campaign, has highlighted the fact that Britain’s pensioners are now the fastest growing group of bankrupt individuals in the UK.
Although bankruptcy levels in the over-65 age category are the lowest nationally, the numbers of bankrupt individuals in the age group have increased six times in a decade and at a 50 per cent faster rate than for other age groups.
For women over 65, the growth rate of bankruptcy is even sharper, increasing by more than ten times between 2000 and 20009 and by a staggering 43 times in London.
The debt levels involved for older people are also troubling. The CCCS says that for its clients aged over 55, the average debt is £25,826 – around £1,500 higher than the average for clients overall – while their average annual income is £12,920, almost £4,500 less than the average for all CCCS clients.
Dealing with debt at any time can be difficult but older people face the added challenge of having more limited opportunities to increase their income as they seek to get their finances back into shape.
A key message of the Dealing with Your Debt campaign is that if you are in trouble financially, there is plenty of expert advice available, much of it free.
Yet worryingly, the Money Advice Trust says its research shows that just one in six people with a debt problem seeks advice, which suggests that there are many, many more pensioners out there keeping their money worries to themselves: a sharp reminder, if we needed one, to keep our personal finances in order.
For more information, please visit www.harris-lipman.co.uk
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( 3 / 218 )After the Christmas and new year holidays hopefully gave us a chance to forget, at least temporarily, the nation’s economic woes, today’s key event should bring us back down to earth with a bang.
VAT rose today by 2.5 per cent to 20 per cent, a rate that Chancellor George Osborne has signalled will be permanent, calling it “a structural change to the tax system to deal with a structural deficit”.
The 20 per cent rate is predicted to raise an extra £13 billion for the Treasury, a welcome boost for the coalition government as it works to balance the national books.
Mr Osborne calls the VAT hike “tough but necessary”. Labour leader Ed Miliband says the move is “the wrong tax at the wrong time” and that it will cost the average family an extra £7.50 a week, or £390 a year.
Mr Osborne says the increase in VAT will help to boost employment by increasing confidence that the government is tackling the budget deficit. A report by the Centre for Retail Research and Kelkoo, Europe's largest e-commerce website, says the bottom one-fifth of earners will be hit hard, as VAT payments represent 12.1 per cent of their disposable income compared to 7.4 per cent in the average household.
Mr Osborne says raising VAT is the least harmful tax option to help tackle the nation’s debts, compared with a rise in income tax or national insurance, which he describes as “far more economically damaging”.
The British Retail Consortium says the rise will push inflation up and contribute to reduced sales as the year continues – although it accepts that the increase, coupled with public spending cuts, is necessary as part of the government's package to tackle the deficit.
No doubt we will listen to the arguments, pay our money and take our choice as to who is right and who is wrong on the VAT front. One thing is certain: when it comes to 20 per cent VAT, we don’t have much choice other than paying up – or keeping our money in our pockets.
For more information, please visit www.harris-lipman.co.uk
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( 2.9 / 217 )If the run-up to Christmas has not been the best so far, then today should at least bring some partial compensation.
Last weekend, shoppers were kept at home by severe winter weather but with the icy conditions now lifting a little, they look set to hit the high streets in earnest in a late surge of Christmas shopping. Some experts are predicting that today could be the biggest shopping day of all time.
To give a measure of the business that is expected to go through the nation’s tills, card company Visa says it expects to process around 26.5 million transactions, worth more than £1.2 billion, throughout the day, some 20 per cent up compared with last year.
That’s good news for retailers, particularly smaller traders. According to the Federation of Small Businesses, many had taken on extra seasonal staff to cope with anticipated Christmas demand, only to see a drop in footfall of up to 30 per cent last weekend, leaving them to cope with increased overheads and reduced takings.
As John Walker, national chairman of the FSB says: "Small businesses were banking on a good Christmas to make up for a bad year and the prospect of more bad news in 2011.”
With two shopping days to go before Christmas, a significant spending spree will go at least some way to get retailers back on track. And the start of the sales on 27 December should help too.
So while this may not have been quite the festive season they had hoped for, perhaps retailers will be enjoying some kind of a Christmas bonus after all.
For more information, please visit www.harris-lipman.co.uk
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( 3 / 294 )On a bleak midwinter day, when many people will be choosing to stay at home rather than venturing out for some almost last minute Christmas shopping, there’s some interesting news concerning one significant part of the retail sector.
According to research by the BBC, in the two years to 1 November, planning authorities gave Tesco, Sainsbury's, Asda and Morrisons permission for at least 480 stores in England.
At least 67 were approved in Scotland and at least 22 in Wales and eight in Northern Ireland, clocking up to a grand total of 577 new stores either now in place or on the way.
It’s hard to ignore the success of our supermarkets, although residents of small towns where the traditional independent butchers, bakers and candlestick makers have fallen by the wayside as big stores take over would probably be up for a heated debate on just what benefits they bring.
Farmers and food producers are also likely to have strong opinions. As chef and food campaigner Hugh Fearnley-Whittingstall tells BBC TV’s Panorama tonight, which will investigate different aspects of the supermarket issue: "You don't need to explain the attraction of cheap food, everybody likes saving money, but the effect of that simple drive to bring down price – it's massively altering the way we produce food, the scale on which we produce food."
The supermarkets clearly aren’t going anywhere. They’re too convenient, for one thing, and in hard times, their competitive pricing is hard to ignore for families getting by on reduced budgets. And they do create jobs.
But as their expansion continues, perhaps it’s time for the powers that be to very seriously consider the way they are influencing the life of the nation.
David Handley, chairman of the Farmers For Action campaign group, says that if the supermarkets continue trading in the way they do now, “they are going to put British agriculture out of business" due to the hard bargains they drive with farmers. And many of us might agree that’s too high a price to pay for convenience.
For more information, please visit www.harris-lipman.co.uk
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( 3 / 301 )Unemployment figures released earlier this month revealed that there are now nearly three-quarters of a million people aged from 18 to 24 who are out of work. Worryingly, that makes up almost a third of the jobless total.
Getting young people back into work – or into work for the first time – must surely be a priority for any government, to prevent a generation falling into the trap of long-term unemployment.
So a call by a committee of MPs for additional action to bridge the gap when the Future Jobs Fund ends in March would seem to deserve some attention.
The fund, created by the previous Labour government in 2009, is a £1 billion programme to create temporary employment for 18 to 24-year-olds.
The Department of Work and Pensions says that by the end of March 2011, bids for cash from the fund will have financed more than 100,000 jobs, mainly aimed at young people who have been out of work for six months and are claiming Jobseeker’s Allowance.
MPs on the Work and Pensions Committee have made a number of recommendations to the government after studying its plan to bring the scheme to an early close, ahead of the introduction of the new Work Programme next June.
Committee chair Anne Begg says: "Young people, especially those who may be lacking skills, experience and confidence, need appropriate and sometimes intensive support to find work, otherwise they risk falling into long-term unemployment.”
No-one is going to argue with that and the Department of Work and Pensions says there will be transitional support available in the run-up to the introduction of the Work Programme. The government is also planning to make £150 million available to fund new apprenticeship places, focused on small and medium enterprises.
None of us can take having a job for granted these days. But for many young people today, who should now be starting out on a productive working life of 40 years or more, getting a foot on the career ladder must seem almost impossible. And they deserve all the help we can give them.
For more information, please visit www.harris-lipman.co.uk
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