Just the Money

This is a spin off from oneminutemoneymagazine.tumblr.com, which covers money and politics. Just the Money includes only financial reblogs from One Minute Money Magazine.

[oneminutemoneymagazine]

Warning: New Telephone Scam

As background, sales people and scammers already have my full name, telephone number and address from somewhere. Fortunately they don't know my date of birth. The latest scam is designed to discover dates of birth, which would be a major help in accessing personal information etc.

This scam is being executed very skillfully. The person claimed to be from a government department, used good English and sounded like a government administrator (which is good) as opposed to a call centre person or someone with sales training.

They confirmed with me that their records of my name and address were correct, said that they were sending my personal alarm and explained how I should wear it round my neck and operate it in case of emergency. Then, in a matter of fact way, they asked for my date of birth and the penny dropped. It was a phishing call.

I continue to await my personal alarm, but don't really expect it to arrive. In the meantime, beware.

(13/08/2023)

[oneminutemoneymagazine]

The Pensions Dashboard: A Constructive Alternative

The Pensions Dashboard is a UK government plan to set up one large database from which every person can access their UK occupational pension data from all of their past and present employers.  The previous post on this blog criticised it on the grounds of complexity and greatly increased risk of fraud.  It could also have mentioned the lack of consent.  The government has not asked me whether I want my personal data put on their new database!

Having said this, there is a risk that, when a pension plan member reaches retirement age, the employer and administrators may have lost contact with them.  There are ad hoc arrangements whereby administrators can ask the DWP to help trace a missing member.  This should be formalised and expanded.  Only small amounts of data such as names, dates of birth and national insurance numbers would be needed.  Either individuals or plan administrators could contact the new government agency and the resources needed would be a mere fraction of those for the proposed Pensions Dashboard.  It should also be possible to implement it well before the current dashboard target date of October 2026.

In the meantime, employees should carefully keep their own records and advise plan administrators of changes of address etc.  There is also a government website called “Find pension contact details”.  It isn’t perfect, but it can often be helpful.  The link is

https://www.gov.uk/find-pension-contact-details

(24/07/2023)

[oneminutemoneymagazine]

The Pensions Dashboard: Another Opportunity for Pensions Fraud?

The Pensions Dashboard is a well intentioned plan from the UK government.  At present, if you want to receive information about your occupational pensions, you need to get it on an individual basis from every plan where you have been a member.  The government intends to compell all plans’ administrators to submit and update data for every member in a consistent format to one large database known as the Pensions Dashboard.

Individuals can then log in to see details of all of their occupational pensions.  In my view, the government has grossly underestimated the task and the implementation date has been postponed more than once.

The Actuary, the magazine of the Institute and Faculty of Actuaries, has recently warned that a cyber pension fraud crisis is on the horizon.  They base this on the increasing number of pension plans putting their data online, lack of adequate internet security and members’ greater access to cash from their pension savings.  This is a cogent warning from a responsible magazine which is not given to hyperbole.  We need to take great care with the proposed Pensions Dashboard.  The link is

https://www.theactuary.com/2023/05/24/warning-cyber-pension-fraud-crisis-horizon?utm_term=&utm_medium=email&utm_source=Adestre

(20/07/2023)

[oneminutemoneymagazine]

Pepsi Cola's New Recipe and the UK Sugar Tax

As background, the Soft Drinks Industry Levy (known generally as the Sugar Tax) is designed to persuade manufacturers to reduce the amount of sugar in carbonated drinks like Persi Cola. The aim is to reduce obesity in the UK population.

Critics often refer to the "nanny state" and "sin taxes". It is a fact that many people consume sugary products, especially drinks, to provide energy which is not available from artificial sweeteners. Also we don't all have a high weight problem and some of us actually need to increase our weight. Please go to https://www.gov.uk/government/news/soft-drinks-industry-levy-comes-into-effect for a full explanation of how the tax works. There are 1,000 ml in a litre, which is about 35 fluid ounces or 10% larger than two US pints.

Being high in sugar meant that Pepsi Cola attracted the highest rate of Sugar Tax at 48p per two litre bottle. They have just reduced the sugar content by 58% which brings them below the threshold. The sweetness is retained by replacing the lost sugar (a natural substance) by artificial compounds.

The Sugar Tax is no doubt well intentioned, but it is arguable whether replacing a natural ingredient with artificial ones is more healthy. People will disagree about the change in taste, but the forum I visited was very critical, e.g. "If I wanted something that tasted like Diet Pepsi, I'd buy Diet Pepsi!"

Finally, if you continue to buy regular Pepsi Cola, do keep an eye on the price. If it hasn't dropped by at least 24p per litre, someone is profiteering from the reformulation.

(02/07/2023)

[oneminutemoneymagazine]

Royal Mail Letter Post: A Constructive Suggestion

It’s easy to criticise declining performance and increasing prices and this blog does so from time to time.  However, here’s a constructive suggestion for improvement.

To an increasing extent over several decades, the number of main letter sorting centres has been greatly reduced in favour of a small number of very large units.  For example, everything posted over an area of two or three counties is now taken to the massive centre in Feltham, south London.  Think of the extra cost in drivers, vehicles and fuel before even getting to environmental issues.

Larger post boxes could have a one off replacement with a compartment for local mail and a separate compartment for other post.  The incentive to Jo Public is that using the right compartment will help to speed up delivery.  Most letter post originates from businesses and they should be offered incentives to separate their outgoing mail between local areas.

It can be done.  There will always be a need for the letter post (and Royal Mail if they are loyal to their customers and employees).  Royal Mail need to think of their long term future as opposed to an endless cycle of price rises, cuts in service and more road miles per letter.

(25/03/2023)

[oneminutemoneymagazine]

MPs Refer Royal Mail to Regulator

The Business, Energy and Industrial Strategy Committee (of MPs) has referred Royal Mail to Ofcom for breaking its statutory “universal service obligation”.  There’s more on https://www.bbc.co.uk/news/business-64972913 , but the referral certainly reflects the low standard of service I have received recently.

Furthermore, Royal Mail is making huge increases to its prices from the 3rd April.  A standard second class letter will cost 75p (a 10.3% increase from the present level of 68p).  A standard first class letter will cost £1.10 (a 15.8% increase from 95p).  These increases are, to say the least, inflationary.  Royal Mail cannot get away with saying that the reduction in number of letters sent is due entirely to the internet.

One piece of good news is that you can avoid these increases for now by buying more stamps before the 3rd April, but as always don’t leave it until the last day.

Finally Royal Mail did advise that existing stamps without QR codes would no longer be valid after 31st January 2023.  This deadline has been extended by six months to 31st July, after which old stamps can be exchanged free of charge for the new type.

(18/03/2023)

[oneminutemoneymagazine]

The Budget Statement and Debate on Wednesday 15th March

The best place to watch is the BBC’s Parliament Channel (Freeview 232), where you can enjoy the statement and debate uninterrupted all day if you wish.  The Chancellor, Jeremy Hunt, normally begins speaking at about 12.30p.m. (U.K. time), but please check this on the day.

The present economic situation is serious.  We have the effects of the covid pandemic and war in Eastern Europe.  There is a valid argument about who will pay, how they will pay and when, but collectively we will be significantly worse off than we would have been without the pandemic and the war.

Maybe surprisingly I am not expecting much bad news on Wednesday 15th, but this is not a contradiction of the previous paragraph.  A lot of bad news has already been announced, the main example probably being the freezing of income tax thresholds until 5th April 2028.  Except for very low earners, this means that every increase in gross pay of (say) 4% will result in ones income tax bill rising by more than 4% and hence ones net pay rising by less than 4%.  It’s known by economists as fiscal drag and it is unlikely to be reannounced by Mr. Hunt on Wednesday.

(11/03/2023)

[oneminutemoneymagazine]

A Useful Website if you Need to Complain

Have you ever needed or wanted to complain about bad service, shoddy goods etc., but not known to whom to write?  Asking the people you come across can lead to a variety of probably deliberately unhelpful answers, such as:-

# We don’t know.

# There isn’t an e-mail address.  You have to go online and talk to our chatbot.

# It is against the GDPR/Data Protection Act to give out personal information about colleagues.

No kidding, I’ve had all three of these answers.  However, help is at hand for UK readers.  Just go to www.ceoemail.com , search for the organisation and all the necessary information is there to contact the chief executive directly.

With apologies though for ending on a note of realism, this doesn’t guarantee success.  As I discovered when complaining to Talktalk, the rot in the organisation can start at the top.  Their chief executive failed to reply TWICE!

(28/02/2023)

[oneminutemoneymagazine]

£2 Bus Fare Cap to be Extended to 30th June

This cap applies to England excluding London.  For participating bus companies, the maximum single bus fare will remain at £2 until the end of June.  There’s more on https://www.gov.uk/government/news/2-bus-fare-cap-to-be-extended-and-bus-services-protected-with-new-funding

Reaction to the government’s handling of the cost of living crisis has been varied, but they deserve a lot more praise than they have had for this measure.  Not only does it help with the rising cost of living, but it gives people better access to public transport and eases the financial pressure on bus services, specially those in rural areas.

Well done Mark Harper, Transport Secretary, and the government as a whole.

(24/02/2023)

[oneminutemoneymagazine]

UK Savings, Rising Interest Rates and Income Tax Thresholds

Interest from Cash ISAs and prizes from Premium Bonds are not liable for income tax.  Other (”normal”) interest is generally taxable.  However, the first tranche of normal interest (anything up to £1,000 for those with a top tax rate of 20%) forms the Personal Savings Allowance and hence is not taxed.

Interest rates on savings have generally been increasing in recent months meaning that more people’s total normal interest will exceed the £1,000 threshold this tax year (6th April 2022 to 5th April 2023).  Even more people are expected to be affected next tax year.  [If the rate of interest on any variable rate savings account has not been increasing recently, it is now likely to be very uncompetitive.]

There are two main consequences from allowing normal interest to breach the £1,000 threshold.  It will involve paying more income tax and undertaking more correspondence with HMRC or even needing to complete a tax return.  Failure to notify HMRC would probably result in being fined for “carelessness”.

Please have a look at your savings and consider using any outstanding ISA contribution allowance of up to £20,000 for 2022/23 by the end of this tax year.  You are also allowed to hold Premium Bonds up to the value of £50,000.  The average prize level is currently a very competitive tax free 3%.  You can invest another £20,000 in an ISA as soon as the start of next tax year (6th April 2023).

(10/02/2023)

[oneminutemoneymagazine]

Apologies for Absence and Plans for Future Return

Thank you to all readers for staying with me during the recent absence.

I’d love to write in depth about inflation, supply chains, who should pay when and how for the affects of Covid-19, war in Eastern Europe etc, but various essential projects make that impossible at present.  Rather than press on half heartedly, I’m going to take a break until the completion of some of the projects hopefully in Summer next year, but definitely intend to be back.

I’ll be torn between the more popular malswebparty and the more individual oneminutemoneymagazine, but that’s a decision for next year.

Best wishes to all readers, Mal

(22/06/2022)

[oneminutemoneymagazine]

New Chief Executive at Nationwide Building Society

Congratulations to Debbie Crosbie on her appointment to the challenging role of Chief Executive of the Nationwide Building Society.  This blog continues to support the principle of mutuality (once describing the destruction of so many building societies as Mrs. Thatcher’s greatest mistake) and is very heartened to republish this extract from a Nationwide interview.

“What attracted you to the role?  Nationwide Building Society is uniquely positioned in financial services. Mutuality enables the Society to truly put its members first and make a big difference to wider society too.

How do you see the future?  It’s really clear to me that we can play a key role in tackling some of the issues our wider society is facing. The fall in home ownership. The move to online banking and shopping which has come with a rising tide of scams. The challenges savers face with low interest rates. Plus, of course, how we limit and adapt to climate change.

Do you see the Society’s branches still playing a big role?  Absolutely.  When we need extra help or face challenging times, that human touch is so important. So, our branches will continue to play an important role in the service we offer and the communities we serve.

How important is the Society’s mutuality to you?  It’s more relevant than ever. It’s fabulous to be able to lead an organisation that is all about its members. 16 million people coming together for their mutual benefit to build a fairer, kinder society. What’s not to love?”

(22/06/2022)

[oneminutemoneymagazine]

State Pensions for the Over 80s

The Over 80 Pension, aka the Category D State Pension, can be very useful for some people in the UK, Channel Islands, Isle of Man or Gibraltar.  The level is £82.45 per week for the current tax year (2021/22).  In order to qualify, you need to satisfy all four of these conditions

1) Be aged 80 or over.

2) Be receiving a basic state pension of less than £82.45 per week or no basic state pension at all.  If, for example, your basic state pension is £40 per week, it would be topped up by £42.45 per week.

3) Have been resident in England, Scotland or Wales (strangely not Northern Ireland) for at least 10 years during a 20 year period.  The 20 year period must include the day before turning 80 or any subsequent day.

4) Have been “ordinarily resident” in the UK, Channel Islands, Isle of Man or Gibraltar on your 80th birthday or the date of making the claim if later.

There’s more on https://www.gov.uk/over-80-pension  If you think that you or someone you know could qualify, the next stage is to get a claim form from your local Jobcentre Plus.

(30/06/2021)

[oneminutemoneymagazine]

Changes in Measurement of Price Inflation

There are three main ways of measuring price inflation in the UK.  RPI (the Retail Price Index) was introduced in 1947.  It uses an arithmetic average and allows for increases in housing costs.

CPI (the Consumer Prices Index) was introduced in 2005.  It uses a geometric average with no allowance for housing costs.  CPIH is like CPI, except that it includes allowance for increases in housing costs.  Whether CPIH is more accurate than RPI is a matter of opinion, but the government’s preference is CPIH, probably because it produces lower inflation figures.  If any existing follower would like a further post on the two methods of averaging, please let me know.

Over the five years fom 2016 to 2021, RPI has increased from 262.1 to 301.9, i.e. an increase of 15.2% or 2.9% per annum.  Similarly CPIH has increased from 100.8 to 111.0, which is 10.1% or 1.9% per annum.  Thus the rate of increase in the cost of living as measured by the RPI has been greater by 1.0% per annum over the five year period.

As mentioned, the government’s preferred measure of inflation including housing costs is CPIH, hence they have decided to calculate RPI in the same way as CPIH from 2030.  The main effect will be on pension scheme members who have been promised that their pensions will increase in line with RPI.  From 2030, they can expect their pensions to increase more slowly than they would have done without this change.

(29/06/2021)

[oneminutemoneymagazine]

The Great Risk Transfer Campaign

While England, Scotland and Wales are currently focussed on tomorrow’s elections, The IFoA (Institute and Faculty of Actuaries) have identified a major long term issue within the UK, Outside the private sector, a decreasing proportion of the working population have secure employment.  Pension plans are becoming overwhelmingly DC (defined contribution a.k.a. money purchase) instead of DB (defined benefit a.k.a. final salary).  This means that any poor investment performance reduces people’s retirement benefits instead of increasing employers’ contributions.  Risk is progressively being transferred from employer to worker.

We hear parts of the story from parts of the media, but only the IFoA appear to have grasped the overall issue.  Also it is amazing that the Labour Party and trades unions are not talking about “the great risk transfer”.  The IFoA’s main focus is on public information and education and they rightly feel that they have a significant role to play.  There’s more on https://www.theactuary.com/ifoa/2021/03/30/ifoa-campaign-great-risk-transfer?utm_source=Adestra&utm_medium=email&utm_term= where their former president John Taylor writes in The Actuary.

There is, however, part of the article with which I strongly disagree.  He supports CDC pension plans and writes as follows. 

“In collective defined contribution (CDC) pension schemes, members pool their retirement savings into a single fund and share the risks associated with investment performance and longevity.  This risk sharing allows the scheme to invest in assets with higher expected returns than individual DC schemes can.  Employer contributions are fixed, so pension levels will vary - and may be lower in some years.  However, risk sharing allows schemes to smooth market volatility and thus achieve fairly stable pension levels.”  “As part of the campaign, we are seeking government action to show employers that CDC schemes are an attractive alternative to DC schemes.”

Did you notice that John Taylor said that a CDC pension can actually reduce during payment?  It really can and this possibility must be spelt out very clearly in advance or there will be genuine grievances in future years.

The IFoA would do better to look at the Dynamic Pension system used by the Provident Mutual (now part of Aviva) in the 1990s and earlier.  Dynamic Pensions were with profit arrangements with annual bonuses based on investment performance and other factors.  There was no promise that the level of pensions would increase, but they could not actually fall.

(05/05/2021)

[oneminutemoneymagazine]

The Second Coronavirus Injection in England - Administration Problems

Further to the post on the 10th April, I have managed to drag some more information out of the system.  Also two more people have described the same administration problems in getting the second Pfizer injection locally.  My GP Practice Manager has advised by e-mail that there are “supply issues” for Pfizer, although it isn’t clear whether these are local or national.

In the local government areas of Guildford and Waverley, Surrey, the system of booking appointments for the Pfizer (but not Astra Zeneca) vaccine has been subcontracted to an organisation called Procare.  They show a telephone number of 01483 - 956541 on their website, but this has only a pre-recorded message.  There is no mention of the “Covid-19 Booking Line” on 01483 - 362522.  Once you have had your first Pfizer injection in Guildford or Waverley, please do the following:-

1) Diary on by 10 weeks and one day.

2) If by then you have not been contacted for the second injection, telephone [phone] and book it.

(28/04/2021)

[oneminutemoneymagazine]

The Second Coronavirus Injection in England

The UK’s decision to give second injections up to 12 weeks after the first applies to both the Pfizer-BioNTech and Oxford/AstraZeneca vaccines.  Whatever your view of this controversial decision, it is important that there is no further delay in getting the second injection.

Based on anecdotal evidence and personal experience, there seem to be administration problems in recalling people.  It is essential to diary on and, if necessary, chase the second visit to the vaccination centre.  The official literature gives a telephone number of 119 (free of charge), but this applies only for the Oxford/AstraZeneca vaccine.  For the Pfizer-BioNTech product, you should telephone your local GP practice.

For his help in writing this post, thank you to the Public Health England administrator whose name I have witheld.

(10/04/2021)