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OECD suggest the worst of the recession could be over
The Organisation for Economic Co-operation and Development (OECD) has suggested that the worst of the British recession could be over. The OECD's gauge of 'leading indicators' which demonstrate the state of the economy has illustrated that Britain moved from being in a 'strong slowdown' to a 'possible trough' in March, which simply means things have gone from 'very bad' to 'not as bad as we first thought'. This encouraging news was also backed up by some positive indicators from the housing and retail markets.
The Royal Institution of Chartered Surveyors (RICS) has reported that there have been 41% more estate agents reporting an increase in new buyer inquiries during April, up from 32% in March. The research has also indicated that the average number of houses sold by estate agents has increased from 9.7 in March to 10.6 in April.
The British Retail Consortium (BRC) has also delivered some encouraging figures for the retail sector. During April, like-for-like sales rose by 4.6% which represents the biggest increase in three years. These are encouraging signs that the economy may be turning a corner, but there is still evidence that suggests the recession still has some distance to go.
Here is a review of the other top money stories of the past week commencing 11 May 2009.
Monday 11th May
Over 50's return to wartime saving methods – Research by Help the Aged and Age Concern has reported that over-50's are resorting to money saving tips learnt from parents who had to struggle through the time of rationing in the UK. Over half of those polled have admitted to buying food at reduced prices, 71% reuse leftovers, half mend clothes and over a quarter grow their own vegetables. Nine out of ten over-50s polled also said that they are sticking to strict budgets in order to stay in control of their finances. Budgeting is great for staying on top of your finances and working out just where your money goes. moneybasics has some great resources to help you budget.
Government unveils plan to help consumers save on energy bills – The government has announced that it plans to equip all UK households with smart meters by 2020, which will enable consumers to keep track of their energy spending. The smart meter allows suppliers to remotely record consumers' gas and electricity usage, as well as display to the customer exactly what they have spent on gas and electricity. A total of 26 million electricity and 22 million gas meters will need to be installed at the cost of £7billion by 2020. It is forecast that new meters could help consumers save in the region of £20 a year.
The Royal Institution of Chartered Surveyors (RICS) has reported that there have been 41% more estate agents reporting an increase in new buyer inquiries during April, up from 32% in March. The research has also indicated that the average number of houses sold by estate agents has increased from 9.7 in March to 10.6 in April.
The British Retail Consortium (BRC) has also delivered some encouraging figures for the retail sector. During April, like-for-like sales rose by 4.6% which represents the biggest increase in three years. These are encouraging signs that the economy may be turning a corner, but there is still evidence that suggests the recession still has some distance to go.
Here is a review of the other top money stories of the past week commencing 11 May 2009.
Monday 11th May
Over 50's return to wartime saving methods – Research by Help the Aged and Age Concern has reported that over-50's are resorting to money saving tips learnt from parents who had to struggle through the time of rationing in the UK. Over half of those polled have admitted to buying food at reduced prices, 71% reuse leftovers, half mend clothes and over a quarter grow their own vegetables. Nine out of ten over-50s polled also said that they are sticking to strict budgets in order to stay in control of their finances. Budgeting is great for staying on top of your finances and working out just where your money goes. moneybasics has some great resources to help you budget.
Government unveils plan to help consumers save on energy bills – The government has announced that it plans to equip all UK households with smart meters by 2020, which will enable consumers to keep track of their energy spending. The smart meter allows suppliers to remotely record consumers' gas and electricity usage, as well as display to the customer exactly what they have spent on gas and electricity. A total of 26 million electricity and 22 million gas meters will need to be installed at the cost of £7billion by 2020. It is forecast that new meters could help consumers save in the region of £20 a year.
Monday 12th May
Minimum wage increased to £5.80 – The government has announced that the minimum wage in the UK is to rise in October. At the moment the minimum wage for people 22 years or over is £5.73 an hour, but this will increase to £5.80 an hour from October, an increase of 7p. The minimum wage for 18 to 21 year-olds will also be increased by 6p to reach £4.83 an hour, and for 16 and 17 year-olds there will be an increase of 4p to £3.57 an hour. The government expects that this will benefit up to 1 million workers in the UK. The government also announced that from October 2010 the adult minimum wage of £5.80 an hour will apply to people aged 21 years and over.
Increase in part-time workers – There has been a significant number of people who have been forced into working part-time amidst being unable to secure any full time employment as a result of the economic downturn. Research by the Trade Unions Congress (TUC) reported that the number of adults in part-time employment currently stands at 829,000, the highest level since 1994. The distinct lack of full-time work available for those who have been made unemployed as a result of the economic downturn is reflected in the fact that over a quarter of job vacancies advertised in Jobcentres across the country are part-time.
Minimum wage increased to £5.80 – The government has announced that the minimum wage in the UK is to rise in October. At the moment the minimum wage for people 22 years or over is £5.73 an hour, but this will increase to £5.80 an hour from October, an increase of 7p. The minimum wage for 18 to 21 year-olds will also be increased by 6p to reach £4.83 an hour, and for 16 and 17 year-olds there will be an increase of 4p to £3.57 an hour. The government expects that this will benefit up to 1 million workers in the UK. The government also announced that from October 2010 the adult minimum wage of £5.80 an hour will apply to people aged 21 years and over.
Increase in part-time workers – There has been a significant number of people who have been forced into working part-time amidst being unable to secure any full time employment as a result of the economic downturn. Research by the Trade Unions Congress (TUC) reported that the number of adults in part-time employment currently stands at 829,000, the highest level since 1994. The distinct lack of full-time work available for those who have been made unemployed as a result of the economic downturn is reflected in the fact that over a quarter of job vacancies advertised in Jobcentres across the country are part-time.
Wednesday 13th May
Unemployment reaches 2.22 million – The Office for National Statistics (ONS) has released its latest unemployment figures and they paint quite a depressing picture of the UK economy. The ONS reports that in the first three months of 2009 the number of unemployed people in the UK rose by 244,000 to reach 2.2million. This increase has brought the unemployment rate up to 7.1%, from 6.7%. The total number of people claiming Jobseekers Allowance now stands at 1.51million. These latest figures have highlighted that those between the ages of 18 and 24 years-old have been hit especially hard, with one in six of them being unemployed. The level of youth unemployment now stands at 16.1%, the highest rate since the mid-1990s.
Unemployment reaches 2.22 million – The Office for National Statistics (ONS) has released its latest unemployment figures and they paint quite a depressing picture of the UK economy. The ONS reports that in the first three months of 2009 the number of unemployed people in the UK rose by 244,000 to reach 2.2million. This increase has brought the unemployment rate up to 7.1%, from 6.7%. The total number of people claiming Jobseekers Allowance now stands at 1.51million. These latest figures have highlighted that those between the ages of 18 and 24 years-old have been hit especially hard, with one in six of them being unemployed. The level of youth unemployment now stands at 16.1%, the highest rate since the mid-1990s.
Friday 15th May
Home repossession up 50% from last year – Today it was revealed that in the first three months of 2009 the number of homes repossessed in the UK reached 12,800. This is an increase of almost 50% when compared with the first three months of 2008 when 8,500 homes were repossessed. The Council of Mortgage Lenders (CML) has also reported a sharp rise in the number of households falling behind with their mortgage repayments. In the first three months of 2008, CML reported that there were 127,000 homes which had arrears of 2.5% or more of the remaining mortgage balance. This is a marked contrast to the first three months of this year when there were 205,300 households 2.5% or more in arrears, which is an increase of 62% when compared with the same period in 2008. If you are worried about meeting your mortgage repayments it is really important that you communicate with your lender and let them know your situation. It is also advisable to speak to the Consumer Credit Counselling Service (CCCS) on 0800 138 1111 or your local Citizens Advice Bureau.
Home repossession up 50% from last year – Today it was revealed that in the first three months of 2009 the number of homes repossessed in the UK reached 12,800. This is an increase of almost 50% when compared with the first three months of 2008 when 8,500 homes were repossessed. The Council of Mortgage Lenders (CML) has also reported a sharp rise in the number of households falling behind with their mortgage repayments. In the first three months of 2008, CML reported that there were 127,000 homes which had arrears of 2.5% or more of the remaining mortgage balance. This is a marked contrast to the first three months of this year when there were 205,300 households 2.5% or more in arrears, which is an increase of 62% when compared with the same period in 2008. If you are worried about meeting your mortgage repayments it is really important that you communicate with your lender and let them know your situation. It is also advisable to speak to the Consumer Credit Counselling Service (CCCS) on 0800 138 1111 or your local Citizens Advice Bureau.
