Home | Contact Us | Help | About moneybasics
Saving levels rise
This week official figures have shown an increase in the amount that is saved in the UK.
The savings ratio measures the proportion of the UK's income that is saved and between April and June this year the ratio reached 5.6%. This represents the highest level seen since 1993 and indicates that in light of the recession, people are putting any spare money aside in case anything unforeseen happens. The figures are a sharp turnaround from the first quarter of 2008, when the savings ratio went negative for the first time.
Saving is a great financial habit to get into and for further information on savings see this section of moneybasics.
Here is a review of the other top money stories of the past week commencing 28 September 2009.
Tuesday 29th September
Further £100 million invested in scrappage scheme - At the Labour Party Conference in Brighton this week the Business Secretary, Lord Mandelson, announced that the UK's car scrappage scheme is to be extended. A further £100 million will be provided for the scheme which would cover an additional 100,000 cars and vans. The £300 million invested by the Government and the motor industry in May gives consumers £2,000 off a new car in return for trading in one that is at least 10 years old. A further development of the scheme will allow vans to qualify for the trade-in discount when they are just 8 years old. The car manufacturing industry has welcomed the announcement. Last week's figures from the Society of Motor Manufacturers and Traders saw an increase in the number of cars produced for sale in the UK where scrappage has raised demand.
The savings ratio measures the proportion of the UK's income that is saved and between April and June this year the ratio reached 5.6%. This represents the highest level seen since 1993 and indicates that in light of the recession, people are putting any spare money aside in case anything unforeseen happens. The figures are a sharp turnaround from the first quarter of 2008, when the savings ratio went negative for the first time.
Saving is a great financial habit to get into and for further information on savings see this section of moneybasics.
Here is a review of the other top money stories of the past week commencing 28 September 2009.
Tuesday 29th September
Further £100 million invested in scrappage scheme - At the Labour Party Conference in Brighton this week the Business Secretary, Lord Mandelson, announced that the UK's car scrappage scheme is to be extended. A further £100 million will be provided for the scheme which would cover an additional 100,000 cars and vans. The £300 million invested by the Government and the motor industry in May gives consumers £2,000 off a new car in return for trading in one that is at least 10 years old. A further development of the scheme will allow vans to qualify for the trade-in discount when they are just 8 years old. The car manufacturing industry has welcomed the announcement. Last week's figures from the Society of Motor Manufacturers and Traders saw an increase in the number of cars produced for sale in the UK where scrappage has raised demand.
Wednesday 30th September
PPI claims to be paid out – Thousands of borrowers who took out payment protection insurance (PPI) are in line for compensation of hundreds of pounds each after it emerged that two-thirds would never be able to make a claim. The Financial Services Authority (FSA) is targeting firms that have mis-sold PPI when offering secured loans and credit cards. PPI, commonly known as redundancy or sickness cover, is a policy intended to cover payments for loans, credit cards or mortgages in the event of redundancy or illness. However, it has emerged that many borrowers had no idea they were taking out a policy, were pressurised into doing so, or would have been unable to claim because they had a pre-existing medical condition or were self-employed. It is well worth checking any credit agreements that you have entered into to check whether you have taken out a PPI policy. Although PPI has been mis-sold, it is a good financial product when taken out by people who wish to insure themselves should the unforeseen, such as being made redundant, happen.
PPI claims to be paid out – Thousands of borrowers who took out payment protection insurance (PPI) are in line for compensation of hundreds of pounds each after it emerged that two-thirds would never be able to make a claim. The Financial Services Authority (FSA) is targeting firms that have mis-sold PPI when offering secured loans and credit cards. PPI, commonly known as redundancy or sickness cover, is a policy intended to cover payments for loans, credit cards or mortgages in the event of redundancy or illness. However, it has emerged that many borrowers had no idea they were taking out a policy, were pressurised into doing so, or would have been unable to claim because they had a pre-existing medical condition or were self-employed. It is well worth checking any credit agreements that you have entered into to check whether you have taken out a PPI policy. Although PPI has been mis-sold, it is a good financial product when taken out by people who wish to insure themselves should the unforeseen, such as being made redundant, happen.
Thursday 1st October
UK set to take the lead on banking bonuses – The G20 met in Pittsburgh this week and following on from talks, the UK government has said that it will apply the bonus restrictions agreed at the conference. This signals a strong effort by the government to take the lead on what has become a highly topical issue in Britain following anger from the general public over the ways that banks reward staff. The conditions include a ban on multi-year guaranteed bonuses and the deferral of bonuses over three years, with banks able to claw back bonuses if performance suffers in subsequent years. It remains to be seen how strict the other G20 countries will be on bankers.
UK set to take the lead on banking bonuses – The G20 met in Pittsburgh this week and following on from talks, the UK government has said that it will apply the bonus restrictions agreed at the conference. This signals a strong effort by the government to take the lead on what has become a highly topical issue in Britain following anger from the general public over the ways that banks reward staff. The conditions include a ban on multi-year guaranteed bonuses and the deferral of bonuses over three years, with banks able to claw back bonuses if performance suffers in subsequent years. It remains to be seen how strict the other G20 countries will be on bankers.
Friday 2nd October
Nationwide reveals higher house prices – The Nationwide House Price Index has revealed that house prices in the UK rose by 0.9% from August. In September the average price of a house in the UK was £161,816. These figures mean that the housing market is almost at the level seen this time last year in September 2008, and represents the fifth month in a row that house prices have increased. Other figures released this week from the Bank of England showed that between April and June this year, homeowners were choosing to pay more than their normal monthly amounts off their mortgage.
Nationwide reveals higher house prices – The Nationwide House Price Index has revealed that house prices in the UK rose by 0.9% from August. In September the average price of a house in the UK was £161,816. These figures mean that the housing market is almost at the level seen this time last year in September 2008, and represents the fifth month in a row that house prices have increased. Other figures released this week from the Bank of England showed that between April and June this year, homeowners were choosing to pay more than their normal monthly amounts off their mortgage.
