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Low Income Families to Lose From Tax Credit Grab

Tue, 17 Apr 2012 11:22:00 GMT

By A. Velasco

The changes to the tax rules that were carried out last week are predicted to negatively affect millions of families, with low-income families particularly under fire. Several individual and independent analysts have reached this conclusion and some say that many families will be worse of by more than £500 a year.

Worst off will be households with children, as will be the most affected by the cuts to child tax credit, working tax credit and many other reforms, according to the Institute for Fiscal Studies. The IFS suggests that an average family with children can expect to lose out on £511 each year, as of last week’s changes.

Tax credits

The attack on low-income families with children is particularly concerning when coupled with the financial hardships that they are already facing, due to rising utility bills, grocery prices, and petrol. These families are already hard-pressed to save, and with a hit on their income to the tune of £500 a year, they will have less of a chance than ever to start long-term savings, such as the Junior ISA. However, Family Investments offers one option that allows parents to open a Junior ISA with just £10 a month, leaving the option open for smaller savers.

Before last week, the upper limit for what a family could make and still receive tax credits was £40,000. Now that figure is changed to just £26,000, meaning that almost 900,000 families will lose their right to these tax credits entirely. For a family with just one child, the credits can be worth as much as £545.

Labour criticizes

The changes to taxes and tax credits has been criticized by the Labour party, with claims of pandering to the rich while at the same time hitting average households with ”tax credits bombshell”. To claim any tax credit at all, parents will need to work 24 hours a week instead of 16, a move heavily critizised by Labour's shadow chancellor Ed Balls.

According to his figures, more than 200,000 couples would have to find more work in the difficult climate, or lose all of their credits. The IFS report takes into account the reduction to income tax that higher tax allowances bring, but the changes still ended up affecting families negatively. The changes to income tax mean that now, families will have a £8,105 tax-free personal allowance, instead of the previous £630.

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Every Sixteen Year Old Should Be Given A Bank Account

Wed, 01 Feb 2012 12:14:00 GMT

Wed, 18 Jan 2012 00:00:00 GMT

By Marc Simpson

With inflation higher than ever and interest rates at an all time low, many child savings accounts give less than appetising interest rates. However, for those parents willing to put in a little effort it is still possible to find accounts with good interest rates for their children's.

Britain's fourth largest building society, Skipton, just launched the Leap Account Issue 2, which offers an interest rate of 2.75 per cent (including a 12 month bonus of 0.5 per cent), launching it into the league tables and making it a great place for parents to encourage their kids to store any left over Christmas money.

Bonus

However, even at that rate the account is not capable of beating inflation of 4.8 per cent, leading many parents to take the savvy step of opening up a Junior ISA, offered by providers such as Family Investments, for their child as the tax relief on the account effectively increases the rate of return.

The account can be open at any of Skipton’s large network of branches, however like many child savings accounts it comes with a bonus, which once gone can leave the account with a less than stellar rate. Teaching children now about tactics used by banks and building societies, such as bonuses, that are designed to save them money at the expense of the consumer can help ensure they are a savvy consumer for the rest of their life.

Accounts

That is why it is a good idea to get kids involved with the opening of any account that is for them and teach them about transferring accounts once bonuses expire. Opening a Junior ISA for your child can also help you to teach a basic lesson about tax and interest.

There are other accounts that beat Skipton’s offering, such as the Northern Rock Little Rock Instant Access Issue 2, with a rate of 3 per cent. However, even at that rate, which is top of the league table, it still does not beat inflation.

And no matter the account opened for a child, it is important to fill out an R85 (as long as the child is eligible to fill one out) for the account to ensure the interest is not automatically taxed. Another alternative to the Junior ISA, is the option to open a children’s stakeholder pension, offered by providers like Virgin Money.

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Poorer Students Should Have Equal Opportunity

Thu, 13 Oct 2011 12:56:00 GMT

By Ruth Nicolas

State schools have a responsibility to promote social mobility, this means that all students regardless of background and upbringing should have an equal and fair opportunity to gain a decent education.

If you are looking to find a vehicle to save for your child’s future and you would like to know what your options are, simply ask an expert.

Top education

At the minute the reality is that students from private schools who are taught in a leafy, suburban, middle-class state school are the ones gaining the top education. These are students from families who have greater spending power, compared to the students from lower income families who are surviving daily just to get through this current climate.

However, there are some people who believe that the strategy to improve education for children of the country is to put a ban on tradition from classrooms in an attempt to make learning more fun and less restrictive.

November will the launch of the new Junior ISA, if you are looking for a straightforward and effective way to save for your child then the Junior ISA will be for you. Click Here for more information.

New innovation being discussed is looking at students never being given grades and as such they will not know where they stand when it comes to the comparison with peers. But competition is necessary and if students lose that motivation then they will also lose the desire to succeed. If we wish for our children to have the power to change the world then it is important that they have knowledge of it.

Less restricted

If you are looking to save for your child and you are interested in an alternative to the Junior ISA, consider the young saver plan as a great way to save.

Taking everything into consideration this leads to the current trend of free schools in the nation’s inner cities, institutions which are under the control of the those adults who have created them.

Free schools can do what is best for their children without being restricted and they can offer something different compared to the traditional school system as such they may provide the answer to allowing students from less fortunate backgrounds to realise goals of an education at a top university.

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Child Poverty Set to Increase

Thu, 13 Oct 2011 09:38:00 GMT

By Ameet Magan

Due to the rise in inflation and the pay freezes, falling incomes will mean the largest drop in earnings for middle-income families since the 1970s. This will mean 600,000 more children will go into poverty according to a report from the Institute for Fiscal Studies (IFS).

If you are concerned about saving for your child’s future, you might consider a Junior ISA, the new government funded programme for saving for the future.

Income Decline

According to the IFS, the next two years will see a large decline in income, with 3.1 million children in poverty in the UK by 2013. A spokesperson for the Department for Work and Pensions said that benefits changes would help rather than hurt this by making work the more attractive option, though the amount of unemployment will mean it may not be an option.

Those below the poverty line have household incomes 60% less than the national average. The IFS report cited 2.2 million children and two million adults of the working age had lived in absolute poverty in 2009/2010. This equates to 17% of UK children in poverty in 2009/2010.

You might consider a children’s stakeholder pension in order to save money for your child’s future.

All Ages in Poverty

Over the next two years, after the oil crisis and a sterling crisis, both adults and children will delve further into poverty. In addition, the report includes a bailout from the IMF and industrial unrest and protests. The IFS predicts that the levels will rise to 21.8% by 2012/2013, with an additional 600,000 children and 800,000 adults going into absolute poverty.

Median incomes will fall by 7%, impacting the middle classes the most, as they experience the sharpest drop in 35 years. By 2013, there will be an additional 2.5 million working-age parents and four million working-age childless adults in poverty as well. Targets to cut child poverty by 2020 are likely to be missed, with 23% of children forecasted to be in poverty, well above the target of 5%.

After 2013, the median income is anticipated to increase, though it will not recover losses by 2015, according to the IFS report. Co-author of the report, James Browne, said that the targets on child poverty would not be achieved with the current trends.

If you are interested in ensuring your child has a bright future, you might want to think about a young saver plan.

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University Teaching Less Value For Money

Wed, 12 Oct 2011 00:00:00 GMT

By Rachael Bellis

Most students think that the teaching they received at school was better than that they had at university, according to a survey from HMC. The study of 1,000 final-year students showed that 61% of students from private schools rated their schools’ teaching as higher than the instruction received in university.

State School Students Reacted Differently

Of their state school counterparts, 42% rated their schools higher and 38% rated their university higher for education. This information comes with the proposals to increase university tuition fees to £9,000 per year at the maximum.

If you are concerned about what your child will do financially in order to go to university, consider a Junior ISA, which will help you save money tax-free for your child.

The study was commissioned by the Headmasters’ and Headmistresses’ Conference (HMC) and began their annual meeting in St. Andrews. Half of the pupils interviewed, or around 500, were from state schools and the other half were from independent schools.

Less than one out of five of those from private schools favoured university, with nearly two thirds saying school teaching had been better. With state school pupils, there was less definite opinion; with 20% saying the teaching was around the same level.

If you are worried about value for money, and want to make sure you can pay for the best education possible, consider saving with a young savers plan.

Separate Discussions

When school teaching was discussed separately to university education, 98% of private school students rated quality as good or very good, as opposed to 90% of those from state schools. When university teaching was considered on its own, 84% of those from private or independent schools said it was good or very good, compared to 86% of those from comprehensives.

Only 14% of those surveyed said that they would have been happy with the value of their education if the tuition fees had been £9,000 per year when they went, as opposed to 72% who said they would be unhappy with the change. Nearly two thirds, at 62%, said that their university course charged at £3,000 per year was good value for money.

If you would like to invest in your family, consider a children's stakeholder pension as a way to invest for your child's future..

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Junior ISAs Rich Will Benefit

Wed, 12 Oct 2011 00:00:00 GMT

By Ameet Magan

November will be launch of the of the Junior ISA, a new tax-free savings account for children which has been created to replace the Child Trust Fund which was ended at the start of the year.

Coalition Government

The Junior ISA has been created by the current Coalition Government, but it does not go anywhere close to taking the place of the Child Trust Fund. The Child Trust Fund was a product which saw the government contribute into the account.

For the new Junior ISA the government will not contribute, and many are of the belief that it will only benefit the rich since it will mean that they can avoid some tax on an extra £3,600 per child they can save.

If you would like to know what some of your other options are in terms of children’s savings then simply ask an expert.

The Child Trust Fund created by the Labour party encouraged parents to save toward the future of their children with the government also lending a hand. It gave an initial £250 on a child’s seventh birthday and created a culture of saving in some families that would have never considered it.

Tax allowance

For the Junior ISA which is meant to offer tax-free savings there is a limit. Each child with a Junior ISA will have their own £7,475 tax allowance, but even without this product they can earn this amount already.

“The Junior ISA looks like another tax shelter for the wealthy, whereas the Child Trust Fund helped encourage everybody to save. If the government wants people to save, rather than rely on credit, the Junior ISA isn’t the answer” said Andrew Hagger from Moneynet.co.uk.

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Minimal Junior ISA Interest For Big Banks

Wed, 12 Oct 2011 00:00:00 GMT

By Rajan Chagger

Some of the biggest banks in Britain are not showing any support in the governments flagship scheme to get millions of parents to save for their children, and as a direct consequence the scheme may fail in its entirety.

The Junior ISA which comes out next month is a safe and affordable vehicle to use to save for your child’s future, if this is of interest to you Click Here.

Coalition government

The 1st of November will be the day the Junior individual savings accounts (Junior ISAs) are going to be launched.

The Junior ISA will allow concerned adults to save up to £3,600 per year per child which can be saved in either a cash savings or equities account, both of which are tax-free.

Chancellor George Osborne had announced the scheme last year, and it was the Coalition Governments plan to replace the Child Trust Fund and as such the Junior ISA would allow parents and grandparents to save for their child for something like university fees or a new home in the future.

There are many different accounts tailored to saving for your child’s future, if you are not sure which is the best for you, then simply ask an expert.

However, even though the government are behind the scheme it has been revealed by an investigation done on the matter that big-name providers are not interested or prepared to back the scheme.

Wait and see

The tactic these companies and firms are using are what can only be described as a ‘wait and see’ approach. This has meant that parents and children who are looking to open a Junior ISA are finding that the choices of providers is limited.

An alternative to the Junior ISA is the young savers plan. It allows you to save between £7.50 to £100 a month. Click Here for more information.

“Perhaps they don’t think that the £3,600 saving limit is enough to bother with, but I think that is short sighted. That some come add up very quickly” said Ben Yearsley, IFA at Hargreaves Lansdown.

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Childrens Savings Accounts: Hope For the Future

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Parents Start Their Kids Off Young

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Savings: Natwest complaints rise 75 per cent

Mon, 19 Sep 2011 12:53:00 GMT

NatWest, a taxpayer backed bank owned by the Royal Bank of Scotland Group, has experienced an extreme rise in complaints during the first half of the year, recent figures report.

If a bank’s customer complaint record is important to you, it is fortunate that the new Junior ISA will be offered by many providers, giving you your choice of banks and building societies.

Customer Complaints

NatWest reports receiving 147,109 customer complaints, which is up from 84,109 in the previous year. Complaints at RBS with the first half of 2010, complaints rose 79% to 68,414 in the six months leading to July.

The RBS banking group received 96,205 complaints from NatWest current customers, 42% more than in 2010. The banking group is also experiencing similar trouble with RBS account holders, as their customers filed 33,660 complaints in just the first six months of the year. Last year’s numbers from the same period were at just 24,100.

If you are on the market for competitive rates, read more about a stocks and share ISA that may be right for you.

Insurance Complaints Skyrocket

During this period, complaints about NatWest insurance products rose by a whopping 227%, while RBS experienced a 162% increase for insurance-related products.

For reliable insurance coverage, read more about 50+ Life Cover, which provides life insurance without any required health checkup.

Payment protection insurance (PPI), recently involved in a mis-selling scandal for all banks, unsurprisingly comprised much of the insurance-related grievances, at 31% for NatWest and 47% for RBS. Despite these figures, an official statement from the banking group says that the bank has seen a significant drop in complaints over the last two months.

The chief executive of RBS and NatWest, Brian Hertzer, acknowledged the problems and vowed to fix them in a recent statement, saying, “We know we must do better still and I am confident we’ll see significant improvements in the months ahead.”

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Worries over banks finances grow

Mon, 19 Sep 2011 12:49:00 GMT

by A. Velasco

As speculation increases that lenders are having an increasingly hard time financing their assets, credit default swaps on the Royal Bank of Scotland’s subordinated debt closed at an all-time high of 662 basis points at the end of August.

This means in order to hedge against the chance of the state-backed bank missing an interest payment, it would cost £662,000 a year on a £10m holding of the bonds. If you would like to increase your retirement income to protect yourself from high rates of inflation, consider taking out a stakeholder pension.

The previous high for RBS credit defaults swaps (CDS) was during the heart of the financial crisis in February 2009, shortly after the government took an 83 per cent stake in the bank to save it from collapse. At that time it stood at 649 basis points. Other big banks at the end of August were also running 12 month high CDS on their subordinated debt. HSBC CDS stood 192 basis points, while Barclays was at 445 basis points. The rise was fairly dramatic for all of the banks, with RBS CDS nearly doubling from 385 basis points a month earlier.

‘Growing concern’

Jon Peace, the London based head of European banks research at financial group Nomura explained, “The CDS is essentially an insurance contract used by investors for hedging, so it tends to be much more volatile than the actual interest cost a bank pays on its debt. Nevertheless the sharp rise in CDS is indicative of investors' growing concern about banks' asset quality against a backdrop of weakening economic growth and Eurozone sovereign concerns.”

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Many fall for cash for loans scam

Mon, 19 Sep 2011 00:00:00 GMT

by Ruth Nicolas

There has been a 50 per cent increase in the number of people making complaints about businesses that take an upfront fee for loans and then disappear with the money, the Office of Fair Trading (OFT) has said.

According to the OFT there were 3,167 complaints made between July 2010 and June 2011, as opposed to 2,059 made during the same period the previous year.

The OFT announced plans in June to increase and strengthen existing regulations to protect borrower from such fraud after it estimated that around 270,000 had fallen victim to the scam in the previous year. The most common complaint involved potential borrowers who were told to send a fee - normally through a money transfer service - to pay for the cost of credit applications.

Safeguard Yourself

Warning members of the public not to pay fees upfront for loans, David Fisher of the OFT said: "We have seen an increase in complaints about companies who are not interested in the applicant's credit history, that ask for payment of fees upfront and then disappear with the money.”

"We advise people to check out the company carefully before agreeing to anything, including asking for a landline number, a physical address and doing a search about the company online, as well as checking that they have a valid credit licence."

If you would like to increase your retirement income a stakeholder pension is a great, low-cost way of doing so.

The OFT has said it will ask the government to change the law in order to ban the practice of credit brokers demanding fees upfront in order to arrange loans. It also announced plans to make it easier to have fees refunded when loans are not made.

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Traditional free new schools to start next month

Thu, 15 Sep 2011 12:22:00 GMT

by Ruth Nicolas

Richard Garner, Education Editor, Is set to fund new kind of schools which comprise likes of Advocates of Latin, faith schools and yoga.

Government has approved of five different faith groups to run their own schools. Faiths have come up with concepts like Latin given more emphasis, while yoga included in curriculum with other studies, etc. These schools are financed by the state. You can invest in your child’s future as the education is more traditional as well as free, Stocks & Shares ISAs can be of good help in terms of future investment for your child.

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"Traditional" academic curriculum

Introducing A brand new idea, born to the Secretary of State of education Micheal Gove, of “free” schools which are predicted to open from new term next month. Out of 323 applications, 24 of them are approved which consists of already existing schools such as the Maharishi School in Lancashire, which follows the beliefs of the former Beatles' guru and introduces its pupils to yoga, and a long-established independent school, Batley Grammar.

The religious groups which are in final list include the first state-financed Sikh school, the Nishkam School in Birmingham; two Jewish primary schools in Haringey and Mill Hill, north London; a Hindu school, the Krishna-Avanti Primary School in Leicester; and a Church of England school, St Luke's in Camden, north London.

Opposing the change

Not everybody seems happy about the idea. Teacher’s leaders and labour party has opposed to this new change which they argue could destabilise existing schools and make them irresolvable by reducing the number of children where there are ample of seats available in schools.

However Labour part education spokesperson Andy Burnham showed positive assurance if the concept of traditional schools could continue to operate if they are successful. The schools will be allowed to choose their staff even if they are not qualified teachers as well as they have the freedom to design their own curriculum.

In 24 schools, there are 17 primary schools, 5 secondary and 2 schools will educate the pupils from the age of three all the way till the age of eighteen. In this process wisely investing in child’s future becomes more crucial point as the money can be invested in wise schemes such as Foresters Friendly's Ethical Child Savings Plan or Child Tax Exempt Savings Plan (TESP). Total money invested in building up these schools range from 110m to 130m.

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UK To Tax Swiss Bank Accounts

Thu, 15 Sep 2011 12:13:00 GMT

by A. Velasco

Recently Britain made a deal with Switzerland to tax money kept in secret Swiss bank accounts. This tax on British residents with Swiss accounts will provide a windfall to the ‘cash-strapped’ British government. Under the deal, money in Swiss accounts will be subject to a tax between 19 and 34 percent of the account balance, with a withholding tax between 27 and 48 percent going forward from 2013.

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Swiss banks will pay 500 million Swiss francs (£372m) upfront, and the tax levy, which is retro-active, could bank approximately 5 billion pounds for a government struggling with a huge budget deficit. The UK deal with Switzerland follows a precedent set by a deal that Switzerland signed with Germany two weeks ago. Though strict financial secrecy has allowed Switzerland to build up a 2 trillion dollar offshore financial store, the country is responding to an ongoing international campaign against tax evasion and governments who seek to boost revenues.

Finance Minister George Osborne stated of this crack-down on Swiss bank accounts: "We will be as tough on the richest who evade tax as on those who cheat on benefits. The days when it was easy to stash the profits of tax evasion in Switzerland are over." Though the UK is cracking down on undeclared assets, Child Tax Exempt Savings Plans offer a way to set aside moneyyou’re your child without paying taxes on it.

Still, there are some who criticize the deal as not being hard enough on offshore account holders, since all of the tax rates being levied against Swiss bank account holders are slightly lower than their respective top tax rates in Britain. Ronnie Ludwig of Saffery Champness, said the UK could have gone further in its demands for taxing undeclared assets: “"It's good as far as it goes but it's not all that it should be ... I think it's a bit of a slap in the face for all those who honestly pay their taxes but it's better than nothing and it's a quick fix for the Treasury.”

For those of us who honestly pay our taxes, there are still multiple legal, government-sanctioned ways to accumulate cash tax-free. The Junior ISA, launching this November, will allow up to 3,600 pounds each year to be stored away for your child’s future without being taxed.

Chris Oates of the Ernst & Young Tax Controversy team, says that the UK-Swiss deal may just result in the mass exodus of assets into Lichtenstein. “The Liechtenstein Disclosure Agreement only requires a back payment of taxes from 1999-2000 onward, rather than the total value of assets held in Switzerland. This could prove a more cost effective way to resolve past tax liabilities for UK individuals than the new Swiss arrangement.”

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School uniforms too expensive for many families

Tue, 13 Sep 2011 13:06:00 GMT

by Nikki Hart

A recent report has shown that due to the increasing number of state schools requiring expensive branded uniforms and local councils cutting spending on clothing grants, many less well-off families are struggling to afford the cost of school uniforms.

40% of many incomes spent on uniforms

The charity Family Action, which supports poorer families, have carried out a study as millions of pupils are about to begin a new school year. The study reveals that many more disadvantaged families have been forced to spend 40% of their monthly budget on uniforms and other items required by schools, and that the average cost of sending a child to secondary school for the first time is £191.69.

Secondary school boys must on average pay £160.74 for their uniforms, while girls pay around £155.95. The average cost of a primary school child’s uniform is £113.44. And this is for the uniform alone – stationary and bags must also be bought.

Uniforms are generally considered a positive thing by both children and parents, say Family Action. The children prefer that “they do not need to worry about having the latest fashions” and so can minimise peer pressure through uniforms, while parents “like the overall presentation and smartness” and the fact that uniforms create social equality because they all cost the same price and look the same.

Growth of academies and free schools could worsen problem

The growth in academies and free schools has been named as a factor that could worsen the problem of the rising cost of uniforms as many of these new schools require pupils to wear specialist uniforms that can only be purchased in limited numbers of shops. Supermarkets are unlikely to stock these uniforms and so parents will not be able to buy cheaper versions or use special offers.

This month 24 independent free schools funded by the government will open. Currently one in five secondary schools are academies.

In London borough Hackney, Family Action have introduced £100 vouchers for parents earning below £16,190 a year with children about to begin secondary school. However, such support is not widely provided.

If you want to get ahead and save for your child’s future Shepherds Friendly provide a Young Savers Plan, while Foresters Friendly offer a Child Tax Exempt Savings Plan and an Ethical Child savings Plan.

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Savers searching for two year fix enjoy more choice on 4 per cent offers

Tue, 13 Sep 2011 13:02:00 GMT

by Ruth Nicolas

Those savers who do not mind not being able to switch for two years have seen their options increase as two new 4% deals are introduced. New 4% deals from the Islamic Bank of Britain and Nottingham Building Society have put the banks at joint second place in the table for 4% deals.

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Santander in the lead

The internet bank Cahoot – owned by Santander- are in first place as they narrowly beat these deals with their 4.1% rate.

Nottingham’s rate will be fixed until September 30th 2013 and the bond account cannot be opened without a minimum deposit of £500. The account can only be accessed online and is called the eSaver Fixed. After taxation the pay rate is 3.2%.

Although the Islamic Bank of Britain was the first bank to introduce Sharia law in the UK and prioritises Muslim savers, anyone from any background is eligible for an account. To open its 4% bond it is necessary to deposit a minimum of £1,000. After tax 3.2% rate will be paid.

Sharia law means fair deals

It is illegal in Sharia law to lend money and charge interest unless the interest is gained through legitimate business and trade. For this reason the 4% is a pledge for a guaranteed return. The interest rate is known as the “expected profit rate” as savings are invested in UK Sharia mortgage equivalents.

Dan Hyde, savings correspondent at This is Money, says: “Fixing for two years isn't such a bad option with economists talking about the Bank of England base rate possibly sticking at 0.5 per cent until late 2013.

“Savings rates may ebb and flow marginally during the intervening period, but they won't get a big kicker until base rate does.”

If you are considering your child’s financial future then a savings account for them is a good option. Foresters Friendly offer two excellent deals: a Child Tax Exempt Savings Plan and an Ethical Child Savings Plan. Shepherds Friendly also offer a great deal called a Young Savers Plan. If you are considering you retirement then invest in a stakeholder pension.

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Government says Junior ISAs will help students repay loans faster

Mon, 12 Sep 2011 13:48:00 GMT

by Ruth Nicolas

A new White Paper has reversed the government’s previous scheme to penalise any university students to pay back their student loan early. This is good news for students who will be hit by the £9,000 as the interest on their debt could rise to up to £12,000.

Fees rise again

Earlier this year the government revealed that the average cost for going to university next year will be £8,500 - £1000 more than the promised £7,500 average. This new development is in contrast to the government’s earlier pledge that most universities would only be able to charge the minimum fees of £6,000 and that any universities wishing to charge the full £9,000 would have to provide sufficient reasons as to why they should be able to charge this sum.

Many believe that the newly raised fees are the cause of the government’s reversal of their policies against early repayment of student debts. The new policy would alleviate the state funding hole that will arise due to the huge amount of debt.

Minister for universities and science, David Willetts, had told universities that if enough requested permission to charge the full £9,000 then there would have to be cuts in funding for research and teaching, as the high fees will cause a gap in public funding.

Social inequality

The new government proposals have attracted many critics who claim that they will increase social equality even further as less wealthy students will be unable to pay off their debt before accumulating huge amounts of interest, whereas students with rich parents can repay their debt quickly.

If you do not want your child to be saddled with huge amounts of debt after university good options for saving are the Shepherds Friendly Young Saver Plan and the Foresters Friendly Child Tax Exempt Savings Plan.

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Government cuts cost more than they save

Mon, 12 Sep 2011 13:43:00 GMT

by Nikki Hart

Recent reports have found that impending cutbacks could mean Citizens Advice can no longer offer help and advice when it is needed most.

The Cambridge branch of the Citizens Advice Bureau is an example of one of the branches that is feeling the strain.

Homelessness rises as benefits stopped by mistakes

The local food bank gives out provisions of food which will last the receiver three days.

Rachel Talbot, chief executive of the Cambridge CAB said: "There are two food banks in Cambridge," "I think it's worrying that, in a city like this, we're handing out food vouchers. A couple of years ago it would have been one voucher a week, but now it's one a day."

Having no savings was a key factor in contributing to many's problems; a Tax Exempt Savings Plan may benefit those with no savings.

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Government money wasted on mistakes

Such effects of decisions like these can prove disastrous for some, and indeed the local and central government. If such incidents result in members of the public losing their homes, the cost of fixing such problems can be astronomical.

The housing charity, Crisis, has calculated the cost of dealing with homelessness and have found that this can amount to around £50,000 per person.

In relation to Cambridge Ms Talbot estimates the cost of rehousing a family would be around £25,000.

With homelessness on the rise, financial security is essential, a Stocks and Shares ISA can help with savings.

Compare ISAs

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Much work needs to be done to set up new free schools

Sat, 10 Sep 2011 00:00:00 GMT

by Rowena Purrett

Just 14 months ago, new legislation was created giving the go-ahead to the setting up of free schools – schools that are funded by the state but run independently. Now 24 schools are ready to open, many more are recruiting staff and students in preparation for being able to open in 2012, and others are soon to find out if they will be able to open in 2012 after being interviewed by the Department for Education.

Support necessary

In order to open the schools have experienced a lot of setbacks and a lot of time and energy has been required. Plans which prove the education that will be provided is of a good quality needed to be drawn up, local communities must be willing to show support, and enough parents must want to send their children to free schools.

The next step was finding local authorities who would back the scheme and obtaining land to build schools on. Most places where building a school is possible are owned by local councils which means their permission must be gained before building, despite the idea for free schools being that they would be independent of the council.

Although the government had pledged a reform in planning rules so as to make the process easier last week’s new rules still provide councils with means of preventing the building of the schools.

Mixed reactions from within political parties

The Tories’ official stance on free schools is that they are a good thing and should be supported, whereas Labour and the Liberal Democrats are more dubious. However there has been a mixed reaction in most parties with some representatives disagreeing with their parties’ official standpoint.
The main goal the free schools will face is to see through their claims that they can improve the standard of education by giving children and parents a wider range of choice in the type of education they will be given.

If you are thinking about your child’s future then it is a good idea to save money for them with Foresters Friendly’s Ethical Child Savings Plan or Child Tax Exempt Savings Plan. Shepherd Friendly also offer a Young Savers Plan.

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Junior ISA holders rewarded if they invest in schemes to help disadvantaged children

Fri, 09 Sep 2011 12:18:00 GMT

by Nikki Hart

Labour MP Graham Allen has written a report stating that holders of the new Junior Individual Savings Acoounts (JISAs) that the government are launching on November 1st will be given an incentive to put money into their accounts if they invest in schemes designed to help underprivileged children.

Government rethinking spending policies

Allen says he believes that many children from less prosperous backgrounds grow up to be troubled and disruptive to society due to early setbacks. He claims these children will benefit much more from intervention early in life than after problems have had time to develop and that they must be discouraged from turning to crime or drugs.

David Cameron is in full agreement with the report and agreed that government money should not be switched from "dealing with the causes of social failure towards investing in programmes that prevent the failure in the first place".

The scheme will save the state a lot of money if it is a success. On average, young people who become involved with crime or drugs will have cost the government £70,000 by age 28. It is predicted that the new scheme will encourage investors to contribute £200 million.

Advice for parents

The Jisa is a good way of saving for your child but if you don’t feel it is for you there are other saving methods. Foresters Friendly offer a Child Tax Exempt Savings Plan and an Ethical Child Savings Plan – both good deals. Sherpherd Friendly also offer an excellent Young Saver Plan.

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ISAs: new best buy of 3.05% paid by new online Isa

Fri, 09 Sep 2011 12:07:00 GMT

by Ruth Nicolas

A new AA online instant access ISA account is available with a rate of 3.05% for those who have not yet deposited the £5,340 ISA allowance for this tax year. The online account created by AA Savings is 0.2% higher than the second best offer.

But savers with only £5,340 will only see an increase of £10.68 in a year with the 0.2% rate – a small amount.

Isas offer lower rates

Although in May average Isa rates were at 2.61% and many offered 3.3%, they are now significantly lower. Today the best deal apart from AA Savings is West Bromich BS’s 2.85% deal.

A 1.35% bonus that is payable for a year is included with the AA Savings Internet Access Isa. One year from the launch date of the new Isa savers’ returns will drop significantly if they do not switch their account.

In order to open the new AA account £500 must be deposited. This £500 must not be transferred from a previous Isa account. The usual Isa rules mean that it is impossible to reinvest any cash that is withdrawn from the account. However you may withdraw money whenever you please penalty-free.

Expert recommends the new Isa

Dan Hyde, savings correspondent at This is Money, says: “Isa rates traditionally peak between March and May, just as the annual allowance is refreshed. Banks compete for savers' cash by launching best buy deals.

“For that reason, it makes sense to opt for an easy access deal at this stage. When the Isa rush comes around in spring, you'll be well positioned to take advantage.

“This account is only suitable if you haven't touched Isas since April 6. If you've already contributed to an account this year, you cannot open another one elsewhere without transferring your existing pot to it. AA Savings doesn't allow that, so active Isa savers should turn elsewhere.”

Savings accounts for children are also good options. Foresters friendly offer Child Tax Exempt Savings Plans and Ethical Child Savings Plans, while Shepherds Friendly offer a Young Savers Plan. Another smart way to save your money is into a stakeholder pension.

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Investor confidence in the UK stock market at recession levels

Fri, 09 Sep 2011 11:52:00 GMT

by Ruth Nicolas

Rising inflation and panic in the global financial market has caused the UK’s stock market to plummet to the level it was at in December 2008. This was discovered by a survey undertaken by Lloyds TSB Private Banking.

The survey also found that 44% of those questioned cited concerns about how high inflation would affect equity markets as their key reason for worsening investor confidence.

Almost as many (42%) said that the biggest factor causing them concern was the extremely tumultuous and volatile global financial market. These recipients fear that the British markets are bound to be affected in a similar manner before long.

Key factors for the decline in confidence

Ash Misra, head of investment strategy at Lloyds TSB Private Banking said: “Investors have been shaken by six months of negative news-flow, declining stock prices and question marks about the pace and trajectory of economic recovery.

“Their worries about inflation, natural and man-made catastrophes in Japan and an ongoing lack of political leadership to satisfactorily address U.S. and euro zone debt issues are all conspiring against them.”

FTSE 100 better off than other European indexes

Of all those questioned, just 25% said they were feeling confident about the stock market for 2012. However the FTSE 100 is only down by 11% which is a better result than seen by most European indexes. For example Germany’s DAX.GDAXI has fallen by 19%.

Misra admitted that “the current extreme pessimism in market is understandably overwhelming” but added that there is hope at the end of the tunnel. He pointed to lowering commodity prices as a factor that would lead to inflation threats diminishing and firms’ profit margins rising.

Misra also stated that for investors the “monetary policy outlook remained benign and accommodative”.

However problems in the worldwide stock market have been sizeable and will have an effect on UK pensions, which are currently very low. To prepare adequately for your retirement you may wish to purchase a stakeholder pension.

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HSBC In Trouble Over PPI Complaints

Thu, 08 Sep 2011 12:12:00 GMT

By Sophia Start

HSBC’s failure to meet a deadline for clearing its backlog of payment protection insurance (PPI) mis-selling complaints has put the bank in serious trouble with the Financial Services Authority (FSA).

HSBC, along with six other banking groups, were forced to resolve people’s PPI mis-selling complaints by midnight on Wednesday 31st August but out of the seven groups, HSBC are the only banking group to have failed to meet this deadline.

There are, of course, other ways to secure your savings; such as a child tax-exempt Savings Plan.

FSA to take a hard line

Having previously stated that it is “not afraid to take tough action”, the Financial Services Authority (FSA) may in fact be lenient with HSBC in this case, as the multi-national bank has pledged to clear its backlog by the end of this week.

All complaints processing was put on hold whilst the banks challenged the regulations, but the banks have now been forced to process all complaints as the current system was upheld. This has led a vast number of PPI complaints being eligible for compensation that will eventually run into the billions.

In such a volatile financial climate, the launch of the Junior ISA in November may be the best way to save for your child’s future.

But HSBC sent out “decision letters” on the complaints that have failed to contain some of the key information such as the amount of compensation its customers are likely to receive.

HSBC in regular contact with the FSA over the matter

A bank spokesman has stated: "Over the past 12 weeks we have been in weekly contact with the FSA over our processing of customer PPI complaints. We have already written to all customers whose complaints were on hold due to the judicial review with a decision on their complaint, and will have communicated the final redress amount to all customers with an upheld complaint by the end of this week."

It has been discovered that Lloyds Banking Group had set aside £3.2bn for PPI compensation in contrast to HSBC’s £270m.

If people think they have been mis-sold PPI, they need to complain first to their bank or loan provider. If after 8 weeks the complaint has still not been dealt with satisfactorily, they can take their case to the Financial Ombudsman Service.

Find out whether you are eligible to open a child trust fund by clicking here. It is an alternative savings method to the Junior ISA.

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Scottish Friendly Launch New Products

Thu, 08 Sep 2011 11:50:00 GMT

By Ameet Magan

With the Mutual calling the Junior Individual Savings Account (Jisa) a “wasted opportunity” that will hinder saving money for children, Scottish Friendly have created four new products designed to save money for children without large amounts taxation as a replacement for Labour’s Child Trust Funds.

The Mutual’s new schemes

The Mutual are offering four tax exempt saving schemes for children. Parents who wish to create a nest egg for their children but who also want to control what happens to the money should think about My Kid’s Flexible Plan.

Those who want money to be saved in the child’s name may want to consider the Child Flexible Plan. Every member of the family can invest annually into the Family Flexible Plan, while the Tax-Free Flexible Plan is for individual savers.

Child Tax Exempt Savings Plans are becoming increasingly popular since the Child Trust Fund was scrapped by the coalition government in January. Scottish Friendly have stated that the Jisa has kept the biggest downsides of the Child Trust Fund, but removed its good points.

They usually allow between £15 and £25 to be contributed every month. The sum contributed will not be taxed nor do they include capital gains.

Other options

Scottish Friendly offer good schemes but others are also available. Foresters Friendly have a range of schemes including their Child Tax Exempt savings Plan (CTESP) and their Ethical Child Savings Plan (ECSP). Sherpherd Friendly offer a Young Saver Plan that is an equally good deal.

Natasha Terbraak of MyEggNest.com said: "For parents with children who will not qualify for the Junior ISA, Child Tax Exempt Savings Plans present a unique tax advantage and great opportunity to save alongside an existing Child Trust Fund.”

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97 Per Cent Of PPI Complaints Sorted By Banks

Thu, 08 Sep 2011 00:00:00 GMT

By Rajan Chagger

Over 97% of the complaints made to banks relating to customers being mis-sold payment protection insurance (PPI) have been resolved. After a long High Court case which lasted throughout April, the banks lost and were ordered to process the 200,000 complaints that had been on hold during the trial.

Deadline

The end of August was the deadline that the Financial Services Authority (FSA) gave the banks in question to have processed the complaints by, and promised compensation where necessary. Only 6,000 complaints currently remain to be dealt with.

If you are worried about this and need to get advice on whether this affects you, spek to one of our qualified professionals.

Margaret Cole of the FSA said: "We are encouraged that most firms have used the time extension to clear the backlog of complaints received during the judicial review."

The publicity brought about by the banks’ defeat at the hands of the High Court has given rise to many new complaints. These new complaints must be cleared by September 1st, say the FSA. Any complaints made after September 1st but before December 31st must be cleared within 12 weeks.
From 2012 the usual system, whereby complaints must be addressed within eight weeks, will be restored.

Statistics

In the first six months of 2011, the top 16 PPI providers had paid out £215 million worth of compensation to customers. Half of those compensated received their money in May and June.

Why not consider opening a Junior ISA? It is simple, easy to understand and a great way to save for your child. Click here for more information.

Complaints relating to PPI made up 47% of all complaints received by RBS in the first half of 2011. NatWest saw 31% of its complaints to do with PPI. This meant that RBS’s total number of complaints rose by 27% to 68,414 and NatWest’s went up by 24% to 147,109.

Barclays have received 73,000 complaints relating to PPI in just the six months to June. Lloyds has confessed its insurance complaints have risen to 202,384 in the same period and claim that most of the complaints were about PPI.

Another great tax free investment for your child is the ethical tax exempt savings plan. It saves you money and you don’t have to worry about tax, or other deductions when saving.

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Scottish Fees Come Under Fire

Sat, 03 Sep 2011 00:00:00 GMT

By A. Velasco

This year has been one of the most competitive years for university applicants, thanks in large part to the fact that university costs will see a significant increase in the coming year. The cost of a university education will be much more next year than this year because fees will be nearly tripled.

In addition to this, it now matters more than ever where a child is from, since English, Welsh, and Northern Irish students will be paying vastly more for the same education in Scotland.

Unfair for English Students?

For those with children who will be attending university in a few years time, the Young Saver Plan is an example of a way to save money, tax-free, to keep your children debt-free.

With university fees rising rapidly in England, the natural route for many English scholars is to look to Scotland, whose policy it is to pay for college fees. This initiative was started by a Liberal Democrat and Labour coalition, and is continued today by the Scottish National Party.

It is unclear how this can be paid for over the long-term, but one suggestion announced in June was to increase the maximum fees for English students by almost five times as much: from £1,820 to £9,000.

Ask a financial expert for more information on how you can save for your child’s future by clicking here.

Not affect Scottish

This increase would not affect Scottish students or students from elsewhere in the EU. Lawyers are planning to challenge this under the grounds that it is discriminatory, though this legislation will depend on multiple things, among them EU conventions and whether or not the English are legally considered a race.

While the legality of these fees are being disputed, it is certainly undisputed that the cost of a university education is a burden to many of us.

Still, it is possible to make a small monthly deposit to a Junior ISA, which will be launched in November.

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Bank Of Cyprus In Jeopardy

Sat, 03 Sep 2011 00:00:00 GMT

By Christiana Brockbank

The Bank of Cyprus’ recent bailout alert could be grim news for the 50,000 Britons who have savings in its British branch. Cyprus is currently the eurozone country in most need of a bailout due to its relationship with Greek banks and a series of local situations such as the destruction of a vital infrastructure by a massive explosion.

Britain’s Financial Services Compensation Scheme will not cover Britons with savings in the Bank of Cyprus. Any Brit with savings in the bank will need to apply for compensation to the Cypriot scheme.

This puts savers with fixed-term accounts in a difficult situation as these fixed-term accounts mean anyone attempting to withdraw money would be penalised. The bank is claiming it is still being run efficiently, is being funded generously and has a good deposit to loan ratio.

The Junior ISA will be a safe option to consider following its launch this November, as there will be competitive rates for you to shop around.

Bank of Cyprus reassures customers

Richard Simon, marketing manager for Bank of Cyprus UK, says the bank has enjoyed success in Britain for over half a century. “Our business model remains simple and prudent,” he says.
“We raise deposits in Britain and lend them to small and owner-managed businesses in Britain.”

The Family Investments Junior ISA may be an alternative option to the child trust fund.

Mr Simon adds that the bank is not reliant on money markets and is self-funded.

“The bank comfortably passed the European Banking Authority stress tests in July 2011, where it was ranked 24 out of 90 participating banks,” he says.

Solution for worst case scenario

The Cypriot Deposit Protection Scheme will refund deposits of up to 100,000 euros (£87,000) per depositor should the bank need to be bailed out.

It would be the European Central Bank that would have to compensate depositors if the financial problems grew to the extent that neither the scheme nor the Cypriot government were able to help.

If you want financial advice about how this may affect your savings, simply speak to one of our experts.

The situation is unlikely to be as extreme as the collapse of the Icelandic banks as the Reykjavik government could not afford to compensate British bankers. The fact that Iceland was not a member of the European Union meant that it was the British government that were forced to bear the brunt of the collapse and refund savers.

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Government Fails To Encourage Poor Students Into University

Fri, 02 Sep 2011 15:38:00 GMT

By Sophia Start

The Government has endured criticism as last July, it closed Aimhigher, a higher education outreach programme that used £78m last year to make students from schools in the poorest areas enthusiastic about higher education.

Professor Les Ebdon, vice-chancellor of the University of Bedfordshire, called it “poor timing”, since it has been proved that poorer students will be discouraged to follow higher education due to the trebling of tuition fees.

Universities Deprived of Money before the Rise of Tuition Fees

Universities have become entirely responsible to outreach those families that do not have anyone that has followed higher education. However, they lack the money to do so, as the higher tuition fees will only be introduced in 2012-2013.

If you are concerned about tuition fees, and would like to know more information on how to save for your child, talk to one of our financial experts for more information.

Ebdon said “What is happening is that they [the Government] have abolished Aimhigher in the year before the additional money from access arrangements becomes available to universities. It is crucially important in this year to speak to students and to explain the situation to them around tuition fees, to provide that vital guidance. And it is not just those soon to go to university: Aimhigher worked with younger schoolchildren too, which is very important.

“In these tough times, when budgets have been cut, universities will have a choice of whether to dig deep and continue to spend on outreach or wait until next year to rehire people when they have the money.”

Would you like to see if your child is eleigible for the child trust fund? Click here for more information.

Class Gap at Universities Widened

Since the mid-1990s, the gap between the classes going to university has widened. There are worries that poorer students will not go to university due to the high amount of debt they will acquire. The average debt for students starting next year will be no less than £56,000 when they finish.

An analysis conducted by the Commons library reveals that universities will spend 60% less on outreach than they did the year before.

Additionally, Sir Martin Harris, director of the Office for Fair Access, pointed out that outreach to poorer students was the best option to encourage them to go to university. Bursaries and fee waivers only helped to decide which university.

In November the Junior ISA will be launched. It may be the right solution to your saving worries, and surrounding its launch there will be competitive rates.

This year a new record has been established of 682,514 people who want to go to university. 135,000 of them, which is 86,000 more than in previous years, will compete for 46,000 places in the clearing scheme.

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Cost Of Insuring RBS Debt Reaches Record High

Fri, 02 Sep 2011 00:00:00 GMT

By Cherry Taylor

The cost of insuring the Royal Bank of Scotland's junior debt has reached a record high as investors in the credit market become increasingly jittery about the funding of heavyweight Western banks.

Credit default swaps on RBS subordinated debt closed at a record high of 662 basis points, which means that to purchase security against the chance that the state backed lender defaults on an interest payment would cost as much as £662,000 a year on £10 million worth of the bonds.

If you are concerned about rates, savings rates and saving plan rates then speak to a financial expert to find out what your options are.

Risk of RBS

The previous record level of RBS credit default swaps was back in February 2009 at the peak of the last recession, when it reached 649 basis points. Just a few months previously the British government was forced to buy an 83 per cent share in the bank as it teetered on the edge of collapse.

The perceived risk of RBS has risen dramatically in the last few weeks. Just a month ago the cost of insuring their junior debt against default was rated at 385 basis points. At the moment credit default swaps quoted on the subordinate debt of several large British banks are at twelve month highs. Barclays is at 445 basis points, HSBC at 192.81 basis points and Standard Chartered at 243 basis points.

Junior ISA’s are launching in November. It is a savings accounts for children allowing you to save up to £3,600 a year. There will be competitive rates and offers for you to shop around.

Jon Peace, Head of European Banks Research at Nomura said, “The CDS is essentially an insurance contract used by investors for hedging, so it tends to be much more volatile than the actual interest cost a bank pays on its debt. Nevertheless the sharp rise in CDS is indicative of investors' growing concern about banks' asset quality against a backdrop of weakening economic growth and Eurozone sovereign concerns".

Speculation mounts

Fears have grown as speculation mounts that some banks are experiencing severe problems financing their assets. US ratings agency Fitch Ratings released data last week revealing that American money funds had become increasingly wary about the health of European banks. Which is bad news as US money funds are a key provider of short term bank funds.

There is also a stocks and shares ISA available. It may be the perfect solution to your savings worries.

One result of the nervousness surrounding European banks is that lenders are demanding their money back much sooner. However the problems have spread beyond Europe, this week the Bank of America denied it needed $200 billion in new cash as its share price tumbled to a two and a half year low.

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Are Jisas A Good Long Term Investment?

Fri, 02 Sep 2011 00:00:00 GMT

By Marc Simpson

The government have recently announced they will be replacing the Child Trust Fund (CTF) with the Junior Individual Savings Account (Jisa) in November.

Although the child’s parents themselves are able to contribute as much as £3,600 tax free every year, the Jisa differs from Labour’s CTF in that the government will no longer be putting £250 into the fund when it is set up and when the child turns 7. In fact, they will no longer be contributing anything at all. This raises questions about how worthwhile it will be for parents to set up the account.

Campaigners criticise the government

Campaigners who wish to combine the CTF with the Jisa have criticised the government for only allowing children who are not eligible for a CTF to open a Jisa and vice versa. If your child was born between September 2002 and January 2011 then they are eligible for a Jisa in their name.

However many parents are arguing that the Jisa is a good way of saving for their child. If the full £3,600 was saved evry year from birth until the child turns 18, taking into account an adjusted inflation rate of 2.5%, the Jisa could have earned the child £101,336.

Other options

Danielle Giannotti of FinanceNews.co.uk said: "Though the Junior ISA will have no government contribution, studies into the average top-ups of Child Trust Fund accounts after opening have suggested that it is not the initial contribution that had the most influence on future saving; but instead, active savings habits, which were more pronounced in wealthier families.

"Therefore, it is possible that the lack of government contribution will not deter parents who tend to have a more active approach to saving from seeing the benefit of the new tax-free account. In addition, the Junior ISA is likely to enjoy competitive rates surrounding its launch, as providers vie for the attention of new customers."

Alternate options include Foresters Friendly’s Child Tax Exempt Savings Plan (CTESP).

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Shares Plummet Due To Panic In The Markets

Thu, 01 Sep 2011 16:54:00 GMT

By Rajan Chagger

Share prices in both the US and Europe are sharply falling as already frail banks face the threat of a new credit crunch.

British banks affected

The selling of shares has been bad news for British banks such as RBS, Barclays and Lloyds TSB, whose shares have fallen by 11% to 21.95p, 11.5% to 154p and 9% to 29.8p respectively. None of the three banks have seen worse closing prices since the first six months of the 2009 recession.

If this concerns you about your savings, and your child’s future, take at the look at the Junior ISA which launches in November. It will have competitive rates surrounding its launch.

The news that the European Central Bank have lent $500 million to a struggling eurozone bank that has not been named has added fuel to shareholder’s fears that banks are no longer comfortable lending to each other.

Debt ridden countries such as Italy, Spain and Greece are causing concern amongst investors due to the contact European banks have with these countries. This is affecting the creditworthiness of these European banks.

Speak to an expert if you are unsure about what to expect, due to inflation and the current economic climate. Simply click here for more information.

Dissent in Europe

A meeting in Paris on Tuesday between French president Nicolas Sarkozy and German chancellor Angela Merkel has resulted in the promise of “economic governance”. However, this pledge has done little to reassure financial markets.

Today five eurozone countries demanded of Greece that they put up collateral against its most recent bailout. Investors are seeing this move as a worryingly divided reaction to the crisis.

Morgan Stanley, banking analyst Huw van Steenis, has published a report, saying: “Bank funding remains a key source of risk for bank earnings … and a drag on economic recovery. We remain concerned that … the risks of a credit crunch in southern Europe are rising."

The Child Tax Exempt Savings Plan is an alternative to the Junior ISA, it is a great way to save as your money is not taxed.

But he added a note of optimism, claiming Europe's leading banks have on average raised 90% of the long-term funds they need for 2011, helped by "resolute ECB commitment to support the system".

Samuel Tombs at Capital Economics said a more general worry was that banks will be hammered by an economic slowdown and further sharp falls in consumer spending, forcing them to make higher bad debt provisions. Tombs said: "The pattern this summer has been for banks to be knocked hardest whenever equity prices take a tumble. Banks are in the eye of the storm.”

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Junior Isa Accounts Available for Under 18s

Thu, 01 Sep 2011 10:38:00 GMT

By Rachael Bellis

The Junior ISA, a tax-free savings account for under 18s, is scheduled for launch on November 1st 2011. This will enable parents to save up to £3,600 a year for their children. The £3,600 limit is due to increase on April 6th in line with inflation. The final regulations for these accounts were first announced by the government as part of last year’s Emergency Budget.

Around 6.7 million children are estimated to be eligible for the Junior ISA. All children born before September 2002 and after January 2011 are eligible as they missed eligibility for the Child Trust Fund.

Benefits of Junior ISA

Two versions of the Junior ISA will be available - cash and stocks and shares. The cash account will be a deposit account while the stocks and shares account is very similar to an adult stocks and shares account whereby investments into bonds, equities and so forth are permitted.

One of the biggest benefits of the Junior Isa is that other relations and family friends are able to donate to the savings account without the full regulations. This is because the account is extremely low-risk. The biggest negative difference between the Junior ISA and Child Trust Funds (CTFs) is that no government money will be donated to the account.

One provider keeps all the funds in a Junior Isa - this is the main difference from the adult version. Fidelity International are one of many companies who plan to offer a Junior ISA by November.

Responsibility of account

They estimate that if the full allowance is invested by parents every year from birth until the child is 18, the total sum the child would gain would be over £100,000.

Any parent or guardian has the option to open a Junior Isa. The person opening the account would have responsibility over the account until the child is 16, at this point the child can choose to manage the account themselves.

No withdrawals can be made by either parent or child until the child is 18. After this point the parent has no control over what the child should decide to do with the savings as the Junior Isa will automatically become an adult Isa.

Have a look at Family Investments Junior ISA, as an alternative to the child trust fund.

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Sixth Form Colleges A Black Hole For Funds

Thu, 01 Sep 2011 00:00:00 GMT

By Samriddhi Dastidar

The education system in the UK is already reeling under a number of pressures. First, changed university rules will lead to a near trebling of fees for most students. Second, changes in the way A levels are evaluated could lead to some subjects, such as math and foreign languages, being given more weightage than others like dance and media studies for coveted university places.

But at least those who want to learn a trade can still go to a further education institute, get vocational training and earn enough to live the good life, right?

Maybe not.

If you want your child to earn enough, and want them to go to university with less debt than others then you may want to consider the up and coming Junior ISA. There will be competitive rates surrounding its launch.

All not well with further education institutes?

A recent report submitted by the public accounts committee that assessed the quality of education provided by sixth form and further education colleges, titled Getting Value for Money from the Education of 16- to 18-year-olds, found that quite a few of these colleges are poorly managed.
The cost of these institutes reached an all time high of £ 6 billion in 2009. In these times of economic gloom and doom, it is absolutely necessary to ensure that the government is doing everything it can to train and educate the future generation.

There are two types of Junior ISAs, the cash ISA and the stocks and shares ISA. Click the links to find out which one would be the best for you.

As committee chairwoman Margaret Hodge explained, the government would take action to implement an evaluation criterion for these educational institutes and take strict action against underperforming ones.

What does the future hold?

Tradition undergraduate university education will no longer be a viable economic option for many students after the revamping of the fee structure in 2012. With the skyrocketing cost of higher education, students will have to keep an eye on the bottom line i.e. their employability and calculate a ROI before investing in their education. The proposed system overhaul of sixth form and higher education colleges simplifies the process of calculating that RoI.

You may want to consider the child tax exempt saving plan, as an alternative option to the Junior ISA.

Pay More In Overdraft Fees

Tue, 30 Aug 2011 16:18:00 GMT

By Ameet Magan

Lloyds Banking Group, the nation’s biggest bank is forcing students who are struggling for cash with overdraft fees which are in excess of those being paid by other non-student customers.

If you feel in the light of current events that you would like to afford your child with some financial security in the future through a savings account then simply click here to speak with a qualified professional.

Charged more for an overdraft

An investigation which has been carried out by Money Mail has revealed that Lloyds are lumbering university students with £48 charges when they go into the red, by a few pence, in a Halifax account. In the same situation it seems as if the bank will not deliver the same pain to standard current account holders. To make matters worse students are being charged more for an overdraft then even customers with the most basic bank accounts.

Thinking ahead; if like many people you would like to boost your child’s living standards throughout university and are thinking of opening a savings account. Why not try Foresters Friendly ethical child savings plan, it is a safe option which is both simple and affordable.

The figures tell the truth, so a student with Lloyds TSB could face £85 in penalty charges if they found themselves in an unplanned overdraft and made ten payments over ten days. Now compare this with a Lloyds TSB basic Cash Account customer who in the same situation would pay £5.

“Many students are already struggling to make ends meet”

The truth of the matter is Natwest treats students and basic account holders equally, but other banks will not allow basic account holders to go overdrawn at all. In light of these figures Lloyds TSB have still come out to say that students are treated the same as customers with its everyday Classic account.

If you are interested in the up and coming Junior ISA, simply click here for more information.

“Many students are already struggling to make ends meet, with rising accommodation prices and higher living costs. Bleeding them dry with charges and exorbitant interest rates when they fall into financial difficulties is cynical behaviour” said Peter Mercer, a spokesman for the National Union of Students (NUS).

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Pay More In Overdraft Fees

Tue, 30 Aug 2011 16:16:00 GMT

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Pay More In Overdraft Fees

Tue, 30 Aug 2011 16:16:00 GMT

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Pay More In Overdraft Fees

Tue, 30 Aug 2011 16:14:00 GMT

University Fees Will Be Used To Help The Worse-Off

Tue, 30 Aug 2011 16:00:00 GMT

By Sophia Start

The controversial new £9,000 tuition fees will have one positive surrounding them and that is they will support worse-off students and will not be spent on lecturers, course materials or facilities. But instead given to those who need it and thus be given a very good chance to succeed.

Young children should be encouraged to start saving younger. Try the up and coming Junior ISA, which will be launched in November. Click here for more information.

Coalition’s fair access scheme

Revealed by the Daily Mail, that when the new tuition fee comes into force from next year at least £2,770 of the fee paid by each middle-class student will support the coalition’s ‘fair access’ scheme to the tune of £602million-a-year.

Do you want to know what you can save by opening a children’s saving account? Why not try the child tax exempt savings account?

Under the new policy from the coalition, the richest students will be able to pay their fees in advance and the poorest students will be subsidised. Those in the middle of the pact from middle class backgrounds will be in the same position many graduates face now which is paying their fees once they start working, student starting university when the fees go up will leave many with debts totalling around £58,000.

Published A-level grades now hold more importance

Today’s A-level grades could not be more important for students who are wanting to go to university, since if they do not realise offers by universities then they will have to start the process again next year and face the prospect of paying the new higher tuition fees.

Higher tuition fees means harder times for living when your child finishes their degree. Consider investing in a children’s savings account.

The Higher Education Policy Institute (HEPI) has warned that fee will have to be reduced by £7,500 in two years time otherwise university institutions will be starring at losing 8% of students each year.
David Willetts universities minister said: “While we expect universities to offer good value for money, students will have the information to decide what course and institution is right for them.”

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Pay More In Overdraft Fees

Tue, 30 Aug 2011 00:00:00 GMT

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Schools Ministers Dilute Proposals

Tue, 30 Aug 2011 00:00:00 GMT

By Rachael Bellis

Ministers have diluted proposals to let schools open in premises such as shops and houses without planning permission. Campaigners who were hoping to set up these schools are dealing with the setback from the decision.

Hostile reaction

There was a hostile reaction to the idea of opening free schools in property not made for educational purposes without a ‘change of use’ planning permission. The decision followed public consultation on proposed changes.

Free schools are a good idea for many reasons, one would be that many families are finding it hard to keep control of household spending and having a school that is very local will help households to save money.

If you are thinking about the future and would like to know more information on opening a savings account for your children simply click here.

“Hostile local councils are using planning rules to block Free School groups in areas which desperately need them” said Rachel Wolf, director of the New Schools Network.

The need for schools in London is a serious matter with competition for places it would help if such free schools were to appear. The hurdle is that finding a space in which to set up a free school is difficult to locate since there are not many places that fit that requirement.

Have a look at your options and how saving can benefit you. The Junior ISA which is being launched in November may be the best option for you.

Force free schools to wealthier areas

The main problem with the retreat on the planning permission issue was that it could force the free schools programme to wealthier areas which will not help those poorer places in London that could do with more schools to give those children a chance for a better future.

You may want to consider the children’s tax-exempt savings plan, as another alternative to saving. Many believe that a cavalier approach to setting up a free school is not the way forward. Andy Burnham, the shadow education secretary agrees with this point saying: “People are saying loud and clear that free schools must not mean a free-for-all. There needs to be proper planning and a continuing role for the local authority.”

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Pay More In Overdraft Fees

Tue, 30 Aug 2011 00:00:00 GMT

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CIPD reports pay freezes for 75 per cent of workers

Wed, 17 Aug 2011 12:50:00 GMT

by Ameet Magan

According to new research from the Chartered Institute for Personnel and Development (CIPD), only a quarter of workers in Britain have seen an increase in their pay in 2011.

The CIPD says that this means most workers will not receive a pay rise this year as the majority of pay increases are awarded in the first half of the year from January to May.

The data reflects the pay freezes implemented on most public sector employees by the Conservative led coalition government, as it desperately attempts to tackle the yawning deficit gap. Eighty per cent of public servants reported that they had received no pay rise this year.

Even those with pay increases are losing out to inflation

CIPD spokesman Charles Cotton said that even those lucky enough to receive wage increases so far this year are still losing out as their increases are overwhelmingly well below the rate of inflation – currently over 4 per cent and more than double the Bank of England’s target rate of 2 per cent.

Mr Cotton said, "Even those who are lucky enough to get an increase in their pay will find it below the current cost of living, compounding consumer belt-tightening."

He added, "We will see some increase in the number of private sector workers receiving a pay award in the second half of 2011, especially in the retail, catering and hotel sectors, as the increase to the national minimum wage comes into effect in October".

Local authorities forcing pay cuts on staff

Last year the Chancellor, George Osborne announced a two year programme of pay freezes for public sector workers earning above £21,000 a year. Some local authorities have gone further than the Chancellor and have tried to impose pay reductions on their employees.

Shropshire Council informed its entire staff in July that they would be sacked in September but then immediately rehired with a 5.4 per cent pay slash. Southampton City Council employees have been striking through the summer in protest to the Council reducing their working hours and their pay. And Keterring General Hospital NHS Foundation Trust announced in June that it would ask employees to ‘accept’ a pay cut amounting to half a days pay a month.

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Banks Offering New Customers Golden Hellos

Wed, 17 Aug 2011 12:47:00 GMT

by Nikki Hart

Spanish owned Santander is the latest bank or building society to entice new customers by offering them cash to switch accounts. New customers can earn up to £125 just by switching bank accounts from rival banks to themselves.

The banking giant is paying £100 straight into the accounts of customers who open one of their "Preferred", "Reward" or "Premium" accounts.

The Preferred account regularly comes top of best buy comparisons for current accounts. The account offers five per cent interest on balances up to two and a half thousand pounds. The account also offers an interest free overdraught for the first year but after that customers are charged a daily rate of 50 pence for authorised borrowing up to a limit of £5 a month.

Most people still bank with ‘big four’

In the past banks such as First Direct and Halifax have offered up to £100 to new customers who switch from rival banks. However despite the financial incentive together with attractive interest charges and better overdraught rates, most people in the UK still have current accounts with the ‘big four’; Lloyds TSB, HSBC, Barclays or NatWest/Bank of Scotland.

There have previously been several government championed schemes to encourage more competition in the personal banking market. Many banks offer “switcher services”, allowing for an easy transfer for customers from one bank to another.

Switchers need to be allowed to keep old account numbers

Banks have also speeded up the time it takes to transfer current accounts but a new report has said that more people would be willing to transfer accounts if they were allowed to keep their existing bank account numbers, much like mobile phone customers can switch providers but keep the same phone number.

Such a step would make it a lot easier for customers as they would not have to inform employers or benefits agencies about new account numbers and would give them more confidence that a switch would not cause administration problems for them.

Head of banking at moneysupermarket Kevin Mountford said, "If you are considering switching your current account then make sure you select the account which suits your own circumstances”.
He also said that many financially incentivised current accounts require one to deposit at least £1,000 a month into the account.

Mr Mountford added, "If you are looking for an account paying a good rate of interest then the Santander Preferred Current Account pays 5pc in-credit interest on balances up to £2,500 and you also get a free arranged overdraft for the first 12 months when you switch".

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Birmingham Urges Colleagues to Accept Students

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Credit Cards Used For “Expenses"

Mon, 15 Aug 2011 00:00:00 GMT

By Toby Collard

loggerheads over credit cards used for “expenses”. Members of Parliament are blaming Cabinet Secretary, Sir Gus O’Donnell for getting in the way of proposals to reveal the true spending used on the taxpayer-funded cards.

Key ministers worry that the secrecy surrounding the cards is hiding abuse of the £1 billion spent on credit cards each year—money that comes straight from the public. Several officials have been caught using these cards for personal expenses rather than company expenses—such as trips to the supermarket. The actual amount of usage is thought to be higher.

Millions of Pounds Spent

The cards, called Government Procurement Cards (GPC), have been given to 140,000 people since 1997, and any bill less than £1,000 is usually not audited. This revelation has sparked public outrage. However, secret warnings have been give out to ministers advising against publishing information detailing these expenses, claiming the Cabinet Office believes it a “poor use of resources” to give out any backdated data.

This opposition utilizes “Downing Street backing” as a means to influence ministers, and uses Sir O’Donnell as being involved personally in refusal to accept the idea. Bank statements were released yesterday citing how the government had spent £1.5 million of taxpayer money on the cards since 2008.

Purchases have included expensive hotels, first class flights, French lessons, and other luxuries. Members of the Coalition, most notably Cabinet Office Minister Francis Maude, and strategy director Steve Hilton have been at the forefront of a campaign to reveal the details on the spending. Mr. Maude has proposed a deal that will publish a list of those items purchased by cards.

Full Disclosure Wanted

However, this deal would only reveal purchases over £500 from this year and would not reveal those who made them. One of the ministers lobbying for all information to be audited, said, “We have been banging our heads against a brick wall trying to get all this information out there.
“We are convinced there has been an abuse of this perk on the scale of the MPs’ expenses scandal, but the Cabinet Office has resisted at every turn. And it has been made clear to us that Sir Gus is not on our side.”

The Cabinet Office has denied these allegations, saying that the first bunch of GPC purchases would be revealed and published quite soon. The Prime Minister’s office said, “As part of the Government’s commitment to transparency, we are working with card providers to provide a consistent method of reporting GPC spending data for transactions above £500, so this is available for publication from the end of September 2011.”

Fixed- Year Savings Bond: Savers Urged To Act Fast

Mon, 15 Aug 2011 00:00:00 GMT

By Christiana Brockbank

The new best buy when it comes down to a one-year fixed-rate savings account is the new bond which has been launched by West Bromwich Building Society. They are offering an interest rate of 3.55% making it the top pick out of all similar products, it is 0.05% higher than its nearest competitor.

Interest paid each month

The new product clearly highlights the competition in the sector for new products that appeal to people especially in this current climate where the economy and the financial markets are struggling, not just in the UK but in Europe and the United States where the events of the downgrade has affected banks and the way in which consumers are spending their money.

There are some conditions, a minimum of £1000 must be deposited by customers and they cannot exceed the £250,000 cap that is set. Interest can be paid away each month or if preferred it can be paid away in full at maturity.

Deposit of £5,000

The E Bond 42 will be available to new and existing West Bromwich customers and is an online service, the rate is fixed until 30 September 2012. There is predicted to be a high demand for this rate and as such savers are being told that they need to be quick of the mark before the rate disappears.

The interest rate being offered by West Bromwich Building Society has beaten the previous best buy rate which was set at 3.52% by Aldermore Bank. Aldermore Bank set a minimum deposit of £1,000. Next in line was Whiteaway Laidlaw Bank which offered an interest rate of 3.51% but this required a minimum deposit of £5,000.

Osborne Will Scrap 50p Income Tax Rate

Mon, 15 Aug 2011 00:00:00 GMT

By Supriya Lingayat

In a radio interview George Osborne stated that there was “not much point” in keeping hold of taxes that raised little money and pushed businesses out of Britain, his view echoed the feelings of Lord Lamont, the former Conservative chancellor. He believed that there was no future for the tax which was introduced to the system by the Labour party.

There was an agreement between the two regarding the taxes that face Britain and they both felt that the taxes were “too high and too uncompetitive”, they followed this up by saying the 50p taxation could be removed from the system without having any lasting effect on revenue.

50p taxation

There is pressure on Mr Osborne regarding the need to stimulate growth in the economy. On this subject he said: “Sadly growth in Britain is not what all of us would have hoped”.

The coalition have differing views with respect to the 50p taxation and business leaders would like to see the death of it to encourage and promote enterprise but if it is abolished there may well be a divide between the coalition parties.

Public sector

The reality is Mr Osborne may struggle to get rid of the 50p rate while pay is frozen for those working in the public sector. A report currently being created by HM Revenue & Customs (HMRC) will review type of revenue brought in by the rate, this should be completed before summer 2012.

It is more likely that after there is some hard proof in defence of removing the rate through the HMRC review the 50p tax will be abolished from spring the following year, 2013.

The Labour leader is championing leaving the 50p tax as it is as a matter of principle. With Liberal Democrat Business Secretary, Vince Cable, saying that if it goes then another must come into play for taxing the wealthy.

Flavours Exposed In The Womb Are Remembered

Mon, 15 Aug 2011 00:00:00 GMT

By Marc SImpson

According to new research, mothers who want to ensure their children eat a healthy diet full of vegetables should begin very early. Infants can reach a desire for healthy eating in the womb, according to research from the Monell Chemical Senses Center in Philadelphia.

The study, published in the journal Pediatrics, discovered that exposure to flavours in utero could mean that children remember these flavours later in life. The tastes were passed from mother to child through the amniotic fluid. Julie Mennella, who led the study, said, “Things like vanilla, carrot, garlic, anise, mint — these are some of the flavours that have been shown to be transmitted to amniotic fluid or mother's milk.”

Smell Linked With Taste

The tastes were transferred through smell. This was tested with garlic in amniotic fluid—a panel of people smelled the amniotic fluid of women who took garlic pills, against a control group of women who took sugar pills. The women who ate garlic were much more easily recognized.

Due to the fact that 90% of taste comes from the sense of smell, the conclusion was that the foetuses could taste the garlic—and consequently other flavours. The study then moved on to discovering if the infants would be able to remember these flavours.

Taste Memory

In order to do this, a group of pregnant women was divided into three equal groups. One group drank carrot juice during pregnancy—every day without fail. The second group drank the carrot juice throughout breastfeeding—again every day. The third group were told to avoid carrots altogether.

Research continued until the children ate solid food. They were fed cereal made with either water or carrot juice. Those who had been exposed to the carrots in either breastfeeding or pregnancy were more likely to eat more of the cereal with carrot juice.

According to the researchers, mothers tend to feed their children the way they eat, meaning that the exposure is to foods that children would be likely to experience in life.

Linda Bartoshuk, taste researcher from University of Florida, said that the research from Dr. Mennella implied a lot for children’s health. She said, “To what extent can we make a baby eat a healthier diet by exposing it to all the right flavours - broccoli, carrots, lima beans, et cetera? Could we do that or not? My guess is we could.”

Expense of having children on the rise

Sun, 14 Aug 2011 00:00:00 GMT

by Rachael Bellis

In a survey from BabyCenter.com, over 60% of mothers said they were worried about not having enough income to take care of heir children. In the United States, 4.1 million children were born in 2009. This comes with the revelation this June that the cost of raising children in America in 2010 was an average of $226.920, 22% more than the figure was in 1960 adjusted for inflation. This number is for children from birth to age 17.

The rising cost of living in both the US and the UK and this information from the US shows that more families are making difficult financial decisions and sacrificing for their children.

The Cost of Education

Parents have been considering moving to the suburbs in order to be closer to better schools. Additionally many are considering private schools, with large tuition fees, due to the cuts to state funded schools in the US. Then there are University fees, which have risen in the UK and in the US, stand at up to $200.000 for four years at school.

Additionally, many parents decide to work full time and pay for childcare. With the cost of living increasing steadily, living on one income and supporting a family is nearly impossible. In most families, both parents need to work in order to pay for the expenses of having children. According to the USDA, in the US, childcare and education are 17% of the total expenses of a child.

Saving for Large Families

With the economy and job security both uncertain, most parents are avoiding debt such as credit card debt in order to save money for their children. Going out to restaurants or having a few drinks are not options, especially for those planning larger families.

Finally, the cost of a large family is another consideration. The more children you have, the higher the cost will go. Parents are opting to have smaller families, with one or two children, rather than having a whole brood.

Everyone knows that children are expensive. From US hospital bills, diapers, childcare, through to later expenses, such as university, parents have to create large savings before considering having children. Many women are continuing to work rather than planning a family, opting to have children in their late 30s, when they are in a stable career. “Saving for family planning” has become a new trend.

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July Sees A Slump In Growth In Property Value

Sun, 14 Aug 2011 00:00:00 GMT

By Sophia Start

The worldwide financial crisis has left the commercial property market only growing 0.1% in July from just 0.2% in June. The growth rate is now at its lowest point since recovery began due to the drop in retail values.

On Friday, Investment Property Databank (IPD) revealed that since 2009 property values had recovered by 17.6% after their 45% fall during the economic recession.

Rental income also suffers

“With a 0.1 percent improvement in capital values this month, the balance between the performance of prime assets and the more challenged secondary markets remains finely poised,” IPD managing director for UK and Ireland Phil Tilly said.

Rental income meant that returns in all areas of commercial property sectors, such as retail, office and industrial, are now at 0.6%. This is compared with its 0.7% value in June. Total income returns were also down in July. In June total income returns were at 0.6% according to the IPD, but in July they were at 0.5%. This is made up of 0.5% in retail, 0.5% from offices and 0.6% from industrials.

Frugal consumers

Consumers unwilling to spend as much as before due to the current economic climate has been blamed for the decreasing value of retail capitals. This is because less retail space is needed when consumers are less willing to spend. The office market is still growing but this is not encouraging consumers to be less frugal.

“Challenges within the wider economy have put further pressure on the market,” Tilly said.

“Consumer spending falls are impacting on occupier demand and while retail yields remained steady, a -0.2 percent drop in rental values has prompted a -0.1 percent decline in retail valuations for July”.
Several retailers have fallen into administration following retail sales falling for the fastest rate in 12 months during July. This data was collected by a survey undertaken by the Confederation of British Industry.

Rock-bottom Bank Rate preventing wave of bankruptcies

Sat, 13 Aug 2011 00:00:00 GMT

by Ameet Magan

Figures have been released showing that the number of people claiming to be insolvent is reaching its limit. Figures provided by the Government show that the level has been stable around 30,000 per three months.

A big thank you must be given to the Bank rate, which has remained at a record low of 0.5 per cent for more than two years. For many the fact that the rate is so low and has been for so long has been very negative, but every cloud has a silver lining and in this case many are also benefiting.
Louise Brittain, an insolvency partner at Deloitte has stated that households are realising an ‘extended lifeline’ due to the low interest rate.

She also said that people where being proactive, and realising that they have financial problems were taking the right steps earlier to solving those issues.

“We are gradually moving into a period of concentrated payback, where fears around low economic growth, job security and general living costs have resulted in households working hard to pay back debt incurred in previous years” said Louise Brittain.

The Insolvency Service produced figures which have revealed that a little more than 30,000 people were affected by insolvency between April and June. The reality is this is the third quarter in a row where people, approximately 30,000, have claimed bankruptcy or have agreed to take an individual voluntary arrangement (IVA).

IVAs are essentially similar to bankruptcies but the difference is individuals do not lose their homes, they also get the opportunity to pay outstanding finances over a five year period. 2007 witnessed a massive increase in insolvencies.

Post 2007, people are using the low interest rates to pay back debts and compared to the recent past credit card expenditure has decreased.

Interest rates have been frozen at 0.5 per cent for two and a half years by the Bank of England Monetary Policy Committee, which provides those paying off debts a better chance.

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Pupils grades will not be affected by series of exam errors

Sat, 13 Aug 2011 00:00:00 GMT

by Rowena Purrett

Pupils across the country have been promised that their marks will not be affected by mistakes in exam papers.

Misprints and errors won’t change grades

In total, twelve mistakes were spotted in GCSE and A Level papers handed out in schools across the country in June and July this year.

Pupils noticed and pointed out the mistakes, utilising websites such as Facebook to do so, as well as contacting news organisations. Some of the exam mistakes were misprints and typos, and others, more seriously, were the wrong question entirely. In one case, a multiple choice type question offered no correct answer, simply four incorrect responses.

Now, however, exam boards have promised pupils that the mistakes will not have an affect on the marks that they are likely to receive.

NUS shock at the ineptitude of exam boards

Perhaps unsurprisingly, the news of the exam errors has been met with shock and disbelief amongst pupils and parents.

Toni Pearce from the National Union of Students (NUS) also expressed distaste at the revelation, stating that, "The errors identified in exam papers this year were completely unacceptable, but the exam boards and Ofqual have listened to our concerns and taken them seriously.
"The measures that have been put in place should ensure no victim of them is unfairly disadvantaged and we will be monitoring the situation closely to ensure that is the case."

Ofqual ensure fair marking

Ofqual, the organization in charge of marking, has attempted to reassure pupils that their grades will not be affected by the series of mistakes in exam papers. Grade boundaries will be altered where necessary to guarantee that marks are not lost for time wasted on mistaken questions and pupil’s performances will be assessed across other exams as well, to be sure that their usual standard is taken into account.

Glenys Stacey, the chief executive of Ofqual, said, "As regulators, we are satisfied that everything that could be done has been done to make sure that, as far as possible, candidates have not been unfairly advantaged or disadvantaged.”

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A Level Students Shun Humanities At University

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