Cost of Living payment latest: Banks PULL mortgages as BoE warns of MORE interest rises; plus money & energy bill tips | The Sun

MORTGAGE lenders have pulled fixed deals as the pound fell to its lowest since 1971 – with interest rates predicted to rise FURTHER.

High Street lenders including Halifax, Virgin Money and Skipton Building Society have pulled fixed deals for new customers after Sterling hit a record low against the dollar yesterday.

The value of the pound fell by more than 4% to just $1.03 in early trading in Asia, before recovering to $1.06 yesterday afternoon.

It forced the Bank of England to say it "won't hesitate to change interest rates" with analysts saying the institution could raise the rate to 0.75-1%, – the highest in decades – and could peak at 6% next year.

Read our cost of living blog below for the latest updates….

  • Joseph Gamp

    Labour suggests banning 'buy one get one free' offers during crisis

    Shadow health secretary Wes Streeting has suggested he opposes a ban on buy one, get one free offers during the cost-of-living crisis.

    He told BBC Breakfast: "There are good public health arguments for banning such offers. I'm not tin-eared enough to say that a Labour government would do that in the middle of a cost-of-living crisis. I don't think that would be the right thing to do right now.

    "What I've said to the food and drink industry is before Government comes along with a stick and tries to regulate it to do the right thing, let's work together.

    "Price isn't the problem here, it's the salt and sugar content of food, because as we saw with soft drinks, a bit of reformulation can go a long way."

    Asked about the sugar tax, Mr Streeting said: "Our first resort is not going to be taxes against this current backdrop."

  • Joseph Gamp

    Labour claims 'the cavalry is coming'

    Shadow health secretary Wes Streeting told mortgage lenders that the "cavalry is coming" with the Labour Party.

    He told Sky News: "All of us are frankly still recovering from our jaws hitting the floors last week with that budget from Kwasi Kwarteng.

    "And the real world consequences we're seeing overnight, the withdrawal of mortgage products, tell us about the extent to which our own Chancellor in this country has frightened the markets.

    "This is just the tip of the iceberg, if interest rates go up in the way that some people are predicting that's going to be huge additional costs to people with mortgages.

    "And what was the Chancellor's answer yesterday? 'Don't worry folks, in November I'm going to come up with some new fiscal rules – ie I've ignored all the ones I've already got and I'm rewriting the rules and making them up as I go along'.

    "This isn't serious leadership – it's a reckless gamble," Mr Streeting added.

    "The calvary is coming with Labour. We've got serious people, with a serious plan that would make an enormous difference to families right across the country and to businesses, who are the backbone of our economy and will be the bedrock of economic growth."

  • Joseph Gamp

    MP says he's worried about his own mortgage renewal

    Shadow health secretary Wes Streeting said he is worried about his own mortgage renewal next year because of rising interest rates.

    He told BBC Breakfast: "My mortgage is up for renewal next year.

    "I'm worried about interest rates, and I don't even think I'm one of the people who are most vulnerable to interest rate rises."

  • Joseph Gamp

    FREE debt advice for struggling Brits

    There are various services available as costs mount.

    Here are some free services that may be of use:

    • Money Helper – 0800 138 7777
    • Citizens Advice – 0808 800 9060
    • StepChange – 0800 138 1111
    • National Debtline – 0808 808 4000

    Next budget will take place in the spring

    The Treasury this week confirmed its next budget will take place in the spring.

    This means there will not be an Autumn budget in 2022, following last week’s not-so-mini budget announcements.

    Bank of England ‘will not hesitate’ to raise interest rates

    In another huge moment for the British economy, the Bank of England has issued a statement as the pound continues to plummet.

    Andrew Bailey, Governor of the Bank of England, said: “In recent weeks, the Government has made a number of important announcements.

    “The Government’s Energy Price Guarantee will reduce the near-term peak in inflation. Last Friday the Government announced its Growth Plan, on which the Chancellor has provided further detail in his statement today.

    “I welcome the Government’s commitment to sustainable economic growth, and to the role of the Office for Budget Responsibility in its assessment of prospects for the economy and public finances.

    “The role of monetary policy is to ensure that demand does not get ahead of supply in a way that leads to more inflation over the medium term.

    “As the MPC has made clear, it will make a full assessment at its next scheduled meeting of the impact on demand and inflation from the Government’s announcements, and the fall in sterling, and act accordingly.

    “The MPC will not hesitate to change interest rates as necessary to return inflation to the 2% target sustainably in the medium term, in line with its remit.”

    Disability benefit claimants still waiting for cost of living payment

    Millions of people on disability benefits are eligible for the one-off payment of £150.

    The direct cash payments began on September 20, but only a handful of claimants have received their payment to date.

    The Department for Work and Pensions has admitted it has only been able to send out a limited number of payments due to “operational issues”.

    However, it was confirmed “everyone” will be paid by the start of October, according to Martin Lewis‘ Money Saving Expert website.

    A DWP spokesperson said: “We completely understand many people may be anxious because they have not yet received their £150 Disability Cost of Living payment.

    “But we want to reiterate that payments will be made automatically and the vast majority of people will receive them by early October.

    “While some people were paid last week, the majority of people will be paid this week. Anyone who has not been paid yet should wait until early October before querying their payment with the Department.

    Cost of living crisis destroying students social lives

    Students starting or returning to university this year are faced with the worries of not only their studies – but also the cost of living crisis, meaning for many it will be a choice between food or fun.

    Worried students have spoken of how they are attempting to save moneyby avoiding switching on the lights, as well as taking on one or two part-time jobs to support their income.

    Zoe Jones, a second-year student at Cardiff University, said: “It’s making that decision between eating and your social life, which is a massive part of your university experience.”

    Government confirms cut to National Insurance contributions

    The average household will save £330 a year thanks to the tax cut.

    From November 6, a 1.25% point increase to National Insurance will be scrapped – meaning millions can keep more of their hard-earned cash.

    Chancellor Kwasi Kwarteng said: “The increase in Employer National Insurance Contributions and dividends tax will be cancelled.

    “Reversing the Levy delivers a tax cut for 28 million people, worth, on average, £330 every year.”

    • Shanine Bruder

      Marks & Spencer is increasing staff pay

      Marks & Spencer is increasing staff pay for the second time this year.

      They are providing 4,500 employees with a £250 shopping voucher according to the Guardian.

      The move comes as part of a £15m package to help with the rising cost of living,

    • Shanine Bruder

      Millenials ‘feel less in control of their finances’

      MILLENIALS feel less in control of their finances than any other generation amid the cost-of-living crisis.

      As Sun reporter Oliver Lewis writes, a nationwide study of 3,000 adults, 55 per cent of those born between 1981 and 1996 are struggling to stay on top of their money.

      The figure is compared with 44 percent of all those surveyed.

      Read more on the story here.

    • Shanine Bruder

      FREE debt advice for struggling Brits

      There are various services available as costs mount.

      Here are some free services that may be of use:

      • Money Helper – 0800 138 7777
      • Citizens Advice – 0808 800 9060
      • StepChange – 0800 138 1111
      • National Debtline – 0808 808 4000

      Aldi’s popular toy range returns just in time for Christmas

      Aldi’s iconic wooden toy range, which starts at just £15, is returning in time for Christmas.

      As bills continue to rise, this line of toys is a great way to get Christmas gifts.

      Here’s a full list of toys available this year along with their prices:

      • Wooden Rainbow Climbing set: £59.99
      • Wooden Baby Unit: £44.99
      • Wooden Aldi Supermarket: £39.99
      • Wooden Launderette: £34.99
      • Wooden Play Shop/Theatre: £29.99
      • Noah’s Arc/Nativity Scene: £14.99
      • Hand Puppet Bundle: £14.99

      Click here for more details.

      Three ways to cut fuel consumption during the cost of living crisis

      Petrol costs might be gradually falling, but they are still higher than usual.

      So, here are three ways to cut your fuel consumption when driving:

      • Accelerating gradually without over-revving
      • Always driving in the highest possible gear
      • Allowing your car to slow down naturally as your brake

      Click here for more advice.

      Cost of Living crisis to put pressure on the NHS, expert claims

      The Cost of Living crisis has experts “worried” about the NHS, the BBC reports. 

      “We’re worried about people because of the cost of living,” Jillian Evans, head of health intelligence at NHS Grampian said.

      “People who are unable to heat their homes, unable to have food at regular times – all of those people will be susceptible to greater illness.

      “That will put a strain not just on themselves but on healthcare services. I’m worried about all of those things.”

      • Shanine Bruder

        Income tax cut is good news for Brits on less than £50,000, Martin Lewis says

        The MoneySavingExpert.com founder took to Twitter over the weekend to explain how the government’s 1p cut to the basic rate of income tax will help Brits on less than £50,000 per year. 

        This new change will affect people on any wage between £12,571 and £50,270 and will save the average worker £170 on average next year.

        Lewis said: “For anyone earning £50,000 and over, you don’t really get any more gain.

        “The gain is really on the income between £12,570 and £50,000.”

        Click here to read more.

      • Shanine Bruder

        Cost of living advice for Halloween

        Rebecca Bebbington, online consumer expert at NetVoucherCodes has advised people that if you’re planning a Halloween party of dressing the house up ready for trick or treaters, have a look at DIY options instead of splashing on expensive decorations.

        Rebecca said: “Weigh up the costs of carving your own pumpkins to how much it’ll be to get crafty with glue and glitter for homemade spooky decorations.

        “Perhaps think about what can be used more practically such as a hand-sewn pillow which can be used year-round and won’t appear out of place during off-season periods.”

      • Henry Moore

        RECAP: What did today’s Treasury announce today?

        In an announcement this afternoon, the Treasury announced another fiscal update in the coming months.

        Here is what the statement said: “Cabinet Ministers will announce further supply side growth measures in October and early November, including changes to the planning system, business regulations, childcare, immigration, agricultural productivity, and digital infrastructure.

        “Next month, the Chancellor will, as part of that programme, outline regulatory reforms to ensure the UK’s financial services sector remains globally competitive.

        “He will then set out his Medium-Term Fiscal Plan on 23 November.

        “The Fiscal Plan will set out further details on the government’s fiscal rules, including ensuring that debt falls as a share of GDP in the medium term.”

      • Henry Moore

        Are you eligible for Friday's Cost of living disability payment?

        Over six million Brits should receive £150 by September 30.

        Payments began reaching bank accounts on September 20th, but all those eligible should receive the payment by Friday.

        You should get the cash if you claim the following:

        • Disability Living Allowance
        • Personal Independence Payment
        • Attendance Allowance
        • Armed Forces Independence Payment
        • Constant Attendance Allowance
        • War Pension Mobility Supplement
        • Adult Disability Payment (in Scotland)
        • Child Disability Payment (in Scotland)

        How to apply for today’s £200 energy payment

        Certain Welsh residents will be eligible to receive a £200 energy grant from today.

        But how do you apply?

        People will normally have to apply for the £200 through their local authority.

        If you don’t know what local authority you fall under, you can find it here.

        Click here for more information.

        Morrisons slashes prices in a bid to help struggling Brits

        Supermarket chain Morrisons has unveiled a slew of price cuts, as it looks to aid Brits during the cost of living crisis.

        David Potts, chief executive, Morrisons said: "The cost of living crisis continues to place an enormous financial burden on our customers and we want to play our part in helping them when it comes to the cost of grocery shopping. 

        "These price cuts are on the products they buy day in and day out and will have a noticeable impact on their budgets and demonstrate our commitment to offering the best possible value."

        Click here to read more.

        • Henry Moore

          Income tax cut is good news for Brits on less than £50,000, Martin Lewis says

          The MoneySavingExpert.com founder took to Twitter over the weekend to explain how the government’s 1p cut to the basic rate of income tax will help Brits on less than £50,000 per year.

          This new change will affect people on any wage between £12,571 and £50,270 and will save the average worker £170 on average next year.

          Lewis said: “For anyone earning £50,000 and over, you don’t really get any more gain.

          “The gain is really on the income between £12,570 and £50,000.”

          Click here to read more.

        • Henry Moore

          Inside Britain's soaring interest rates

          2022 has seen interest rates skyrocket, with experts predicting we could be in for even more increases.

          Interest rates were raised to 2.25% last week, as many predict they could soar above 4%.

          Today, the Bank of England said they "would not hesitate" to increase interest rates to protect the economy.

          Click here to read more.

        • Henry Moore

          FREE debt advice for struggling Brits

          There are various services available as costs mount.

          Here are some free services that may be of use:

          • Money Helper – 0800 138 7777
          • Citizens Advice – 0808 800 9060
          • StepChange – 0800 138 1111
          • National Debtline – 0808 808 4000

          The pound reaches lowest point EVER when compared to the dollar

          The pound hit its lowest point ever in the early hours of the morning, as investors waver following the Chancellor's announcements on Friday.

          While the currency did regain some of its value, this morning saw it hit 1.03 against the dollar.

          In order to quell fears around the pound, the Chancellor has announced a series of new fiscal announcements will soon take place.


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