Key points
- Bank of England 'will push UK into recession this year' - as interest rate forecasts hit 6.25%
- Households advised to take meter readings ahead of price cap changes this weekend
- Parents on Universal Credit to receive hundreds more pounds from tomorrow - so what do you need to know?
- Drivers complain of increasing car insurance renewal costs | Send us your stories
- Morrisons shoppers forced to scan receipts before leaving stores
- UK economy going through shock therapy | Ed Conway analysis
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One in 20 newly listed private rental properties on Zoopla affordable for people on housing benefit
Only one in 20 (5%) newly listed private rental properties on Zoopla in the first quarter of 2023 were affordable for people receiving housing benefit or Universal Credit, according to the Institute for Fiscal Studies (IFS).
In its report, the IFS, whose research was funded by the Joseph Rowntree Foundation (JRF), said that on average, housing costs amounted to 11.4% of UK households' incomes.
It defined rents as being affordable if they could potentially be completely covered by benefits.
Local housing allowance (LHA) rates - which govern the maximum amount of support for their rent that low-income private renters can get - have been frozen in cash terms since April 2020, the IFS noted.
Its report said: "This means that the support available for private rents is steadily declining in real terms - something that is especially important at the moment as rents are rising very rapidly."
Rising mortgage rates are also likely to feed through into the rents being asked as they push up landlords' costs.
Speaking to Sky News on the latest findings, co-author of the IFS report Tom Waters said there have been "substantial increases" in rent across the board.
"About 40% of private renters are on housing benefit so you are talking about quite a large number of people all competing for a relatively small number of properties," he said.
He said the way to get rents down in the longer run was to build more properties.
Asking prices for properties jump by 3.5%
We're getting used to hearing dire predictions for the housing market but new data published in The Negotiator today, looking at stats from homeowner database TwentyEA, suggests conditions aren't as bad as you might think.
The database shows there has been a3.5% increase in asking prices for properties during the past year, and a 24% rise since 2019.
And when it comes to the average property, growth in the last year equates to £16,000.
Over the year, exchanged prices have also risen by 4.7%.
The figures reflect a compound annual growth rate of 4.4% per year and come amid rising mortgage rates.
Executive director of TwentyEA Katy Billany, told The Negotiator the growth in instruction prices year on year had been highest in Northern Ireland (9%), the North West (7.5%) and Scotland (7.1%).
She also noted that prices on listings had increased across every price bracket.
NHS consultants vote to strike for two days next month
Senior hospital doctors have voted to strike for two days next month, the British Medical Association has said.
Union members were asked to vote on "Christmas Day levels of care", the medical union said.
It added: "This would ensure that emergency care would continue to be provided, but elective or non-emergency work would need to be cancelled."
The consultants will walk out on 20 and 21 July.
JD Sports expects profits to pass £1bn this year
JD Sports has said it is on track to pass £1bn in profits this year despite aslowdown in its US and Canadian markets.
The group has said trading from about 3,400 stores in 32 countries has been expanding rapidly, boosted by appetite from young shoppers who are less affected by rising bills and who seek out JD for special access to Nike and Adidas products.
"Inventories in our businesses in North America are at normal levels and we will be no more promotional than we need to be to remain competitive," a JD Sports spokesperson told Retail Gazette.
Peel Hunt analysts have also said shares in JD are up 16% so far this year.
"The US performance will probably catch the headlines but Europe and the UK have picked up any bottom-line slack," the analysts said.
Parents on Universal Credit to receive hundreds more pounds from tomorrow - so what do you need to know?
Parents on Universal Credit will soon be eligible to claim hundreds of pounds more in support as the government tries to get more people back into work.
From 28 June, a change in government support funding will help those whose costs are greaterthan £760 a month for one child, and £1,304 a month for two or more children.
However, it is important to note that you may not be able to get the new amounts immediately as this depends on when your Universal Credit assessment period ends.
So what will you be entitled to?
From tomorrow, parents will still only be able to claim up to 85% of their costs, but the caps will increase to the following:
- If you have one child the maximum amount you will be able to claim back will rise from £646 to £951 a month;
- Have two or more children? The maximum level of support will rise from £1,108 to £1,630 a month.
Not sure if you are able to receive benefits?
If you are not sure whether you should be receiving benefits you can use Money Saving Expert's benefits checker here.
Bank of England 'will push UK into recession this year' - as interest rate forecasts hit 6.25%
The UK will be pushed into a recession by the end of the year, according to analysts at Bloomberg Economics.
Experts at the news agency said the Bank of England - which last week shocked investors by raising interest rates half a percentage point to 5% - will tip the country into a year-long recession starting in the fourth quarter of this year.
They note a downturn was the price of "taming an inflation rate that remains stubbornly close to double digits".
Analysts have also said that money markets are almost fully pricing in the Bank of England raising rates to 6.25% by December and that could see the UK economy hit a "far worse slump".
Last week, the peak forecast was 6% - a few months ago it was only 4.5%.
The latest analysis follows the Bank of England's decision to raise the base interest rate last week to 5% - the highest level since 2008.
Economists had expected the Monetary Policy Committee to raise interest rates by only a quarter percentage point, but the MPC voted 7-2 for the surprise increase, explaining that it was aiming to bring higher-than-expected inflation under control and indicating concern about high wage increases and company profit margins.
The majority of investors now expect another0.5 percentage point rise at the start of August.
The UK currently has higher inflation than any other country in the G7 and is expected to see its interest rates peak higher than other major economies.
Five things you should do to make sure you're saving money when price cap changes
We reported earlier that consumer rights expert Martin Lewis was advising households to take meter readings ahead of price cap changes this weekend (see our post at 7.50am).
Ahead of the energy price cap changing on 1 July, Uswitch energy has said it "remains vital" that households keep on top of their usage.
Energy expert at the companyBen Gallizzi said:"Taking regular meter readings and checking the level of your direct debit are as important as ever, and it is also worth keeping a close eye on the energy market as fixed deals return.
"The energy market remains volatile, so deals are mostly being offered only for short periods and to limited numbers of customers.
"Consumers need to be proactive and prepared to move quickly if they want to lock in certainty over their energy bills with a fixed deal."
Here is achecklist for households preparing for the price cap, courtesy of Uswitch...
- Keep your meter readings up to date and ifyou do not have a smart meter, regularly take meter readings and submit them to your supplier. This makes sure your bill is accurate;
- Check your monthly direct debit payments reflect your actual use and inform your provider if not;
- Monitorhow much energy you're using by downloading Utrack, a free mobile app that offers regular insights into your energy spend;
- Sign up for alerts on fixed tariff announcements so you can decide to lock in a deal if one becomes available;
- Check what energy support schemes or grants you, or any vulnerable friends or relatives, may qualify for.
How an Xbox button can save you £5 a month
The cost of living crisis has left many cutting back on items and activities and even their electricity.
But before you decide to pack up your games console there might be a way to save a little money on your bills while enjoying an odd game or two.
A button on the console could save you up to £5 a month, according to the the American technology websiteThe Verge.
So what do you have to do?
If you own an Xbox in the UK and Europe, then it will most likely have a feature called "Instant On" switched on by default.
This puts the console in standby mode and makes it quicker to activate the machine every time you play.
But the problem is this mode wastes energy so the alternate option is to switch it to energy saver mode.
While this mode does mean you're cold booting your Xbox every time you play a game, placing it in this mode only consumes around 0.5 watts.
In comparison, Instant On consumes between 11 and 13 watts.
So the next time you sit down for a gaming session, why not find the energy saver mode instead and save a few pennies in the long run.
Germany set to raise its minimum wage by 3.4%
Germany is set to raise its minimum wage by 3.4% to €12.41 (£10.68) an hour from 2024, according to the proposals of a government appointed commission.
Raising the minimum wage, which increased to €12 per hour in October from €10.45, was one of the key election promises of Chancellor Olaf Scholz and his Social Democrats.
A hike would be likely to directly affect almost six million employees in Germany.
The country has the second-highest minimum wage in the European Union behind Luxemburg, which mandates a monthly minimum of €2,387.
If the proposed increase in Germany is approved, the eurozone's largest economy would see workers earn at least €2,054 a month.
Only six EU countries have a national minimum wage above €1,500 per month, including Luxembourg, Germany, Belgium, the Netherlands, Ireland and France, Eurostat data shows.
But Carsten Brzeski, global head of macro at ING, has said the increase now proposed is "very moderate and is too little" to make up for the increased cost of living.
The proposal still needs to be approved by Germany's Labour minister Hubertus Heil.
Nurses union fails to get mandate for strikes
A ballot for nursing strikes has failed to reach the legal threshold that it needs for the action to go ahead, a trade union said.
The Royal College of Nurses (RCN) said more than 100,000 of its members voted in favour of strike action, but turnout was only 43%, below the 50% required in law for a strike to go ahead.
This means strike action has been called off.
RCN chief executive Pat Cullen said in an email to members: "While this will be disappointing for many of you, the fight for the fair pay and safe staffing that our profession, our patients, and our NHS deserves, is far from over."
She went on to say she would be seeing the prime minister this afternoon to "hear him out" and to "ask him the questions".
Ms Cullen also said nurses had "started something special" and they would continue to use their voices.
A Department of Health and Social Care spokesperson said more than one million eligible NHS staff were receiving their pay rise and one-off payments this month.
"We hugely value the work of nursesand welcome the end to hugely disruptive industrial action so staff can continue caring for patients and cutting waiting lists," they added.
