Business

London's blue-chip index - and the pound - have slumped following reports of Rachel Reeves's U-turn on Budget income tax plans.Reports suggest the Chancellor is considering dropping plans to raise income tax in the autumn Budget on November 26. The potential U-turn has renewed concerns about how the Government will fill a fiscal shortfall of up to £35billion. The speculation triggered a sell-off in government bonds, with yields on 30-year gilts jumping 14 basis points to 5.37% in early trading, while 10-year yields rose 12 basis points to 4.56%. Gilt yields rise when their prices fall, and fall when their prices rise. Sterling also weakened, down 0.3% to $1.313 and 0.3% lower at €1.128. The FTSE 100 opened on the back foot, dropping 101.80 points to 9,705.88.Banks were among the hardest...

Nearly 24 million people across Great Britain are claiming at least one benefit from the Department for Work and Pensions (DWP). However, many may not know about an annual bonus paid to some claimants before Christmas. The DWP 'Christmas Bonus' is a one-off, tax-free payment of £10 made to people in receipt of certain benefits, not including Universal Credit. Payments will be issued automatically before January 1, 2026.Those on the State Pension, PIP, devolved Scottish disability benefits, Attendance Allowance, Carer's Allowance – 23 benefits in total - will receive the money automatically before Christmas. However, they need to meet the eligibility criteria during a specific qualifying period, which is typically the first full week in December. The DWP will issue this as a separate pay...

The DWP has issued a statement about proposals to stop benefits such as PIP (Personal Independence Payment) for people with certain health conditions. The update came after Shadow Work and Pensions Secretary, MP Helen Whately, set a motion before the House of Commons, proposing changes to curb welfare spending.She called for several changes to "fix Britain's welfare system", including "stopping benefits for those with lower-level mental health conditions". Further setting out the Conservative party's plans, she said: "We would stop sickness benefits for people with lower-level mental health conditions like anxiety and reform Motability, putting an end to taxpayer-funded cars for people who have conditions like ADHD and tennis elbow."We would bring back face-to-face assessments, which ar...

The Department for Work and Pensions will be starting its Cold Weather Payments scheme this week. Brits may be eligible if they’re getting certain benefits or Support for Mortgage Interest.The Cold Weather Payments are £25 paid to those eligible every time the average temperature in their area falls to zero degrees or below for seven consecutive days. If you’re eligible, you do not need to apply, as you’ll get these payments automatically, and they do not affect your other benefits. After each period of very cold weather in your area, you can expect to receive a payment within 14 working days. It’s paid into the same bank or building society account as your benefit payments between November 1, 2025, and March 31, 2026.You may get Cold Weather Payments if you’re getting:Pension CreditInc...

While pension contributions have reached record highs, there has been a significant increase in the amount being withdrawn by those old enough to access their pensions, new data shows. Private pension statistics published by HMRC this week indicate that pension withdrawals by over 55s reached £12.9billion in the fiscal year 2022 to 2023. This amount has risen from £11.2billion in 2021 to 2022 and £9.3billion in 2020 to 2021. Becky O’Connor, director of public affairs at PensionBee, said: “People are increasingly benefiting from pensions either by choice or because salary increases are resulting in a rise in contributions. “However, the apparent increase in the number and value of withdrawals is concerning – the risk is that people take more out to cover the rising cost of living ...