Background: The Initial Cuts

Shortly after taking office in July 2024, Chancellor Rachel Reeves implemented a means-tested approach to the Winter Fuel Payment, limiting it to pensioners with annual incomes below approximately £11,500. This move aimed to address a £22 billion budget shortfall but resulted in over nine million pensioners losing out on payments of up to £300 .

The cuts sparked significant backlash from the public, Labour backbenchers, and opposition parties. The policy was also linked to Labour’s poor performance in recent local elections, adding pressure on the government to reconsider its stance .

The U-Turn: Expanding Eligibility

Addressing the House of Commons, Prime Minister Starmer acknowledged the ongoing cost-of-living pressures faced by pensioners and emphasized the need for them to benefit from the improving economy. He stated

“I recognise that people are still feeling the pressure of the cost-of-living crisis, including pensioners. As the economy improves, we want to make sure people feel those improvements in their daily lives. That’s why we want to ensure that, as we go forward, more pensioners are eligible for winter fuel payments.”

While specific details are yet to be finalized, the government is considering raising the income threshold, currently set at £11,500, to allow more pensioners to qualify for the benefit.

Implementation Timeline

The revised eligibility criteria are expected to be outlined in the upcoming Autumn Budget, scheduled for October 2025. However, Downing Street has not confirmed whether the changes will take effect in time for the 2025–2026 winter season .

What This Means for Pensioners

If the proposed changes are implemented, a significant number of pensioners who were previously excluded due to the income cap may regain access to the Winter Fuel Payment. This benefit provides a one-off tax-free payment of £200 or £300, depending on age and circumstances, to help cover heating costs during the winter months.

Pensioners are advised to stay informed about the forthcoming Autumn Budget announcements and check their eligibility status once the new criteria are published.

Political Repercussions

The government’s reversal has drawn criticism from opposition leaders. Conservative leader Kemi Badenoch labeled the U-turn as “extraordinary” and questioned the Prime Minister’s reliability .

Despite the criticism, the government’s decision reflects a response to public concern and internal party pressures, aiming to address the financial challenges faced by pensioners amid the ongoing cost-of-living crisis.

As the situation develops, pensioners and stakeholders should monitor official channels for updates on the eligibility criteria and implementation timeline of the revised Winter Fuel Payment policy.

The post Government Reverses Course on Winter Fuel Allowance Cuts: What Pensioners Need to Know appeared first on MoneyMagpie.

With the phrase “Buy Now Pay Later” trending this week on Google, it’s time to get clued up on how these changes could affect your spending, your credit score, and your financial future.

What Is Buy Now, Pay Later?

BNPL lets you spread the cost of shopping—often online—over several weeks or months. Many services offer interest-free instalments, which can make them feel like a smart way to manage your money. But what seems like a savvy decision can quickly spiral into debt if you’re not careful.

BNPL has exploded in popularity over the past few years, particularly with younger shoppers looking for flexible payment options. In fact, it’s become so widespread that the UK government has decided it’s time to step in and regulate.

Why Is BNPL Being Regulated Now?

BNPL companies have operated in a legal grey area—until now. In May 2025, the government confirmed a major overhaul of BNPL regulation, aimed at protecting consumers and encouraging more responsible lending.

Trending searches this week include:

• “BNPL Klarna regulation UK”

• “BNPL credit score impact”

• “Buy Now Pay Later financial advice”

These show growing concern about how BNPL affects personal finance, especially as more people find themselves struggling to keep up with repayments.

What Will Change Under the New Rules?

The Financial Conduct Authority (FCA) will oversee BNPL lenders, and the rules—due to take effect in 2026—will include:

Mandatory Affordability Checks

Lenders must check whether a customer can realistically afford the repayments. No more instant approvals without a financial background check.

Consumer Credit Act Protection

BNPL agreements will be brought under the Consumer Credit Act, giving shoppers the same protections they’d get with a credit card—such as Section 75 rights on faulty goods or failed deliveries.

Clearer Terms and Conditions

BNPL providers must clearly outline repayment terms, late fees, and the impact on your credit score.

Access to the Financial Ombudsman

If something goes wrong, you’ll have access to independent support to resolve disputes—just like with traditional lenders.

How This Affects Your Finances

These changes aim to make BNPL safer, but they also make it more like borrowing—and that’s worth thinking about. Here’s how it could affect you:

• Your Credit Score: Some BNPL firms already report to credit reference agencies, but now it could become standard. That means missed payments might impact your ability to get a loan or mortgage later.

• Your Budget: Mandatory affordability checks will help prevent over-borrowing—but could also mean fewer people are approved. Make sure you’re not relying on BNPL to cover essentials.

• Your Rights: More consumer protection is a good thing. You’ll now have the legal backup if something goes wrong with your purchase.

Who’s Most Affected?

BNPL has been especially popular among younger shoppers and those who don’t use traditional credit cards. According to a recent study, a growing number of Gen Z and Millennials are turning to BNPL for everyday expenses—from fashion to groceries.

Searches for “BNPL for everyday spending” and “financial literacy for young adults” are also on the rise, showing how important this issue is becoming in wider discussions about money management and debt awareness.

Final Thoughts: Use BNPL Carefully

BNPL can be a useful tool—but only when used wisely. These upcoming changes are a sign that the government is taking the risks seriously. If you’re already using BNPL, take this opportunity to reassess how you use it, whether you can comfortably afford your repayments, and how it fits into your broader financial goals.

And if you’re new to BNPL? Learn the basics first. Understanding how these schemes work is the first step toward better financial literacy and a healthier credit profile.

Quick Tips: Safer Use of BNPL

• Stick to essentials – Avoid using BNPL for impulse buys or non-essentials.

• Set payment reminders – Don’t miss an instalment.

• Track your spending – Treat BNPL like any other form of debt.

• Know your rights – With the new rules, you’ll have more protection. Use them.

Want to Get Smarter With Your Money?

Check out MoneyMagpie’s guides on:

• [How to improve your credit score]

• [Budgeting apps that actually help]

• [Smart ways to shop online without getting into debt]

The post Big Changes Coming to Buy Now, Pay Later: What It Means for Your Money appeared first on MoneyMagpie.

Spending as a Symptom

Gambling Debt and Mental Health

Speak to a Therapist

Arrange a Debt Repayment Plan

Remember You’re Not Alone

Spending as a Symptom

Do you sometimes get yourself something ‘as a little treat’, even though you know you can’t really afford it? The momentary joy of buying something to cheer you up is quickly replaced by negative feelings of guilt and shame, plus worry that you’ve added to your debt. And when you feel bad about it… you might buy something else.

This is a really common cycle that many people don’t talk about. The dopamine hit we get from the process of buying something to make ourselves feel better lasts only a fleeting moment, but that cost on your credit card lasts a lot longer.

Spending when we’re in debt can also be a symptom of other problems that you’re not facing up to. The ‘in the present’ moment of making a purchase can make us feel better, but it can also be that you’re not facing more deep-seated problems. For example, some people who grew up in low income households who now have good salaries can struggle with debt because of the stigma they faced as a child for not having enough money – and ‘keeping up with the Joneses’ now gives them anxiety and creates a financial burden.

Gambling Debt and Mental Health

We can also overspend to try and find a quick fix or way out of our debt. Gambling can be quickly addictive, especially with online gaming so easy to access from our phones and computers anywhere. Small wins keep you going, in the hope you might eventually win big – you just need one big win, right?

But gambling is an addiction, and it can significantly impact your debt, long-term finances, and your mental health. There are ways you can tackle gambling issues, with the first step admitting that you have difficulty knowing when to stop playing. While you can no longer use credit cards to pay for gambling, there are many ways to add to your debt in trying to get that huge win – and if you don’t want to stop playing even when you’ve lost everything you planned to bet in the first place, that’s a sign your gambling is out of control.

Speak to a Therapist for Spending Problems

You might not think that a therapist can help with debt, but in fact many mental health struggles can be related to financial difficulties. There are often real reasons why you overspend or have difficulty with a gambling problem, from undiagnosed mental health disorders to isolation to decision paralysis issues.

A therapist can help you identify what your triggers for overspending are – and if you’re not an over spender but still struggling with depression and anxiety related to debt, they can help you find coping strategies to work through it.

You might think that if you’re in debt, therapy is an expensive luxury you can’t have. At MoneyMagpie, we like BetterHelp, because they have a great flat fee service that matches you with a therapist that specialises in your area of difficulty. You don’t need to spend money commuting to an office either, as they will communicate with you either with online messages, phone calls, or video calls, at a time that suits you.

And MoneyMagpie readers can get 20% off their first month if they sign up using this link.

Arrange a Debt Repayment Plan

As well as seeking help for your mental health during a time of debt, there are practical steps you can take to tackle your debt problem.

Get in touch with either StepChange or National Debtline, which are free services to help people find the right debt management plan to get out of debt. This could be as simple as helping you to arrange payment plans with your credit card company and getting them to freeze interest charges, or it could be as complex as arranging bankruptcy or involuntary insolvency agreements for large debts. It’s a completely free service, and they can help with the admin side which is often the bit people struggle with the most.

Don’t put it off – call them today. Stepchange can be reached on 0800 138 1111 and National Debtline on 0808 808 4000.

If equity release is an option you’ve considered, find out more about it here.

Remember You’re Not Alone

It’s really tempting to keep our debt worries to ourselves – but that can eat away at you. It also means that people around you won’t understand why you might always turn down invites to go out, or avoid birthdays and Christmas, or events where gifts are expected.

Talk to a close friend or family member about your difficulties, as it is highly likely they will have experienced money troubles themselves at some point too. Sharing how you’re feeling can be the first step to tackling debt, so remember you’re not alone in your financial struggles and the people who love you will want to be supportive of you.

The post Tackling Debt Overwhelm: How Treating Your Mental Health Can Help appeared first on MoneyMagpie.

Good Debt versus Bad Debt

Building Credit Scores

Credit Card Debt

Mortgages

Student Loans

Debt to Avoid

Good Debt versus Bad Debt

First things first: all debt is bad debt if you can’t afford to repay it. However, some debt can be good for building a credit score – which, in turn, helps you access other lines of credit like mortgages and personal loans, when you really need them.

Some debt can be good. If you can plan ahead, and you know what the debt is for, you can take on some debt and be a responsible borrower. For example, if you need to renovate your kitchen but can’t afford the up front cost (and we mean NEED to, not just want!), a personal loan is usually the least expensive route compared to payment plans with a kitchen supplier. If you have budgeted and worked out what you can afford to repay each month for the duration of the loan, then it can be a good debt.

Bad debt is often emergency debt. This includes things like going into your overdraft because you haven’t budgeted properly this month, or your boiler broke and you had no savings to pay for the repair. Bad debt is also the kind that is expensive, like credit cards you can’t afford to repay in full. The worst kind of debt is that which can attract a CCJ for non-payment, like Council Tax.

Building Credit Scores with Good Debt

It sound ludicrous, we know, but in order to get credit, you need to have credit. This can make it very difficult when you’re first applying for things like a credit card, phone contract, or car finance. You also won’t be able to access larger loans like a mortgage, and it can also impact your ability to rent if you don’t have a good credit file.

The good news is that some debt can help you build a positive credit score. And you don’t need to be borrowing loads of cash or taking out huge expensive loans to do this. Let’s take a look at how to handle good debt.

Credit Cards

Even if you only have a credit card with a small limit, say £300, this can help you look like a responsible borrower to lenders. The trick here is that you MUST repay it in full every month – don’t only pay the minimum or interest-only, as that’s a surefire way to spiral into bad debt.

Aim to spend between 10-20% of your total credit limit each month, and set up a Direct Debit to automatically pay the full balance at the end of each statement period. This ensures you don’t miss a payment (which is bad for your credit score), and is the right amount of debt to look like you’re responsible as a borrower. Using your full credit limit can actually have a negative impact on your score, so try to keep it under 25% if you can. And remember: always pay it off, in full, every month.

Student Loans

Most people who have been to university since fees were introduced now have student loans to pay off. The repayments don’t kick in until you start earning a certain amount, and then it is garnished from your wages – which means it’s taken off your paycheque before you get paid each week, fortnight, or month. In fact, this is how some people with student loans have accidentally overpaid, sometimes to the tune of thousands of pounds, so check if you’re due a refund!

Student loan debt isn’t considered a ‘bad debt’, unless you stop making repayments when they are due (like any kind of debt). It is also one that is easy to control because of the way repayments are made from your wages – you don’t have to remember to make repayments each month separately. It’s also not a debt accrued by poor financial management, unlike debts like an overdraft, so it won’t ding your credit score.

Rent and Mortgages

Now, your rent isn’t technically a debt unless you miss repayments and are taken to court. However, we’ve included it here just to show that you can now use it to build your credit score! It’s the biggest payment most people make each month and in the past it didn’t count towards your credit score. However, there are now services like CreditLadder that let you register your rent payment with them every month, which they report to credit reference agencies. This is particularly good for anyone trying to build a strong profile if they want to apply for a mortgage in coming years.

Speaking of mortgages, these are long-term debts that most people are anticipated to have. While it would be nice to afford a home outright, most can’t afford that. As long as you make repayments as you should each month, it’s a good debt.

A mortgage is an even better debt if you’re investing in buy-to-lets or property flips. It’s a bit of a juggling game, but a lot of investors will use a mortgage to finance their first property, earn income from that either through renting or renovating, and then move on to the next one. Selling the first property at a profit means they can pocket the difference and reinvest a similar mortgage allowance, or use the first property to borrow against to finance a second one. It’s a complex game, so if this is the kind of debt you’re considering taking on, it’s very important to speak to an independent financial advisor who specialises in this kind of accounting.

Debts to Avoid

As we said at the start, all debt can be bad debt if it’s badly handled. However, there are some debts which should be avoided at all costs. These include:

• Non payment of Council Tax
• Government debt such as with HMRC
• Non payment of rent
• Non payment of a mortgage
• Car finance debt where you haven’t factored in the balloon payment cost or taken one that is more expensive than you can afford
• Credit card debt which you can’t afford and only repay the minimum each month
• High interest payday loans
• Gambling debt – you should never gamble more than you can afford to lose.

The post Is Debt Ever a Good Thing? appeared first on MoneyMagpie.

Turning 60 needn’t be a milestone to dread: there are plenty of things to look forward to, including a host of exciting perks and freebies, and a number of incredibly valuable benefits for over 60s. This article came about when we were asked a question:

With this in mind, we have tracked down the best benefits for over 60s.

• Free benefits and great discounts for over 60s
• Get the financial benefits you’re entitled to
• Get more out of your savings
• Insurance policies for over 60s
• Get cheaper home insurance
• Best travel insurance for over 60s
• MoneyMagpie top tip!
• Valuable money-making ideas for over-60s

Free benefits and great discounts for over 60s

Once you turn 60, you’re eligible for all sorts of discounts! Here’s what to look out for.

Health & Education

Looking after yourself doesn’t need to cost a lot!

Free prescriptions

You now qualify for free prescriptions from the NHS in England (Wales and Scotland already have free prescriptions). When you collect from the pharmacy, there’s a box on the back of your prescription slip to tick and sign. That’s it! No more charge for every prescription you need.

Optical discounts

Get free eye tests to keep your prescription up-to-date. The optician is often the first port of call for spotting various diseases, too – the back of your eye can tell a lot about your health! So it’s important to get an eye test every two years even if you don’t think you need glasses.

You can also save money on your glasses, too. Specsavers offers a 20% discount on all glasses and lenses over £69 – and it’s worth asking your local independent optician about any deals, too.

Adult Education grants

Keep learning your whole life to stay sharp and curious! Your local council will run lots of workshops, lectures, and classes for you to try. Check out other lifelong learning centres too, like the University of the Third Age.

Many of these courses are free for over 60s. However, if you need to pay course fees check if there’s a concession for over 60s – or talk to your local council about getting an adult education grant to fund some or all of the course costs.

VAT-Free Medical Devices and Adaptations

Did you know that if you have a long term chronic condition or disability, you could qualify for VAT-free items? That’s because the items might qualify as a medical device, aid, or adaptation. It can make a huge difference to continuing to live independently as things can become much more affordable.

This might be something like a rise and recliner chair from a specialist like Fenetic Wellbeing, or wireless headphones to hear the TV better, or a bathroom adaptation to a wet room from your local contractor. If you are making a purchase that will specifically aid a long term condition or illness, it is always worth looking for a specialist provider who can deliver the product with a VAT exemption, saving you 20%.

Travel

Make the most of free and discounted travel to get out and about and enjoy exploring the UK and beyond!

Free Bus Pass

The free bus pass scheme has slightly different rules for each country in the UK. Those in Scotland and Ireland can apply for one when they turn 60. In England and Wales you need to be the State Pension age (whether you’re a man or woman) to apply, which is currently 66.

If you live in London, when you can apply for a Freedom Pass when you’re 66 which also provides free travel on National Rail, London Underground, River Services and trams within London. It may also count for national bus journeys, though you’ll need to check the individual route details.

Coach discounts

Over 60s in England and Wales can buy a Senior Coachcard for £15 (plus £3 P&P) for a third off all National Express coach fares. You can also bag extra discounts with £15 anywhere returns on Tuesdays, Wednesdays, and Thursdays if you book 3 or more days in advance.

Train Discounts

A Senior Railcard is £30 per year (or £70 for three years). It gives you savings on a wide range of tickets, including many First Class, Standard, Advance tickets and off peak bookings – except for journeys made during morning peak time tickets in London and the South East/ Network Rail area. Always check with the service provider about Railcard restrictions before booking your tickets, as exemptions can and do change from route to route and at different times.

You can buy a Senior Railcard online, at any staffed National Rail ticket office, or call 0345 3000 250.

If you’re in receipt of certain disability benefits, such as Attendance Allowance, or have a certain disability such as requiring hearing aids, you could qualify for a Disabled Persons Railcard instead. This is £20 a year (or £54 for three years) and it offers one third off rail tickets for you AND your carer companion.

Book tickets online

Using sites like Red Spotted Hanky can knock up to 80% off your train tickets. So, if you don’t travel by train frequently enough to justify a Senior Railcard, make sure you look online for rail discounts. Buying in advance also reduces the price of a ticket by quite a lot – just make sure you opt for a refundable ticket option, just in case you can’t make the journey for any reason.

Interrail

Those aged 60 or over can get 10% off fares with Interrail, which allows you to travel across Europe by train – with the possibility of visiting over 30 European countries! The discount is available for 1st or 2nd class travel.

Home and leisure discounts

You don’t need to go out and about to get discounts for the over 60s! And, if you want to leave the comfort of home, you can save hundreds every year on entertainment and leisure activities, too.

Free Gas Safety Checks

Contact your provider to find out if they offer a free gas safety check for over 60s. Gas Safe Register offer a free gas safety inspection if you’ve had work carried out in the last six months, too.

Winter fuel payment

There have been changes to the Winter Fuel Allowance this year.

The new rules mean those of State Pension age living in England or Wales and in receipt of:

• Pension Credit
• Universal Credit
• income-related Employment and Support Allowance (ESA)
• income-based Jobseeker’s Allowance (JSA)
• Income Support
• Child Tax Credit
• Working Tax Credit

People born between 23rd September 1944 to 22nd September 1958 will receive £200 and those born before 23rd September 1944 receive £300.  For couple living together, the amount is determined by whether one of you was born before 23rd September 1944 (£300) or both after that date (£200). Couples living together only receive one payment between them. Those who are eligible and lived temporarily in a care home for less than 13 weeks up to 22nd September 2024 will also be able to claim.

Discounts for repairs and improvements

If you need home repairs, such as if your washing machine gives up the ghost, your local trades may offer an over 60s discount. Ask your friends for recommendations first, or check out AgeUk’s Handy Person Services.  Remember, local traders might not advertise a senior citizens’ discount, so it’s always worth asking!

Disabled facilities grants

Over 60s who need to make adaptations to their homes to help them stay independent could qualify for a Disabled Facilities Grant. So, if you need to install ramps, a stairlift, or convert your bathroom to a wet room, your local council could help you pay for this.

This grant is available to anyone needing to adapt their home – so if you’re not quite 60 yet (or your partner under 60 needs the help), you can still apply!Find out more hereor contact your local council to arrange an assessment.

Free boilers

People in receipt of some benefits, such as Pension Credit or Attendance Allowance, or can prove a low income (such as living off the State Pension), may get a free boiler.

Your boiler needs to be at least ten years old and not a condenser boiler. If this sounds like you, find out more about free boiler grants here  or here for those claiming attendance allowance.You could also be eligible for free insulation grants to improve the energy efficiency of your home.

A free, new, A+ rated boiler could make a massive difference to your energy use – and the cost of your bills. Old boilers waste a lot of energy, so you’re spending money needlessly. They’re also more prone to breakdown, so cost more in repairs and maintenance, too.

Leisure and entertainment discounts

Theatre and cinema discounts

Check your local theatres for concessionary rates for the over 60s. You could also look for cheaper cinema tickets, too. Many cinemas have ‘silver screen’ matinee showings – for example, the ODEON Silver Screen offers discounted viewings at quieter times from only £3.50 per ticket.

The first place to look for these discounts is directly with the theatre or cinema. For example, the National Theatre offers £20 off midweek matinees for the over 60s at the £56/£66 ticket range for the Lyttleton and Olivier theatres, and £36 for midweek matinees for higher priced tickets at the Dorfman Theatre . The Royal Shakespeare Company has a 20% discount available for the over 65s on all seats for Monday and Tuesday evening performances and all midweek matinees.

You may find your local newspaper or radio station offers entertainment discounts for the over 60s, too – so it’s well worth checking them for info!

Iceland/The Food Warehouse 10% off on Tuesdays!

Every Tuesday, all those who are 60 years old and older can bag 10% off their shop, with no minimum spend, at Iceland and The Food Warehouse. To redeem the offer, just show one of the following:

• Senior Bus Pass
• Driver’s Licence
• The Senior Railcard
• Freedom Pass (London only)

ATS Euromaster CLUB 60

Get a range of benefits when you join ATS Euromaster’s Club 60 Membership:

• MOT for just £32 or just £25 with a Service
• Air Con Recharge for just £49 (R134A gas only)
• Wheel Alignment for only £39.49
• 15% off Servicing, Brakes, Steering & Suspension, Exhausts, Batteries & more
• 15% off Michelin, BFgoodrich, Avon and Tigar Tyres!

Check the website for the application form and always read the terms and conditions!

Boots Rewards

Over 60s can get additional rewards from their Boots Advantage Card, earning 8 points per £1 on Boots brands and selected exclusive deals, including 300 points when you sign up for a free hearing test!

Swimming and gym reduced membership

Keep fit for less! Over 60s receive discounted swimming and gym membership at most leisure centres. Council-run centres may also run free exercise classes for the over 60s in a specialised programme to help older people stay fit and mobile. Remember to check online for free day or week passes, too – we love Hussle for this.

Hairdressing discounts

Your nearest salon or barbers is likely to offer concession rates for the over 60s. Some offer these at any time, while others will have set times or days. Your local mobile hairdresser is worth checking out, too – they’ll come to your home for your haircut, so you don’t have to go anywhere! Mobile hairdressers are often cheaper than salons anyway, so add a senior citizens’ discount on top and you’ll get a cheap cut indeed!

Try your local beauty college, too. They need people to practice beauty therapies, massage, and hair cuts on! Students supervised by experienced tutors will use you as their model, and you’ll get a free or very-cheap treatment while helping someone’s education, too.

Restaurant deals for over 60s

Lots of restaurants offer an early dinner discount for over 60s. Look for special offers like a ‘5pm dinner deal’ to take advantage. Also, remember to check Groupon for local dining discounts and your Nectar card or Tesco Clubcard for deals, you can often trade your points for money off vouchers at selected restaurants

• Dobbies offer over 60s a main meal and a cake for only £11.95 Monday to Friday, from 12pm until 3pm.

If you regularly go out to eat, consider signing up to Tastecard, too. It’ll give you 2 for 1 or 50% off deals in loads of your local independent and chain restaurants.

Royal Horticultural Society membership

The RHS offers more than £500 off lifetime membership, which includes unlimited access to RHS gardens, a free magazine delivered to your door and discounted tickets to garden shows such as the Chelsea Flower Show. Over 60s membership is called Senior Life and is £935 for individuals and £1355 for a joint membership.

Heritage discounts

Make the most of your cheap travel discounts for days out at museums and heritage sites!

The National Trust gives over 60s (who have had a membership for at least 5 out of the last 10 years) a discount on their annual and life memberships – making your visits cost 25% less. This applies to both houses and gardens, so you can go to any National Trust property across the UK for less. They often offer tea rooms, lovely walks, and guided tours for a gentle day out that’s ideal whether you’re on your own or with friends and family. Lots of their properties also allow dogs in the gardens (check the website in advance) so you can take Rover for a walk, too!

English Heritage offers joint and individual memberships, but the concessionary rate starts a little later, at age 65. However, for those in a couple with one over and one under 65, you can get a joint ‘adult and senior’ membership, meaning you don’t lose the over-65 discount for having a joint membership.

If you’re disabled, no matter your age, you can bring a carer companion for free for each visit – so, if you have a Blue Badge, even if you’re not yet 65, a membership is essentially half price as you can take a guest with you each time.

You could also opt for Lifetime Membership – though it’s not cheap at £1,350 for individuals over 65 (£1,650 for under-65s). However, if you regularly take day trips, an English Heritage site average entrance fee is around £8 – so any membership tier is worth the investment! Some sites, like Stonehenge, are around £26 each – so it’s easy to see how quickly your savings add up.

Kew Gardens offer concessions to those over 65 (you may need to show some form of identification with proof of age for admittance).

The Ramblers Association

If you are over 60 you are eligible for a concessionary rate for lifetime membership – phone 020 3961 3300 and speak to a member of the team for more information.

Free and discounted Museums

Lots of museums and art galleries across the UK are free entry for everyone. The Natural History Museum, Science Museum, and V&A in London are classic examples. However, every major city has at least one free entry museum!

They also offer concessionary discounts for over 60s on ticketed exhibitions and events. Paid-for museums will also offer a lower rate for over 60s on their entrance fee – and, again, if one of you is disabled you can often take a carer companion for free, too.

Get the financial benefits you’re entitled to

Here’s a run-down of the financial benefits you may be entitled to – simply click on the one you’re interested in to skip to that section:

• State Pension
• Pension Credit
• Council Tax and Housing Benefit
• Funeral payments
• Winter Fuel Payment
• Cold Weather Payment
• Bereavement Support Payments
• Attendance Allowance (for over 65s)
• Personal Independence Payment (for under 65s)
• Carers Allowance

State Pension 

You are entitled to a State Pension when you reach the appropriate age.

In 2025 the State Pension age is 66 for both men and women, with plans to raise it even higher in the future. If you’re in any doubt as to when you can start claiming your pension, use Gov.uk’s simple State Pension Age Calculator.

State retirement pensions are based on your National Insurance contributions throughout your working life. How many you need depends on the type of State Pension you can claim.  Everyone over the age of 80 can claim the Over 80 pension, though, even without NI contributions. This is a total of £85 a week. If you get a reduced State Pension below £85 a week, you’ll get the Over 80 Pension to top you up to that amount.

Basic State Pension

If you’re a man born before 6th April 1951, or a woman born before 6th April 1953, you’ll get the Basic State Pension. This is a maximum of £169.50 a week in the 2024/25 tax year.

Each year, the amount is assessed and goes up in line with either the rise in average wage earnings in the UK, or the percentage growth in consumer prices, or 2.5% – whichever is highest.

You must have at least 30 full years of National Insurance contributions to claim the full Basic State Pension.

New State Pension

If you’re a man born on or after 6 April 1951 or a woman born on or after 6 April 1953 you will be getting the new State Pension.

• The full New State Pension is £221.20 a week.
• You need 35 qualifying years of National Insurance contributions or credits to get the full State Pension. If you have less than 35 years you may get a smaller amount, but you will usually need at least 10 qualifying years on your National Insurance record to get any new state pension.

Find out more about the New State Pension changes here.

Are you missing a pension?

As we move homes over the years, and change jobs, it’s easy to forget about old company pensions we paid into aeons ago. Forgetting to update your pension provider with your latest address, for example, means you won’t get your annual statements in the post. Without such reminders around, it’s not hard to see why there’s an estimated £19 BILLION in forgotten pension pots!

Trace old pensions on the Government’s Pensions Tracing website. You never know, there might be an old pension hanging about from a company you worked for years ago, so find out if you have cash just waiting to be claimed.

Pension Credit 

If you’re on a low income you may be entitled to Pension Credit. This is made up of two parts and no tax is payable on either:

• Guarantee Credit – this is for people over 60. It guarantees an income of at least £218.15 per week if you are single, or £332.95 per week if you have a spouse or civil partner.
• Savings Credit – this rewards over 65s who have saved towards their retirement. It pays up to £17.01 per week if you are single or £19.04 per week if you’re married or have a civil partner.

If you have reached State Pension age on or after 6 April 2016 and are on the new flat rate pension, you may still be eligible for the Guarantee Credit, but will not receive Savings Credit.

Follow this link for further information about Pension Credit, and use this Pension Credit calculator to see how much you could be entitled to.

Council Tax Reduction and Housing Help

You may be able to get help with paying your council tax through claiming Council Tax Reduction.  If you are a tenant you may be able to get help with paying your rent through claiming Housing Benefit. Both Council Tax Reduction and Housing Benefit are paid by your local council.

If you live with someone with a severe physical or mental impairment – such as Alzheimer’s – you could qualify for additional Council Tax discounts and financial support from your local authority.

You can contact your local council and ask about Housing Benefit and Council Tax Reduction or use Gov.uk’s simple Benefits Adviser Tool.

What you get depends on:

• Where you live – each council runs its own scheme
• Your circumstances (e.g., income, number of children, benefits, residency status)
• Your household income – this includes savings, pensions and your partner’s income
• Whether your children live with you
• If other adults live with you

For people claiming Pension Credit you’re entitled to maximum Housing benefit and Council Tax Support

If you are an owner-occupier you may be entitled to help with mortgage interest or service charges through Pension Credit

Funeral payments 

If you are receiving Pension Credit or Housing Benefit, you may be entitled to help with funeral costs should your partner die – even if you have savings.

The Funeral Expenses Payment offers up to £1000 and can cover necessary burial or cremation fees, funeral director’s fees, the coffin or flowers. If the deceased had a funeral payment plan in place, you can apply for a maximum grant of £120 to cover costs of things not paid for by their plan.

You must claim within six months of the funeral, and the Funeral Payment must be repaid from the estate of the deceased if there is money in their estate. If they had no assets or capital, the grant doesn’t have to be repaid. Go to Gov.uk for more information or download the Funeral Payment claim form.

Cold Weather Payment

If you’re eligible for Pension Credit or certain other benefits, you could be entitled to Cold Weather Payments too.

These payments are designed to help cover your heating costs when the weather gets extremely cold between 1 November and 31 March. You’ll receive your Cold Weather Payment entitlement of £25 if your local temperature is recorded or forecast as being on average 0°C or below for seven consecutive days. As payment is automatic you don’t need to worry about making a claim, but if you think you’ve missed out tell the Pension Service or Jobcentre Plus.

Attendance Allowance

A lot of over-65s don’t realise that they’re eligible for a weekly payment from the Government if they need help with personal care during the day or night (or both).

This is called ‘Attendance Allowance‘. You have to need regular help because of an illness or disability. It’s only for those who’ve reached state pension age, though. If you’re under 66, you may be eligible for Personal Independence Payment instead, which is a similar benefit for those not yet old enough.

You can claim Attendance Allowance if:

• You’re of State Pension age (even if you’re not claiming it yet)
• Someone helps you with personal care, such as getting washed or dressed, or supervision to keep you safe during the day or night
• You have any type of disability or illness, including sight or hearing impairments, or mental health issues such as dementia
• you’ve already required help for at least 6 months. (If you’re terminally ill you can make a claim straight away.)

There are two types of Attendance Allowance:

1. £72.65 per week if you need help during the day OR during the night
2. £108.55 per week if you need help both day and night or if you are terminally ill.

The benefits of Attendance Allowance:

• It’s tax-free
• You can use it in any way you like to meet your needs and stay independent in your own home
• The money doesn’t have to be spent on a carer. For example, if a weekly cleaner would help you, that’ll help pay for it.
• Claiming Attendance Allowance won’t reduce any other income you receive.
• It could entitle you to further benefits, such as Pension Credit, Housing Benefit or Council Tax Reduction, or an increase in these benefits if you’re already receiving them.
• Attendance Allowance isn’t means-tested so it doesn’t matter how much income and savings you have.

To claim:

• Call the Attendance Allowance helpline on 0800 731 0122 (textphone: 0800 731 0317) to get a form
• Or download it from the GOV UK website:
• Write on the form about how well you can cope with basic activities, like moving around the house and going to the toilet. Be very clear about how difficult it is for you to cope on your own so that those reading it know that you need extra help. If you have a fluctuating condition, like rheumatoid arthritis, write how it affects you on your very worst days.

REMEMBER…

If you’d like any help finding out whether or not you’re owed benefits, call Age UK for free on 0800 055 6112. Just because you haven’t been able to claim in the past doesn’t mean you won’t be able to now – and you’ve got nothing to lose by asking.

Age UK also offer a  FREE online booklet which will guide you through how to apply for benefits. Make the most out of resources like this as they really can save you a packet. Claim your free booklet right here.

Also, see what b benefits you could be entitled to by using the benefits calculator at

• Entitledto.co.uk
• or Turn2us.org.uk

Get more out of your savings

Savings products aimed at the over 60s have grown in recent times, particularly online savings accounts. You don’t even need a computer to access them: some great savings apps, like Moneybox, can be operated from your mobile phone. These apps are great for ‘sweeping’ cash into savings, too: they can round up your spending to the nearest pound. The ‘spare change’ goes into your savings pot, so it’s always topped up here and there.

Don’t forget, you can save up to £20,000 per tax year (April 6th to April 5th) in ISAs without paying tax on it. This can be split between a Cash ISA, Stocks and Shares ISA, and an Innovative Finance ISA – or put the whole lot in one of them – it’s up to you!

Interest rates are still historically pretty low right now – and you may have seen your pension pot decrease dramatically recently. Try not to panic: the market goes down, but it has to go up again, too! If you’re worried, move your cash into a savings account rather than any stocks and shares you may have. However, returns are bad these days, with around a 1% rate on most easy-access accounts. You can lock in money for a few years to get a better rate – but even then, it’s only around 2% for most accounts. Check out our savings articles for more info!

Insurance policies for over 60s

Many insurance companies offer special policies for the over 60s. Whether you need medical, travel, car, or home insurance, check with providers to find out if they offer a discounted rate. You may also find that you’ll get an even better deal by ‘bundling’ your insurance policies with the same provider – such as home and car insurance together. It also means you pay one premium a month, rather than lots of different ones, so it’s much easier to keep track of what’s going out of your account!

Life insurance policies target the over 55s, but make sure you read the fine print. You may find that they won’t pay out within a certain ‘qualifying period’ which can be up to a year. Other policies will be invalid if you don’t declare any pre-existing health conditions, too.

Get cheaper home insurance

If you’re 60 or over, you can often benefit from cheaper home insurance.

Many companies offer special discounts to this market, as they recognise that older people generally make fewer and smaller claims. So, to reflect that, they offer cheaper policies (especially if you live in a low-crime area). Some insurance providers also offer higher buildings and contents cover and/or new for old replacement on damaged or stolen items.

It’s worth using our free comparison tool to get a broad sweep of the market. Remember that not every insurance provider is covered by a comparison tool website – so you may need to compare quotes directly with individual providers like Direct Line.

Other home insurance providers to look out for include AgeUK and SAGA. Both offer policies for over 60s that give peace of mind and value for money.

For more ways to save money on your home expenses, download our free eBook – ‘101 Tips to Save Money in the Home’. This will give you ideas on how to cut your costs in your kitchen, garden, bathroom, bedroom and more.

Best travel insurance for over 65s

We get asked a lot about travel insurance for over 60s, so we’re always on the lookout for great offers. There are deals to be found, for instance Staysure offers tailored travel insurance to cover any pre-existing medical conditions, however it can be hard to find cover the older you get.

Finding it tough to get cover?

Many travel insurance providers have restrictive criteria for older people, because they’re more likely to have health problems. Many won’t insure you if you’ve already got a serious condition, or you could find medical cover extortionate.

There ARE policies out there that cover over 60s with pre-existing medical conditions, though. AllClear, for example, accepts over 60s with medical conditions for both single and multi-trip cover. Before you sign a contract with ANY travel insurance company, make sure you read ALL the small print in the policy contract. It’s tedious – but essential – as many will have hidden clauses that’ll get them out of refunding you.

For more information, we’ve got a whole article dedicated to cheaper travel insurance for over 65s – it’s got everything you need to know, so take a look.

Valuable money-making ideas for over 60s

It’s lovely and easy for over 60s to make money now. You don’t even have to leave home! For example, online surveys are a fantastic way to make money on the side for minimum effort.

They’re also a MoneyMagpie Reader Favourite (thousands of you have signed-up), so if you haven’t joined already we really recommend that you give them a go. Sign yourself up to these FREE online survey sites today – the more you sign up to the more cash you can make.

Here are the best ones…

• InboxPounds
• Toluna
• LifePoints

Top Tip! NEVER pay to join an online survey site – use the companies we’ve recommended above and you won’t have to part with a penny. Find out everything you need to know about making money from online surveys right here.

If you have unfulfilled aspirations, find out how equity release can help.

Find out lots more fun ways for over-60s to make money here.

The post Benefits for over 60s appeared first on MoneyMagpie.

It can be challenging both mentally and physically, and can lead to more stress when you’re already feeling the pressure. These financial extras, as well as time off work and a reduced income, can make falling into debt more likely.

If you’re dealing with a long-term illness and are worried about debt, read our advice on what you can do to deal with your financial situation.

• Look at how you can manage your finances
• Check your statutory sick pay entitlement
• Use smart ways to reduce your spending
• Claim an income tax refund
• Consider ways to increase your income
• Try reducing your rent or mortgage payments
• Get free advice to deal with debt with a long-term illness

Look at how you can manage your finances

Create a simple budget to make sure your essential living expenses and care costs are taken into account. You can use our free budget template to get started.

Your budget will help you manage your incomings against your outgoings, so you can concentrate on your health instead of worrying about money. It’s also a good way to discover where you could benefit from saving cash.

Check your Statutory Sick Pay entitlement

Some people don’t know that you can get Statutory Sick Pay (SSP) for up to 28 weeks if:

• You’re in work, but can’t attend because you’re ill
• You were earning an average of at least £123 per week or more in the two months before you couldn’t work

That means you’ll still get paid a specified amount while you’re off work, paid into your bank account the same way you would usually get your wages.

The current entitlement is £116.75 per week for up to 28 weeks. If you’re struggling to keep up with bills or repayments while off work, this kind of entitlement could ease some of the pressure.

Some employers have their own sick pay schemes, so double check with your HR department what you’re entitled to. If you don’t have an HR department, ask your manager, or check your contract.

Use smart ways to reduce your spending

Even if you’re already on a tight budget, there are loads of ways you can cut back and save smartly. Use an Ofgem approved switching service to find better deals on your utility bills, look out for free evening and weekend call offers from your phone provider, and find out how to save money on your TV packages.

When it comes to your food shop, you could switch to own brand products or start shopping at a better value supermarket. Cheaper food doesn’t mean losing out on taste!

Claim an income tax refund

If you’ve had to stop working due to long-term illness, or have reduced hours because of it, you might be able to get a refund of some of the income tax you’ve paid.

It’s worth contacting HMRC to check if you’re entitled to some money back.

Consider ways to increase your income

We’re not talking about getting another job or going back to work when you’re not ready, because your health must come first. If you’re off work long-term because of your illness, or have a low income as a result, there may be some benefits you’re entitled to.

Use the StepChange benefits calculator to check what you could be missing, and look into any pensions, savings or investments you might have. This’ll help to make sure you’ve got as much money coming in as possible.

Try reducing your rent or mortgage payments

If you’re on a low income and renting, you can apply for a council tax discount. If you’ve got a mortgage, contact your lender or insurance provider to see if you have insurance in place that covers your payments while you’re ill.

You might have mortgage payment protection, critical illness cover, or income protection insurance to help you cover payments. However, bear in mind that any insurance pay-out could affect state benefit claims you make.

If you’re a homeowner over 55, find out more about equity release. 

Get free advice to deal with debt

If you’re struggling to pay your bills, use the Stepchange online Debt Remedy tool here for advice and practical solutions to deal with your debt, or give their advisors a call.

They will talk through your finances and give you free and impartial debt advice, as well as recommend a debt solution tailored to your situation.

Also, sign up to our free debt help emails here. They will support you as you work to pay off your debts and get better.

Sign Up – Newsletter

The post How to deal with debt with a long-term illness appeared first on MoneyMagpie.

We’re strong believers in voting for principles over personality, so hope that this easy to digest article will help you compare each party’s financial promises side-by-side. We will cover the nationally recognised parties: Conservative, Labour, Liberal Democrat, Reform UK and Green Party, as regional parties are not accessible to everyone in the UK to vote for (someone in England can’t vote for the SNP, for example).

Income, Taxes, and Jobs

Pensions

Property

Transport

Energy

Children and Families

Benefits

Read Manifestos in Full

Income, Taxes, and Jobs

There are very common claims across all four party manifestos about stimulating the economy by creating new jobs. It’s something that is promised at every election, so while we like to see commitments to increase training and skills for people, it’s tough to say which will actually happen and/or have an impact. So, we’re going to look at the hard facts of what each party says about job rights and taxes, and how that could impact your take-home income.

Conservative Party

The Conservative party haven’t announced anything groundbreaking compared to what they’re already doing for the jobs market, or planned to do. They insist:

• They’ll continue with the plans for another 2p National Insurance cut, putting someone on an average £35,000 salary around £1500 better off each year (not taking into account fiscal drag – see below)
• They plan to abolish main National Insurance for self-employed people ‘by the next Government’, which is a slow commitment compared to the PAYE National Insurance changes
• Income Tax thresholds will continue to be frozen until at least 2028

An example of fiscal drag can be seen here: the next National Insurance cost is supposed to put more money into people’s pockets. However, as wages go up with inflation (or close to it), the frozen tax thresholds mean more people will be pushed into a higher tax bracket. Those who previously didn’t pay any tax (earning under £12,750 a year) may now pay tax if they get a pay rise yet still be a low earner – taking them from 0% tax to 20%. Similarly, those in the higher bracket could easily be pushed over into the additional rate bracket – meaning they not only lose out more to tax but also lose out on the annual personal allowance, tax-free savings allowance and more.

Labour

Labour haven’t committed to much in terms of concrete assurances in their manifesto, but the key points in terms of income taxes are:

• They promise to end the non-dom loophole for tax evaders who are technically domiciled offshore. This would impact around 70,000 of the highest earners in the UK.
• Just as the Conservatives, Labour will freeze the income tax threshold to at least 2028
• A clampdown on Inheritance Tax and Capital Gains Tax avoidance to recoup some money

Liberal Democrats

The Liberal Democrat manifesto has many more concrete and specific claims than the other three. They promise to:

• Counter tax changes that currently burden individuals to instead create larger taxes on the big banks and a windfall tax on oil and gas profits
• Instate a 20% higher National Minimum Wage for those on zero hours contracts, to counter the unreliability of such work and encourage employers to create more fixed-hour contracts
• Provide Statutory Sick Pay at National Minimum wage rates, from the first day of sickness rather than the fourth.

Reform UK

The Reform party is new and entering its first General Election (it was formerly the Brexit UK party). They want to:

• Increase the Income Tax threshold to £20,000 which would take 7 million people out of paying tax and leave most workers £1500 better off
• Boost the higher rate tax threshold to £70,000 from £50,271
• Remove Inheritance Tax for estates worth up to £2million, with estates over that threshold paying at 20% or donating to charity instead

Green Party

The Green Party want to ‘make work fair’. As such, they say they would:

• Limit a maximum 10:1 pay ratio for public and private sector organisations (the highest earner cannot earn more than ten times the lowest earner)
• Increase National Minimum Wage to £15 for all ages
• Offset the increase of NMW costs for small businesses with tax reliefs
• Introduce a four-day working week
• Ensure all employment rights are day-one rights and include gig workers and zero hours contract workers
• Longer term, introduce a Universal Basic Income for everybody
• 

Pensions

Pensions impact not just those in retirement or soon to retire – everyone planning for a comfortable retirement, even if it’s decades away, should be interested in the plans for pensions. Small changes now could impact your retirement fund thirty years away, so it’s important to know what’s what. However, there isn’t much in the manifestos which stands out to be glaringly different or surprising.

Conservatives want to introduce a Triple Lock Plus, which protects the Triple Lock and introduces a new personal allowance that also rises with inflation for pensioners

Labour will protect the Triple Lock

Liberal Democrats will also protect the Triple Lock. They will also tackle the problem of the ‘WASPI women’ born in the 1950s who have been unfairly affected by the increase in the State Pension Age, as well as review rules to help the self-employed in the gig economy access the same support as PAYE workers.

Reform UK make no mention of protecting the Triple Lock, instead claiming they will ‘review pension provision’ looking at models in other countries like Australia. They will end the Mineworkers Pension Scandal, also.

Green Party say they will reform pensions taxes and, while not using the words Triple Lock, would guarantee a similar system of inflation rise guarantee.

Property

Property is a big one in terms of the impact on the economy. That, in turn, affects things like local economies and job markets, as well as industries such as hospitality and education. All major parties have committed to building new houses, though some more than others.

Conservatives

The Conservatives focus on ownership with most of their property policies. They want to:

• Restart the Help to Buy scheme for first time homeowners
• Build 1.6million homes over 5 years
• Ban no-fault evictions (this was a 2019 policy)
• Introduce a ‘local connection’ and ‘UK connection’ test for social housing applicants
• Keep the developer-funded cladding remedial projects
• Improve planning processes to speed up development and build of houses, with a focus on increasing density in London

Labour

The Labour party have promised to:

• Ban leaseholds and turn all to commonholds
• Introduce a Freedom to Buy scheme, including an extension of the existing Mortgage Guarantee Scheme
• Raise an additional Stamp Duty Land Tax fee on all non-UK resident property purchasers
• Abolish Section 21 ‘No Fault’ evictions
• Build 1.5million new homes over their tenure
• Review Right to Buy and focus on building social housing and repurposing existing stock
• ‘Tackle’ ground rent
• Improve planning processes to speed up the release of land for developers

Liberal Democrats

The Lib Dems have focused on both private ownership and social housing in their manifesto with quite a lot of detail about their plans. They say they will:

• Introduce Rent to Own which will give social housing tenants increasing equity in their property to full ownership after 30 years, and abolish Right to Buy
• Create a Home Energy Upgrade Programme to provide grants for improving energy efficiency in homes
• Abolish leaseholds and cap ground rents
• Give new powers to local authorities to allow them to charge up to 500% council tax on second homes
• Scrap the bedroom tax
• Introduce a non-UK resident Stamp Duty Land Tax surcharge
• Pay for cladding repairs so costs don’t fall to property owners caught in the problem
• Build ten new garden cities
• Build  380,000 new homes a year (including 150,000 social housing) with all new builds being zero carbon

Reform UK

Reform want to focus on home ownership. They say they would:

• Introduce a 0% stamp duty on purchases up to £750,000, 2% thereafter to £1.5million, and 4% over £1.5million
• Scrap 2019 SDLT on landlords
• Allow landlords to claim finance costs and mortgage interest as expenses
• Review planning processes and speed planning with ‘pre-approved’ guidelines
• Abolish the Renters’ Reform Bill, as they say existing and previous legislation provided enough protection for tenants
• Insist on clarity of leasehold charges and ground rents (but not cap or abolish them)

Green Party

The Green Party say they would:

• Scrap the bedroom tax
• Build or repurpose 150,000 social homes each year
• Remove individual right to buy and introduce community-based right-to-buy
• Introduce rent controls to limit how much rent can be increased

Transport

While rather thin on the ground for detail in each manifesto, transport can have an impact on broader financial changes. Infrastructure directs where new houses are built, for example, and that in turn leads to where people will find jobs and schools.

Conservatives

The word ‘transport’ only appears five times in the 80-page manifesto. The existing policies, such as the £2 bus fare cap for low income and young people, free bus passes for pensioners, and fuel duty freeze, remain. There is also a promise for local authorities to receive pothole repair funding.

Labour

As well as promising to fix one million potholes, Labour says it will:

• Tackle increasing car insurance costs
• Reform the railways into public ownership
• Improve electric vehicle infrastructure

Liberal Democrats

The Liberal Democrats promise to:

1. Reinstate the zero emission vehicle rule for new cars and vans from 2030
2. Built electric infrastructure to support more electric vehicles on the road
3. Cut VAT on public electric vehicle charging to 5%
4. Freeze rail fares
5. Simplify rail ticketing
6. Review HS2 and the cancelled plans to see if an alternative could be created
7. Introduce a Young Person’s Bus Card for 19-25 year olds for reduced bus fares (like Railcards provide)

Reform UK

While the other three parties are focused on improving rail infrastructure and improving carbon-zero or electric opportunities, Reform support drivers. They say they’ll:

• Lower fuel duty by 20p a litre
• Scrap the ULEZ charge
• End the planned ban on selling petrol and diesel cars
• Scrap HS2 altogether
• Bring 50% of each transport network into public ownership

Green Party

As the name might suggest, the Green Party are invested in improving the environmentally friendly options of transport. They would:

• Introduce free bus travel for all under-18s
• Renationalise the railways

Energy

We’ve all seen our energy bills rocket while the suppliers report record profits and huge bonuses. Here’s how each party intends on tackling the challenges with energy costs across the UK.

Conservatives

The Tories have overseen the highest rise in domestic energy bills in recent decades. On a larger scale they will invest in nuclear power and more renewables. They say they will also:

• Continue the windfall tax on oil and gas companies until 2028 unless prices fall back to normal sooner
• Reduce green levies on domestic energy bills
• Keep and ‘evolve’ the Energy Price Cap
• Introduce an energy efficiency voucher scheme for people to improve the energy efficiency of their homes

Labour

Labour want to focus on boosting clean energy and addressing the rising costs. They promise to:

• Create a publicly-owned energy company to boost energy security (created by a one-off windfall tax on oil and gas profits)
• Review standing charges with regulators
• Provide grants and low-interest loans for homeowners to improve energy efficiency and reduce their bills

Liberal Democrats

The Liberal Democrats have a strong focus on clean energy, carbon zero, and improved energy infrastructure. They want to:

• Introduce a ten-year home upgrade programme including grants for energy efficient home improvements
• Requiring landlords to bring properties up to EPC C or higher
• Boost incentives for households to have solar panels and profit selling energy back to the grid
• Introduce a social tariff for energy costs for the poorest households
• Help with domestic energy bills with a one-off windfall tax on oil and gas profits
• Abolishing regional energy price differences

Reform UK

Reform UK have very brief energy details in their manifesto but it is clear they are the only party focused on developing more oil and gas infrastructure rather than clean energy. They say they want to:

• Scrap VAT on energy bills
• Reduce household bills by £500 a year
• Scrap energy levies

Green Party

The Green Party want to move towards carbon zero, remove nuclear power, and want wind to produce 70% of the UK’s power by 2030. They would:

• Invest £42billion for homeowner and landlord energy efficiency incentives and grants

There is no mention of domestic energy bill discounts, levies, or cuts.

Children and Families

From parental leave to free childcare, each party has a stance on improving the income of families with children.

Conservatives

The Tories will continue their existing plan for 15 hours of free childcare a week for children up to 2, rising to 30 hours for children age 3-4. They will also:

• Raise the free childcare hours to 30 a week for all under-5s in 2025 which they say will save families an average of £6,900 a year
• Change Child Benefit so that it is household-linked income not individual
• Raise household income limit for Child Benefit to £120,000 a year

Labour

Labour’s policy is similar to the Conservatives’. They say they’ll:

• Not change the existing free childcare plan as outlined above
• For free childcare, parents must not individually earn more than £100,000 a year (and must earn more than £9518)
• Ensure breakfast clubs in every primary school

Liberal Democrats

The Lib Dems have expanded on existing parental and family rights in their manifesto. They promise to:

• Introduce paid neonatal care leave
• Give free access to sign language lessons for parents and guardians of d/Deaf children
• Double statutory maternity and shared parental pay to £350 a week
• Introduce an extra use-it-or-lose-it month for fathers at 90% of earnings
• Ensure parental leave and rights will be a day-one right and include the self employed
• Deliver free school meals to families in poverty, eventually extend to all children
• Remove the two-child limit and the benefit cap

Reform UK

Reform are focused on ‘traditional family values’. As such, they want to:

• Incentivise marriage by allowing 25% tax allowance transfer between spouses
• Provide tax relief for private schools with no VAT on school fees to reward families who can afford private education

There is no mention in the manifesto of childcare hours, Child Benefit, or parental leave changes.

Green Party

The Greens want to:

• Ensure free transport for all special educational needs and disabled children to school
• Remove the two-child benefit cap
• End tuition fees for higher education
• Introduce free personal care (similar to Scotland) for the elderly and disabled

Benefits

Benefits are always a hot topic when it comes to elections. Even if you don’t need the social security safety net right now, there is never any guarantee you won’t need it in the future. Supporting those on low incomes and who are unable to work is also important to keep the economy ticking over and improve mental health outcomes.

Conservatives

The Conservatives want to focus on reforming the benefit system around long-term illness. As such, they will:

• Introduce a six-tier system for Personal Independent Payment
• Increase the time between claiming Personal Independence Payment and being assessed for it, to reduce the number of ‘short term illness’ claims (Magpie note: PIP is for those in work and out of work, is not means tested and is for people with chronic conditions, it is already not for short-term illness)
• Consider reducing ongoing cash payments for PIP and replace with one-off grants for items required to support disabled living such as wheelchairs
• Change the Access to Work process
• Crack down on people with mental health conditions claiming out of work benefits
• Change the capability for work assessments to include only the most severely ill, putting 424,000 off benefits and back to work
• Close unemployment claims for those unable to find work within 12 months

Labour

At time of writing, there is only one mention of Universal Credit in the manifesto, and no reference to specific benefits like Personal Independence Payment. Labour say they are “committed to reviewing Universal Credit so that it makes work pay and tackles poverty.”

Liberal Democrats

The Liberal Democrats have declared broader changes than other parties. They say they will:

• Increase Carers Allowance, including those in education
• Reduce the hours required to qualify for Carers Allowance
• Will not pursue punitive Carers Allowance overpayment tribunals
• Reduce the wait for Universal Credit first payments from five weeks to five days
• Restore full Universal Credit entitlement for parents of any age (removing the reduced rate for parents under the age of 25)
• Reform Personal Independence Payment assessments and bring them in-house (instead of private sector)
• Bring Work Capability Assessments in-house
• Ensure that military compensation for injury or illness is not counted as income for means-tested benefits

Reform UK

Reform UK have only a small section related to benefits in their manifesto, with their main slogan being: “In Britain, if you can work, you must work”. They say:

• Job seekers must find employment within 4 months or accept a job after two offers otherwise benefits will be withdrawn
• Work Capability Assessments and Personal Independence Payment assessments by independent (private sector) medical assessors

Green Party

The Green Party focus on reforming the current benefits system. So they would:

• Reform the intrusive PIP and WCA tests
• Introduce an immediate 5% uplift on disability benefits
• Increase Universal Credit and legacy benefits by £40 a week

Read Manifestos in Full

Of course, we have only summarised the key financial points that would impact your everyday lives in each core manifesto for comparison. Before you make your decision on who you want to vote for (or rather, which policies you want to vote for), take your time to research the manifestos in full.

Conservative Manifesto

Labour Manifesto

Liberal Democrat Manifesto

Reform UK Manifesto

Green Party Manifesto

The post Election News: What Each Major Party Promises for Your Wallet appeared first on MoneyMagpie.

Saving when you’re broke and over 50 may seem impossible. You’re either still in work and trying to put whatever you can into your pension pot, or already drawing down from your pension for an income much lower than you’re used to.

Having no savings and a small income, and knowing your retirement is coming up, leaves many over-50s worrying about how they can save for a rainy day. We’ve come up with some solutions to help you build a savings pot even when you think you’re broke.

• Get the over-50s benefits you’re entitled to
• Put off retiring
• Create some over-50s savings
• Invest for the medium-term
• Pick up some over-50s extra earners
• Make extra savings
• Consider equity release

So, you’re over 50, feeling poor and see no hope of improving the situation? Stop right there because you have a lot more time – and opportunities – to turn this around than you might think. Don’t imagine that this is a time for you to slow down. No way – there’s too much of life to enjoy and, frankly, profit from.

Get started with our ideas on how to save if you’re broke and start building up that nest egg!

Get the Over-50s Benefits You’re Entitled To

Go to the benefits information website Turn2Us and fill in your details. It works out what benefits you should be getting. It also shows you how to apply for what you’re entitled to.

Also go to the benefits section of Gov.uk. They have a good list of the benefits and tax credits you could be entitled to. You could be getting tax credits if you’re not earning enough, or extra help if you’re caring for someone or have a disability. Get in now while you can – who knows how long these benefits and tax credits will continue!

Most benefits are now paid via the Universal Credit system. This means you need to apply online to get the benefits. If you’re not confident on a computer, make an appointment with your local Citizen’s Advice Bureau and they’ll help you. The DWP also has a Visiting Team who can come out to your home if you’re housebound or unable to claim your benefits online. They’ll make sure you’re getting everything you’re entitled to.

While you’re at it, it’s a good idea to check on your state pension situation. Do you have enough National Insurance credits to get the full pension? You need 30 years’ worth of contributions to qualify for the full state pension. Also, if you’ve been a carer or taken time off to look after children you will probably have National Insurance credits for those years. Find out what your situation is here.

Delay Your Retirement

This may not have you jumping for joy but you’re going to have to face it now: if you don’t have enough savings put by, you’re much better off working for a few more years than trying to live off the State Pension alone. The current full State Pension is £221.20 a week (£11,502 a year), and a recent report suggested a retired person needs a minimum of £14,400 a year and £31,300 a year to live comfortably.

Working more years gives you time to add to your pension pot – and means you’re not eating into your pension savings while you’re still working, too, leaving more for when you do retire!

There are various advantages to working longer anyway:

• You are more likely to live longer. Seriously. This is particularly true for men. Staying in work – or at least staying active and interested in life (which often comes with having to go out to work) helps keep us healthy. A study by BUPA found that survival rates improve with increasing age at retirement for people from all socio-economic groups.
• It’s a great way to meet people. Again, getting out of the house and into contact with others will cut down on feelings of loneliness, isolation or worthlessness which can be common in retirement.
• You could find a whole new lease of life. You don’t have to carry on doing whatever job it is that you do now. This is a great time to find a new career path and do something you’ve always wanted to do. For women fifty-plus, being a doula, for example, is a great new career. For men fifty-plus, one idea is to get into adult education, teaching the skills you’ve been using (and are probably still using) for all your career.
• You get to earn more. Once you’re over 65 you have a higher tax threshold and you don’t pay National Insurance contributions. This means that you get to take home more actual, real money from your salary. The Government doesn’t pilfer so much of it!
• Putting off claiming your State Pension means you could get a larger weekly amount when you do take it. Your weekly pension increases by 5.8% for every year you defer.
• Alternatively, you can choose to take a cash lump sum with interest instead, as long as you have deferred it for more than a year.

Don’t think that working past retirement age means you have to stay in the 9-5 rat race. Lots of shops and small businesses offer part-time work.

• Finally, claim your State Pension at the same time as working to boost your income. You can also use your State Pension to keep the same amount of money coming in each month but reduce the hours you work. Check your State Pension age to find out when

Go to this section on Gov.uk to find out about other benefits of putting off retirement.

Saving When You’re Broke: The Importance of Investments

Now this is the important part. At this stage of your life you need to be creating a stable savings base. You do have time to invest in more risky, volatile investments that should bring in a decent return year-on-year (see below for more information on how to do that) but at this point you primarily need stability.

Saving when you’re broke means working out where you can make cuts in your existing expenditure, or finding new ways to earn money. Even saving a small amount each month quickly adds up! Keep reading for tips on how to earn more money when you’re over 50.

This means that you should be concentrating on putting regular amounts of money (however small) into savings accounts and probably into gilts too. Check out our article on investing when you’re 50+ for more details – or keep reading for the quick guide below.

FIRST:

If you have no extra money each week/month to put into a savings account: take a look at our article on 26 ways to save with simple changes to your spending habits.

THEN –

Set up a monthly standing order from your current account into a savings account: Even if it’s just £20 a month, it’s still something going into a savings scheme for you. Choosing a regular savings account is a good option; the best ones offer a 12-month fixed rate of about 5% interest and won’t allow withdrawals – a good way to stop you being tempted to dip into your money!

FINALLY –

Don’t forget about your ISA allowance: you have £20,000 to save tax-free every year so make the most of it! Read on for information about investing in a stocks and shares ISA.

P. S.

There’s also gilts: That’s government bonds to you and me. These are effectively loans to the government where they promise to pay a fixed amount of interest each year in return for borrowing your money to pay for… well, goodness knows what they’re using it for right now!

The point about gilts as an investment is that they are also stable, like savings accounts, and although (like savings accounts) they don’t give a huge return, at least you know that your money is in relatively safe hands.

It’s not going to go up and down wildly in the short term like the stock market can do, but you could make fairly decent returns. Read our article on gilts here.

Do You Receive Universal Credit?

If you’re in receipt of Universal Credit, you could be eligible for their Help to Save account. If you are, it’s one of the best ways to squirrel away some extra cash – and get up to £1200 FREE CASH topped up by the Government. Read our article about Help to Save to find out if it’s something that you’re eligible for and how to apply.

Invest for the Medium-Term

If you have decided to put off retirement until you’re about 70 then you have a decent amount of time for slightly riskier investments to grow.

A word of warning! You have to be careful here. Although you have a good few years for your investments to grow and to take in the ups and downs of more volatile markets than, say, savings accounts and gilts, as you’re not in your twenties any longer you need to make sure that only a relatively small percentage of your money is going into these riskier products.

Saving when you’re broke and over 50 means the majority of your money should go into the stable savings, particularly if you are close to, or well into, your sixties now.

Stocks and shares: It’s still worth looking at stocks and shares if you’re in your fifties. Use all or part of your ISA allowance to invest in stocks and shares ISAs. Invest in a nice, cheap, easy index-tracking fund (tracker) such as the Legal & General FTSE 100 or FTSE All Share index tracker.

These go up and down with the stock market according to a clever computer programme. Trackers don’t charge much in the way of management fees because they’re run by computer so you get to keep more of the profits.

Pensions: Your employer now has to offer a pension scheme by law. You’ll have been auto-enrolled if you meet the minimum requirements – make sure to check you’re taking this pension scheme if you can!

The Government tops up your pension contributions, and your savings are put into the pot before tax – unlike money you choose to save from your pay cheque.

If you don’t have access to a company pension scheme, such as if you’re self-employed, you could set up your own private pension or two. The best types of private pensions are either stakeholders (cheap, easy, open to anyone) or SIPPs, Self-Invested Personal Pension (rather cleverer but a great idea if you have the confidence).

You don’t have to put any money in a pension but as it’s a good idea to spread your money around a few different kinds of products, it’s worth considering pensions as one of them.

Do remember that there are whole chapters on investing in stocks and shares, gilts, bonds, pensions and savings accounts in Jasmine’s ebook ‘Beat the Banks’.

Pick Up Some Over-50s Extra Earners

It’s all very well investing your money if you have some cash to spare, but what can you do if you don’t? Luckily there are plenty of things that over-50s can do to make extra cash on the side to make saving when you’re broke possible.

Tutoring

Can you play an instrument? Speak another language? Or have specialist knowledge of science or maths? If so then you can make money by teaching high school, college or even university students. Here at Moneymagpie we know this is a good way to make money, and we have known people who have made up to £35 an hour by tutoring GCSE students.
Consider placing an advert in your local community such as on NextDoor, or with a specialist website like FindTutors. Using an online site like this to advertise your services also means you can check out how other tutors are pricing themselves so that you know what to charge.

Become a doula

A doula is a someone who is paid to help a woman through her pregnancy and during her first few months after the baby is born. You do not need any qualifications to become a doula, but to give yourself some credibility you may want to join up to a website or agency that has a good reputation, such as British Doulas or the Scottish Doula Network. To learn more about becoming a doula read our article here.

Rent your spare room

If your children have all moved out, gone to university or you simply have a lovely big house, then you can make some extra money by renting out your spare rooms. You don’t have to turn your house into a hotel or B&B, just clear some cupboard and fridge space and make room for another toothbrush in the bathroom. Lodgers don’t have the same protections as tenants living in let properties, so you don’t need to worry about squatters or whether you can end an agreement early with your tenant if it’s not working out.

You could rent to students during term time if you live near a university, or to commuters Monday to Fridays if you live in a big city. If you live in a desirable area you could also rent rooms to tourists during the summer or at Christmas.

Spareroom is a really easy site to use and their basic package is free, just place an advert and wait for people to contact you. You can select what age and profession you would like your tenant to be so people don’t waste your time applying if they do not fit your specification. Of course, you can also do this through Air BnB, but the fees are notoriously large and it means a very high turnover compared to taking in a lodger.

Renting a room means you can earn up to £7,500 per year tax-free. Couples share this allowance, so won’t get twice the allowance for the same property. You can’t use this scheme if you’ve converted part of your home into a separate annexe: it has to be used for lodgers sharing facilities with you such as kitchens and living areas.

Rent other parts of your home

Make money from renting other parts of your home! If you have a large garden that you don’t or can’t manage, consider renting it to a local greenfingers as an allotment space. Your driveway and garage also earn cash when you put them up for rent on JustPark, Parklet and your local version of Gumtree or NextDoor.

Finally, with the rise of remote workers comes a rise in ‘digital nomads’ and ‘vanlifers’. You could rent out your living room as a remote working space for people who are travelling – make sure you have a comfortable desk and chair, and fast internet, and you’ll make cash while having some company around. It’s a double-whammy if you look for people who live the ‘van life’ as they tour the country, as you could rent out your drive for their overnight parking as well as your spare room to work from.

Become a house sitter

House sitting is, basically, looking after someone’s home while they are away. You get to stay in a house; to keep it clean, tidy, take phone messages and collect post, perhaps look after pets, and sometimes house owners are willing to pay you to stay.

This is where the over 50s and 60s can cash in. Websites like Trustedhousesitters ONLY let mature people sign up to their websites, as they want to reassure their customers that their house sitters are reliable.

So, even if you aren’t being paid to look after a house, it’s a good way to save money if you want to go on holiday, as you will be saving yourself the cost of accommodation.

Trusted housesitters also have houses all over the world, not just in the UK. So if you fancy a holiday abroad, you could save yourselves a lot of money by offering to house sit.

Saving When You’re Broke: How to Find Easy Savings

There are also lots of things you can do day to day that will save you money in and around your home.

Switch (or ditch) the car

Trade in the family car for a smaller, more wallet-friendly model. You’ll save money on petrol and insurance that way too. If you’ve ever been a member of the armed forces or health services, you could also be entitled to a special discount on a new car! Remember to shop around for your insurance each year too – don’t just accept the premium rise of your existing provider, as it can be easy to knock up to a few hundred quid off with some comparison and neogtiating!

Or, you could be brave and ditch the car altogether. Over-50s get discounts on public transport and if you really need a car for something, you could rent one with a scheme like Zipcar or Enterprise Car Club for cities outside of London

Shopping

Using a price comparison website like MySupermarketCompare can save you big money on your weekly food shop. In fact, MySupermarket says that they can help you save an average of £18 a week by comparing the contents of your basket to other leading supermarket stores.

Just pick your preferred supermarket from a choice of Tesco, Asda, Sainsbury’s and Ocado and start shopping. As you add items to your basket, the website will let you know how much you could save by switching to a different brand or product.

As your basket grows, MySupermarket also keeps a running total of how much you are spending, and how much it would be costing you at the three other supermarkets. So if a shop in Tesco were £10 cheaper than Sainsbury’s you could switch trolleys – genius!

Saving When You’re Broke is Easy with Cashback sites

While we’re talking about shopping, consider signing up to cashback sites like Topcashback and Quidco.

These companies are paid to drive traffic to retailers’ websites. You snag a share of that payment when you visit the online store you want by going via your cashback site first. For example, if you want to order your Marks and Spencer Christmas turkey online, log into your Topcashback site, search Marks and Spencer, and click the link. It’ll take you to the M&S website where you just shop as normal.

The cashback comes into your account a few weeks later. If you do this throughout the year for all of your online shopping activity, you can easily rack up a few hundred pounds of cashback without trying! You can pay out to your bank account or use the cashback to buy vouchers to spend online.

Become a mystery shopper

Get paid to eat, drink, shop, and go to the cinema (yes, really!).

All you have to do is sign up online and you will be sent details of where your next assignment will be.

It is your job to check that the standard of service is up to scratch, and write a short report about your experience.

Other ways to save or make money

We have loads more great ideas in our article on money-makers for over-60s, which are all relevant for over-50s too.

Also, our entire Make Money section is full of all kinds of different ways to make money on the side or even use your hobby or interest to give you a full-time earner. Start with our 10 easy ways to make quick cash article and move on to whatever takes your fancy!

If Saving When You’re Broke Seems Impossible, Consider Equity Release

We’re not especially keen on equity release for most people here at Moneymagpie. Although the industry is much cleaner than it was, it’s still not the safest path to tread. In many cases you get nowhere near the value of your property and if you have children it does mean that their inheritance will be drastically reduced.

However, if you have no children or you have no other means of supporting your retirement, then equity release could be something you might consider for later on. Seriously, though, don’t get into it until you are at least 65. Before that time, you should be using other means to create a nest egg for yourself. Equity release is a last resort (you get more for your home the later you leave it, anyway).

Use a company that belongs to the Equity Release Council, the industry regulatory body. Read up on it for as long as it takes for you to really understand what it involves and get independent advice before you jump in.

*This is not financial or investment advice. Remember to do your own research and speak to a professional advisor before parting with any money.

The post Help for over-50s: how to save if you’re broke appeared first on MoneyMagpie.

If you’re struggling to make ends meet, it’s only natural to turn to friends and family members for help by asking to borrow money. In fact, one TikTok user has gone viral as she revealed she now shares a bank account – with a friend.

But is it ever wise to lend or borrow money in this way? We explore the benefits and (very serious) pitfalls of unofficial lending, as well as provide some tips on how you can make sure both you and your friend or family member is protected if something goes wrong.

Read on to find out more, or click on the links below to go straight to that section.

• How much do people lend?
• The advantages of lending and borrowing among friends and family
• The cons – and the con artists
• What about shared bank accounts with friends?
• The legalities – and resources that can help
• Other assistance that is available

How Much Do People Lend?

Lending money to friends and family is more common than you might think. A third of people in the UK are currently owed money by friends and family, according to research by Starling Bank.

The amount being lent out by friends and family is not small change, either – 35% have lent more than £500 according to the survey of 2,000 UK adults.

Nearly one in four (23%) are owed more than £1,000, 10% have handed over £5,000 or more, and 6% have lent upwards of £10,000.

The Advantages 

Broaching the subject of gifting or loaning money to family may be embarrassing, but according to a recent survey of 3,000 people by Hodge Bank, many people actually get a kick out of helping their friends and family with money, with 58% of over-75s saying they liked to lend their loved ones money.

Of course, you don’t have to be a financial wizard to work out why people might want to borrow money from the ‘Bank of Grandma and Grandad’ (or the ‘Bank of Bob from Work’, for example).

Clearly, your friends and family are a lot more likely to give you some help towards bills than a bank ever is. Getting a loan is a bureaucratic nightmare, and unless a bank is confident that it will easily recoup its money, it’s not going to lend you a penny.

This preference for wealthier clients by the big banks is why those who are struggling often have to turn to ‘pay day’ loans, or even loan sharks.

Of course, if you aren’t considered a risk by the banks, they’ll happily give you a loan at a far more-reasonable rate than a rapacious pay day loan provider. But the terms are still unlikely to be anywhere near as generous as you’d get from friends and family.

Exorbitant rates

According to MoneyNerd, the average interest rate on a personal loan taken out in October 2022 with a two-year repayment was 10.16%, although many lenders charge much more, with rates as high as 36% or above.

The amount you are charged will depend on a number of factors, including your personal credit score, and your collateral (i.e. the amount of money/property the bank could theoretically seize if you fail to keep up with installments).

For help working out how much money you could realistically hope to borrow through official channels, see here.

The Cons – and the Con Artists

Needless to say, lending or borrowing money from friends and relatives isn’t without risks – for both parties.

Most ‘lenders’ are not particularly wealthy, according to Starling Bank, whose study found that a third of people who have lent money to friends and family are low-earners (i.e. on an annual salary of less than £20,000), while only 11% are higher earners, on £70,000 plus.

Embarrassment and anxiety

What’s more, two thirds of lenders told the bank that they felt either too “awkward and embarrassed” or too “anxious” to ask for money back that they’re rightfully owed, while a third of respondents (32%) said they had to ask two or more times for the money to repaid.

As Starling Bank’s chief banking officer, Helen Bieton, pointed out: “Talking about money with friends and family can be awkward, but letting debts rack up can take a toll on relationships and our own financial wellbeing.”

She added that “nearly one in five (17%) started to resent their debtors and 11% avoided making plans with them in the future”.

“When they weren’t paid back as swiftly as they would have liked, more than a quarter of people in the UK (27%) got annoyed, 8% got angry or had an argument with the person who owes them [money], and 3% ended up in a physical fight.”

Difficulties saying “no”

Of course, the easiest way to avoid such potential disputes is to just say no. However, this is easier said than done.

In July, a study from the short-term lending service Moneyboat revealed that the average Briton loses over £500 a year due to this inability to assert themselves with friends and family.

As Elizabeth Richie, a psychotherapeutic counsellor at St Andrews Healthcare, explained: “Expectations from friends and family can blur the lines when we want to say no! This may include fear of being judged, fear of being selfish.”

Richie, who helped Moneyboat with the study, said that it is crucial to set boundaries and be mindful of the fact that “we cannot control other people’s responses to us”.

“The ability or inability to say no often stems from our childhood. We will struggle to say no when we are constantly seeking approval, we will find it easier to say no when we have experienced healthy attachments in early life and have acquired a healthy identity from our early caregivers.

“Ultimately being able to say no at the right time reduces stress levels, and gives you time to prioritise what is important for you and to be more discerning about your own needs and self-care without feeling bad.”

Could your friend be a loan shark?

There are, however, far greater risks involved with casual borrowing than just hurt feelings, as Jackie Spencer, the senior policy manager at the Money and Pensions Service, explained: “Another thing to be cautious about is borrowing money from someone you know casually, such as a colleague or a friend.

“It might seem like a good solution, but you should consider how much you really know them, as they might be a loan shark who lends money illegally and the loan could cost you more than you think.

“They target people who need to borrow money and can’t access it from legal sources and may resort to intimidation and even violence if you can’t keep up with repayments.”

To help prevent this, she stressed that any informal loan should be put in writing, and recommended people read this guide on how to spot a potential loan shark.

Other issues to consider

While it can be tempting to ask friends or relatives to lend you money, you need to think about not only whether you can afford to repay the loan but what might happen if you can’t.

People thinking of borrowing from friends and family really ought to draw up a budget using a resource like this, just like someone would do before approaching a bank for a loan.

“This will help you see how much money you have left for repayments and if you can actually afford it,” said Spencer.

“You should also consider the risk that this could harm or even end the relationship if the money is not repaid. It’s stressful enough if you can’t afford to pay back what you owe, but it can be even worse when you’re leaving a loved one out of pocket.

“If you’re not sure whether you should borrow from a friend or family member, there are other credit options – even if you have a poor credit rating and if you’re struggling with debts, there is help available through our MoneyHelper service.”

What to do if you are approached for a loan you can’t afford

It can be hard to refuse when a friend, partner or family member asks for financial help, but you should consider whether you can cope with the impact of not having the loan repaid. Take the time to work out your own budget before lending to anyone.

If your money is currently in savings, you’ll need to bear in mind that removing a large chunk of this will affect the interest you make each month.

What About Shared Bank Accounts with Friends?

As the cost of living hits us all, more and more people are considering setting up shared bank accounts with friends. Much like in a couple, they pay in part of their salary each month and use it to pay bills if they live together, or to save towards a shared goal like a holiday. So, instead of lending each other money back and forth (we’ve all asked for an extra tenner here and there from our best mate), their spending comes from the shared account.

A new viral trend on TikTok, shared bank accounts are being touted as a way to find accountability in your spending, as someone else can see everything you spend.

While sharing a bank account for housemates to pay bills together might be useful, it comes with big pitfalls. The funds aren’t protected – so anyone named on the account can take the whole lot at any time. In the example of TikTokker Caitlin above, she and her friend don’t always pay in equal amounts either, as sometimes one earns more than the other. This is the highest level of trust, because anyone in this situation could run off with the money they haven’t earned!

More than that, if your friend has a terrible credit score, or they put your joint account into debt, your credit rating will be ruined, too.

Joint savings accounts can work better and some banks recognise this. Monzo has a shared saving account that helps friends save together into one pot for a specific event like a holiday or hen do. However, the funds are still there for anyone to spend and your credit rating is now linked to the people named on the account.

If you want an accountability buddy to help control your spending in tight times, you could always set a weekly date to meet with your friend and go through your bank statements together. This will make sure you know someone else is going to look at your spending, helping you to curb impulse and unnecessary expenditure, without risking your funds being withdrawn by someone else.

The Legalities – and Resources That Can Help

If you are able to help a friend or relative in need, it’s still wise to take some legal precautions to safeguard both you and your loved one in case of unforeseen circumstances.

As Spencer from the Money and Pensions Service pointed out, it’s a good idea to put your agreement in writing so both parties were aware of exactly how much will repaid and when. “It’s also important to keep records of when repayments are made, so you both know how much is still outstanding.

“Having an agreement in place can protect you in unforeseen circumstances as well, such as if the borrower died with the debt unpaid as you’d need proof to claim from their estate.”

Legal templates

You can find lots of free template agreements online that both parties can sign and keep.

LawDepot has a very easy-to-follow, one-page form that should leave both sides in no doubts as to what was lent, and to whom. You can download it here.

Things to consider in any agreement 

The team at Hodge Bank has some great advice on things to consider before lending to friends and family. For instance, they suggest you should include details such as “a time frame for when the sum is expected to be paid back by, any interest (if applicable) and any consequences for missed payments – you may choose to set a fixed penalty or an interest charge for example.”

The bank also tells would-be lenders to consider things like collateral, adding: “If your friend or family member has anything of worth, this can be a good way to ensure your money will be returned to you.

“If your money was in savings prior to the loan, it may be a good idea to charge at least as much interest as it’d earn in savings to make sure that you don’t lose out. This will also ensure that the loan is seen as a loan and not a gift.”

Tax implications

Another issue many people overlook is the tax implication. If there’s interest being added to the repayment amount, you really ought to inform HMRC and fill out a self-assessment form as, depending on your income, the interest on any repayments may be liable for tax. Obviously, if you’re not charging interest, you won’t need to tell HMRC and, instead, just need to keep a detail of the loan and repayment amounts, in case you’re challenged about where the money came from.

Of course, it’s worth pointing out that many relatives (especially older ones) loan out money on the understanding that they probably won’t need it to be repaid.

It’s worth pointing out, however, that if the lender dies within seven years of giving the money away, the recipient may have to pay inheritance tax on it. For more information about inheritance tax, read our guide on estate planning.

What to do if there’s a dispute 

When lending to family and friends, there’s always the chance that they might not pay you back. If this happens, the first step is to talk to them and find out why this is. It may be due to something simple like a change in personal circumstances or other reasons beyond their control.

If the issue is due to a lack of funds, you should try to come to an agreement to amend the payment schedule or increase the length of the loan-period. If your friend or family member is being difficult and there’s a signed agreement in place, you can always seek legal action, if necessary.

For sums below £5,000, you have the option of taking the issue to a small claims court. For larger amounts, you may need to seek legal advice on how best to proceed.

Other help out there

If you or your loved ones are struggling financially, you really should try to reduce any debts and do everything you can to consolidate your finances before complicating the situation with yet more IOUs.

Charities like Christians Against Poverty give free help and advice to people struggling to keep their head above water financially – irrespective of their religion.

Its advisers should be able to help you cut your budget and get lenders off your back.

They work very closely with local Council Tax and Business Rates’ enforcement departments to create more-manageable payment plans for people who’ve fallen behind and are racking up court fees and penalty notices.

They also help arrange Individual Voluntary Arrangements, Protected Trust Deeds and Debt Relief Orders to clear any money you owe private businesses.

The charity has helped more than 20,000 become debt-free since 2010 alone, so they know what they’re doing.

You could also try Citizens Advice or Turn2us, who can not only provide some advice on clearing debts and dealing with angry lenders, but could also point you in the direction of benefits or other assistance you may not know you are eligible for.

More information

If you are struggling during the current cost-of-living crisis, you may find the following articles of use:

• 9 quick ways to organise your finances
• Mental health and money: How to stop debt overwhelming you

MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of lending or borrowing money should conduct their own due diligence. 

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What is the Fund?

You Pay: We Pay Scheme

Money Advice Services

Energy Grants

The British Gas Energy Trust – For Anyone

What is the British Gas Fund?

British Gas allocated £140m to support households and small businesses with education about energy saving tactics, grants to help with energy debt, and their unique You Pay: We Pay scheme to help people avoid financial difficulty with energy bills.

Since 2021, the fund has already helped 21,000 customers with average grants of £2,000 to write off energy debts. It has also set up additional regional advice services, invested in more customer service representatives to reduce call times and improve communication with customers struggling to pay their energy bill, and set aside £15m to help small businesses like pubs and shops with rising costs.

You Pay: We Pay Scheme

This is a unique scheme as part of the £140m British Gas fund, not offered by any other energy supplier. It is designed to help you get out of or avoid energy debt if you’re struggling with your bills, by incentivising you to pay something towards your bills each month.

British Gas will then match what you pay towards your bills – so if you pay £100, so will they, meaning you’ll get a total of £200 paid towards your energy bill. This is a six-month scheme starting from June 2024, so that would mean £100 a month paid by customer over six months (£600 total) plus a further £600 matched by British Gas. This is a brilliant scheme designed particularly for households who have built up some debt on their account and are struggling to pay it off.

Eligible customers will be identified and contacted by British Gas, so you don’t need to do anything to apply.

Money Advice Services

As part of its commitment to improving financial outcomes for households of their customers, British Gas has also used some of the large fund to invest in financial education and money advice services across the UK.

These hubs are designed to give people control over their finances by providing free education about money management and energy saving tips to save on their fuel bill even if costs rise again. Some hubs are specifically run by British Gas, while others are within local Post Offices with advisors fully trained by the fund.

Energy Grants

Some customers struggling with energy debt will be able to access up to £250 credit grants towards their bills – which means they won’t need to pay it back. British Gas is identifying the customers suitable for this scheme, which uses £10million of the total fund money, so you don’t need to apply.

If you think you might need their help and haven’t had information from them, however, get in touch with them. The first step to preventing or sorting out energy debt is to talk to your energy supplier – and this will help them to know that you’re struggling to pay your bills. Many people will prioritise their energy bill over other costs, so it appears to their supplier that they aren’t in financial difficulty. Highlighting your difficulty with your energy supplier is the first step to finding out what schemes and grants you could be eligible to claim.

The British Gas Energy Trust – For Anyone

Even if you’re not a British Gas customer, you could get help from their independent charity, the British Gas Energy Trust. Families and individuals facing fuel poverty can apply to the Trust for financial support in the form of grant to money management tips and energy saving advice.

The Trust has been around a long time – in fact, this year is its 20th birthday. To celebrate twenty years of the charity, British Gas have donated an extra £20million to the charity – taking their total contribution to helping fight fuel poverty to over £200million in twenty years.

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