Iain Duncan Smith

Inflation and the Difference in Sal...

A high rate of inflation is not good news for any economy. It means that in real terms the same £1 in your pocket will buy you less than it would hav...

HSBC

Payment Protection Insurance Claim ...

The PPI scandal has taken a further toll on the HSBC bank as it has now set aside 500 million pounds to deal with the payment protection insurance sca...

Halo 4

Halo 4 Beats Blockbuster Earnings i...

If anyone had doubt that video games were the new film, Halo 4 easily proved them wrong this week. The newest entry into the legendary first-person sh...

dna_2330322b

UK to Introduce ‘DNA Mapping’

Prime Minister David Cameron has unveiled plans to introduce DNA-mapping – in which 100,000 patients with cancer or rare diseases will have their ...

Inflation and the Difference in Salary and Benefit Rises

Jan. 08 Economy no comments

A high rate of inflation is not good news for any economy. It means that in real terms the same £1 in your pocket will buy you less than it would have previously. Salaries often rise year on year taking a worker’s productiveness or years of loyalty into account, especially if there is steady inflation in the cost of living. However this is not the case in a recession, where many workers see their salaries capped at a low rate, frozen and for some even cut. Workers in the public sector have generally seen pay freezes although salary changes in the private sector vary greatly.

Official figures state that since 2007 there has been a rise of 12% in private sector pay. They also declare that at the same time the value of benefits for the unemployed have increased 20% comparatively. The Work and Pensions Secretary Iain Duncan Smith claims these figures show unfairness towards working people, emphasising the government’s aim to make it ‘pay’ to work. These are the reasons behind the coalition led vote in Parliament to cap the rise in benefits (notably not a cap for disability or pensioner benefits) to just a 1% rise instead of being exactly in line with inflation – which is higher at 2.7% as of early January 2013.

Labour are against the proposal, criticising the cap as being unfair and unrealistic. They have offered their own statistics that state that for the past ten years benefits for the unemployed have not risen at the same level as wages have. Critics from charities have also spoken up at the potential rise in poverty and how it will affect the poorest in society the most.

The plans to cap the rise in out of work benefits at 1% are controversial. The vote will take place in Parliament today to determine if the cap will go ahead.

Payment Protection Insurance Claim Woes Force HSBC to Set Aside A Further £500m

Dec. 30 Finance no comments

The PPI scandal has taken a further toll on the HSBC bank as it has now set aside 500 million pounds to deal with the payment protection insurance scandal as well as additional allegations being thrown its way by the American government. These additional allegations are potentially more disastrous for the bank’s fragile reputation.

Serious accusations were brought against the bank by the US government recently, causing HSBC to set aside over 1.5 billion American dollars to deal with any ensuing scandal. They have been accused of unknowingly assisting drug cartels and rogue states by allowing them to use the US arm of the bank to launder billions of pounds. No additional details as to how this was done – including any specifics – were divulged, but the financial institution’s reputation is already taking a serious hit. These are very serious claims and HSBC are reacting accordingly by using £500 million to cover the fines they will be hit with by the US authorities. There is still no agreement as to how much the bank will have to pay, but when all is said and done the amount could be considerably higher.

As if this new scandal wasn’t enough the bank has added 220 million pounds to their hefty payment protection insurance bill. Because they were mis-selling payment protection insurance at such a large rate they needed to increase the amount they had earmarked to compensate those who deserved refunds. Their bill has amassed to much more than they expected, so much so that with this additional £220 million they have now spent £1.2 billion on repaying payment protection insurance claims.

Between the PPI scandal and these new money-laundering accusations, HSBC’s pre-tax profits have decreased over 50 percent in the most recent three-month period. This newly projected profit of £2.2 billion is being attributed to the value of their current debt as well as the US government’s claims.

Halo 4 Beats Blockbuster Earnings in 24 Hours

Dec. 30 Entertainment no comments

If anyone had doubt that video games were the new film, Halo 4 easily proved them wrong this week. The newest entry into the legendary first-person shooter series brought in an astounding $200 million within 24 hours of its launch. This greatly surpassed first-day numbers of recent cinema blockbusters, including the new James Bond film “Skyfall” which only raised $89 million in the box office in its first weekend.

Halo 4, which marks the beginning of a new trilogy in the series, is developed by 343 Industries rather than Bungie, the company that many fans are accustomed to. Despite this, Microsoft believes the game will bring in $300 million worldwide during its first week. If this does happen, this will make the game the biggest launch in the history of the series. In fact, the series have already sold more than 46 million units since the first in the series was released in 2001. To the game’s credibility, fans have collectively spent over 30 million hours playing Halo 4 in the past week alone.

Given the incredible response to Halo 4′s release, it seems unlikely that it will have any serious competition this year for the top-selling entertainment release. However, the launch of Call of Duty: Black Ops 2, the latest in Activision’s series of popular first-person shooters, will certainly give Halo 4 a run for its money. Last year’s installment, Call of Duty: Modern Warfare 3, made $400 million in its first day and reached $775 million by day five. The market has proven that the most commercial video games are online-based first-person shooters.

Although video game sales have fallen this year coinciding with the lack of great releases, Call of Duty: Black Ops 2 and Halo 4 should boost overall video games sales immensely. And since the two series are in constant competition, they will continue to boost the gaming market by releasing great titles for years to come.

UK to Introduce ‘DNA Mapping’

Dec. 10 Health no comments


Prime Minister David Cameron has unveiled plans to introduce DNA-mapping – in which 100,000 patients with cancer or rare diseases will have their details held on a national database – with a view to keeping everyone’s DNA on record ‘in the near future’. The move will raise great concerns among many people, and MP’s, who are against such a database on the grounds of possible abuse. However, Mr Cameron believes it is a necessary move to help the NHS deal with problems; he said:

“By unlocking the power of DNA data, the NHS will lead the global race for better tests, better drugs and above all better care. We are turning an important scientific breakthrough into a potentially life-saving reality for NHS patients across the country. If we get this right, we could transform how we diagnose and treat our most complex diseases not only here but across the world, while enabling our best scientists to discover the next wonder drug or breakthrough technology.”

Controversy is likely thanks to the sensitive nature of the information involved. The latest reports into the system state that mapping the human genome will allow for personalised treatments, and there are plans for 100,000 patients to enter the database over the next five years.

Personalised Medicine ‘For All’

The prospect of personalised medicine for everybody, thanks to the DNA mapping project, is very real, according to Sir John Bell, who as well as being a professor of Medical Sciences at Oxford is also an advisor to the government on the subject of genetics. He explained:

“The price of genome sequencing has been falling off a cliff. It has fallen by 100,000-fold in 10 years. We are headed for £100 a genome. That will happen in the very near future. Genetics is a key component of all common diseases. There is a possibility that this will help in a whole variety of ways including the use of new drugs.”

The concerns from some consumer groups are that the information held could be sold, and it could lead to private medicine firms charging people for medicine in the event they become ill. The project is, therefore, bound to meet with resistance from human rights groups. However, it is easy to see where the benefits will be, and with personalise medicine a very real prospect those suffering from complex and rare illnesses may be willing to take advantage of the situation.

All Blacks Stunned by England Win

Dec. 03 Sport no comments


England’s emphatic victory over New Zealand at the weekend was a major sporting achievement that even the most optimistic Rugby Union fan could not have predicted. The Twickenham crowd were treated to an outstanding display with the home team dominating both up front and behind. Stuart Lancaster can take great pride in honing a side that never looked like losing once play had begun, and that simply tore apart a strangely lacklustre All Blacks team that struggled throughout. The New Zealand side duly came to the end of a 20 game unbeaten run.

Early Lead

England drove to an early lead in the second half thanks to the inspirational play of Owen Farrell, a man who can be credited with waking the team up and bringing them into the game. 15-14 was the score with half an hour to go, and even with England playing well onlookers could be forgiven for remaining confident that the mighty All Blacks would change gear and cruise ahead to victory. It didn’t happen; instead, England simply out-performed the New Zealand side in a manner that was both refreshing and exciting to witness, and came home 38-21 – a resounding victory in every way.

Farrell to the Fore

Farrell’s kicking and his one to one play with Dan Carter, a man expected to overshadow him, was the key to a great game, and English rugby can now stand proud once more. Narrow defeats against Australia and South Africa in recent weeks had not been promising, but this time the team seemed to simply get on with it and make it happen. With the 2015 World Cup to be held in England this was a timely victory, and one that means the host nation can be considered genuine contenders if such form is to continue.

Latest Scientific Research Provides New Ways to Beat Insomnia

Nov. 27 Health no comments

A poor night’s sleep can make anyone unhappy, and according to the Great British Sleep Survey, it’s a problem that 51 percent of us struggle with. Recent evidence shows that lack of sleep can cause low energy levels, mood swings, concentration problems, and decreased productivity. It can also affect people on a deeper health level, increasing the risk of health conditions like diabetes and strokes.

Medication for insomnia has been on the rise in Britain, with 15.3 million prescriptions for sleeping pills dispensed in the last year alone. But new research has discovered that there are some things individuals who suffer from insomnia can do to make sleep come more easily.

Darkness is an important factor when it comes to getting a good sleep. Some research has also indicated that light from devices like laptops and smartphones should be avoided for at least a couple hours before sleep. A comfortable environment is necessary. Keep your sleeping area dark, quiet, clean, and well-ventilated.

Any stimulation close to bedtime can alter one’s ability to sleep. Avoiding things like caffeine, alcohol, heavy meals, and strenuous exercise right before bed can aid restfulness. Individuals should think about what they’re putting into their body and set limits for late-night activities.

Research also indicates that a nap isn’t all it’s cracked up to be. It’s much better to set a sleep schedule and stick to it. Even if individuals have trouble sleeping one night and want to take a nap during the day, it’s best to avoid the nap and hold out until bedtime.

Many people have problems sleeping simply because they’re thinking too much about their inability to sleep. The study indicates that individuals shouldn’t go to bed unless they’re sleepy, and they shouldn’t let themselves get discouraged if they are unable to fall asleep right away. Trying to relax before bed, and avoiding anxiety and worry will clear one’s mind and help prevent insomnia.

Advice on dealing with insomnia is available here.

 

New Test for 100mph Law-breakers

Nov. 26 Motoring no comments


New government proposals may mean that drivers caught speeding at over 100mph will face tougher tests before they get their licence back. The extended test is already in existence for some offences, but not for excessive speeding. If a driver has been banned for more than 56 days for dangerous driving, drink driving or a number of other serious offences they are required to take the extended test, and the number of offences for which this can be required is set to be increased. Last year over 5000 drivers had to take the test in order to reclaim their licence.

Latest Figures

The latest figures, available from the Ministry of Justice, show that 9000 motorists were banned for a speeding offence last year, and this figure could be boosted by a further 1000 if the new proposals are upheld. The current guidelines say that anyone caught in excess of the speed limit by 30mph gets an immediate ban. The proposals mean that the new test will be twice the length of the standard road test and, at £124, will cost twice as much. The current extended test is likely to be revised on nature.

A Timely Move

Motoring groups, in general, welcomed the proposals, with Robert Gifford, of the Parliamentary Advisory Council for Transport Safety, explaining:

“This is a timely move to ensure that the requirement to take an extended driving test also has an educational dimension. Carrying a driving licence is a significant responsibility and drivers need to be reminded of that. This should ensure that the extended driving test for serious offenders is fit for purpose.”

There is also a proposal that will see the blood test rules in drink-driving cases altered, with drivers being unable to request a second blood or urine test. This is commonly used as a time wasting tactic as it can take some time to arrange, hence giving the culprit extra time to sober up. With accidents on the rise in the UK, thanks to the 30million – and rising – vehicles on the roads, such moves to make the roads safer should be welcomed by all.

Men and women to ‘drive’ on a level field… But it will cost the average woman more

Nov. 18 Motoring no comments

One of the key factors in the calculation of car insurance premiums – gender – is soon to be removed from the equation.  On Friday 21st December 2012 the European court ruling will come into effect, meaning that insurers will no longer be able to charge women less for their car insurance.  British women were previously afforded this benefit on the basis that statistics prove that males, in particular the under 30s, have more car accidents and the claims they are involved in are generally more costly.  As a group to classify risk, men are overall a higher risk for the companies to insure than women.

What is considered to be fair and what constitutes true equality are some of the issues raised by the EU ruling.  It is the impact of this, however, that many people are unaware of.  Little reason to celebrate; men’s insurance will not be reduced in line with that of women– its women’s premiums that will be increasing.   The Association of British Insurers (ABI) estimates that the rise to the cost of insurance for young women will be around 25% due to these changes – this would be a few hundred pounds to the average policy.  The backlash to the ruling is strong with many women feeling that their sex should be used to reflect on the statistical risk though those in favour of the ruling state the previous rules for insurance were discriminatory to men.

The picture is bleak for the youngest of female drivers, a group which may overall show a drop in the numbers who will be able to pay for car insurance.  Research by the price comparison website uswitch.com indicates possibly one in ten women may now be unable to keep their car, and over a third will have to squeeze their living costs considerably to be able to pay their new higher car insurance costs.

Olympic Legacy Won’t Save North East Swimming Pools

Nov. 14 Sport no comments

The success of the London 2012 Olympic Games has been much talked about, but with controversy over the future of the Olympic Park and arguments about the true cost of the games continuing, it is the rest of the country that is beginning to feel the pinch. The North East played host to Olympic football, with Newcastle United’s legendary St James’ Park as one of the chosen venues, and the region has a long history of producing Olympians, not least in the world of swimming.

City Pool to Close?

The irony of the Olympic successes is soundly expressed in the problems facing Newcastle’s swimming pools, not least the City Pool, a facility that has produced a selection of internationally successful swimmers and one that now faces closure. Escalating costs and, according to councillors, an over-provision of swimming pools in the region threatens to end the City Pool’s long and illustrious association with top-level athletes.

A Massive Shock to the Club

The City of Newcastle Amateur Swimming Club, which is based at City Pool, is in shock at the news. Head Coach Louise Graham said:

“The news of the threatened closure has come as a massive shock to the club and our swimmers. It is ironic that in 2012 Newcastle’s Olympic legacy threatens to be the closure of the City Pool, the home to the city’s Swimming Club and some of the region’s best swimming talent.”

Sports Minister Hugh Robertson, on a recent visit to the region, expressed his concern that closing the pools would pose a threat to the strong sporting tradition that pervades in the North East, and called on the council to consider its options.

Over-Provision of Pools

Tony McKenna, Head of Leisure Services, did not agree, explaining:

“In the case of the City Pool, the building requires such a lot of investment that it is difficult to envisage any organisation wanting to run it as a pool, and the council isn’t in a position to fund the capital work needed. Consequently, we think the only viable option is to close the pool. This isn’t something that we want to do, but we need to do it to strike a balanced budget and continue to support swimming across the city. The University of Northumbria pool is open to the public and is on the same street, some 250m away from the City Pool. It’s a two-year-old, state-of-the-art facility which will welcome displaced swimmers form the City Pool with open arms. The two pools run by community organisations in Fenham and Jesmond will also continue to provide opportunities for swimming in the city.”

The Olympics may have been a raging success, but it would appear that the North East is going to suffer some serious cuts in its leisure facilities.

Claims Standard Council Speaks Against Bank’s Lack of Action for PPI

Nov. 09 Finance no comments

Claims Standard Council (CSC) Chairman Anthony Sultan, stated that banks should not blame claims management companies and that they are having trouble keeping up with processing payment protection insurance claims due to their own actions. He states that it was the banks’ faults in the first place that they are compensating for mis selling PPI, which brought them an estimated profit of £5 billion yearly for each bank.

Banks have blamed claims management companies such as MisSoldPPIClaimsCo.co.uk, for taking payment from customers for every successful claim and for increasing bureaucratic costs of banks. However, the CSC says that CMCs only “fileld the gaps” that banks left behind.

PPI or payment protection insurance is a policy designed to provide repayment for any loan, mortgage or credit card when the customers gets sick, injured or unemployed. The guaranteed benefits became impossible to claim as many citizens bought the insurance ineligible for its exclusions.

The high PPI bill in the United Kingdom now amounts to £13 billion. Barclays now has a total of £3.7 billion and Lloyds is leading the pack with £5.3 billion. RBS reserved a further £400 million making its total £1.7 billion and HSBC announced it would be adding £223 million more to its £1.1 billion compensation package.