Government reveals public sector pension overspend
Public sector pensions overpayments since 1978 exceed £120 million, the government has admitted.A minister has also said that claiming back the money would not be possible for cost reasons.Payments to workers such as NHS doctors and civil servants are included in the total.Some pensions are to be reduced from the start of the new financial year next April as a result of the finding.Liam Byrne MP, minister for the cabinet office, commented: "Some pensioners will have their payments reduced and others will see increases in their payments in 2009 which are less than the annual inflation uprating."He added: "The advice of the accounting officers of the schemes is that it is unlikely to be cost-effective to attempt recovery of these monies from individuals."News of the pensions reductions has yet to be given to the retirees affected.Public sector pensions in the UK hold estimated deficits exceeding £900 billion.
No-frills airline hit back with increased charges
Yesterday's revelation that Ryanair is in talks with Boeing to develop coin-operated toilets has been followed today with news that the company is looking to increase the £15 cost of taking hand-luggage on board to £20 during the summer holiday period. It seems that not only Ryanair but all other low-cost airlines in the UK are looking to increase their income streams and reduce their costs in t...Read More
Northern Rock announces new sponsorship deal for Newcastle United
In a bizarre about turn, Northern Rock has today confirmed a new £10 million four-year sponsorship deal with Newcastle United. Northern Rock was originally the main sponsor for Newcastle United but after the business hit trouble the deal was thought to be coming to an end with Newcastle United forced to look elsewhere for a big slice of its income. However, it seems that the new Northern Rock ban...Read More
Bank of England faces big dilemma
This Thursday will see the next meeting of the Bank of England's monetary policy committee amid expectations that the quantitative easing program will be brought to an end having invested a full £200 billion. This places the Bank of England in a very difficult situation because there are fears in the marketplace that a sudden withdrawal of the quantitative easing program could see the UK economy...Read More
If the fall in the pound is correct has the currency been overvalued for years?
While the fall in the rate of sterling against the euro has caught the headlines the currency has also fallen against the likes of the dollar which has serious implications for both import and export businesses in the UK. However, many people are now wondering, as the currency continues to collapse against the leading currencies of the world, has sterling been overrated and overvalued for many yea...Read More
Annuity rates 'increasing due to credit crisis'
Annuity rates are on the up as a direct result of the credit crunch, the Observer reports.Figures from stockbroker Hargreaves Lansdown cited by the newspaper show that average rates have increased from around seven per cent early last year to 7.85 per cent for male retirees.This is due in part to rises in yields from corporate bonds - which has in turn been caused by their increased popularity in...Read More