Rail fares, tax, house prices and retirement

Rail passengers could find it easier to buy cheaper tickets following a trial involving the overhaul of Britain’s rail fares system. The Rail Delivery Group, which represents train operators, says the 16 million fares currently on offer are ‘baffling’ for passengers. It is commencing trials in May on a number of routes, including CrossCountry, Virgin Trains’ east and west coast services and East Midlands. The Guardian reports that ‘some fares for long, connecting journeys will be removed from the system as cheaper alternatives exist, in a bid to negate the need for split ticketing to save money. Single-leg pricing will be introduced for some journeys to make it simpler for passengers to know if they would be better off buying two single tickets or a return. There will also be measures to make ticket-vending machines more user-friendly.’ Tax Tens of thousands of people have paid the wrong tax on pension withdrawals made under new pension freedom rules which came into force in April 2015, according to The Telegraph. The annual self-assessment tax return deadline for that year passed last night. Now tax experts say that ‘at least 232,000 people drew down money from their pensions in the 2015 to 2016 tax year under rules which allow over-55s to drain cash from their pension pots in one go. Many of these withdrawals will have been incorrectly taxed.’ House prices The Guardian reports that UK house prices grew at their weakest annual rate in more than a year in January. This chimes with analyst predictions of a property market slowdown in 2017. Annual growth edged down from 4.5 per cent in December to 4.3 per cent, according to the Nationwide. It was the weakest since November 2015. On a monthly basis, the average price of a UK home edged up 0.2 per cent, to £205,240, following a 0.8 per cent rise in December. Economy Some gloomy economic news this morning: the UK economy may slow down in the next couple of years, even while the global economy picks up. The BBC reports on forecasts from the National Institute of Economic and Social Research. The body has revised up its forecasts for UK growth to 1.7 per cent this year and 1.9 cent in 2018. But both these figures would still represent a slowdown from the growth rate of 2 per cent recorded for 2016, when the UK was the world’s fastest growing developed economy. Energy Thanks to a new subsidy scheme that will pay energy companies to keep their power plants open, consumers could face a billion pound bill for their electricity next winter. The Telegraph reports that ‘the support contracts will be awarded through a competitive auction taking place this week to avoid further power plant closures and guarantee enough power to meet demand next winter’. Meanwhile, the average water and sewerage bill will be £395 in the next financial year. That’s a rise of of £6 or 2 per cent compared with the current year. Workers

A paper published by the TUC has concluded that the poor earning prospects faced by the young shouldn’t be blamed on older workers who are now staying longer in the same job.

ThisisMoney says that the document suggests that ‘changes in the labour market are to blame for the vast swathe of 21 to 30-year-olds struggling to make ends meet. It highlights that young people were hardest hit by the fallout from the financial crisis between 2008 and 2014 with real wages falling by 16 per cent for that age group compared to 10 per cent for all workers.’

Retirement

A new report by Moneyfacts has revealed a significant improvement in retirement incomes. The new research, contained in the latest Moneyfacts Personal Pension and Annuity Trends Treasury Report, found that the average retirement income for an individual saving into a personal pension and then taking an income through an annuity increased by 11 per cent during Q4 2016, and is consequently at its highest level since July 2015.

The report assessed the impact of the changing value of personal pension pots and annuity rates on retirement incomes. The figures were based on an individual contributing £100 gross per month into an average personal pension fund over a 20-year period and retiring at the age of 65 with a standard level without guarantee annuity.

Spending

New insight from Asda Credit Card suggests that 19 million Brits are collectively spending an average of £26.5 billion on their credit cards, triggered by emotional life events such as break-ups (1.8 million people), retirement (1.9 million people) and dealing with a death (2.4 million people). Many credit card holders will spend towards celebrations such as birthdays and a job promotion but sadly a significant number of plastic holders appear to spend most when feeling unhappy (5.5 million people).

TalkTalk

Baroness Harding of Winscombe is to step down as chief executive of TalkTalk, the telecoms company that has been patching up its reputation after a major cyberattack in 2015. She will leave in May to focus more on public service.