Rent hikes, a wealth tax and huge growth in money transfers

The cost of renting a one-bedroom property in the UK has soared to swallow almost half of the average young worker’s take-home pay, according to figures published in The Guardian, while those living in London are typically handing over 57 per cent of their monthly wages. Data from property firm Countrywide showed that the average cost of a new tenancy on a one-bedroom home hit £746 a month in May, taking up 48 per cent of the take-home pay of a worker aged under 30. In London, the average rent on a one-bed property was an extraordinary £1,133 in May. Rising rents had outstripped growth in earnings to such an extent in the capital that since 2007 the proportion of take-home pay used to meet the cost had increased from 41 per cent to 57 per cent, Countrywide said. Work worries The Guardian also reports that four-and-a-half million people in England and Wales are in insecure work, according to research by Citizens Advice. The charity has warned that too much focus on boosting pay risks ignoring the problem of unpredictable incomes for many households. Its analysis of official figures published today has revealed more than 2.3 million people are working variable shift patterns, a further 1.1 million are on temporary contracts and 800,000 are on either zero-hour or agency contracts. Wealth tax A one-off tax on Britain’s super-rich is the only feasible way to tackle the Government’s spending deficit and protect vital public services, according to a report backed by the Labour MP Dan Jarvis and the left-of-centre Fabian Society think tank. The levy would apply to UK residents with more than £10 million in assets, with a supplementary charge for those with more than £20 million in shares and property. The Fabian Society said that HMRC could target the richest holders of ‘passive, unearned wealth’ to bring in extra cash, but that the rate at which the tax was charged should be left to the Government of the day. Travel pay-outs Last year travel insurers paid out £365 million, equating to £1 million a day, to 494,000 individuals and families who needed help when they were abroad. According to figures from the Association of British Insurers (ABI), the main cost of claims was for emergency medical treatment, with insurers paying out more than £196 million to cover travellers’ medical expenses and repatriation. More than 166,000 travellers claimed for medical treatment. An annual travel insurance policy costs an average of £33, while the average medical expenses claim was more than £1,200, and average cancellation claim £800. Mark Shepherd, manager for general insurance at the ABI, said: ‘Holidays are meant to be enjoyable and relaxing, but they can be traumatic for some travellers who become ill or are injured abroad. Medical treatment in foreign countries can cost tens of thousands, which is why it’s essential to have a travel insurance policy that will cover you, should you need it.’ Money transfers Blackburn is the money transfer capital of the UK, according to data from global money transfer experts Xpress Money. The company analysed transactions from thousands of UK customers over one month in 2016. More than double the amount of money was transferred from Blackburn as from Birmingham (number two) in the same period. From an inbound perspective, Southall tops the list of receiving destinations. From sending money to extended family through to scheduled bill payments and pension transfers, the UK is now a huge market in a global industry worth an estimated £400 billion annually. The busiest transfer corridors were also identified with Pakistan the most popular destination for outgoing transfers followed by Nigeria and India. The highest volume of inbound transfers comes from the United Arab Emirates which currently homes an estimated 250,000 Britons living and working in the country. Sudhesh Giriyan, chief operating officer at Xpress Money, said: ‘The UK has a vibrant and varied population and is arguably one of the most connected countries on the globe. For this reason, we are seeing a huge growth in this market and our UK customers are the first to adopt new mobile and transfer technologies.’ BHS and Sports Direct The founder of Sports Direct, Mike Ashley, has written to BHS administrators expressing an interest in taking over some of its stores. Paras Anand, head of European Equities at Fidelity International, said that would fit with Ashley’s previous strategy: ‘A lot of the assets that comprise the Sports Direct business, they have often been acquired from distressed sellers.’ We hate it when our friends become successful…

Greater income can make us happy and more disposable income can make us happier, but it’s thinking we’ve more disposable cash than those around us that makes us happiest of all.

In its annual Cash Happy report, which studies the day-to-day finances of more than 3,000 UK households, SunLife found that people who think they have more money than their peers are 24 per cent happier than those who think they have less.