Money

How safe is your bank's phone security?

Sarah Coles — 2013-05-24T11:37:00+00:00

Which? has been testing the security of telephone banking services. It made more than 100 calls to nine British banks to see how easy it was to break through the security procedures.

Some banks saw off all attempts, but some of the biggest names fared worse than others.

In the calls, the researchers had not set up passwords, PINs or codes, so the banks were relying on their security questions. The aim was to see how easy it was for a caller to discover details of the account balance or overdraft limit.

Some banks were incredibly robust. First Direct took the top spot. Not only did they ask high-grade security questions, they also asked the caller to go somewhere quiet so they wouldn't be overheard.

Others were less stringent. Which? said that in one in five calls they were only asked the kinds of questions that could be easily answered by someone who had stolen your bag or wallet.

Concerns

Two banks were highlighted by Which? as having fallen short of their expectations. In one call to Santander, they were asked for nine pieces of information - but the researchers insisted that they were things that would be very simple to get hold of.

In a call to Halifax, the caller gained access to the account with just the card details and their date of birth.

The banks highlighted that different levels of security apply depending on what you are trying to do. It is easier to gain information on the overdraft limit - for example - than withdraw the entire balance of the account.

Santander emphasised that it has two levels of security and that the caller only cleared the first one. If they had wanted to carry out any other tasks, they would have had to complete the second level.

Halifax told Which?: "We take security extremely seriously and operate a consistent approach to telephone banking security across the Group's brands. Many of our measures are fundamentally non-visible, and would not be identified in a simple research exercise such as this".

So should you be worried?

The good news is that phone banking fraud is declining. The most recent figures show it fell 21% in six months. Clearly there are still some criminals getting through, but the decline shows that in by far the majority of instances, the security checks are protecting customers.

The banks are also making strides in developing telephone banking security. In its wealth-management and investment arm, Barclays is set to roll out voice recognition technology which can recognise a client in 30 seconds from normal conversation. In tests, 95% of people were recognised first time, but if it fails, traditional security methods can be used.

Protect yourself

Neither of these things means you are entirely secure. If someone takes your bag or wallet, it is vital to contact your bank immediately, to prevent them taking advantage of any information or using your cards.

You should also follow sensible security steps. Which? recommends making sure you cannot be overheard when you are telephone banking, never writing down your password or any security information, never responding to an email, call or letter asking for your password, account number or PIN, and checking your statements carefully for anything unexpected.

If you take these steps, you should help protect your account, and can also be confident that if someone was to gain access to your account, your bank would ensure you did not lose out financially.

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The day we nearly ran out of gas

Sarah Coles — 2013-05-24T10:38:00+00:00

Filed under: Utilities

It has emerged that in March this year we were closer to running out of gas than anyone suspected. One official has confirmed that at one stage we had just six hours of supply left.

So how did it happen, and could it happen again?

Running out

Reports at the time estimated that we could have as little as 36-hours-worth of gas left in the reserves. However, Rob Hastings, energy and infrastructure director at the Crown Estate, has confirmed in an interview that in fact there were only six-hours-worth of supplies left.

He told the Financial Times that if the levels had fallen any further it would have caused interruptions in the supply.

Why?

The crisis was largely a result of unexpectedly cold weather. It means that far more people put the heating on than the experts had predicted, so stocks were eroded very quickly.

At the same time, Sky reported that there were problems with a processing plant in Norway which provides gas via a pipeline to the UK. Meanwhile, the pipeline under the sea between the UK and Belgium shut down unexpectedly. It meant we had to rely on stored gas - and that started to run out.

Could it happen again?

The risks remain. The problem is two-fold. First, we only produce about 45% of all the gas we need, so we rely on imports. This relies on the technology of supply working, and is also dependent on a lack of political interference. Previous issues regarding the Russian pipeline raised awareness of just how much we depend on a peaceful political balance for energy.

Second, we just don't have much storage capacity in the UK. According to the Daily Mail we can store enough for 20 days. This compares to Italy which can store enough for 70 days, France which can store enough for 103 days, and the US, where stores could last six months.

This isn't as bad as it sounds. We will only call on those stores if all other supplies dry up. We import gas from a variety of different places, so we would be very unlucky to lose it all at the same time. In addition, we still have domestically-produced gas, so stocks will last far longer than 20 days even in the worst case scenario.

However, this lack of storage does leave us very much more vulnerable than other countries to interruptions of supply from overseas.

We came very close to interruptions in the gas supply in March. How long before we have to get used to the very real threat of running out of gas?

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10 of Britain's self-made millionaires

Hannah Ricci — 2013-05-24T10:00:00+00:00

Filed under: Career

The rich twenty-something stars of Made in Chelsea may be winning BAFTAs and viewing figures, but squandering family fortunes does little to inspire entrepreneurship.

So we take look at the wealthy that have made it on their own through inspired ideas, shrewd business moves and dogged hard work.

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EU slips on oil jug ban after public anger

Adrian Holliday — 2013-05-24T09:30:00+00:00

Filed under: News

Public anger across Europe has forced Brussels to bottle out of plans to ban olive oil jugs in restaurants and cafes. The plans originally had been dreamt up by the European commissioner for agriculture, Dacian Cioloş.

Cioloş wanted new "hygienic" nozzles attached to the jugs, plus printed labelling on each bottle. A plan virgin on the ridiculous?

Public loathing

Very much so. In the end Cioloş - formerly a Romanian engineer - agreed that his plans had received a cold pressing from the public. "It was a measure intended to help consumers, to protect and inform them but it is clear that it cannot attract consumer support," he said, quoted in the Telegraph.

However it transpires the Coalition did not oppose the plans, which were part-aimed - allegedly - at stamping out restaurant 'fraud' (though no evidence was produced to support the proposal).

The move also exposes how Brussels law-makers can introduce legislation straight onto the statue book without the need of full, majority support from EU members. One farming association, Copa-Cogeca, is not pleased about the plans being corked.

U-turn

"It is totally unacceptable," Copa-Cogeca secretary-general Pekka Pesonen said in a statement, "that the Commission has done a complete U-turn and has succumbed to political pressure like this without any discussion with Member States and Industry. I urge the Commission to revise its decision."

However Pesonen has been outmanoeuvred. Interestingly, the EU has no plans to bring in similar regulations for butter, salt or other restaurant table basics - for the moment.

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This week's discounts, deals and freebies

Sarah Coles — 2013-05-24T08:39:00+00:00

Filed under: Shopping & Deals

Welcome to Freebie Friday, a weekly round up of the very best discounts, deals and freebies around.

This week we're getting ready for summer, with great deals on bike accessories, sunglasses and toiletries. And because this is a typical British summer, we have plenty of options for staying indoors too.

Free bike lock

O2 priority moments is a good source of offers. It's only available to O2 customers, but if you get an O2 SIM card, you can get access at low cost. Users of hotukdeals.com have highlighted one offer at the moment: a free bike lock from Halfords. It's worth £6.99 and some users are reporting it can be combined with a deal for a free bike service - so you're ready to head out on the road for the Bank Holiday.

Cheaper toiletries

If you're planning a holiday, sun lotion and after-sun, insect repellent, and holiday sickness remedies can set you back a small fortune. Myvouchercodes has a code for £10 off orders over £70 at Boots - which should take some of the sting out of the cost. It's valid until Sunday.

Reduced sunglasses

If digging out the sunglasses takes you back to the 1990s, then it could be time for an update. Myvouchercodes has an offer of 12% off plus free delivery at the Sunglasses Shop - which is valid until the end of the month.

Half price petrol

If you're prepared for a bit of a complicated deal, you can get £20 worth of petrol for £10. You'll need to buy a Shell Drivers' Club loyalty card with £20 worth of points from Mightydeals by 27th May.
It will be posted out to you by 11 June, and it needs to be registered online by 30 June. After registering you need to go to the 'rewards' section and select money off fuel vouchers. You then have a further three months to spend the vouchers - although you have to spend them all in one go.

Discounted furniture

For those expecting to spend more time indoors this summer, you can get a discount on new furniture to brighten up the drizzly days. The code FURNSAVE from Offeroftheday.co.uk will get you £20 off indoor furniture over £150 - valid until 28 May.

Cheaper tablets and games

And if you're looking for something to make your time indoors more exciting. Tesco Direct has a couple of discount codes at the moment. You can get £10 off when you spend £75 on electricals and gaming with the code TDX-TFNG. Alternatively you can get £20 when you spend £200 or more on tablets with the code TDX-TXHW. The tablets also come with free delivery, although you'll need to shop before Monday.

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The pensioner who lost thousands to cold-calling scammers

lovemoney.com — 2013-05-24T08:30:00+00:00

Filed under: Scams & Fraud

No one should ever engage cold-calling investment salesmen (invariably male) in a dialogue. Just slam the phone down hard as soon as you hear the boiler room's background buzz. Otherwise, they will catch you, play you, rip you off for as much as they can - and then try over and over again to squeeze you for more.
If you don't believe me, then read about Mrs SJ and her 13 year ordeal at the hands of fraudsters. Despite her long, expensive financial abuse, the authorities have done nothing to protect a vulnerable elderly woman. Her son, who asked for anonymity for the family, sent me her case notes.

Targetting the elderly
She was first approached in June 2000 when she was 72 by Goldman Williams, a fly by night firm which sold her six half cases of wine over the following 18 months. What exactly she was sold is unclear due to a large number of handwritten corrections on her documentation. Goldman (no relation to Goldman Sachs) worked out of a "suite" in a "business centre" - an address which would have caused my alarm bells to ring.

Her last purchases were some £4,000 of wine on 27 November 2001. Two days later, the official receiver was appointed in the public interests to Goldman Williams and associated firm City Vintners in order to wind them up. In all, she spent £8,208.

Two of the six cases were real and were later discovered in a bonded warehouse. They were worth around £3,900 but she had to pay regular storage fees.

Once bitten, twice shy?
It should have been a case of once bitten, twice shy. But that's not how it works. Phone fraudsters know that someone who has fallen for their story will be susceptible to a repeat version. So Mrs SJ was "re-activated" in November 2007 by a firm in Malaga, Spain. The paperwork was meaningless but the money - another £3,500 - was real. This firm changed addresses several times and then disappeared.

Fast forward to September 2012 when the Goldman Williams liquidators sent her an update. Needless to say there was no joy here. But this legitimate letter served as a prompt for someone to call her. Remember, this is an elderly woman living alone.

The caller got her to transfer ownership of the remaining wine in bond to another company, again operating out of a mailbox address. This new concern persuaded her to hand over what seemed to be her wine holding - now apparently worth £4,900 (assuming the wine was genuine), compared with an original spend of nearly £12,000 - in return for carbon credits.

So she exchanged an item of some value for worthless paper in a scheme which is, according to regulators, doomed to failure. This led to a second carbon credit merchant, who informed her the wine was worth £5,400 but - as a goodwill gesture - offered a swap into carbon credits apparently worth £7,650 via an "asset exchange".

It gets worse. Either the wine did not exist or the first "recovery" company stole it, but the second carbon company billed her for the full £7,650. It seems likely that these two companies are acting together to get as much as they can. According to her son, who has power of attorney for his mother, Mrs SJ, who suffers from some memory loss, cannot recall any of this.

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From wine to carbon credits to coloured diamonds
The second company then sold her a coloured diamond for £25,000. The coloured diamond market, as readers know, is largely a nonsense. Read The coloured diamonds scam.
In her confusion, she sent three cheques - £25,000, £25,000 and £10,000 - all of which bounced. But the coloured diamond/carbon credit company had no intention of giving up, despite pleas from the son.

The dodgy diamond company's phone number is now permanently "out of order" although the son tracked down an ex-director who turned out to be a 21 year old who begged "don't tell my mum and dad about this job".

The diamond firm's website seems now to be closed. But the guy behind it is already in negotiations to come up with a new one.

Meanwhile, the son contacted the police and trading standards. However, he warns: "It is very frustrating to find out how limited and passive the authorities appear to be in this area of fraud. It would seem on the face of it that, with just a little bit of wit, they could easily get ahead of the game and try to anticipate some of it.

"The internet is making it easy for the fraudsters but, equally, it could also easily be used against them; for example, internet searches on known serviced office addresses and carbon credit/diamond trading etc. I have just tried this for interest sake and several dodgy sites appear immediately. Until I became involved on behalf of my mother, I would never have believed how people carrying out this kind of fraud appear to be able to act with almost complete impunity."

What to do if you're retired and in debt

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Mother guilty of benefit fraud

Press Association — 2013-05-24T07:30:00+00:00

Filed under: Scams & Fraud

A mother of eight has been jailed for four years after being found guilty of fraudulently receiving more than £350,000 in benefits and tax credits by claiming some of her children had disabilities and conditions.

A judge said Amanda Webber, 43, who was responsible for one of the biggest single benefit fraud overpayments recorded, took advantage of the benefits system.

She fooled authorities by making claims on the basis that five of her eight children suffered disabilities and conditions which affected their care and mobility needs, a five-week trial at Brighton Crown Court heard.

Prosecutors said that despite their reputed health problems, the children led active lives, taking part in PE classes and activities including music, drama and dance without difficulties - and some auditioned for ITV's Britain's Got Talent.

Some also attended fee-paying schools and performed in professional productions on television and on stage, including Les Miserables, The Wizard Of Oz and Billy Elliot, jurors heard.

Webber, from Sussex, was found guilty of 23 out of 24 charges, including fraud, obtaining a money transfer by deception and obtaining property by deception. She was cleared of one count of making a false representation.

Webber received an overpayment of benefits to which she was not entitled of around £353,000 over a 12-year period from 1998, and at the time of her arrest lived in a seven-bedroom property.

The false payments related to disability living allowance (DLA), carer's allowance, tax credits and housing and council tax benefit. Sentencing her, Judge Anthony Niblett said Webber and her family had at one point an income of more than £10,000 a month.

The judge told her: "This is an income which the vast majority of your hard-working, honest fellow citizens can only dream of." He added: "These benefits included private education and every material advantage ... including a grand piano and a dance studio in your last home, so as to encourage the undoubted talents of some of your children."

Judge Niblett said Webber was "undoubtedly a highly intelligent woman" who had taken advantage of the benefits system. Prosecutor Andrew Evans said the Crown would look at launching confiscation proceedings against Webber to recover some of the money.

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Further IT embarrassment for RBS

Press Association — 2013-05-24T07:04:00+00:00

Filed under: Savings & ISAs

RBS was hit by another embarrassing IT failure that left customers using its popular mobile app unable to access their accounts online.

Two million customers at the taxpayer-backed bank, which includes NatWest, have the app on smartphones and tablet computers, and many took to Twitter to express frustration after they were unable to use it to check their money.
RBS apologised over the glitch as it scrambled to restore the service. A spokesman later said the app was working again. It appeared to have been out for around two and a half hours.

The failure follows an IT fiasco last summer that saw payments go awry, wages appear to go missing and home purchases and holidays interrupted, and has already cost the bank £175 million in costs and compensation.
The setback is the latest bump in the road for RBS, which is 81% publicly owned, as hopes rise that it can soon be returned to the private sector after being rescued at the height of the financial crisis.

Its latest annual results saw it record losses of £5.2 billion, driven by a £390 million settlement for rate-fixing, £1.1 billion provision for mis-selling, and the IT problems of June and July 2012.

The new glitch is particularly embarrassing as the bank is looking to shift its focus towards online customers. Last week it announced that it was cutting 1,400 jobs in its retail arm as it moved investment into "things that matter most to customers" including mobile and online services.

It has been encouraging customers to use the technology, sending out tweets such as one two days ago which read: "Is it easy to pay someone with your bank's mobile app? It's simple with RBS."

Frustrated customers described how they tried to access the app but were told there was no internet connection - although other apps were working. One said he had been logged out in the middle of a transaction. He received a response from RBS apologising and telling him to "try again later".

Another Twitter user wrote: "RBS app decides to play up on the 1 day of the month I need to know whether it's payday or not." A further tweet said: "Pointless having the #rbs app on my phone because it hardly ever works."

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Should I Buy National Grid Plc Or Centrica PLC?

The Motley Fool — 2013-05-24T06:55:00+00:00

Filed under: Investing

Utility firms National Grid (LSE: NG) (NYSE: NGG.US) and Centrica (LSE: CNA) (NASDAQOTH: CPYYY.US) have long been favoured for investors for their generous dividends, but rising markets have pushed these companies' share prices up by around 25% over the last year.

Which share would make the better buy for a dividend portfolio?

National Grid vs Centrica

I'm going to start with a look at a few key statistics that can be used to provide a quick comparison of these two companies, based on their last published results:

	National Grid	Centrica
Price to earnings ratio (P/E)	14.7	14.4
Dividend yield	5.0%	4.2%
5-year average dividend yield	5.9%	4.7%
5-year average dividend growth rate	3.8%	7.2%

National Grid's share price lagged behind the FTSE 100 last year, due to uncertainty over whether the firm's dividend might be cut when new regulatory pricing controls came into force in April.

As it turned out, this wasn't the case and, in March,, National Grid confirmed that it will target dividend growth "at least in line with the rate of RPI inflation each year for the foreseeable future", cementing its position as a top dividend stock.

Centrica's different

Just 40% of Centrica's operating profit came from its regulated British Gas business last year, while 45% came from its unregulated oil and gas production business, making it quite different to National Grid.

Although Centrica's dividend yield is lower than National Grid's, it has grown faster over the last five years, rising by an average of 7.2% per year, versus 3.8% for National Grid.

It's also worth noting that Centrica's dividend has been covered by free cash flow for four of the last six years, whereas National Grid's has only been covered by free cash flow twice, during the same period.

What's next?

Will National Grid and Centrica be able to maintain their inflation-beating dividend growth?

Analysts' forecasts are notoriously unreliable, but FTSE 100 companies generally get the benefit of the most comprehensive analysis, and tend to deliver fewer surprises than smaller companies.

With that in mind, let's take a look at some forward-looking numbers for National Grid and Centrica:

	National Grid	Centrica
Forecast P/E ratio	15.4	14.0
Forecast dividend yield	5.1%	4.4%
Forecast dividend growth	3%	5.5%
Forecast earnings growth	-4%	3%

Centrica seems likely to provide a higher rate of dividend growth than National Grid, and is also expected to manage to grow its adjusted earnings this year, unlike National Grid.

Which share should I buy?

I think that both companies look attractive buys, and should offer reliable dividends.

For anyone without much exposure to oil and gas, I might suggest Centrica, but if you already have enough exposure to this sector, then National Grid might be a better buy.

The best FTSE 100 dividends?

National Grid and Centrica are both tempting income buys, but only one of these utility stocks was selected for the Motley Fool's latest special report, "5 Shares To Retire On".

The Fool's team of expert analysts crunched the numbers on every share in the FTSE 100 when researching this free report, and the five companies they chose all offer high-quality, reliable dividends.

If you would like to know the identity of these five top-rated dividend investments, click here now to download your copy of this report -- it's free, but availability is strictly limited, so don't delay.

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What's McDonald's selling with 1,142 calories?

Sarah Coles — 2013-05-24T06:19:00+00:00

Filed under: Shopping & Deals

McDonald's has created its highest-calorie product of all time. The Mega Potato is an extra-large box of fries - around twice a large portion, and contains an incredible 1,142 calories.

So why the launch, and will it take off?

Mega Potato

The new item was unveiled in Japan Today. It's only available for a limited time - and is actually the second time it has featured on the Japanese menu, at a cost of roughly £5.

In calorie terms its something of a blockbuster - coming in way above calorie-laden favourites like the 440 calorie double cheeseburger and the 460 calorie large french fries. At 1,142 calories, it's more than half the recommended daily calorie intake for a woman.

However, it's worth adding a bit of context. It has been launched as a product that's 'perfect for sharing', and the photo advertising the product shows four people tucking into it. If you decided to go it alone with a mega potato, the chances are that they would cool down and go soggy before you got to the end anyway.

The question is whether is will be bought as intended, or whether it will encourage people to pig out. eRocketnews24 has highlighted an odd trend for consuming massive portions of fries at so-called potato parties - complete with photographs. At these sorts of events, the mega potato wouldn't even touch the sides.

Will it take off?

There are doubts, however, whether the company would risk rolling the product out elsewhere. In Japan, obesity is less of a hot potato than in other countries. In the US and UK, McDonald's has been working hard to emphasise that it's possible to eat relatively healthily at the chain. The addition of a bucket of chips to the menu might not help that particular cause.

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'Smart shoppers' cutting food bills

Press Association — 2013-05-24T05:30:00+00:00

Filed under: Shopping & Deals

Shoppers are visiting two or more supermarkets in the same trip and almost half are reducing food waste in efforts to save money, according to a study.

Almost seven in 10 food and grocery shoppers (68%) said they were now prioritising saving money, the IGD ShopperVista research revealed.
The poll revealed 42% of shoppers have visited two or more supermarkets in the same shopping trip during the last month, 48% are reducing food waste to save money and 29% have paid for their shopping in two parts to benefit from a loyalty scheme or promotion over the last year.

Nearly half of consumers (46%) say planning and budgeting is a higher priority now, with 57% of those with children - regardless of social class - saying they put more effort into their shopping to maintain quality while keeping costs down.
IGD chief executive Joanne Denney-Finch said: "Just because people are interested in saving money it doesn't mean they have to compromise on the quality of their food. Smart shoppers are finding imaginative ways to save money and maintain quality at the same time.

"As well as planning better, reducing food waste and cooking from scratch, shoppers are becoming more creative. This includes going to more than one store in a single shopping trip, as they continue to find ways to secure the best value during the downturn.

"Smartphones, money-saving websites and apps have helped people make more informed choices and find the deals and promotions that allow them to save money while maintaining quality.

"The best companies are working with shoppers to help them stretch their money further without sacrificing quality."

IGD surveyed 1,000 consumers between March 1 and March 31.

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Flybe quits Gatwick Airport flights

Press Association — 2013-05-24T05:00:00+00:00

Filed under: Holidays

Struggling regional airline Flybe is quitting Gatwick Airport by selling its runway space there to budget rival easyJet for £20 million.

The Exeter-based carrier, which currently flies about 340 flights a week between Gatwick and destinations around the UK, said its pilots have agreed a 5% pay cut, while it will also cut more jobs.

It recently warned annual losses for the year to March will be deeper than feared at around £23 million as it is squeezed by higher fuel costs and the tough economy.

Flybe will cease flights from Gatwick next March, where it currently flies more than half a million passengers to destinations around the UK. EasyJet today said it will review the routes, but there is no obligation for it to maintain them.
Flybe is selling the 25 pairs of take-off and landing slots to raise vital funds after struggling badly during the downturn. It blamed higher taxes and "discriminatory pricing" at Gatwick, owed by private equity and sovereign wealth funds, for its decision to quit the airport.

Flybe flies to and from Newcastle, Jersey, the Isle of Man, Inverness, Guernsey, Belfast and Newquay from Gatwick. It flew 550,000 passengers from the airport in its latest financial year. It said there will be no change to the routes' frequency or timings while it still operates the slots.

EasyJet's purchase will bolster its presence to almost half the slots at Gatwick, its biggest base, where it already has more than 41% of runway space. The airline has reported surging growth despite the squeeze on consumer income as it capitalises on rivals' woes.

Flybe also revealed another 80 redundancies, on top of almost 600 staff - or 22% of its workforce - who have been axed so far as part of plans to save at least £35 million a year. The airline has delayed the purchase of 16 new aircraft from Embraer, saving £20 million in payments this year.

Its 650 pilots, most of whom are in the British Airline Pilots Association, have agreed in principle to take a 5% salary cut in return for extra time off, it added.

Flybe said: "It is the view of the board that the increase in charges, combined with the penalistic levels of air passenger duty imposed on UK domestic airlines by successive governments, have resulted in Flybe's services to and from Gatwick becoming unsustainable in the long term."

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Controversial pension plan shelved

Press Association — 2013-05-24T04:30:00+00:00

Filed under: Pensions

European plans to impose "damaging and reckless" new rules on pension scheme funding have been shelved.

Pensions Minister Steve Webb welcomed EU Commissioner Michel Barnier's decision to postpone plans to impose the rules, known as Solvency II, on defined benefit (DB) pension schemes.

Fears had been raised that the rules would add as much as £400 billion on to UK pension shortfalls.

The European Insurance and Occupational Pensions Authority (EIOPA) had been looking at rules to assess the solvency of pension funds, which providers said would ramp up their costs as more funding would need to be injected.
The Commissioner said he will not present proposals this autumn to bring in new capital requirements for occupational pensions, though he would focus on governance, transparency and reporting requirements.

The National Association of Pension Funds (NAPF) said the solvency rules will become a task for the next commissioner who will take office in November 2014.

Minister for Pensions Steve Webb said: "This is a welcome move by the commissioner, and is hopefully a sign he may eventually abandon his damaging and reckless plans altogether.

"Introducing Solvency II-style rules for defined benefit pension schemes would push up liabilities by up to £400 billion, harming businesses' ability to invest, grow and create jobs, and put more schemes at risk. The UK has been making the case against the plans for some time, with growing international agreement. The signs are we are winning the argument."

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James Walsh of NAPF said: "The great diversity of pension systems across the EU makes it very difficult to devise a 'one size fits all' system. We welcome Commissioner Barnier's sensible decision not to go ahead with new rules on pension scheme funding. This is good news for British pension schemes.

"The proposals could have increased UK defined benefit pension deficits by 50%, causing great damage to pension schemes and their sponsoring employers."

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Superb tops car owners' favourites

Press Association — 2013-05-24T04:00:00+00:00

Filed under: Motoring

The aptly-named Skoda Superb is the car that owners are most satisfied with, according to a survey.

And another Skoda model - the Yeti - was second in the list compiled from owners' views by What Car? and information services company JD Power and Associates.

Third in the list was the Jaguar XF, with equal fourth place being occupied by the Citroen DS3 and the Lexus RX .

The 116th and bottom-placed car was the Chevrolet Spark, with the Alfa Romeo Mito in 115th place and the Fiat Grande Punto/Evo 114th.
The top models' table was based on responses from more than 16,000 UK car-owners who were also asked to name the car company they were most satisfied with.

Topping the company list was Jaguar, followed in second place by Lexus, with Honda third, Skoda fourth and Mercedes-Benz fifth.

Bottom of the 27-company list was Chevrolet, with Alfa Romeo 26th and Mitsubishi 25th.

The Volkswagen Fox was considered the best city car, Citroen DS3 the best supermini, Toyota Prius the best small family car and the Skoda Superb the best family car/compact executive.

The Jaguar XF was the best executive car, the Mercedes-Benz B-Class the best MPV, the Skoda Yeti the best compact SUV and the Lexus RX the best large SUV.

Commenting on the company list, What Car? editor-in-chief Chas Hallett said: "This is another great achievement for everyone at Jaguar. This study shows that customers are really satisfied with their Jaguars."

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'Indoor beach' among oddest claims

Press Association — 2013-05-24T03:30:00+00:00

Filed under: House Prices

A holiday home insurer has revealed some of its strangest ever claims, including a swan crashing through the roof and guests creating an "indoor beach".

Provider Schofields said that one of the most unusual claims it saw was from a holiday home owner in Spain, whose guests aged in their 20s had brought the beach indoors by piling sand and water into the house.
The guests said they had done this because their local beach "hadn't lived up to their expectations".

In another case, a holiday cottage in the UK needed to be redecorated because the guests decided to hold an indoor barbecue, due to the poor British weather.

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Charity warns of 'bailiff boom'

Press Association — 2013-05-24T03:00:00+00:00

Filed under: Debt

Fears of a "bailiff boom" as soaring numbers of people struggle to cope with council tax benefit cuts have been raised by a debt advice charity.

Citizens Advice warned that "many more" vulnerable people were in danger of being pushed into the hands of bailiffs, which it said often overstated their powers, acted aggressively and piled on excessive fees and charges.

The charity was seeing evidence that the number of people worried about paying their council tax had "rocketed" since Government welfare reforms were introduced last month.

Some 37,000 people consulted its online advice pages about council tax in April - representing an 87% increase compared with the same month last year. The charity said that anecdotally, increasing numbers of people were coming through the doors of some of its bureaux who were struggling to pay their council tax, although it was too early to give figures at this stage.
Council tax benefit was replaced by council tax support last month, which allows councils in England to run their own schemes but on 10% less funding than they had previously. Citizens Advice warned that the changes risked stoking a "boom time for bailiffs". It was braced for an influx of people being chased by bailiffs after being pushed into arrears by the changes and urged councils to use them only as a "last resort".

Citizens Advice said it had seen a 38% increase in complaints about private bailiffs over the last five years. Almost nine in 10 bailiff problems the charity deals with relate to private bailiffs, who collect debts such as council tax and parking penalties. One third of the 60,000-plus complaints the charity received in the last financial year about bailiffs were related to people with council tax debts.

The charity's chief executive, Gillian Guy, said: "Bailiffs will see their profits rise at the expense of hard-pressed households. We're concerned that changes to council tax benefit will mean more people will end up in debt because they can't pay their bill and have the bailiff knocking at the door. The number of people worried about council tax is up 87% since the changes came in, and this will climb even higher as more people find it difficult to cope with the costs. Bailiffs often overstate their powers, deliberately frighten debtors and charge extortionate fees."

Citizens Advice wants councils to sign up to a "good practice" document which was drawn up jointly with the Local Government Association (LGA) and aims to strengthen co-operation between councils and debt advice bodies and lessen the chances of councils turning to bailiffs.

Local government minister Brandon Lewis said: "Spending on council tax benefit doubled under the last administration, costing taxpayers £4 billion a year - equivalent to almost £180 a year per household. Welfare reform is vital to tackle the budget deficit. Our reforms to localise council tax support now give councils stronger incentives to support local firms, cut fraud, promote local enterprise and get people into work. We are ending the 'something for nothing' culture and making work pay. Councils have set up their own council tax support schemes and should have taken into account the impact on vulnerable people. For those facing genuine hardship, there are free advice services who can offer help and support, and many councils have put in place hardship funds to provide financial assistance to people in difficult circumstances."

Mr Lewis said it is important for councils to be sympathetic to those in "genuine hardship" and take proportionate enforcement action and not overuse bailiffs. He said: "The coalition Government has taken action to rein in aggressive bailiffs."

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Updates from Smiths Group and Close Bros

Adrian Holliday — 2013-05-24T02:47:00+00:00

Filed under: Investing

A sharp tumble for the FTSE 100: the index plunged -2.10% yesterday, slipping almost 144 points to 6,696 following negative comment from the head of the US Federal Reserve, plus worrying China manufacturing numbers. Aggreko was the worst hit, down -5.59%.

Overnight, Japan's Nikkei 225 plunged more than -3% as trading nerves continued.
First, an interim from technology player Smiths Group. In the nine months to 4 May Smiths says it saw underlying revenue expand across all divisions with underlying headline operating profit ahead of the same period last year.

Headline operating margin improved in all divisions bar Smiths Medical which invested substantially more in sales and marketing in higher growth markets and incurred additional expense from the US medical device tax, says the company.

Overall, expectations for the year remain in line with the outlook given at the interim numbers in March, albeit with a slightly different mix by division. At 4 May, net debt was £891m, up from £855m at 31 January, reflecting the interim dividend pay-out and tough foreign exchange gusts.

Next, an interim from Close Brothers Group. Close claims its Banking division saw its loan book increase to £4.5bn, up +9% year to date; Winterflood, its securities arm, has seen an improvement in trading volumes and Assets under Management increase +4% to £9.2bn.

The banking loan book is upped +2% to £4.5bn (31 January 2013: £4.4bn), driven by growth in motor finance and the Commercial businesses. Growth remains solid "but slightly lower than last year" due to a moderation in demand in some of its markets.

But while trading volumes have increased "Winterflood has not yet seen a sustained improvement in retail investor risk appetite," Close says, "particularly in the AIM and small cap sectors, but remains well positioned to benefit as conditions improve."

Finally, chemicals maker Croda says it has completed its acquisition of the Specialty Products business of Arizona Chemical based in Jacksonville, Florida. Croda claims the acquisition should expand its footprint in polymers.

"This acquisition represents further progress in our strategy to acquire complementary new technologies," says Keith Layden, Croda's Chief Technology Officer. "The varied functionality of these specialised polyamides will be a valuable addition to our offerings across both the Consumer Care and Performance Technologies market sectors."

No manufacturing assets will be acquired as part of the buy. Morgan Stanley reissued an overweight rating on Croda International (LON: CRDA) in a research report issued in mid May.

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Mother guilty of benefits fraud

Press Association — 2013-05-24T02:30:00+00:00

Filed under: Scams & Fraud

A woman has been found guilty of fraudulently pocketing more than £350,000 in benefits and tax credits by claiming her children had disabilities and conditions.

The mother, who cannot be named for legal reasons, was responsible for one of the biggest single benefit fraud overpayments recorded, according to Department for Work and Pensions (DWP) officials.
She made claims for benefits on the basis that some of her children suffered various disabilities and conditions which affected their care and mobility needs.

But a five-week trial heard that despite the reputed health problems, the children led active lives, taking part in PE classes and other activities, including music, drama and dance, without signs of difficulties.
Some also attended fee-paying schools and performed in professional productions on television and on stage, including in well-known musicals, jurors heard. Prosecutors said that the acting, dancing and singing required for the roles were inconsistent with the care and mobility described in claims for disability living allowance (DLA).

The woman received an overpayment of benefits to which she was not entitled of around £353,000 over an eight-year period from 2002 and at the time of her arrest lived in a seven-bedroom property. The false payments relate to DLA, carer's allowance, tax credits and housing and council tax benefit.

She denied 24 counts including fraud, obtaining a money transfer by deception and obtaining property by deception but was convicted on all but one count - making a false representation.

Remanding the mother into custody until sentencing on Friday morning, the judge said she would face a "substantial custodial sentence" as he described her as a "very dishonest woman".

The mother shook her head in the dock as the jury foreman returned overwhelmingly guilty verdicts after the jury had deliberated for just over two days.

The judge told her: "You have been convicted by the unanimous verdicts of the jury on clear evidence of serious offences of dishonesty involving deceiving the public purse and the taxpayer of around £350,000 over a period of some 10 years."

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Tata Steel plunges into the red

Press Association — 2013-05-24T02:00:00+00:00

Filed under: Investing

India's Tata Steel has plunged into the red with losses of £840 million after wiping £1 billion off the value of its European arm, which employs 18,500 people in the UK.

The overall post-tax figure for the group represents a sharp fall from the previous year's £642 million profit, and is largely accounted for by the write-down.
Tata said "severely depressed conditions" in Europe and the UK had left steel demand almost 30% lower than 2008 pre-recession levels - leading to last week's move - though underlying performance in the region had improved with increased volumes in the last quarter.

The company did not give a pre-tax profit figure for its European arm. The overall group figure, excluding the impairment, was £387.7 million in the black, down from £621.6 million.
Unions have said the company's woes will concern staff in the UK at sites including Port Talbot, Rotherham and Scunthorpe, which are still reeling from 900 job cuts last year.

Tata, which bought Anglo-Dutch steel giant Corus in 2007 for £6.2 billion, has endured a tough time during the downturn as demand from construction and car-making dived, forcing thousands of lay-offs and plant closures.

Its UK employees represent more than half of the company's European workforce. The firm announced its latest wave of redundancies in November, including 600 in South Wales, as part of a drive to cut costs.

Announcing the results, Tata said deliveries were down in its European operations over the year, largely due to repairs and outages, but that the re-lighting of a blast furnace at Port Talbot after a £220 million rebuild has helped performance in the fourth quarter.

The company said that it was continuing a programme of restructuring, cost-cutting and efficiency while also taking on 500 apprentices in the UK over the past couple of years.

Roy Rickhuss, from the Community trade union which represents many UK steel workers, said: "Whilst the last quarter shows there are some indications of improvement and the company have again today repeated there are no plans to cut back on investment or dispose of assets in the UK, the situation overall remains of concern to employees and their families." He said Michael Leahy, the union's general secretary, had arranged to meet the Tata Steel CEO, Karl Kohler, in London next week.

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How Marks and Spencer Group Plc Will Deliver Its Dividend

The Motley Fool — 2013-05-24T01:00:00+00:00

Filed under: Investing

I'm looking at some of your favourite FTSE 100 companies and examining how each will deliver their dividends.

Today, I'm putting iconic high street retailer Marks and Spencer Group (LSE: MKS) under the microscope.

Dividend history: cut #1

All was rosy with M&S in the mid-1990s. Within its final results for the year ended March 1998, the company was able to toast 5-year earnings-per-share (EPS) growth of 62% and dividend growth of 77%. The 1997/98 dividend was covered around twice by both adjusted and statutory EPS -- a healthy level of cover you might think, with little imminent risk to shareholders' income.

However, M&S suffered a terrible second half the following financial year. Profits collapsed, the final dividend was held flat, and the total dividend for the year (14.4p) was barely covered by adjusted EPS and uncovered by statutory EPS.

The next year -- 1999/2000 -- profits fell again as a result of restructuring charges. M&S slashed the dividend by 37.5%, the payout representing the entirety of the company's profits for the year.

Dividend history: cut #2

M&S was soon able to begin increasing the dividend again from the 'rebased' level, but it was not until 2005/6 that the payout got back to being twice covered by EPS -- although the dividend itself of 14p was still below the 1998/99 level. The company told us its dividend policy going forward:

"With dividend cover now restored to over two times, the Board's future policy is to grow dividends broadly in line with adjusted EPS growth for each half of the financial year".

Within two years M&S had increased the dividend to a record level of 22.5p ... then came the great recession. In announcing its 2008/9 results, the company said it would be rebasing the dividend to 15p -- a 33% cut, and almost back to the level of a decade ago. Shareholders heard a familiar refrain:

"The Board's policy regarding future dividends is to re-build cover towards two times and thereafter, to grow dividends in line with adjusted EPS".

The current state of play

M&S has paid a dividend of 17p a share for each of the last three years. The table below shows how the payout has measured up against the policy of having a twice-covered dividend growing in line with adjusted EPS.

	2010/11	2011/12	2012/13	2013/14 forecasts	2014/15 forecasts
Adjusted EPS (p)	34.8	34.9	32.7	34.6	37.3
Dividend per share (p)	17.0	17.0	17.0	17.9	19.0
Dividend cover	2.0x	2.1x	1.9x	1.9x	2.0x

As the table shows, M&S has paid dividends in line with its policy over the past three years. Analyst dividend expectations for the next two years of 5-6% annual growth are also in line with the company's twice-covered-by-earnings target -- assuming, of course, that the analyst earnings forecasts are on the money.

Summing up

M&S may not have grown its dividend over the past three years, but the dividend has been covered around two times by earnings as per the Board's policy, and analyst expectations for the next two years don't look unreasonable.

However, as I've shown you, M&S's earnings in the past have been capable of taking a sudden and dramatic turn for the worse, with a consequent unwelcome effect on the dividend.

This is not unique to M&S, but something to which companies in the general retailer sector are broadly vulnerable. The sector is invariably one of the hardest hit during recessions, but even when economic conditions are benign there are so many ways for businesses that rely on the fickle consumer and fast-changing fashions to get their offer wrong.

Investors who are particularly interested in a steadily growing income should bear in mind that M&S -- and other general retailers -- are always likely to give you a bumpy dividend ride.

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Our top analysts have identified a select handful of blue-chip companies as "5 Shares To Retire On". The fab five, which include a utility group "with nearly guaranteed returns" and a healthcare company with "prodigious cash generation", are some of the highest-quality businesses you'll find within the FTSE 100.

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