Category Archives: Money

Ofgem Has Changed Its Energy Cap Policy Again. Here’s Why It Matters

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Energy regulator Ofgem has confirmed a major policy change today which could impact your bills, yet again.

Now the price cap will be updated quarterly (every three months) instead of every six months, in a bid to prevent large-scale disruption.

The cap was set out in law in 2018, and reflects the maximum suppliers can charge consumers per unit of energy.

It means suppliers can only take 1.9% as profit, but it’s not a cap on the maximum bill a household can be charged, as this is based on their usage.

While it may seem like an insignificant change in policy, it will have a substantial impact on your bills. Here’s what you need to know.

How important is the price cap?

Ofgem made headlines when it raised the price cap in April, meaning every household had to pay more for their annual energy bills.

The average household had to then start paying £700 more for their yearly annual bills, raising them to a record £1,971 (it was previously £1,227).

For many, this is seen as the start of the cost of living crisis.

While the cap stops prices rising and falling dramatically for consumers as wholesale prices go up, it does mean the cost of living is likely to only get harder in the short-term.

However, when wholesale prices fall, the reductions will be passed on the customers as Ofgem should lower the price cap. This will happen more quickly with the quarterly price cap.

The cap was set to rise again come October (to a staggering £3,358 a year according to analysts Cornwall Insight) but this policy change from Ofgem means the next price cap level will be published at the end of August.

Why has this changed?

Ofgem say this change prevents the cost of both gas and electricity lagging behind changes in the market, but admits the market is currently “volatile” so the price cap methodology is to be kept under review.

Ofgem CEO Jonathan Brearley acknowledged that “this situation is deeply worrying for many people”.

He then blamed Moscow’s decision to squeeze its gas supply to mainland Europe, which has a knock-on effect for the UK.

“As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before,” he said.

“And that means the cost of supplying electricity and gas to homes has increased considerably.

“The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.”

He said this change means consumers will pay the “real cost of the energy”, but added: “We will keep working closely with the government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”

Why has the change been heavily criticised?

Back in May, MoneySavingExpert Martin Lewis laid into Ofgem’s early proposals to review the price cap every three months, rather than every six.

Explaining how he had lashed out at the regulator over the suggestions in a Twitter thread, he said the changes were “a fucking disgrace that sells consumers down the river”.

He apologised for his outburst, explaining: “I should’ve behaved better. My ire’s institutional not individual, it was inappropriate.”

However, Lewis claimed the changes would bring “dire consequences for consumers”.

Cornwall Insight also predicts that the energy price cap will go up to £3,615 in January. For comparison, it was £1,400 a year in October 2021.

MPs already called on the government at the end of July to take urgent action to help households amid warnings that prices will soar this autumn.

“Once again, the energy crisis is racing ahead of the government,” said Darren Jones, the chair of the business, energy and industrial strategy committee.

“To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.”

With this new policy change confirmed and the new price cap looming at the end of August, this threat of “unmanageable debt” is likely to only creep closer.

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Don’t Pay: The Campaign Group Calling On Brits To Stop Paying Energy Bills

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A campaign group is calling for people to stop paying their energy bills – and it comes as BP reported its biggest quarterly profit for 14 years.

The UK is in the midst of a cost of living crisis, with prices for petrol and gas soaring for British households. Typical household energy bills are expected to be more than £3,600 this winter, with bills set to rise again in October.

Suppliers have blamed the war in Ukraine and surging wholesale prices for the hikes, but on social media, some have dubbed the current situation “the cost of greed crisis”.

BP recorded a profit of $8.45bn (£6.9bn) between April and June, more than triple the amount it made in the same period last year. And it is not the only energy firm to report a staggering profit – both British Gas owner Centrica and rival Shell have recorded huge earnings recently, too.

Rising energy bills are one of the main reasons for the cost of living crisis. The government did introduce a one-off windfall tax on oil and gas companies in July, but it does not apply to profits announced by BP and other energy firms between April and June.

And as more households continue to struggle to pay bills, people aren’t happy – which is why the ‘Don’t Pay’ campaign is demanding action.

The campaign group is trying to get at least one million people to pledge not to pay their energy bills if the government continues with its goal to increase the price cap on October 1.

“We started this campaign because we were worried about how we will pay our energy bills. Everyone around us is struggling and we know it will only get worse with no end in sight,” the campaign group says.

“So far around 1,300 people have expressed an interest to become an organiser in their town, village and city. From there we will fan out the campaign with a local presence.”

Speaking on ITV’s programme Peston, money saving expert Martin Lewis previously warned a bill payment strike could be on the horizon.

“The big movement that I am seeing is an increase of growth in people calling for a non-payment of energy bills, mass non-payment. Effectively a consumer strike on energy bills and getting rid of the legitimacy of paying that,” he said. “It’s small at the moment, there’s a Twitter handle with about 5,000 followers.

“We are getting close to a Poll Tax moment on energy bills coming into October and we need the Government to get a handle on that, because once it starts becoming socially acceptable not to pay energy bills people will stop paying energy bills and you’re not going to cut everyone off.”

‘Don’t Pay UK’ began trending on Twitter following the BP profit release, but there are some things you need to consider before taking part in the protest.

What are the risks of taking part?

Of course, not paying your bills will have some consequences and you’ll need to look at the terms and conditions for your individual energy supplier to see what these may be.

SSE Energy, for example, says it will try to contact customers first regarding unpaid bills, but adds: “In some cases we might also try to visit you at home to work out the best way to pay, but we’ll add the cost of this visit to your account.

“We may take a case to court to obtain a warrant to enter your home. We don’t want to, but sometimes we’re left with no choice.”

Similarly, British Gas says it may do the following when met with unpaid bills:

  • Pass your details to a debt collection agency

  • Apply for a warrant to install a Pay As You Go meter to make it easier to pay back the money you owe

  • If possible, switch your smart meter to a smart Pay As You Go meter remotely.

Utility Bidder says if you haven’t paid a bill for 28 days, you cannot come to a repayment agreement and you refuse to have a prepayment meter installed without good reason, “your provider can disconnect your power supply”.

It’s worth noting that the Don’t Pay campaign is discouraging anyone on prepayment meters who face self-disconnection if their credit runs out to get involved. This also goes for those whose energy bills are included in rent and risk eviction if bills go unpaid. Instead, they want those people to support them online.

If you are struggling to afford your energy bills, you should follow the advice set up by Citizen’s Advice.

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This Is How Much Debt Maternity Leave Is Putting Women In

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Babies can come at the most surprising moments in life. And for many people, they arrive at a point where your personal finances aren’t at their strongest.

In fact, some women entering maternity leave are doing so without any savings at all.

Reduced pay during this time coupled with the costs of a newborn means many mums have to borrow money to get by. And some are being left in debt.

A study of parents by finance company Credit Karma found that a quarter of parents get into maternity leave without any money saved, while 26% of women get into debt while on their maternity leave.

The amount in borrowing has increased by £560 since 2018, the company says, taking the average borrowed per parent up to £2,800.

Those with student loans face the harshest outcomes as the interest rate on those loans remains seriously high while they are on leave and unable to pay it off.

Credit Karma said women with interest loans accrue an average of £1,770 loan interest in just six months of leave.

Given the cost of living crisis, which is seeing bills go up as never before, this paints a dire picture for new parents.

Akansha Nath, head of partnerships at Credit Karma UK said: “Women are often disadvantaged financially throughout their life, and the responsibility to give birth plays a huge role in this gender disparity.

“At a time when the cost of living is affecting most people, and every penny counts, it’s more important than ever that women take advantage of any support available to them.”

These debts, even if eventually paid off, can then follow women into life, affecting their credit score and therefore their ability to buy homes and other goods.

Credit Karma said maternity-affected credit scores can set women back an average £17,000 in interest over the course of their lifetimes.

If you are struggling with maternity debt, there are resources that can help.

Step Change has a benefit checker, as well as list of grants available to expectant parents. The website also offers free money management tools designed to help people with their finances, without judgement.

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People Are Muting Their Favourite Influencers. They Tell Us Why

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Instagram and influencers – it’s difficult to imagine one without the other. I’ve happily followed fashion influencers on Instagram since I first downloaded the app in 2014. And there’s no doubt the limited representation of Black women in mainstream media made me feel connected to Black influencers specifically.

These were the people I ran to for makeup recommendations, to ogle their clothing choices and tap up their lifestyle content, from food to travel. I’ve kept up with everything my favourite influencers are wearing and buying for years.

That is, until the pandemic.

It was during lockdown when I started feeling less inclined to scroll influencer content. This was partly because my own life, like many others at the time, wasn’t where I wanted it to be. I was job-hunting, while freelancing through a pandemic. It was difficult and I wanted social media to be a form of escapism.

But the content I’d once found aspirational began to feel out of touch. Seeing people the same age as me buying things I couldn’t afford didn’t want to make me want to work harder – it made me feel like I was doing something wrong.

I knew the influencers weren’t really the problem, but I had to control how they were leaving me feeling. As someone who spends a lot of time on social media, it was up to me to decide which content I wanted to consume.

So I started to unfollow or mute some of their accounts.

Like me, Toju, a 21-year old student from Glasgow, also noticed a shift during the Covid lockdowns in how she felt about the influencers she followed.

These were the weeks and months when it was easy to think other people had more space, more time, were being more productive or having more fun than you, despite the challenges we were all facing. Remember when it seemed like every past Love Island contestant ever was in Dubai over Christmas 2021?

“During that time, a lot of influencers were travelling or just living very different lives to me,” she says. “I’ve also recently felt a shift again this year as more influencers have moved towards luxury or designer items in their content.”

More influencers that ever seem to be publishing elevated content, from showcasing their designer clothes and bags to eating out at expensive restaurants and generally living a life of luxury.

Of course, this content can be seen variously as aspirational or a form of escapism. It can also make you feel wholly inadequate in the here and now.

The cost of living crisis is playing out in real time. It’s hardly surprising Toju and many other social media users no longer feel inspired by influencer accounts.

“I can’t even be ‘influenced’ because these items are simply entirely out of my reach and budget, so I gain nothing but feelings of inadequacy from them,” she says.

“I’m seeing more things that would like to have but can’t afford on a daily basis, something I probably wouldn’t see if I wasn’t on social media.”

But the answer isn’t necessarily coming off social media entirely. It could just be changing who you do follow or which platforms you use and for what.

Data analyst, Hena J. Bryan, 25, a content creator herself, says that she’s put many of the influencers she used to follow on mute for over a year now.

“They just don’t align with a lot of the things I find important,” she says. “I think relatability, for me anyways, goes beyond finances, especially as I can afford the things they’re advertising. I want to discover more influencers who offer more than pretty pictures, and I’ve found a few who speak to my interests.”

Bryan creates content about the books she is reading and enjoys engaging with others doing the same. She adds: “I think people should curate their feed. You literally have to be militant and protect your digital footprint/experience.”

If you want to follow influencers, seek out those who genuinely speak to your interests.

SDI Productions via Getty Images

If you want to follow influencers, seek out those who genuinely speak to your interests.

It’s also worth being aware that how you engage with social media shifts over time. Akachi Priscilla Mbakwe, 32, a marketer from south London has lived online since her early teens. “I’ve been following influencers since I was on Tumblr,” she tells HuffPost UK. “People like Justine Skye who at the time were influencers, but the term wasn’t invented yet.”

When she was younger, Mbakwe says she followed people “for aspirational reasons”, and for their fashion and make-up content.

“I started to feel different in the pandemic especially during the resurgence of Black Lives Matter. I saw influencers uploading pictures of themselves whist the caption was about George Floyd – they just looked silly to me.”

There’s self-preservation at play here, too. “I started to unfollow influencers because I realised subconsciously that I was constantly comparing myself to them,” says Mbakwe. “Now I have such a better relationship with myself and how I look and I don’t want to compromise.

“I still look at them from time to time but not like I used to. Also, now I feel that most influencers make the same content. They’re all following the same formula. If you follow one it feels like you follow all of them.”

So, where does ultimate responsibility lie: with the followed or their followers?

Though the life of an influencer looks perfect, influencers themselves will tell you that sometimes it’s far from that. A lot of work goes on behind the scenes and many posters rely on rented or gifted products to project the image they do, some earning little more than the followers who aspire to their lifestyle.

“I don’t feel like influencers should change their content to suit us,” weighs in Mbakwe. “I think we (the consumers) should curate and have better boundaries with our feed if the content you’re viewing is making you feel bad.”

Bryan echoes this: “I believe we should all have social responsibility, but we shouldn’t have to force influencers to do/say things they don’t want to. You’re responsible for what you consume and I think TikTok has created a wave of new influencers who don’t lend themselves to perfectionism and are more relatable.”

With living costs only set to increase, it might be time for be more conscious about the content we choose to see. Arguably Influencers aren’t the ones to blame, just a byproduct of a capitalist society that rewards people for flaunting their wealth.

You have the power to choose who and what you engage with, so be honest about how your Instagram feed leaves you feeling – and make the changes you need.

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The Cost Of Living Is Crisis Is Biting Single People Hard, Too

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As the cost of living crisis hits the UK hard, there’s been a lot of focus on hard-up families struggling to pay bills, feed children and make ends meet.

But let’s not forget that the crisis is biting single people, too.

Single people on average are paying £7,564.50 a year more than their coupled-up counterparts on basic household outgoings, according to new analysis – a worrying situation considering living costs are only set to rise in 2022.

Ocean Finance has compared the typical monthly costs for single and coupled-up Brits including utility bills, rent and the monthly food shop, using data from the Office for National Statistics (ONS).

The analysis showed that household monthly bills are £363 more expensive for singles, with rent the biggest contributor.

A single person is paying, on average, £674 a month on rent in the UK and a couple only slightly more at £866 (or £433 per person). There is also a council tax gap – even factoring in the 25% single-person household discount, individuals with partners are paying considerably less than single friends.

This all adds up – with single Brits are paying an average of £630.30 more per month on outgoings than someone in a couple. The ONS estimates there are 7.9 million single-person households in the UK, meaning many are affected.

“The fact is, it is expensive to be single,” Nicola Slawson, founder of The Single Supplement newsletter, tells HuffPost UK.

“It is a totally overlooked problem that many people in relationships simply do not appreciate – and those in power certainly doesn’t seem to care.

Financial difference between singles and couples in the UK

Ocean Finance

Financial difference between singles and couples in the UK

Not being able to share your financial burden with somebody impacts all areas, says Slawson – from household bills, rent, council tax and insurance to the cost of furniture, white goods, and even the weekly food shop. “Most items come in sizes suitable for couples or families. For example, a ready meal designed for two works out cheaper than those made for one person,” she points out.

In turn, these expenses impact a single person’s ability to save for a mortgage and get on the property ladder, something she hears from her readers.

“There are increasing numbers of single people stuck in house shares even though they would love a place of their own but they simply can’t afford it.”

With the cost of living going up this year, the pressure on single people is only likely to worsen, Slawson worries. Take the issue of rising utility bills.

“If they live alone they have no-one to share the bills with and if they live in house shares, they don’t have total control over when things like the heating gets put on,” she says. “I know members of my community are feeling really anxious and are trying to work out where they can cut back but it’s hard.”

There is no shortage of advice being dished out on how to cut costs – partner with a friend, switch to a different tariff, even buy in bulk – but though usually well-intentioned, these tips don’t always help people, says Slawson.

“All the advice will say cancel Netlfix and go out less – but single people who live alone particularly need those things as they don’t have anyone to talk to at home.” But That respite comes at a price – Ocean Finance found single people pay £33 extra per month for multiple subscriptions to stream film and music.

Worse is the suggestion that single people should just go out and get a partner to ease the burden. “It’s not as easy as simply getting into a relationship,” says Slawson. “Many single people are actively looking for a relationship but struggling with dating apps and the sometimes toxic culture around dating.”

And she voices a final worry. “I think it’s also likely that it puts those in unhappy or abusive relationships off leaving because they are worried they simply won’t be able to afford to live alone.”

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Twitter Is Showing Molly Mae That We Don’t All Have The Same 24 Hours In A Day

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Love Island star Molly Mae, who was already an influencer before she entered the villa for the ITV dating show, has come under fire for her comments on a YouTube channel.

Speaking on Steven Barlett’s Diary of a CEO show, Mae explained how she became creative director of clothing brand PrettyLittleThing.

The 22-year-old, who is one of the UK’s most followed people on Instagram, was quizzed on several aspects of her life, including her relationship with Tommy Fury – the contestant she left the Love Island villa with, who she’s been seeing since. She also opened up about a recent burglary which saw the theft of prized items.

But the part which ruffled many feathers included a segment on hustle culture and entrepreneurship.

Citing the popular adage that ‘Beyonce has the same 24 hours as us’ as a motivator to just get things done, Mae told Barlett: “You have one life, it’s up to you what you do with it…I’ve worked my absolute arse off to get where I am today.”

Mae explained how she has had criticisms levelled at her in the past regarding this attitude, but doubled down saying: “Technically, that is correct, we do have the same 24 hours in a day.

“We do all come back from different backgrounds and financial situations, but if you want something enough, you can achieve it.”

The comments hit a nerve, though, as many pointed out that while we do in fact have the same amount of hours in a day, our opportunities, socio-economic background and general positions in life vary to Mae, a millionaire.

Many pointed out on Twitter the myths of meritocracy that Mae seemed to be championing – showing that the playing field isn’t level for all.

Others questioned her role as creative director of PLT – a brand regularly criticised for its fast fashion – asking whether they could simply achieve their dreams by working as hard as her.

And many, many more simply pointed out how ridiculous the whole “we all have the same hours in the day” idea is.

Sorry Molly Mae, this was not the inspirational talk we needed.

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This Is How Much Money You’re (Probably) Wasting On Bad Dates

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“Dating is a numbers game” has to be one of the most annoying phrases you hear when you’re single. Because bad dates can feel like a huge waste of time – and also a massive waste of money.

Adults in the UK spend an average of £47.50 on each first date, according to new research from the dating app Badoo. And the majority of singletons experience six failed romantic connections per year, where they know it’s not worth going past the first meeting.

The result? Daters are spending a massive £285 a year on bad dates.

The financial burden is just another example of the relationship wealth gap, which sees single people forced to spend more each year than those coupled up.

People living on their own spend an average of 92% of their disposable income, compared with two-adult households who spend only 83% of theirs, according to 2019 research by the Office for National Statistics (ONS). Paying for housing alone, for example, is a huge burden.

Faced with these challenges, it’s no wonder frittering away cash on yet another damp squib is impacting daters’ mental health. Over three quarters (78%) of those surveyed said wasting money contributes towards them feeling stressed and burnt out when dating.

So, what’s behind us having so many bad dates? Bad luck should not be overlooked, but being more upfront about what you want from a date could help rule out some of the time wasters and save some cold, hard cash.

A quarter (25%) of those surveyed said they find it hard to be honest about their dating intentions, and 27% admitted they often say what they think others want to hear. Meanwhile, 31% said they find it difficult to express what they’re looking for, for fear of what the other person will think of them.

The good news is that expensive drinks seem to be going out of fashion for first dates. Separate research from Tinder shows daters opted for more outdoorsy, adventurous activities in 2021, with hiking one of the most popular go-to first meets.

If that sounds a bit much for December, you could always wrap up warm and head to one of the UK’s Christmas markets this month. Hey, it works for rom-coms, and they’re always realistic…right?

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Christmas Is In 50 Days (Yes, Really). Here’s How To Get Organised

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Christmas is in 50 days, which means you’ve only got one more pay cheque before the big day itself. But don’t fret, if you get started early, you’ll be chilling when the festivities actually start.

So get your ducks in a row right now, instead of leaving it last minute and panicking, especially as prices start rising.

To help, we’ve created a handy guide for you to start thinking about the things you probably haven’t started thinking about yet.

Financial planner Makala Green and James Andrews, senior personal finance editor at money.co.uk, have given their top tips for a stress-free Christmas (yes, it’s possible). Here are the things you should start doing:

Make a Christmas budget

Green says list names of everyone who needs a present. If you’re struggling financially, try to make this as streamlined as possible by setting up a budget. Your loved ones would much rather you feel comfortable with your financial situation than spend money you don’t have. It’s okay to be honest about what you can afford.

Create a Christmas menu to help work out the food expenses and stick to it. If you haven’t booked an online shop (and you don’t want to shop in person) you’ll need to do that ASAP.

You can also note other festive miscellaneous costs such as decorations, wrapping paper, etc.

You might want to start thinking about your purchases now.

Bojan Vlahovic via Getty Images

You might want to start thinking about your purchases now.

Plan your Christmas purchases

You don’t want the costs of ‘next-day delivery’ adding up if you leave it too close to the big day (plus, things may be out of stock). So get ordering and get shopping now.

And if you find that your Christmas budget is tighter this year, you may need to prioritise purchases. Try to decide what is the most important thing to you at Christmas time – what are your essentials? Your Christmas can still be a wonderful time even if it’s stripped back a little. Perhaps cut down on the alcohol you’d usually buy? Or recycle last year’s Christmas decorations?

Plan your shopping days

There are seven weekends until Christmas day, so if you’re doing in-person shopping, try and do it as early as possible. If you’re more of an online shopper, then watch out for those flash sales.

Andrews, from money.co.uk, advises keeping those dates in mind.

He says: “It’s easiest to bag a bargain if you start your shopping early. Many shops announce their Black Friday and Cyber Monday deals in advance, so if you plan ahead you can make sure you take advantage of the biggest deals.

“If you’re running low on funds at the end of the month, so don’t have the cash to take advantage of Black Friday deals on the day, don’t worry. Several retailers run major discounts to shift their unsold stock right before Christmas, so if you hold out you could still be able to bag yourself a bargain.”

Plan your shopping days

Oscar Wong via Getty Images

Plan your shopping days

Check voucher codes and newsletter discounts

Take advantage of the resources already available to you, the internet has plenty of offers and gems (you can even use a free browser that finds the cheapest deals).

Andrews adds: “Before you even start on your Christmas purchases, it’s a good idea to scour the web to see if you can find any discount codes to bring the cost of your purchases down.

“Some major retailers will offer you a 5-15% discount on your first purchase if you sign up to their email newsletter, which you can always unsubscribe from at a later date.

“Alternatively, if you’re thinking of switching your mobile provider, bank account or credit card, some brands will give you gift cards, discount codes or cashback as an incentive to switch.

“Even if you’re not a new customer, you might still be eligible for some rewards schemes, so it’s always worth scouting around before you start spending.”

Cash in on freebies lying around

What did you do with those gift cards from your birthday or from last Christmas? If you haven’t used it up, now is your chance.

Find all the cards, coupons, and vouchers – don’t forget that some are on the app, and use them all up before they expire.

Don’t be tempted by ‘buy now, pay later schemes’

It’s easy to get sucked into the world of pay later schemes but it can certainly come at a cost. Andrews advises against using them.

He says: “Anyone shopping online will probably be aware of Buy Now Pay Later schemes. Shoppers can be drawn in by the promise of no interest, no fees and no late charges but what seems like a one stop fix could lead you into a lot of debt.

“But spreading purchases out over several weeks and potentially a string of BNPL providers can make keeping track of your cash harder.

“It’s essential you read the terms of conditions on any service you sign up to, especially when you’re taking out debt. If you have any uncertainty about whether you can pay off what you’re spending, you should steer clear of buy now pay later schemes.”

Get Christmas creative

Green adds that Christmas doesn’t have to be costly; get creative with presents and try hand-making to save money. Don’t forget there are seven weekends until the big day. Why not get started on a project which will be ready for Christmas? Making soap, pressing flowers and sticking them in a frame, creating a collage of your favourite memories all make for wonderful gifts which will last.

Just get started as soon as possible.

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This Is The Leg Up Young People Get If They Have Rich Parents

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Young adults with the richest parents are typically around six times as wealthy themselves as those who come from the poorest families, according to analysis.

The Institute for Fiscal Studies (IFS) explored the impact that wealthier parents have on transferring economic advantages on to their children in the UK.

By the time they were in their 30s, people born in the 1970s and 1980s, with parents in the wealthiest fifth in their generation, had average net wealth of £107,000, the think-tank said.

This was around six times the £18,000 held by those with parents in the poorest fifth in terms of wealth. The figures exclude pensions wealth.

The IFS’s findings suggest that the link between young adults’ wealth and that of their parents is stronger than the influence that parents’ earnings has.

Even among those whose parents have the same levels of earnings and education, people with wealthier parents tend to earn more, the IFS said.

People with wealthier parents also tend to save more as a portion of their earnings. The children of wealthier parents may receive more transfers and capital income on top of their earnings, and so are able to save some of this additional income.

Those with wealthier parents are also more likely to hold higher-risk, higher-return investments such as stocks and shares.

With many parents passing wealth down the generations, the children of the wealthiest fifth of parents are nearly three times as likely as those with average parental wealth to be in the wealthiest fifth within their own generation.

The research was funded by the Economic and Social Research Council.

This wealth divide also impact’s young people’s on the ability to get on the property ladder. Around two-thirds (65%) of those whose parents are in the top third of wealth distribution are homeowners by the age of 30. This compares with 56% and 41% for those whose parents were in the middle and bottom thirds, respectively.

David Sturrock, a senior research economist and author of the report said: “Policies that seek to improve educational progression and labour market outcomes for those with low education and low income parents could, if designed and implemented well, be important for wealth mobility but would not on their own equalise wealth outcomes between those with wealthier and poorer parents.

“A significant amount of the inequalities in wealth by parental background appear to be due to other channels through which parents transmit advantages to their children.”

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These 7 Tropical Destinations Are Cheaper Than UK Staycations

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You are reading Anywhere But Here, our summer-long series on travel at home and abroad, serving up the information and inspiration you need.

Staycations are all the rage right now for obvious reasons. But their prices? Not so great. In fact, new research by BBC Panorama and consumer group Which? found that trips around the UK can cost an average of £300 more per week in August compared to before the pandemic.

And if you were thinking of heading to Brighton – hold your horses, it looks to be the seaside resort with the highest prices, with average rental costs almost doubling.

For one night of self-catered accommodation for two people in Brighton, it would have been £109 in 2019, but is now £206 – a rise of 89% – according data by AirDNA, which monitors websites such as Airbnb and Vrbo.

Places in St Helier in Jersey increased by 76% from 2019, while Lyme Regis on the south coast jumped up 74%.

Which? also published the differences between trips in the UK and abroad, even with flights included. The group compared prices for late August getaways for two people in the UK and overses, looking at the cheapest, highly-rated hotel available in a central location, and transport costs.

Oh, you want to go to Cornwall? It's going to cost you.

Oh, you want to go to Cornwall? It’s going to cost you.

South of France versus Brighton

According to Which’s research, a coastal break in the UK, such as Brighton, will set you back £1,131, a hotel in Nice, in the south of France costs £1,085, and that’s with flights included.

Lake Garda, Italy versus Lake District

A week in Lake Windermere in England’s Lake District costs £2,424, compared to £802 for flights and accommodation for a week in Lake Garda in northern Italy.

Corfu versus Cornwall

Get ready to have your mind blown. For a luxury three-bedroom villa with an ocean view in Carbis Bay, you’re looking at £12,000 for weekend dates in mid September (it sleeps up to six people, so that’s £2,000 a person).

Meanwhile in Corfu, Greece, prices have only increased by 13%. Search the exact same dates for flights and a five-star hotel and you can find one for as little as £273 (and you’d save further if you were to share the hotel room).

Turkey versus Cheshire

For the first available weekend in September, you’re looking at £1,895 for a week’s holiday rentals in Delamere Forest, Cheshire (that’s for four bedrooms, two beds are currently sold out).

By comparison, the cost of private accommodation in Marmaris, Turkey, has increased by just 7% since 2019. A quick search on Kayak for the same September dates throws up flight and hotel deals for as little as £230 (so, for a family of four, you’d be looking at £920). Even with the PCR costs included, a trip to Marmaris would be cheaper.

Tenerife versus Dorset

A holiday home in Berehayes Farm in Dorset for two people can cost £655 (for four people, it’s £986). In comparison, you can stay in a five-star hotel near the beach in Tenerife for £210, including flights.

Costa del Sol, Spain versus Wales

The only holiday Which? found for this August that worked out cheaper in the UK than abroad was a beach break in Tenby, Wales, compared to Estepona, on the Costa del Sol in Spain – but only by £10.

The accommodation in Tenby was still more expensive than Estepona, costing £880 for seven nights in Tenby compared to £837 for seven nights in a similarly rated hotel in Estepona. Only transport costs made the Tenby break marginally cheaper, with the journey estimated at £43, while return flights to Estepona cost an estimated £96.

And just in case you were wondering what prices were like for trips further afield – you can fly to Dubai and stay in a bouji hotel (The Hilton Garden Inn) and it will only set you back £346 at the moment. Brilliant!

Travel is the story of our summer. The rules (and traffic lights) are always changing, but one thing’s clear, we dream of being Anywhere But Here. This seasonal series offers you clear-headed travel advice, ideas-packed staycation guides, clever swaps and hacks, and a healthy dose of wanderlust.

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