Weekly Money: the stories we noticed 4 to 8 January

The personal finance stories you may have missed this week

'Star Wars: The Force Awakens’ became the highest grossing film of all time, this week (Disney)

8 January

Campaigners claimed a major victory yesterday after MPs unanimously voted by 158 to 0 to help women hit by state pension age rises.

The House of Commons debate centred around the fact that some 2.6 million women had their state pension age delayed – in some cases twice, and by up to six years in total – without proper notice, leaving them no time to prepare adequately for their later retirement date.The women’s pension age was 60, but is increasing to 66 by 2020, in line with rising life expectations.

Launching the debate, SNP MP Mhaira Black urged the government to introduce transitional arrangements to help the women affected. She pointed out it affected women across the country and from all classes and said women were being "shafted and short changed" purely because of their gender and their birthdate.

After the three-hour debate, Anne Keen, co-founder of Women Against State Pension Inequality (WASPI) said: “That the motion was unanimously carried by a vote of 158 to 0 is an embarrassment to the Government’s position, and especially the intransigence of the Minister.”

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Two-thirds of Britons accessing their pension pots under new rights have simply chosen to cash them in, according to new figures that appear to confirm fears about the consequences of the Government’s controversial reforms.

The Financial Conduct Authority reported that of the 178,990 people who accessed their pension fund between July and September last year, 120,969 took the whole lot out.

Just 23,385 people – 13 per cent - used the money to buy a traditional annuity, which gives them an income for life. However, some people cashing in their pots may have invested it elsewhere - like in property, or an ISA.

The figures will increase fears that the new pension freedoms introduced last year could leave millions sleepwalking into a financial disaster in retirement.

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Investors concerned about volatile stock markets should diversify, advises Adrian Lowcock of Axa Wealth. Yesterday the Footsie fell 2 per cent and there are fears of a further sell-off on worries over the Chinese economy and rising tensions in the Middle East.

“More often than not stock markets fall with little warning, leaving investors suffering significant drops in the value of their investments. Acting after the event does little to restore the value of your portfolio,” Mr Lowcock pointed out.

“By having a well-diversified portfolio and holding funds where the managers look to protect capital from the effects of volatile markets means investors are better prepared for the next correction in stock markets whenever that will be.”

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There have been more cuts in loan rates. The AA has reduced its personal loan rates to 3.9 per cent and car loans to 4.1 per cent when you borrow between £7,500 and £15,000. Nationwide made similar reductions earlier this week.

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The fees on Santander’s 123 Current Account will climb 150 per cent on Monday. It means you’ll be charged £60 for the benefits the account offers, rather than the existing £24.

Is it worth switching? If you make the most of the cashback plus interest on savings, it may still be worthwhile staying with Santander, says Susan Hannums of SavingsChampion.co.uk. “The account pays up to 3 per cent cashback on bills and also pays 3 per cent on balances between £3,000 and £20,000,” said Ms Hannums.

,Alternatives include TSB’s Classic Plus Account which pays 5 per cent on balances up to £2,000 plus 5 per cent cashback on up to £100 of contactless payments a month.

7 January

Today’s parliamentary debate on the impact of the equalisation of the state pension age offers a glimmer of hope for women, says Aegon’s Kate Smith. “It would seem reasonable to allow women to take their state pension from the age they had expected, even if this comes at the cost of receiving a lower amount to compensate for earlier payment,” she said.

But Hargreaves Lansdown warned: “The question is whether the government will make any concessions, knowing that the cost could very quickly run into £billions, or stick to their guns and suffer the inevitable ill-feeling and negative publicity this would cause.”

TUC General Secretary Frances O’Grady said women have been let down by the inadequate pensions system in this country and have borne the brunt of flawed policy making. “We must not repeat the mistakes of the past,” she said. “The state pension age review should be overseen by an independent commission.”

Leading the debate in the House of Commons this afternoon will be SNP MP Mhairi Black, who said: “The pace of the changes in the pension age equalisation programme have placed an unfair burden on women.”

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Are you owed money by bust payday lender Cash Genie? Around £1.5m remains unclaimed by borrowers who were overcharged by the firm. If that’s you the liquidators RSM want to hear from you. Call 0333 366 0023.

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One in four British breadwinners with dependents has no life insurance, warns MoneySuperMarket. It means almost 8.5 million Brits run the risk of their families facing financial problems if they die.

Health and education workers are most at risk with two out of five having no life cover.

6 January

Millions of Britons are facing a financial struggle this month after overspending at Christmas, according to research published today.

Almost one in three of us felt pressured to spend more than we could afford just before and over the festive period, while one in 10 people have fallen into debt, or further into existing debt, as a result of spending too much, according to the Money Advice Service.

The problems will be worsened by the fact that almost half of all workers were paid early in December. That means that more than 13 million people will have a longer wait until their payday this month. The net result is that millions will be feeling anxious, worried or even depressed throughout January.

The Money Advice Service has created a Survive January toolkit to give you checklists, tips and advice to get your finances back on track in January.

Go to moneyadviceservice.org.uk/survive-january for more information and to sign up for updates.

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HSBC customers endured another day without online banking yesterday after the troubled bank failed to solve the technical glitches. "We are getting closer to solving the problem, but are not there yet," HSBC admitted. It said any fees incurred by customers will be waived and advised that those needing to make urgent payments should call 03457 404 404 while business customers should call 03457 60 60 60.

However the bank came in for scathing criticism from MP Andrew Tyrie, Chairman of the Treasury Committee. He said: “Barely six months after the last glitch in their under-performing IT systems, HSBC is apologising again to its customers.

“I will be asking the Chief Executive of HSBC, and the regulators, for an explanation of these failures, and action taken to sort them out. They just keep coming.”

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TalkTalk customers need to act fast to snap up the free upgrade offered by the firm as an apology for last year’s hacking scandal.

The deadline for claiming is tomorrow, Thursday 7 January and even those not directly affected by the security breach can claim a free upgrade. “Following the incident TalkTalk wouldn’t allow customers to cancel contracts without good reason so it’s definitely worth cashing in on the apology,” said Hannah Maundrell of money.co.uk.

You can apply for a free upgrade at TalkTalk.co.uk.

5 January

Thousands of HSBC customers had fresh difficulties accessing their online accounts yesterday. Problems began at 8am with customers unable to access online and mobile banking.

One fed-up customer told the Independent: “This is not good as I’m in the middle of trying to buy a house! Hope the whole chain doesn’t collapse.”

The bank restored mobile banking by noon and said: “We apologise for any inconvenience this may have caused and our teams are working non-stop to restore all other services. We will update our customers regularly.” Customers with problems should call 03457 404 404.

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Nationwide Building Society is today cutting its loan rate to 3.4 per cent – its lowest ever level. But it’s only available if you have your main current account with the mutual. If you don’t, you’ll be charged 4.6 per cent. The rates are being offered on loans between £7,000 and £15,000.

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M&S Bank is today launching a new reward-based current account offer which offers customers a chance to earn more than £316 in the first year.

Anyone transferring their current account to M&S Bank will get a £100 M&S Gift card plus £10 per month added to the gift card as long as they pay in a minimum of £1,000 each month and have a minimum of two direct debits set up.

There’s also a monthly savings account paying 6 per cent linked to the account: save the maximum £250 per month and you’ll earn interest of £96.63 gross in 12 months.

But Andrew Hagger of Moneycomms warns that the £10 per month incentive is for the first year only. “You should always consider the suitability of any current account based on the way you run your day to day finances,” he advises.

4 January

The level of reliance on debt to make ends meet has climbed to worrying levels. Consumers borrowed more money in the run up to Christmas than in any month since February 2008, at the height of the credit crunch woes.

The Bank of England's Money and Credit report for November reveals that the amount of cash being borrowed by consumers ahead of Christmas climbed by £1.5bn. The report shows that in November consumers owed a total of £178.2 billion on credit cards and loans.

The figures raised fresh concerns about a new and possibly unsustainable credit boom.

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Shock figures published today suggest the New Year may not prove happy for millions of families. Research by Shelter shows with a quarter of rent or mortgage paying parents in England is being forced to cut back on winter heating and clothing to meet housing costs.

One in ten parents fear they will be unable to pay their rent or mortgage this month, despite the fact that many have already cut back on Christmas to help meet their housing costs, including reducing their spending on presents and food.

The charity is urging anyone starting to have difficulties paying their rent or mortgage to get help as early as possible to avoid losing their home.

Shelter’s helpline adviser Danielle Goodwin said: “It never gets easier to hear a parent on the phone in tears, and at breaking point from the weight of their spiralling housing payments.

“But there’s no shame in asking for help. Getting advice early can make all the difference, and we’re only ever a click or a call away at shelter.org.uk/advice or on 0808 800 4444.”

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Today has been dubbed Divorce Monday as one in five married couples are expected to consider separating from their partners after the festive period.

But the move could leave many women in financial hot water as almost two-thirds of men take control of most of the household finances.

Hannah Maundrell of money.co.uk said: “When the dust has settled, some people just don’t know where to start when it comes to money management and many are women. Learning how to take control of your finances at such a stressful time can be difficult especially if you’re juggling children and the burden of many other responsibilities alone too.”

She said that should be a powerful motivator to get better understand of your finances, even if it’s not your traditional comfort zone.

“Financial strain can be a key tipping point for many relationships so getting better informed may even help people avoid divorce,” Ms Maundrell added.