Stealth tax, mortgages, BHS and energy

Middle-class families are paying a ‘stealth tax’ of £10,000 a year for places in care homes for the elderly, according to The Times. The extra charge is being used to subsidise residents who cannot pay themselves and have to rely on council funding, the first detailed analysis of fees has found. There are about 400,000 elderly people living in care homes and almost half pay for themselves, either by running down their savings or selling the family home. People must ‘self- fund’ if they have assets totalling more than £23,000. The report by the charity Age UK found that this group pay average weekly bills of between £603 and £867, depending on the area, although in the south east fees often run to more than £1,000 a week. Mortgage lending

The Council of Mortgage Lenders estimates that gross mortgage lending reached £20.5 billion in September. This is 7 per cent lower than August’s lending total of £22.1 billion, and 2 per cent higher than the £20.1 billion lent in September last year. This is the highest September figure since 2007 when gross lending reached £29.9 billion.

Gross mortgage lending for the third quarter of 2016 was therefore as estimated £63.6 billion. This is 11 per cent higher than the second quarter of this year, and 4 per cent higher than the third quarter of 2015.

Broadband

The poorest people in society should be given financial help to pay for fast broadband, a body representing councils in England and Wales has said.

The Local Government Association is calling on the Government to include a social tariff in its universal service obligation for broadband. The subsidy would give low-income families a basic service of at least 10Mbps, it said. According to an LGA report, one in four adults lacks basic online skills. BHS

Former BHS owner Sir Philip Green will meet the pensions regulator by the end of the week to try to secure a deal over the collapsed retailer’s pension fund, the BBC has learned.

The news comes as MPs prepare to debate stripping him of his knighthood. One MP voiced scepticism to the BBC about the timing, arguing it made the issue ‘essentially cash for honours’. BHS, sold by Sir Philip last year, subsequently collapsed with 11,000 jobs lost and a £571 million pension deficit. Online security

TSB has been named the bank with the worst online security systems alongside Santander, Lloyds and Halifax, according to Which?

Thisismoney reports that, after recent tests conducted by the consumer group, it slammed the four high street giants for consistently scoring poorly since it started analysing security measures for current account customers four years ago.

It says the best banks in its tests use two-factor authentication without it being too ‘onerous for their customers’ adding that there was ‘no excuse for others to sacrifice security’.

Energy

According to new research, 5 per cent of homeowners are in arrears with their gas or electricity bills, owing suppliers on average £121.20. Worryingly, the research commissioned by Gocompare.com Energy, found that only 13 per cent of those struggling to pay their energy bills had contacted their supplier to discuss their situation and ask for help.

Of those in debt to their energy supplier 16 per cent owe £200 or more while 4 per cent confessed to having no idea how much they owe.

Marriage tax allowance

Less than a quarter of couples eligible for marriage tax allowance are bothering to claim it, according to HM Revenue and Customs (HMRC).

The allowance – introduced in April 2015 to incentivise marriage – is worth £220 in 2016/17. However, those eligible can also back-date a claim for last year, meaning £432 can be claimed in total. Out of 4.2 million couples who could claim that amount, only 1 million have done so, despite an HMRC advertising campaign. Marriage tax allowance lets one half of a married couple transfer part of their tax-free allowance to their partner.