Ministers in talks with City over climate finance for disaster-hit nations
Mr Lammy will join the Chancellor, Energy Secretary Ed Miliband and Environment Secretary Steve Reed for the first meeting between multiple Cabinet ministers and finance leaders on Tuesday.
David Lammy will meet with City chiefs on Tuesday (PA)
The group is expected to discuss how the sector can play a part in channelling investment into climate initiatives in emerging markets.
The Government hopes the £12 million for pre-arranged finance for disaster relief and risk insurance will cut the cost of responding to extreme weather events, and the time it takes for countries to recover from such shocks.
This funding is triggered by certain warning signs — such as a forecast or weather event itself — to enable faster payouts, the Foreign Office said.
It comes after the Government slashed its aid budget to help fund an increase in defence spending (PA)
It comes after the Government slashed the UK's overseas aid budget from 0.5% of gross national income to 0.3% in order to pay for increased defence spending.
The UK's climate finance commitments come from its aid budget.
The Foreign Secretary said: 'The climate and nature crisis is the greatest global challenge we face. Failure to act will cause unprecedented environmental damage, fuelling displacement, conflict and famine.
'Tackling this crisis is also a huge opportunity for people and businesses here in the UK, delivering on our Plan for Change. The green sector is worth trillions of pounds, and I'm determined that we seize on the economic growth, jobs and security it offers.
'The City of London, the world's leading sustainable development financing hub, has a crucial role to play in this.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
27 minutes ago
- Daily Mail
Why those born in the 1990s could face a state pension age of 74... here's how to protect yourself
Sticking with raising the state pension according to the popular 'triple lock' while keeping the bill affordable could be bad news for people in their 30s and younger. A high profile think tank report last week included a reminder about government modelling on how to limit public spending on the state pension to below 6 per cent of national income, To achieve this AND retain the triple lock guarantee - by which payments are increased by at least 2.5 per cent a year - the state pension age would have to rise to 69 by 2048–49, and then jump to 74 by 2068–69. The new pension review from the Institute for Fiscal Studies called on the Government to promise to never means-test the state pension. It's view is that the state pension age should only rise as longevity at older ages rises, but by less than that - meaning the average time spent receiving the state pension would increase. So how likely are drastic state pension age rises, and how do you protect your savings and get them on the path to a comfortable retirement. Savings plan: Opting out of pensions when you're young has an outsize impact on your eventual fund, because you miss out on compound growth - scroll down to find out more What are current plans for raising the state pension age? The state pension is currently almost £12,000 a year if you have paid enough in to receive the full amount. The qualifying age is 66, and between 2026 and 2028 it will rise to 67 - but the next rise to 68 is still up in the air. Officially, it is not scheduled until the mid 2040s, which would affect those born on or after April 1977. The Government is required by law to review the state pension age periodically. However, the last two reports in 2017 and 2023 recommended speeding up the increase to 68 - and then went ignored. The next review isn't due until spring 2029, but Labour might take as little notice of any findings as the Tories. Denmark's government recently moved to hike its retirement age to 70 by 2040, reigniting the debate about what might happen here. Money experts pointed out raising the state pension age was going to carry on being a political hot potato, and future changes would have to be carried out with care. One noted that raising the state pension age risks hitting those most dependent on it the hardest. Meanwhile, the minimum pension age for accessing workplace and other private retirement savings is due to rise from 55 to 57 from April 2028. Governments have in the past tended to keep the state pension and private pension ages roughly 10 years apart, so any future increases could well continue to happen in tandem. What does the IFS say about the state pension age? In its influential new pensions report, the Institute for Fiscal Studies said the state pension age should be linked to rises in longevity. But it suggested that the qualifying age is raised by less than that, so the average time people receive the payments for would go up. It notes that longevity at older ages during the late 20th century and early 21st century increased dramatically. It adds: 'Increasing the state pension age is a reasonable way for a government to control the increased public finance pressures arising from rising longevity at older ages. 'Our modelling shows that increasing the state pension age by one year would save the exchequer around £6billion per year.' But it points out the 'different distributional effect' of using age rises to control the rising cost of the state pension. 'Retaining the triple lock while raising the state pension age would hit poorer people more because the loss of a year of state pension income is more important for those with lower life expectancy (which poorer people tend to have), as they spend fewer years above the state pension age. 'On the other hand, those with a higher life expectancy benefit relatively more from the triple lock, as they are more likely to be receiving a generously indexed state pension in their 90s and beyond.' The IFS says its stance of only raising the state pension age as longevity at older ages rises leaves room to prioritise increasing, or holding down, the state pension age to different extents. It is also consistent with keeping the ratio of adult life spent above the state pension age constant, it says. 'The current government should clearly set out a plan for when we will get to a state pension age of 68 – and specifically whether this should be brought forward. 'This is particularly timely and important now, as both independent reviews of the state pension age have sensibly recommended that any changes to the state pension age be communicated to people at least 10 years in advance. 'The government should promptly conduct a new review of the state pension age, using the latest projections of longevity, and make a swift decision on when (not if) these increases should come in.' Looking ahead: Don't opt out of pensions unless you are suffering serious hardship, despite other financial pressures and priorities In your 30s or younger? What should you do to plan ahead Auto enrolment means younger workers are nudged into saving minimum amounts towards retirement, which should generate a fund that combined with the state pension provides an adequate but not luxurious lifestyle. It's important not to opt out unless you are suffering serious hardship, despite other pressures and priorities like buying a property and starting a family. This is not just because you are harming your future finances, but delaying or pausing pension contributions while you are young has an outsize impact on your eventual retirement fund. The stark reality was shown in a recent study by Standard Life, which found putting off starting a pension for five years in your 20s can create a £40,000 hole in your savings - see below. That is because you miss out on the power of compound growth, which is hugely beneficial if you start young because it has more time to work. Compound growth means because any investment return stays in your pot, you then make a return on that higher amount, and then a return on that even larger sum, and so on over and again. You might start with a small contribution to a pension, but making returns on your returns will still have an exponential effect in the longer run. How much delaying pension saving can cost you Under auto enrolment, the minimum contribution is 8 per cent of your earnings that fall between £6,240 and £50,270. But this is split three ways, with you putting in 4 per cent, your employer contributing 3 per cent, and the Government adding 1 per cent in tax relief. If you put in more, many employers will increase their contributions too. Dean Butler of Standard Life offers the following tips to young people on saving a decent pension. 1. Make sure you're taking advantage of all the benefits of your pension plan and of the support offered by your employer - a higher contribution matching scheme, for example. 2. If you get a bonus, receive overtime pay, get a pay rise or have a little extra savings, think about paying more into your pension. 3. Keep an eye on your investments, and the returns they're giving you. Higher-risk investments potentially see more growth over the long term, but their value might be more volatile. In your 20s, you might feel happier with some higher-risk investment, as your pension has more time to potentially recover from dips in the market – but this won't be right for everyone.
Powys County Times
an hour ago
- Powys County Times
New route to M6 northbound from Powys for first time
MOTORISTS across Powys and Shropshire will have a direct route onto the northbound stretch of the M6 for the first time after a new link road was given the green light. The UK Government says the go-ahead for the project will mean drivers across the Midlands, and those heading there from Mid Wales, will see faster journeys and better links to key economic hubs. The £200 million development will see the introduction of a 2.5km (1.6-mile) road between junction one of the M54 and junction 11 of the M6. The new link will be between the M6 at Laney Green in Staffordshire to junction 1 at Featherstone. Government funded transport body Midlands Connect said the link road would lead to an 82 per cent drop in traffic along the A460 which currently connects the motorways. At present, Cannock Road carries approximately 23,000 vehicles each day, 28 per cent of which are freight vehicles. Local roads will also continue to be supported. 'Transport is the backbone of our economy, which is why we are giving them the record funding boost they need, putting taxpayer's money where it matters most and making every-day journeys easier,' said Transport Secretary Heidi Alexander. 'With over £92 billion investment, including the biggest ever boost for city regions in the north and Midlands, we're delivering the schemes that fast-track economic growth and jobs, connect communities and will help us build 1.5 million new homes, as we deliver our Plan for Change." The new road is expected to reduce journey times, saving commuters, business and freight thousands of hours every week. Help support trusted local news Sign up for a digital subscription now: As a digital subscriber you will get Unlimited access to the County Times website Advert-light access Reader rewards Full access to our app The government says the scheme will also support economic growth in Shropshire. There is currently no link from the M54 onto the M6 northbound, with 26,500 vehicles having to queue on the A460, with a 30mph speed limit, and HGVs making up 10 per cent of that traffic.
Leader Live
an hour ago
- Leader Live
Wrexham MP compares UK parental leave to European countries
MP for Wrexham Last week the UK Government announced a long-awaited review into the pay and leave that new parents can get after the birth of a child. The system has not been reviewed for years and in that time, peoples' working habits and families have changed. The Women and Equalities Committee recently reported that the UK's parental leave system was "one of the worst in the developed world" with "fundamental flaws". According to the campaign group The Dad Shift, one in three fathers take no paternity leave at all (paternity leave is currently 2 weeks in the UK) and despite shared parental leave being available, UK Government data shows that it is rarely taken. The UK system is also confusing to navigate with eight different types of parental leave available. Statutory maternity pay is less than half of the weekly National Living Wage for example. There are some interesting comparisons and approaches across Europe. In Spain for example, fathers can have 16 weeks at full pay, including for those who are self-employed. There is no cap on the salary paid. It means parental leave is now equal between parents in Spain. In Denmark, fathers including those who are self-employed, can take up to 24 weeks off work at full pay supported by the state. After eleven weeks, the remaining 13 weeks can be transferred to the birth partner to be used as extra maternity leave. Parents also have the option to postpone up to 13 weeks of parental leave until their child is aged nine. Research by the Centre for Progressive Policy found that there was a 4% decrease in the gender wage gap in countries with more than 6 weeks of paid paternity leave. Furthermore only 18% of people they surveyed felt that 2 weeks of paternity pay in the UK was enough. So, there is plenty to work on and to consider. The review is expected to take 18months. If you would like to raise anything with me about this issue or any other, please contact my office on 01978 788854 or email
