Latest news with #Quilter
Scottish Sun
7 days ago
- Business
- Scottish Sun
Grandparents can get £6,600 pension boost for looking after kids during summer holidays – but thousands miss out
Plus, we share how you apply for the support HELPING HAND Grandparents can get £6,600 pension boost for looking after kids during summer holidays – but thousands miss out GRANDPARENTS can get a £6,600 pension boost for looking after kids during summer holidays. Many grandparents are unaware they can be financially compensated for the time spent looking after their grandchildren. Advertisement 1 Grandparents can be compensated for looking after the grandhildren Credit: Getty The help will come in handy as 53% of grandparents with grandchildren aged under 18 will look after them this summer, according to research by MyVoucherCodes. They are expected to pay more than £21 per day on each child on average, up from £15.80 per day last summer. Sarah-Jane Outten, consumer and shopping expert at MyVoucherCodes, said: 'It's clear to see that many parents across the UK are calling on grandparents to step in to help with childcare, but for some, the generosity is coming at a cost." But there is a way for grandparents to get extra support. Advertisement Specified adult childcare credits are a type of National Insurance (NI) credit that can help you qualify for the full state pension. You need 35 years' worth of NI contributions to get the full amount worth £230.25 a week. It means parents and other relatives looking after a child under 12 can give their pension a boost. Recent research obtained by wealth manager Quilter from HMRC found only 104,433 people have successfully claimed the credits in the past five years. Advertisement Just 42,962 people applied for the credits last year, even though 78% of applications are successful. Cash for Care Every year of transferred credit will boost your state pension by £330 a year. This could add nearly £6,600 to the value of your state pension over the course of a 20-year retirement. You can also backdate your claim to 2011, when the credits were first introduced. Advertisement Who is eligible? You can claim if you are an eligible family member and responsible for caring for a child whose parents claim child benefit; otherwise, there are no national insurance credits to transfer. Moreover, there is only one credit available per child benefit claim, regardless of the number of children. So even if you care for two of your grandchildren, only one credit can be transferred to you. It is also important to note that the credits are available for transfer only if you are under the state pension age. Advertisement The child you are caring for must also be under 12 years old, or 17 if they have disabilities. To claim, you must live in England, Scotland, Wales and Northern Ireland, but not the Channel Islands or the Isle of Man. How do I claim? You need to wait until October 31 to apply for the current tax year. This is because HMRC needs to check that the parent or main carer already has a qualifying year of National Insurance. They should check their National Insurance record to make sure they have credits they can transfer. Parents and carers can check their National Insurance record on the website. Before you apply for the credits you will need the child's details and a record of the periods when you provided care for them. You will also need the contact details of the child's parent or main carer who receives the child benefit. Both you and the person who receives the child benefit must sign a declaration on the application form. You then need to complete the CA9176 form online.
Yahoo
05-07-2025
- Business
- Yahoo
Should the lifetime ISA be replaced? Yahoo Finance readers have their say
Earlier this week, a cross-party group of MPs said in a report that the complexity of lifetime individual savings accounts (LISAs) increases the risk of people making poor financial decisions. In a report released on Monday, the Treasury select committee said that dual-purpose design of LISAs raises the risk of consumers choosing "unsuitable investment strategies". People are able to use LISAs, which were introduced in 2017, to save for both a first home and retirement, using cash, stocks and shares or a combination of the two. One issue raised in the report was the confusion over the 25% LISA withdrawal charge for funds drawn down early, whereby savers lose the government bonus they have received, plus 6.25% of their own contributions. MPs said that this means LISA holders "risk losing a significant part of their savings due to withdrawals to cover unforeseen circumstances". Read more: The most popular stocks and funds investors bought in June Another issued that was raised was the LISA property price cap of £450,000. If a consumer uses their LISA funds to buy a home above that price then they must pay the 25% withdrawal charge. That price cap has remained unchanged since the LISA's inception in 2017 but average house prices in the UK have risen more than 30% since then, with the average cost of a home in London hitting £564,000. Rachael Griffin, tax and financial planning expert at Quilter, said: "This report should be the catalyst for serious reform. The lifetime ISA does not sit comfortably within the wider savings system and trying to make it serve two purposes has only added to the confusion. "There is a clear opportunity to replace it with simpler, more targeted tools that give people the right support whether they are saving for a home or planning for later life. This should be a major focus of Labour's upcoming ISA simplification programme this summer." There has been much speculation around how the government might look to change ISAs. The Financial Times reported on Monday that chancellor Rachel Reeves is expected to announce plans to reduce the annual tax-free savings allowance into cash ISAs in her Mansion House speech this month, as part of efforts to encourage more people to invest their money. Earlier this week, we asked Yahoo Finance UK readers if they think that the LISA should be replaced. We received 79 votes, with 33% believing it should, while 54% disagreed and 13% were undecided on the matter. Read more: Key investing trends in June, from defence stocks to Tesla's sales slump What are premium bonds and what are the odds of winning? How the government's benefits changes could affect your taxes
Yahoo
04-07-2025
- Business
- Yahoo
Should the Lifetime ISA be replaced? Yahoo Finance readers have their say
Earlier this week, a cross-party group of MPs said in a report that the complexity of lifetime individual savings accounts (LISAs) increases the risk of people making poor financial decisions. In a report released on Monday, the Treasury Select Committee said that dual-purpose design of LISAs raises the risk of consumers choosing "unsuitable investment strategies". People are able to use LISAs, which were introduced in 2017, to save for both a first home and retirement, using cash, stocks and shares or a combination of the two. One issue raised in the report was the confusion over the 25% LISA withdrawal charge for funds drawn down early, whereby savers lose the government bonus they have received, plus 6.25% of their own contributions. MPs said that this means LISA holders "risk losing a significant part of their savings due to withdrawals to cover unforeseen circumstances". Read more: The most popular stocks and funds investors bought in June Another issued that was raised was the LISA property price cap of £450,000. If a consumer uses their LISA funds to buy a home above that price then they must pay the 25% withdrawal charge. That price cap has remained unchanged since the LISA's inception in 2017 but average house prices in the UK have risen more than 30% since then, with the average cost of a home in London hitting £564,000. Rachael Griffin, tax and financial planning expert at Quilter, said: "This report should be the catalyst for serious reform. The Lifetime ISA does not sit comfortably within the wider savings system and trying to make it serve two purposes has only added to the confusion. There is a clear opportunity to replace it with simpler, more targeted tools that give people the right support whether they are saving for a home or planning for later life. This should be a major focus of Labour's upcoming ISA simplification programme this summer." There has been much speculation around how the government might look to change ISAs. The Financial Times reported on Monday that chancellor Rachel Reeves is expected to announce plans to reduce the annual tax-free savings allowance into cash ISAs in her Mansion House speech this month, as part of efforts to encourage more people to invest their money. Earlier this week, we asked Yahoo Finance UK readers if they think that the LISA should be replaced. We received 79 votes, with 33% believing it should, while 54% disagreed and 13% were undecided on the matter. Read more: Key investing trends in June, from defence stocks to Tesla's sales slump What are premium bonds and what are the odds of winning? How the government's benefits changes could affect your taxesError in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-06-2025
- Business
- Yahoo
Should the Lifetime ISA be replaced? Have your say
MPs have said that the complexity of lifetime individual savings accounts (LISAs) increases the risk of people making poor financial decisions. In a report released on Monday, the Treasury Select Committee said that dual-purpose design of LISAs raises the risk of consumers choosing "unsuitable investment strategies". People are able to use LISAs, which were introduced in 2017, to save for both a first home and retirement, using cash, stocks and shares or a combination of the two. In addition, an inquiry by the cross-party group of MPs highlighted confusion over the 25% LISA withdrawal charge for funds drawn down early, whereby savers lose the government bonus they have received, plus 6.25% of their own contributions. MPs said that this means LISA holders "risk losing a significant part of their savings due to withdrawals to cover unforeseen circumstances". Another issued that was raised was the LISA property price cap of £450,000. If a consumer uses their LISA savings to buy a home above that price then they must pay the 25% withdrawal charge. That price cap has remained unchanged since the LISA's inception in 2017 but average house prices in the UK have risen more than 30% since then, with the cost of a home in London hitting £564,000. Rachael Griffin, tax and financial planning expert at Quilter, said that the Treasury Committee's report "reflects many of the issues we raised in our evidence, particularly the view that the product is fundamentally flawed and not always delivering good outcomes for savers." Read more: Key questions to ask yourself to plan for a comfortable retirement She said that the £450,000 property price cap "no longer deals with the reality of the ever more expensive housing market. Many who have saved diligently find they cannot use their LISA for the property they need without facing a financial penalty." Griffin added: "This report should be the catalyst for serious reform. The Lifetime ISA does not sit comfortably within the wider savings system and trying to make it serve two purposes has only added to the confusion. There is a clear opportunity to replace it with simpler, more targeted tools that give people the right support whether they are saving for a home or planning for later life. This should be a major focus of Labour's upcoming ISA simplification programme this summer." At the same time, Helen Morrissey, Yahoo Finance UK pensions columnist and head of retirement analysis at Hargreaves Lansdown (HL), said: "The sweet spot of the LISA can rest in its ability to boost retirement savings among the self-employed." She pointed out that the HL Savings and Resilience Barometer found that only 21% of self-employed households are on track for a moderate retirement, compared to 36% of households overall. "It's a pressing issue that needs to be resolved and the LISA just might help us close the gap," she said. Morrissey added: "The report says that the LISA seems to work well with the self-employed and with further tweaks it could help further. We have long argued that if the penalty could be reduced from 25% to 20%, this could act as a further incentive for the self-employed to get a LISA, as they know they would not be losing a chunk of their own money in the event of early access. "We also believe that removing the age 40 limit on opening a LISA would open the product up even further given the fact that many people do not become self-employed until later in life." Do you think the LISA should be replaced? Vote in the poll below. Yahoo UK's poll of the week lets you vote and indicate your strength of feeling on one of the week's hot topics. After the poll closes, we'll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers. Read more: What to watch this week: UK shop prices, US employment, Constellation Brands, M&S and Sainsbury's Global economy to slow amid 'most severe trade war since 1930s', says Fitch UK economy grew 0.7% in first quarter of the year
Yahoo
30-06-2025
- Business
- Yahoo
Should the Lifetime ISA be replaced? Have your say
MPs have said that the complexity of lifetime individual savings accounts (LISAs) increases the risk of people making poor financial decisions. In a report released on Monday, the Treasury Select Committee said that dual-purpose design of LISAs raises the risk of consumers choosing "unsuitable investment strategies". People are able to use LISAs, which were introduced in 2017, to save for both a first home and retirement, using cash, stocks and shares or a combination of the two. In addition, an inquiry by the cross-party group of MPs highlighted confusion over the 25% LISA withdrawal charge for funds drawn down early, whereby savers lose the government bonus they have received, plus 6.25% of their own contributions. MPs said that this means LISA holders "risk losing a significant part of their savings due to withdrawals to cover unforeseen circumstances". Another issued that was raised was the LISA property price cap of £450,000. If a consumer uses their LISA savings to buy a home above that price then they must pay the 25% withdrawal charge. That price cap has remained unchanged since the LISA's inception in 2017 but average house prices in the UK have risen more than 30% since then, with the cost of a home in London hitting £564,000. Rachael Griffin, tax and financial planning expert at Quilter, said that the Treasury Committee's report "reflects many of the issues we raised in our evidence, particularly the view that the product is fundamentally flawed and not always delivering good outcomes for savers." Read more: Key questions to ask yourself to plan for a comfortable retirement She said that the £450,000 property price cap "no longer deals with the reality of the ever more expensive housing market. Many who have saved diligently find they cannot use their LISA for the property they need without facing a financial penalty." Griffin added: "This report should be the catalyst for serious reform. The Lifetime ISA does not sit comfortably within the wider savings system and trying to make it serve two purposes has only added to the confusion. There is a clear opportunity to replace it with simpler, more targeted tools that give people the right support whether they are saving for a home or planning for later life. This should be a major focus of Labour's upcoming ISA simplification programme this summer." At the same time, Helen Morrissey, Yahoo Finance UK pensions columnist and head of retirement analysis at Hargreaves Lansdown (HL), said: "The sweet spot of the LISA can rest in its ability to boost retirement savings among the self-employed." She pointed out that the HL Savings and Resilience Barometer found that only 21% of self-employed households are on track for a moderate retirement, compared to 36% of households overall. "It's a pressing issue that needs to be resolved and the LISA just might help us close the gap," she said. Morrissey added: "The report says that the LISA seems to work well with the self-employed and with further tweaks it could help further. We have long argued that if the penalty could be reduced from 25% to 20%, this could act as a further incentive for the self-employed to get a LISA, as they know they would not be losing a chunk of their own money in the event of early access. "We also believe that removing the age 40 limit on opening a LISA would open the product up even further given the fact that many people do not become self-employed until later in life." Do you think the LISA should be replaced? Vote in the poll below. Yahoo UK's poll of the week lets you vote and indicate your strength of feeling on one of the week's hot topics. After the poll closes, we'll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers. Read more: What to watch this week: UK shop prices, US employment, Constellation Brands, M&S and Sainsbury's Global economy to slow amid 'most severe trade war since 1930s', says Fitch UK economy grew 0.7% in first quarter of the yearSign in to access your portfolio
