High street giant Next is facing an uncertain future — it’s warned of possible store closures after losing a landmark £30 million legal case over equal pay.
The UK fashion retailer is planning to appeal the decision that saw more than 3,500 former and current workers at the group win their pay claim after a six-year legal battle.
Next cautioned that while it is confident of winning, if it did not, it could be forced to shut shops due to soaring costs.
In other financial news, Martin Lewis has urged people to make a simple switch to get £175 free cash just in time for Christmas. Just switch your bank account (more on this below).
Deals of the day
‘Perfect’ dress for the beach from New Look now has 60% off and selling fast
Shoppers rush to Dunelm to buy fans that are ‘really quiet’ – with prices from £2.50
This TikTok viral hot brush can give you a salon blowout in 5 minutes
You can save an extra 30% off New Balance sale section – but you need to be quick
Elevate your summer style with up to 50% off dresses and occasionwear from Ghost
Plus, one of the UK’s top energy firms is giving away free electric blankets to its most vulnerable customers this winter — scroll down for more details.
That’s all for today
Thanks for following along with our money and finance updates today. We’ll be back tomorrow with all the latest.
The ultimate trick: Chocolate prices could be going up just in time for Halloween
It looks like trick or treaters could be receiving the equivalent of an onion disguised as a toffee apple this Halloween.
The price of chocolate has increased by 11% in the last year, far higher than wider grocery inflation of 2.7%.
Which? says the price has risen after cocoa prices more than doubled on world markets in the face of tree disease and adverse weather in growing countries aggravated by the climate crisis.
Weather issues, including a wetter-than-usual rainy season, led to a cocoa shortage in west Africa, in particular Ghana and Ivory Coast, where more than half of the world’s cocoa beans are harvested.
Huge TV chef’s restaurant chain closes last branch after 34 years
The last remaining branch of a celebrity chef’s restaurant chain has closed its doors.
In 1990 Simon Rimmer bought Greens, a vegetarian restaurant in West Didsbury, Manchester, alongside Simon Connolly.
Greens then appeared in the AA guide for 31 of the next 33 years, became the first purely vegetarian restaurant to appear in The Good Food Guide. A sister restaurant opened in Sale, Greater Manchester, in July 2022.
However earlier this year the original restaurant was shut down due to the cost-of-living crisis. Now, less than a year later, the other one has been forced to close.
Five common illnesses that could qualify you for PIP benefits worth £9,584
PIP is a benefit designed to help people who face extra living costs because they live with long-term physical or mental health conditions or disabilities and because their conditions create difficulties doing everyday tasks or getting around.
People can get PIP even if they are in work, have savings or are getting other benefit payments.
PIP is split into two parts. There is a daily living component and a mobility component.
People claiming PIP can get payments for both daily living and for mobility. These people are assessed by the Department for Work and Pensions and are either paid the ‘higher’ rate or the ‘lower’ rate for both.
For daily living the lower rate is £72.65 per week and the higher rate is £108.55 per week. For mobility the lower rate is £28.70 per week and the higher rate is £75.75 per week.
That means that somebody who gets the higher rate on both components will be receiving £184.30 per week (£108.55 + £75.75).
Over a year that adds up to £9,583.60, and per month it is £798.63.
It is worth knowing what illnesses could make you eligible for the benefit, so you don’t miss out on any extra financial support you are entitled to.
- Psychiatric disorders
- Musculoskeletal disease (general) – examples could include but are not limited to osteoarthritis, fractures, fibromyalgia
- Musculoskeletal disease (regional)
- Neurological disease – examples could include but are not limited to Alzheimer’s Disease, Bell’s Palsy, epilepsy and seizures
- Respiratory disease – examples could include but are not limited to asthma, custic fibrosis, lung cancer
It is worth noting the examples listed above do not automatically qualify for PIP and neither are you exempt if you suffer from a condition that is not listed.
To find out more about eligibility, click here.
Warning 850,000 households could be missing out on £9,665 a year
Finance experts are warning that hundreds of thousands of older households could be missing out on nearly £10,000 per year in support.
Around 850,000 households are missing out on £9,665 every year in pension top-ups.
Recent figures from Policy in Practice revealed thousands of eligible pensioners are missing out – and with the winter fuel payment changing, it’s even more important to check if you’re eligible.
Pension Credit is worth nearly £4,000 per year and unlocks other benefits.
You may also get additional pension credit if you are disabled, have caring responsibilities or have to pay certain housing costs such as mortgage interest payments.
It opens up eligibility for social tariffs and the warm home discount, cheaper broadband, free TV licenses, lower water bills and the Winter Fuel Payment.
The Sun outlines how much each element of the extra support is worth:
- Pension credit – £3,995.40 for couples, £2,617.80 for single people
- Housing Benefit – £4,338
- Council Tax support – £1,670
- Winter Fuel Payment – £300
- Broadband – £200
- Free TV licence – £170
- Water – £160
- Warm Home Discount – £150
Next: We might have to close shops if our appeal fails
Next – which is led by chief executive Lord Wolfson – said while it is confident of winning its appeal, if it did not, it could be forced to shut shops due to soaring costs.
In its half-year results, the group said: ‘In the possible (but unlikely) event we lose this case on appeal, there will be a financial cost to the group and its ongoing future operating costs.
‘Each of our stores is treated as a business in its own right, and must remain individually profitable if they are to open in the first place and continue trading at lease renewal.
‘Inevitably some of our stores will no longer be viable if this ruling is upheld on appeal.
‘Materially increasing store operating costs will result in more shops being closed when their leases expire, and will materially impede our ability to open new stores going forward.’
The firm also said that the case could have an impact on the ‘viability of our warehouse operation’ if it cannot increase pay for workers at the sites.
‘If, for many people, warehouse work is less attractive than work in stores… how can a warehouse attract the number of employees it needs?’ the group said.
The company said its legal team was ‘very confident of our grounds for appeal’, but stressed the process may not conclude for at least a year.
Last month’s ruling marked the first equal pay claim of its type against a national retailer to secure a win.
Next’s comments come as the group upped its annual profit outlook for the second time in less than two months and said prices would fall over autumn and winter.
The chain reported a 7.1% jump in underlying pre-tax profits to £452million for the six months to July 27 as total group sales lifted 8%.
UK sales rose by just 1%, dragged lower by its Next brand ranges, which saw sales fall as much as 7.4% in June because of poor demand for seasonal collections amid the cooler early summer weather.
But overseas sales surged 23% in the first half, and the firm also said UK trading since the half-year was ‘materially’ better than expected as the weather improved over August.
Next reported a 6.9% rise in full price sales over the first six weeks of the second half so far and it now expects sales over the year to rise 4% overall, with UK retail growth of 5% in the third quarter.
The firm upped its full-year profit guidance by £15million to £995million, which would mark an 8.4% rise on 2023-24.
The group also offered some cheer for under-pressure consumers as it said prices were being cut further for its autumn and winter ranges, down 0.3% after a 1% fall in the first six months.
Study finds most and least affordable cities for renters outside London
St Albans in Hertfordshire has topped a list of the most expensive cities to rent outside London.
Rightmove, which analysed advertised rents in more than 50 cities across Britain, said the average rent being asked in St Albans, a popular location with London commuters, is £2,307 per month.
This is 71% above the average.
Carlisle in Cumbria was the most affordable city to rent in the study, with average advertised rents at £791 per month, 41% below the national average.
Tim Bannister, a property expert at Rightmove, said: ‘The rental divide across Great Britain is clear, with an average difference of just over £1,500 (per month) between the most expensive and cheapest cities.
‘Many of these cities have seen rental growth of over 40% over the past five years, meaning it’s likely to be a significant consideration when students are thinking about where to study, and those who have already graduated working out if they can afford to stay in that city and find a job.’
Here are average asking rents in the top 10 most expensive cities in Rightmove’s study (figures are for August 2024):
1. St Albans, east of England, £2,307
2. Oxford, South East, £2,237
3. Cambridge, east of England, £2,072
4. Winchester, South East, £2,049
5. Brighton, South East, £2,040
6. Edinburgh, Scotland, £1,778
7. Bristol, South West, £1,758
8. Chelmsford, east of England, £1,686
9. Milton Keynes, South East, £1,590
10. Southend-on-Sea, east of England, £1,495
And here are the 10 cheapest cities to rent in:
1. Carlisle, North West, £791
2. Hull, Yorkshire and the Humber, £804
3. Sunderland, North East, £807
4. Stoke-on-Trent, West Midlands, £863
5. Wrexham, Wales, £874
6. Bradford, Yorkshire and the Humber, £947
7. Preston, North West, £952
8. Doncaster, Yorkshire and the Humber, £974
9. Lancaster, North West, £993
10. Wakefield, Yorkshire and the Humber, £1,030
Ex-DWP worker reveals secrets for new disability benefit claimants
A former DWP worker has revealed some key advice for anyone claiming disability benefits.
The latest government data shows the number of people claiming Personal Independence Payment (PIP) has increased to 3.6 million.
A further 315,000 are claiming Adult Disability Payment (ADP) and more than 1.6 million are getting Attendance Allowance.
With that, an ex DWP staffer of some 42 years says applicants must ‘keep a copy of the claim form they submit’.
She told the Daily Record: ‘One lady I helped with her PIP claim, I got her to keep a copy of her original claim, which made it easier for her to complete her PIP review form when the time came. Your medical condition can sometimes change from the date you submitted your original claim.’
When it comes to Attendance Allowance, she said: ‘It is advisable to get all your medical evidence sorted out before you start completing the form.’
She said keeping a detailed record of medical history, including dates of appointments and operations, can save time when it comes to filling out the lengthy application form.
But she warned against trying to tackle it in one go, saying: ‘Do not try and complete the form in one sitting, as it can be mentally draining.’
What does the rates hold mean for savers?
The higher the interest rate, the higher return for savers.
And money saving experts are urging savers to take advantage of them before they are gone.
Liz Edwards, money expert at personal finance comparison site finder.com, said: ‘Although today’s news will be disappointing for many borrowers, if you’ve got money stashed away in your savings, today’s decision serves as a nudge to take advantage of higher interest rates on fixed-rate accounts.
‘Research from Finder previously revealed that 8 of the 16 biggest banks in the UK have already lowered their easy-access savings account rates since the Bank of England cut the base rate at the beginning of August.
‘It likely won’t be long before the rest follow suit, particularly with many factoring in the next rate cut expected to happen in November.
‘There are currently some great deals that can help your money go further, and if you fix now you can guarantee your returns even once the base rate has fallen.’
Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: ‘There is an expectation that base rate will be cut twice more before the year is over, so savers need to prepare themselves for more interest rate cuts.
‘Those who are happy to lock their cash away for a guaranteed return could look towards a fixed rate bond or fixed Cash ISA, and with rates expected to decrease further, savers may wish to choose a longer-term deal.’
What does the rate hold mean for mortgage holders and renters?
People on tracker or standard variable rate (SVR) mortgages will see no change after the Bank of England’s announcement today.
But they are coming down on average, with a typical SVR dropping below 8% for the first time since last August.
Just over 80% of people are on fixed-rate mortgages, where the interest rate is set for a specified period of time.
Those with fixed-rate loans will not see their payments change based on today’s announcement.
Despite rates coming down in recent months since last summer’s high, you are still likely to be paying a higher rate when it comes to renewing, depending on when you locked into a fixed rate.
Interest rate held at 5%
The Bank of England has left interest rates unchanged at 5%.
Decision-makers on the Bank’s Monetary Policy Committee (MPC) voted 8-1 in favour of holding the interest rate.
One member voted in favour of reducing the rate by 0.25 percentage points – taking it down to 4.75%.
The decision to pause comes a month after the central bank cut rates from 5.25%, instigating the first reduction since 2020 and delivering good news to borrowers facing higher costs.
Two in five credit-card holders ‘struggling to clear balance in full’
Two-fifths (42%) of credit-card holders have struggled to repay their balances in full in the previous six months, a survey has found.
More than a third (35%) of these people said this was because of the rising cost of everyday expenses, such as food and fuel, while 33% cited the need to prioritise other household bills such as energy and rent, Compare the Market found.
Others said they had borrowed more than they could afford to pay off (21%) or that the interest rate on their card had increased (20%).
Of those who own a credit card, six in 10 (59%) said they are confident in their ability to be accepted for a future credit card application.
One in six (16%), however, said they have had their application for a new credit card declined in the past six months.
Across the survey, nine in 10 (90%) people had seen their regular bills increase over the previous six months.
Food prices ranked as the highest financial concern for households over the year ahead, cited by two-fifths (41%) of people.
Winter energy bills (38%) and inflation (23%) were also prominent concerns, with others highlighting rising rents (17%), petrol prices (18%), insurance (15%) and mortgage costs (10%).
UK housing market ‘grappling with lack of affordable homes’
The UK’s housing market has a lack of affordable and suitable homes and strong action is needed to support first-time buyers, renters and people looking to downsize, a body representing members of the banking and finance industry has urged.
UK Finance said the scale of the challenges means strong action is needed from the public and private sectors.
Its report said: ‘The UK housing market is grappling with a shortage of affordable, secure and suitable homes for people at different life stages.’
UK Finance added: ‘We believe that well‑considered policies, backed by evidence whilst acting on lessons learned from the past, could address the challenges the housing sector faces.’
Its report said: ‘In England, the long‑term failure to meet the previous government’s goal of building 300,000 new homes a year is often cited as the key policy issue.
‘As a result of repeatedly missing targets, the UK has an estimated shortfall of 4.3 million homes, a number that is growing every year.’
The body, which represents over 300 firms including 120 mortgage lenders, said the new Government had acted quickly to encourage more housebuilding and ensure affordable housing is a key part of its new targets.
But it suggested further measures, including calling for the temporary nil-rate band for first-time buyers on stamp duty up to £425,000 to be made permanent.
The nil-rate threshold for first-time buyers was temporarily increased from £300,000 to £425,000 in 2022 and it applies to purchases made up to March 31 2025.
If you’re aged 18 to 40 this is the perfect savings account
Savings Champion co-founder Anna Bowes has rounded up the best Lifetime Isa accounts to save your money into.
LISAa are a type of tax-free savings account available to all savers aged between 19 and 40.
You can put away up to £4,000 a year and the government will pay a 25% bonus – up to £1,000 annually.
The money can either be used to buy your first home or your eventual retirement.
However, there are rules and restrictions to be aware of so please do your research before moving your money around.
To see Savings Champions’ top five LISAs and how to apply, click here.
Chocolate fans demand ‘boycott’ of Christmas fave
Nothing says Christmas like a box of Celebrations.
But the festive favourite is causing a stir online after another price hike – despite dropping again in size.
Depending where you do your shopping, a 550g tub could now set you back up to £6.
Glenn Myers, who runs a Facebook page dedicated to supermarket deals, posted a picture of three Celebrations tubs to show the ‘mental’ drop in size, writing: ‘Twice the price for half the amount.’
One user commented underneath: ‘I’ve stopped buying them as I’m getting only half of the tin for the same price. I buy bars of chocolate instead. Better value for the money.’
Another wrote: ‘Boycott them and don’t buy then they’ll be giving them away in January.’
A Mars Wrigley UK spokesperson said: ‘We have been actively trying to find ways to absorb the rising costs of raw materials and operations, as we know the increase in the cost of living has impacted both consumers and businesses across the UK.
‘Unfortunately, the growing pressures mean that more needs to be done.’
They added: ‘Reducing the size of our products is not a decision we have taken lightly, but it is necessary for shoppers to still be able to enjoy their favourite Celebrations treats without compromising on quality or taste.
‘The tub itself has also reduced in order to reduce the plastic used in the packaging by 17 per cent to help us meet our sustainability targets as a business.’
How to get a free electric blanket
Any Octopus customer can apply through the firm’s £30 million Octo Assist Fund.
It isn’t first come first served either and is instead based on individual circumstances, with priority given to those who are medically vulnerable, elderly or living alone, for example.
Mario Lupori, director at Octopus Energy Group, said:‘We know many people are worried about the costs of heating their homes over winter.
‘An electric blanket means you heat the human, not the home – staying warm for as little as 3p an hour.
‘We’ve got 20,000 more blankets this year to give out to our most vulnerable customers and we’re delighted that they will help them stay warm.’
Am I eligible for the £175 switch bonus?
You can’t have ever had any previous account with First Direct – that includes a current account, credit card or mortgage.
And you must not have opened a current account with sister bank HSBC since January 2018.
To get the £175 bonus:
- open the account in-app (or online for joint accounts)
- switch in an account from a different bank
- make two direct debits or standing orders within 45 days
- pay in at least £1,000
- make at least five debit card payments within 45 days
- you’ll see the £175 on the 20th of the following month after you meet the switch bonus criteria
MORE : Martin Lewis issues 10 day warning to train travellers going home for Christmas
MORE : Latest money news: DWP issues warning to PIP claimants as chocolate prices surge
Sign up to our guide to what’s on in London, trusted reviews, brilliant offers and competitions. London’s best bits in your inbox
Share this with