Credit Action News Round-up (16 November 2011)

UK unemployment increases to 2.62m: Figures released today by the Office of National Statistics (ONS) show that in the three months to September, UK unemployment rose by 129,000 to 2.63 million. Youth unemployment rose to a record level of 1.02 million, with the number of 16-24 year olds out of a job rising by 67,000. This is the highest level of youth unemployment since comparable records began 19 years ago. Additionally, the number of women without a job increased by 43,000 over the three months to September to  reach 1.09 million, its highest level for 23 years. The ONS calculate that the unemployment rate is 8.3%, the highest level since 1996.

CPI inflation falls to 5% in October: The ONS also released its latest inflation figures this week, which show that the Consumer Price Index (CPI) rate of inflation fell to 5% in October, down on the three-year high of 5.2% the previous month. Despite the fall, the rate is still more than double the Bank of England’s target of 2%. Retail Price Index (RPI) inflation also fell, from 5.6% to 5.4%. According to the ONS, food prices which were down due to heavy discounting by the UK’s major supermarkets and good harvests, while air fares were down 6% compared with the previous year. The price of petrol was also down by 0.5p a litre, all of which has helped to reduce the rate of inflation compared to last month. Yet energy price increases and clothing continue to exert upward pressure. The Bank of England has forecast the rate of inflation to drop in 2012, as prices fall back and the impact of the government’s VAT increase is no longer felt.

140,000 disadvantaged toddlers to benefit from free nursery places: Plans have been set out which would potentially give 15 hours a week of free early education to two-year-olds from low-income homes from September 2013, in an extension of the pilot scheme first started under Labour. The prospective initiative, which is currently the subject of a public consultation, would see as many as 14,000 two-year-olds benefiting from the free nursery places. Parents would be able to use their time allowance flexibly between 7am and 7pm.  Currently, all three and four-year-olds are entitled to 15 hours of early education for 38 weeks a year. Deputy Prime Minister Nick Clegg said: "I want us to give every child the best possible start - so free education for toddlers from the most disadvantaged homes will now be a right and not a privilege.”

Government outlines potential changes to the tax system: As part of a public consultation on making the personal tax system easier to use and understand, the Government has suggested that every taxpayer could be given online access to their tax records, similar to a system which already operates in the Irish Republic. Other ideas include supplying pre-filled tax returns in the self-assessment system using information from employers and banks, and for all taxpayers to receive an annual statement as well as their normal P60 and PAYE (pay as you earn) tax code notice. These suggestions come as part of a wider government plan to improve the income tax system. From April 2012, the government will pilot a new system for the collection of ‘real time information’ (RTI), in which employers will supply updated pay, tax and National Insurance data about their staff to HMRC each month. The government is also consulting on a scheme to merge the tax and National Insurance systems, which would save some of the £1bn a year that HMRC spends on administering the PAYE system.

Average house prices in market towns rose by nearly £1,000 per month in the last 10 years: According to new research from Lloyds TSB, the average house price in market towns across England has risen by 103% in the decade between 2001 and 2011, increasing from £114,718 to £233,416. These figures are equivalent to an increase of £989 per month over the past 10 years. Lloyds TSB also found that in two out of three market towns, the average house price is 12% higher than the respective county average. Since the start of the housing downturn in 2007, house prices in market towns have risen by an average of 5%.

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