Money blog: How to get ridiculously cheap flights - by someone who does it professionally (2024)

It remains unclear what Labour's first budget next month will mean for pensions - with Chancellor Rachel Reeves refusing to rule out additional taxation.

The lack of detail has created speculation - and so experts at investment bank Saxo have provided us with quick answers to the top 10 most googled questions about pensions...

1. How will I find a lost pension?

If you're looking for a workplace pension, you can contact previous employers and get the information directly from them or many companies offer this service and track them down on your behalf.

The government offers the Pension Tracing Service which, by using your employer's name or your information, can provide you with the details of their workplace pension provider.

2.How much is the state pension?

The current full rate of the UK state pension is £221.20 per week, but this is dependent on how much National Insurance you've paid while working.

To qualify, you'll need to have paid national insurance for 10 full years.

If you're married and both of you have built up 35 qualifying years, this amount doubles to £442.40 a week, or £23,004 a year.

3. When do pensions go up?

The state pension is increased on the first Monday on or after 6 April in line with whatever is highest out of inflation, average wage growth or 2.5%. In April 2024, the annual rise increased by more than 8.5%.

4. How much pension will I receive?

This depends on two main factors - your NI contributions to make sure you receive the full state pension and whether you have a private pension (but there are more factors to consider as well).

This private pension could be a Self-Invested Personal Pension that you've managed, or a workplace pension you and your employer have paid into while working.

Other factors to consider are sector specific pension schemes (teachers' pension, NHS workers, military), how you draw down your pension and the tax implication, and your age.

5.Are pensions subject to inheritance tax?

Usually pensions are exempt from inheritance tax as most schemes are written as trusts, therefore they are valued separately from one's estate and not included in probate calculations - but there are exceptions:

• Continuing guarantee payments may be subject to IHT;
• If a lump sum is paid from a value protected pension, the net of tax amount may be included in the estate;
• If the pension owner died after reaching 75, income tax may be payable.

6. Are pensions tax-free?

It depends on the amount you are withdrawing from your pension, as income from pensions is taxed like any other kind of income. You have a personal allowance (£12,570 for the 2024-25 tax year) which is tax-free.

You then pay 20% tax on income between £12,571 to £50,270 and 40% for any more.

7.How much money can you have in the bank on pension credit?

There is no upper limit on how much money you can have in the bank to receive pension credit, but if you have more than £10,000 in savings and investments, the amount you receive may be reduced.

8. How do I consolidate a pension?

Pension consolidation means combining all (or some) of your pensions into one pot.

If you have several employers over time you are likely going to have workplace pensions in different places. There are advantages and disadvantages to both so it is best to seek advice before combining your pension.

9.How much pension pot do I need for £2,000 per month?

Using a pension calculator, the minimum amount required would be £272,000 for a £24,000 annual drawdown.

However, this doesn't include a lump sum and other factors that will be personal for you. Speak to a professional to receive tailored advice for you.

10. Will Labour tax pensions?

Pensions are already subject to tax. Regardless of how you withdraw your pension, 25% of your total pension pot will be tax-free and you'll pay tax on the rest as if it were income.

Asda workers will stage demonstrations outside the start of an equal pay claim that will assess whether shop floor workers should be paid the same as warehouse staff.

The case (which is expected to last for up to three months) centres on the fact the predominately female retail workforce at the supermarket giant is paid up to £3.74 per hour less than the predominately male warehouse workforce.

Claimants in the case argue both jobs are of equal value to the company.

It is just the latest stage in a 12-year battle over equal pay by Asda retail workers - and if successful, the bill could run into billions of pounds.

Nadine Houghton, GMB National Officer, said: "Asda workers are making history. The result of this hearing will call time on the retailers undervaluing their predominantly women shop floor workers.

"The entire retail sector has been built on the structural undervaluing of women's work - but GMB members are changing this."

It comes as the Employment Tribunal ruled in favour of Next workers in a similar case involving a dispute centred on different rates of pay between job roles.

An Asda spokesperson said: "We fully respect the right of current and former colleagues to bring this case; however, we strongly reject any claim that Asda's pay rates are influenced by gender.

"There are numerous different jobs within retail and within warehouses. We continue to defend these claims because retail and distribution are two different industry sectors that have their own distinct skill sets and pay structures."

By Sarah Taaffe-Maguire, business reporter

German supermarket giant Aldi has repeated its commitment today to opening more stores as it reported record UK sales (this comes despite a falling market share). Pre-tax profits reached £536.7m for the 12 months to December - up from £152.6m a year earlier.

The oil price is just above a more than two-and-a-half-year low at $71.84 (£54.89). It dropped sharply on Friday afternoon amid news of a slowing US economy and weak Chinese demand.

The pound slipped below $1.31 for the first time in nearly a week. This is still high, but anyone who was on holiday in the US last week would have got more bang for their buck. Sterling is doing relatively well against the euro with £1 buying €1.1839.

Following the worst week of 2024, UK stocks have rebounded. The FTSE 100 index of the most valuable companies on the London Stock Exchange rose 0.7% while the FTSE 250 was up 0.34%.

By Megan Harwood-Baynes, cost of living specialist

A £200 flight to the Caribbean sounds almost too good to be true, but for seasoned flight finder Katy Maclure, moments like this are just another (really great) day at the office.

Katy has worked for Jack's Flight Club for almost three years and spends her day researching cheap flights and finding deals - and she's given Sky News some of her best tips.

JFC was started in 2016 by Jack Sheldon. Jack had worked for a large data company but had a knack for finding budget airfares and, after spending time doing this for his friends and family, he decided to turn it into a business - first starting as a newsletter and then a website and company that employs a dozen people.

Katy was one of those. She began as a flight finder and now edits The Detour, the company's weekly travel inspiration.

She says one of the best ways to find a steal is to look at places you might never have thought to go.

"I knew I wanted to go to the Caribbean, and I knew it was expensive - then I saw these cheap flights to Martinique from Paris.

"And Paris is easy to get to, you can just jump on an EasyJet flight or take a train."

So, for just over £200, a train (and the cost of their Airbnb), she and a friend spent two weeks in the overseas French region situated in the eastern Caribbean Sea.

The trick, she says, is going off the beaten track. Last year, she spent £175 on a return trip to Kyrgyzstan and Uzbekistan.

"It's like the Scottish Highlands, but more extreme," she says.

"We stayed in a yurt and it was absolutely phenomenal. It would be amazing for nature lovers - we did a trek into the mountains.

"And it wasn't just nomadic and wild, when we got to Bishkek, it was so modern."

JFC operates a two-tier system for members - you can sign up for free and, each week, a roundup of deals will land in your inbox. If you sign up for their paid tier (which costs around £48 a year) you'll get those emails more frequently.

What's the deal with error fares?

They're the golden goose of airfares, and they are quite literally what they say on the tin - someone made a mistake when putting the price into the system.

Among some great error fares found by JFC was a return flight from Manchester to New York City in the low £200s, and a return to Tanzania from the UK for just £280. That deal was so good that eight of the JFC team booked a trip.

When this happens, the JFC team scramble to get them into subscribers' inboxes as fast as possible, because they can be withdrawn at any time.

Airlines don't have to honour an error fare (they can just refund you), so Katy says it's worth waiting a few weeks before booking any accommodation, just in case - and the rules are slightly different for online travel agencies.

"We've heard many stories of online travelling agencies calling up afterwards or emailing after saying 'oh, sorry, that fare's no longer available, please provide your card details and we'll charge you X amount more'.

"So just be aware that you don't have to pay, that you're not obliged to pay, that you can back out if they try and charge you more."

Katy's top tips for discount travel

1. If you have a specific date and destination in mind, set up alerts on Google flights - you will then get an email when the price changes;

2. Have an idea in mind of what you are willing to pay. If you want a direct flight, it will cost more - as will baggage, so research what these will cost ahead of time to know if you are getting a good deal;

3. Be flexible. If you can't be flexible about the dates, be flexible about the destination.

Jobs data published tomorrow could have a significant impact on the money in your pocket.

As we mentioned in our hello post, the average earnings growth figure published by the ONS is likely to set next year's state pension rise.

The triple lock commits the government to increasing pensions every April by whichever is highest - inflation (the figure for September, published in October), average wage growth between May and July (published tomorrow) or 2.5%.

It is estimated wage growth will come in at around 3.7%, which is very likely to be higher than inflation (currently 2.2%).

This would result in an around-£400 rise to the full state pension in April.

It is sometimes forgotten that, regardless of the political commitment to the triple lock, the government is legally required to raise pensions by at least average earnings growth.

Aside from pensions, tomorrow's jobs market data could also influence the path of interest rates.

Any noticeable shift in the supply-demand dynamic - ie fewer vacancies and more workers looking for jobs - could push down wage growth.

This, in turn, could ease any lasting pressure on inflation.

Gabriel McKeown, head of macroeconomicsat Sad Rabbit Investments, told industry news wire Newspage: "With inflation fears still simmering, the forthcoming UK labour market data could be the cold water that extinguishes the Bank of England's hawkish fire.

"The latest projections paint a picture of a cooling labour market, as vacancies have fallen for nine consecutive months, while the availability of workers has increased.

"This shift in the supply-demand balance has begun to exert downward pressure on wage inflation, suggesting a trajectory towards target.

"Consequently, Tuesday's labour data is critical for the BoE's monetary policy decisions.

"A September cut seems unlikely, with the Bank's Monetary Policy Committee wanting more evidence of sustained cooling in the labour market and a further moderation in wage growth.

"However, a higher-than-expected unemployment rate or a sharper wage growth decline could tilt the MPC towards a more dovish stance."

Customers who regularly return items to ASOS now face a £3.95 fee, unless they keep at least £40 worth of items.

ASOS Premier members (who pay £9.95 for additional benefits, including next-day delivery) will also be affected - although they will only need to retain £15 worth of items to bypass the fee.

ASOS says the changes only apply to a "small group of customers with a frequently high returns rate" and will come into force from 8 October.

One customer, who is set to be hit by the change, blasted the fast fashion giant for the move.

"If you actually made clothes that fit so I wouldn't need to buy multiple sizes we wouldn't have that problem, consider me no longer a customer," she wrote online.

Another said: "Love how asos are trying to make it feel like it's a me problem... If the sizes were consistent, maybe people wouldn't return so much."

The retailer has already altered its free returns policy in the US, with shoppers now charged $4.99 if they "constantly take actions that make providing them with free returns unsustainable".

It is not the first company to do so, amid an increase in items being sent back and the high costs associated in handling unwanted items. There is also a steep environmental impact when clothes need to be disposed of if they cannot be reworn.

Last year, ASOS said the behaviour of 6% of shoppers led to a £100m hit in profits because they regularly order discounted items and send back a high proportion. The company said it was improving sizing and how clothing and accessories were displayed, with a greater use of AI to decrease the amount of returns.

Depending on the retailer, up to half of the clothing bought on websites is returned, according to the returns specialist ReBound.

ASOS told Sky News: "We’re making this change so that we can continue offering Free Returns to all our customers (subject to our Fair Use Policy). For the vast majority of our customers, that means Free Returns on all orders – nothing’s changed.

"For a small group of UK customers with a frequently high return rate whose shopping habits make offering them unconditional Free Returns unsustainable, they can still get Free Returns when they keep £40 or more of their order. And if they’re an ASOS Premier customer, they only need to keep £15 or more."

Every Monday we get an expert to answer your money problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

I own a shared ownership property and would like to buy it outright. However, I'm confused as to how a remortgage would work. After searching, I can't find information on how this works properly.

Matthew

Instead of having to raise a mortgage and savings to buy a property outright, shared ownership offers the chance to buy an initial stake in the property and pay a below market rent on the remainder to the housing association, saysDavid Hollingworth, associate director atL&C Mortgages.

This provides more security than renting, as well as giving some stake in any potential house price growth.

As a buyer's personal circ*mstances change there is also the opportunity to build a bigger stake in the property and buy more shares. Or, as Matthew is planning, to buy the remainder to give full ownership. Buying additional shares is typically referred to as staircasing.

Hollingworth says: "You should talk to the housing association about the prospect of staircasing to full ownership if you haven't already. This will help you understand the necessary process around what you will need to do and how the property will be valued so you know the figures involved.

"When buying an initial share, or remortgaging an existing share, lenders will often offer specific shared ownership deals.

"As you will remortgage to release equity to pay off any existing mortgage and own the property outright on completion, it should open up a wider range of options and allow you to shop around for the best mortgage for you."

How much can you get?

Hollingworth says lenders will typically lend up to 85-90% of the property value, although some may be more flexible.

The maximum could also vary depending on the type of property and will be subject to you meeting affordability.

"There's also likely to be additional legal work involved in shared ownership, so there could well be some additional cost to factor in there," says Hollingworth.

"The right choice may also depend on the current mortgage position.

"If you have a tie-in period on the current mortgage, you may want to see if the existing lender can offer additional borrowing.

"If a deal is coming to an end then it's a good chance to shop around the whole market to find the best deal."

Speaking to an adviser about the specific amounts and circ*mstance will help you search out the best deal to complete your move to full ownership, Hollingworth says.

This featureis not intended as financial advice - the aim is to give an overview of the things you should think about.Submit your dilemma or consumer dispute via:

• The form above - you need to leave a phone number or email address so we can contact you for further details
• Email news@skynews.com with the subject line "Money blog"
• WhatsApp ushere

Young people are leading London back to office-based working - but their older counterparts are causing the city to lag behind its global counterparts.

On average, 18 to 24-year-olds spend 3.1 days in the office, according to the Centre for Cities, compared with 35 to 44-year-olds who go in just 2.5 days.

Here's how other age categories compared...

43% of younger workers told the thinktank they operate better in the office, compared with 25% at home.

This is despite 95% of workers recognising there are benefits to being in the office, including collaboration and building relationships.

London was found to have the second-lowest rate of office attendance - with Toronto in Canada being the only city to fall below it.

Paris in France had the highest rate of office working at 3.5 days per week, followed by Singapore (3.2), New York (3.1) and Sydney (2.8).

"There's no substitute for the benefits gained thanks to face-to-face interaction, particularly for younger workers," said Andrew Carter, chief executive of Centre for Cities.

"Having access to the wide variety of activities and experiences that offices in city centres offer is crucial for them, and the businesses they work for, to be successful.

"London has huge assets – world-class public transport, deep labour markets and lots of cutting-edge firms. Encouraging more people back to the office, to be in line with other global cities, will enable the capital to continue to play the important national and international roles in the future."

Topshop could soon return to the high street after Asos agreed to sell 75% of its stake in the fashion brand.

The online giant has agreed to sell three quarters of its ownership in both Topshop and Topman brands to Danish firm Heartland in a deal valuing them at £180m.

Heartland is owned by billionaire Anders Holch Povlsen, who already owns brands including Jack & Jones and Vero Moda through his Bestseller business.

Asoswill get £135m for its stake in the two brands, and it will have the right to sell a further 5% for £9m at a later date as part of the deal.

News of the sale sent shares in Asos soaring at the end of last week.

Jose Antonio Ramos Calamonte, the chief executive of Asos, said a dedicated Topshop site would be relaunched by next summer.

He added that Bestseller had "extensive experience" of operating its own high street stores, according to The Guardian.

"We might open stores. We will consider it for sure but we have no specific agreement to open a certain number," he said.

Topshop stores disappeared in 2020 after it fell into administration as part of Arcadia's collapse.

It was then relaunched as an online only brand by Asos in 2021.