View more on these topics

Two most vulnerable groups hit worst by inflation, says Alliance Trust

The over 75s and poor families are hit hardest by inflation, according to a new study by Alliance Trust.

Even though headline inflation has dipped, latest show that the over-75s are still the age group being hardest hit by inflation.

The elderly faced an annual inflation rate in January of 4.2 per cent, which is more than double the governments inflation target, according to Alliance Trust Research Centres monthly alert.

Inflation for the over 75s is now running at 4.2 per cent – 56 per cent higher than headline inflation of 2.7 per cent while lowest income households face inflation of 3.9 per cent – 44 per cent higher than the headline rate.

Alliance Trust maintains says that pensions should be linked to the rise in costs of living for the retired people.

Head of the Alliance Trust Research Centre Shona Dobbie says: Low income and elderly households are forced to allocate their budgets to the goods and services which have experienced the highest price changes, with little disposable income left over to spend on discretionary goods, such as clothing, footwear and audio visual products, where prices continue to fall.

This months results continue to illustrate that the official headline inflation rate does not necessarily reflect the actual impact of price increases experienced by many households in the UK. Our study shows that both the over-75s and the lowest income households have had to cope with a rate of inflation in excess of 3 per cent since May of last year.


Boost for B&B as lending rises 43%

Bradford & Bingley’s gross mortgage lending rose by 43 per cent last year, more than twice the market average. The group saw its underlying profits rise by 8 per cent to 336.1m.

Altmann warns that pension stance has implications for all ombudsmen

Pension campaigner Ros Altmann says the Government’s decision to ignore the Parliamentary Ombudsman’s damning report into its treatment of pensioners who lost their final-salary schemes calls into question the entire ombudsman system in the UK.Last week, the Government was forced to defend itself in the High Court against accusations that it unlawfully ignored Parliamentary Ombudsman […]

Labour asks staff to take 25% pension cut

The Labour Party is asking its workers to accept a 25 per cent cut in pension payouts and work until 65 instead of 60. Unions representing 200 Labour staff have reacted angrily to the cuts, which the party hopes will help to reduce its 27m debt.

India: are further rate cuts on the horizon?

By Kunal Desai, head of Indian Equities, Neptune Kunal Desai, manager of the Neptune India Fund, discusses the key drivers of the Indian market’s outperformance and why he expects another rate cut, which will likely further support equities.  Read more here Important Information Investment risks The Neptune India Fund may have a high volatility rating […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm