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UK state pension top-ups: paying now could pay dividends later

20 May 2024 at 03:00

Until next April people under new system can fill gaps in their NI records going back to 2006-07

It may not sound very exciting, but for many people in their 40s, 50s and 60s topping up your state pension can generate a better return than almost any other way of using your savings cash. In very simple terms, if you invest about £800-£900 now and end up living well into retirement, you could get back £6,500-plus. Live to a very ripe old age and it could be £10,000 or more.

Under the new state pension system, if your national insurance (NI) record started before April 2016 you will need at least 35 years of NI contributions or credits to qualify for the full payment of £221.20 a week.

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© Photograph: Purple Marbles/Alamy

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© Photograph: Purple Marbles/Alamy

We’ve got the talent and the tech. So why can’t Britain grow its own world-beaters? | Will Hutton

19 May 2024 at 03:00

Companies are deserting the FTSE because of a shortage of investment – but there is a solution

Britain had it in its power to be a genuine hi-tech superpower. Instead, the opportunity slipped through our fingers, as we have been “tech-stripped” on a monumental scale. On one estimate, up to half the FTSE 100 could now be populated by vigorous British tech companies but those are all now foreign owned with one exception, Sage. The implications for our industrial, business, services and even defence base are dire – one of the most important condemnations of the last 14 years.

The chancellor, Jeremy Hunt, complacently declared last week that this was just how capitalism operated – even as we learned that another 21 companies worth £24.6bn had joined the exodus from the UK’s public markets this year alone. It was a variant of Philip Hammond’s comment in 2016 on Japanese SoftBank taking over yet another of our tech jewels, the chip designer ARM. What was obviously an exercise in technological vandalism was instead proof positive that Britain was “open for business”, a view echoed at the time by that other high priest of wealth generation, Nigel Farage. This reflex mantra of Tory ministers and Brexiters alike is a necessity: to say anything else would reveal the paucity of their world view.

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© Photograph: Bloomberg/Getty Images

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© Photograph: Bloomberg/Getty Images

How accurate are Jeremy Hunt’s claims about the UK economy?

Chancellor seems to cherrypick data as he tries to outline how the Tories have got the country back on its feet

Jeremy Hunt called a press conference on Friday to outline why the electorate should trust the Conservatives with the economy, but some of his claims appear to have used cherrypicked facts and figures. He gave his speech just over a week after the shadow chancellor, Rachel Reeves, accused the Conservatives of “gaslighting” the UK over the state of the economy by presenting too rosy a picture of what is actually going on.

Here are some of Hunt’s statements on the economy, and some context for his claims.

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© Photograph: Aaron Chown/PA

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© Photograph: Aaron Chown/PA

Jeremy Hunt accused of exaggerating Tories’ economic record

Chancellor also criticised for ‘dodgy dossier’ on Labour plans as he aims to make low tax a key election issue

Jeremy Hunt has been accused of exaggerating the Conservatives’ economic record and presenting a “dodgy dossier” on Labour’s spending plans, as he moved to put low tax at the heart of his party’s offering at the next election.

The chancellor gave a speech in central London on Friday, pitching the Conservatives as having helped the UK recover from economic troubles more quickly than expected. He also signalled a further cut to national insurance in the autumn, having already reduced the tax from 12p in the pound to 8p.

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© Photograph: Henry Nicholls/AFP/Getty Images

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© Photograph: Henry Nicholls/AFP/Getty Images

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