HyperJar app: NOT a savings account

Don’t fall for marketing saying you’ll earn 4.8% interest.

I got an email today from an established personal finance website with the bold subject line: “Beat bank rates with 4.8% on your savings!”

My interest (excuse the pun) was piqued. That’s a lot more than you’ll get for your savings anywhere else right now. Surely it’s too good to be true?

You’ve guessed it – that was the case. Though technically accurate, my take on the “account” was this was a very, very bad place to put your money except in the tiniest of circumstances.

Sadly, I’m sure some people will jump at it without reading fully the terms and conditions. I’m actually quite angry about how this is being promoted so I want make sure this doesn’t happen to my readers.

The account in question was for a fintech budgeting app called HyperJar, and here’s why you shouldn’t keep your money there.

What is HyperJar?

HyperJar is mainly a budgeting app based on the “jam jar” principle of splitting up all your spending needs into separate virtual “jars”. You top-up your HyperJar account from your bank, allocate funds to different categories, and then spend with a HyperJar debit card.

I won’t go in to detail here (I’ll look at budgeting apps in the future), but in principle it’s not a bad idea. In fact, it could be a good idea for anyone who finds using real jars or envelopes to budget but wants to take it digital.

But these free features don’t pay the (app’s) bills – so it’s also got the HMoney feature.

HyperJar’s “savings” offer

HMoney is where you can get a 4.8% return. It’s important to note, the marketing blurb on HyperJar’s own website states it’s not interest.

Instead they call it Annual Growth Rate, or AGR. But don’t pay that any attention – it’s just marketing speak. Really you’re getting a promotional reward.

There’s nothing particularly wrong with this – the Chip+1 account which offers 1.25% works in the same way and that account can be worth using.

Yet despite this alternative branding (which is required as they’re not a fully licensed bank), HyperJar clearly wants you to think of the reward like interest on savings.

Their site talks a lot about interest, and how the 4.8% is better than “the interest you get (or don’t get!) at your bank”. It even says “AGR is a little bit like the interest paid by banks”.

But remember – it’s not interest. I think this talk of “a bit like” interest is misleading, which could cause problems. If you say someone can earn 4.8% on their savings, they’re going to expect it to work at least a little like a savings account.

And when it comes to HyperJar it’s a long, long way from any savings account you might have had before.

(I do want to quickly note that HyperJar is not as strong on the “savings” context on its website as the email I received was. But I’m not letting them off completely – that was a paid-for email. Usually, brands sign off on these things so I expect they’ll have been across the messaging sent out.)

Update 17th March 21 – HyperJar got in touch after reading the article. They agreed that the email shouldn’t have been sent with that wording and promised it wouldn’t happen again. That’s a huge win! They also fed back on a few other points, which I’ve added below where relevant)

(Also, don’t worry I’ve never accepted any sponsorship from brands here on the blog or in my newsletter. You can be confident what I share with you is editorially independent and what I think – not what someone wants to pay me to think).

How you earn money with HyperJar

To earn this 4.8% back with HyperJar you need to “commit” to spending with one of their partner brands.

You do this by allocating money to a specific brand “jar” within the app. You’ll then have money added on a daily basis to reflect the AGR/reward rate.

So put in £100, and over a year you’ll get an extra £4.80 added, giving you a balance of £104.80.

But realistically you’re not going to use this for long-term savings. So can spend your saved money earlier, and the bonus you get will reflect this. So if it’s there for 30 days, you’ll get 30/365 of the £4.80, which works out as 41p.

You can add more money to the same retailer pot, or put it towards a different one.

Brands you can save with on HyperJar

There aren’t many brands on there, and of those on there very few are ones you could or would regularly shop at.

At the time of writing, there are just over 20 partners, and the key ones are:

  • Shell
  • Megabus
  • Laithwaite’s wine
  • Virgin Wines
  • Bloom & Wild
  • Feel Unique
  • ATG Tickets
  • Not on the High Street
  • Boden
  • Dyson

It looks like it used to have Lidl, but that’s not there anymore.

Why it’s a bad place to keep your money

You can’t withdraw your money

Savings can be for a variety of things. Emergency cash, holiday funds, house deposits… the list goes on. But ultimately, whatever you are saving for, you’ve got the flexibility to spend it on something else.

Not with HyperJar. Once you’ve committed money to a partner, it is locked in. You can’t withdraw it. There’s not even a penalty to get the money back in cash.

This is BAD. What if you need the cash? Tough luck. It’s stuck in HyperJar to use at the retailer you select.

You’re effectively buying a gift card for a specific retailer (from a very small selection).

(Update: HyperJar has told me that in exceptional circumstances it is possible to get the money refunded. This will be for situations such as someone has lost their job rather than simply changing their mind. If you want to discuss a refund, HyperJar says to get on the live chat within the app).

The return isn’t really 4.8%

If you keep your money saved for 12 months then you will get the equivalent of 4.8%. But are you really going to keep the money saved with a specific brand for that long? No. So you can’t really compare it to the money you would make from a real savings account.

I think it’s a better comparison to see it as a prepaid cashback bonus.

Let’s go back to the example above of 30 days. That 41p on a £100 spend is 0.41%.

If I spent £100 with one of the retailers listed but used my cashback American Express card rather than a MoneyJar card, I’d earn 1%.

By the same logic HyperJar uses, Amex gives 10% over 12 months! But obviously it doesn’t!

You also don’t earn “interest” on the “interest”, as you would with a normal savings account. It’s only paid on the money you deposit.

You are stuck with a single retailer

You might think, what’s the harm of using HyperJar if you are saving for something sold by one of the retailers? I still don’t think it’s a good idea.

Even if you are planning to buy something from a specific retailer, having the money in cash savings gives you the flexibility to shop around for the best price.

And in my opinion, none of the retailers are the ones where you’d shop week in, week out. Only Shell is one you could spend money with on a regular basis, but they’re rarely the cheapest petrol pumps.

You lose consumer protection when spending your savings

If you paid with a debit card you’d get access to something called chargeback if something goes wrong. But in the terms and conditions for HyperJar, it states “…you agree you will not exercise your chargeback right for any reason that we are not responsible for, such as any dispute you have with a merchant”.

(Update: HyperJar has removed this from the terms and conditions and agree it was confusing, It says the chargeback clause refers only to top-ups not purchases.)

Better alternatives for your savings and spending

So now you’re not distracted by the claim of a 4.8% return, what should you do with your money?

For savings, look at an easy-access account for any money you have now and regular savings accounts for any money you add each month. Here’s my regularly updated guide which will show how to get 2.02% on up to a grand and up to 3.04% on monthly deposits.

For spending with specific retailers, I’d use a cashback credit card instead. If the shop takes American Express you can get up to 1.25% back on every £1 pent. If not you’re looking at a lower 0.25%. Here’s are latest picks.

Plus you can combine both of these. So until you spend money, it’s sitting in savings earning interest. Then when you buy something you earn the cashback on top. And you can repeat this with any retailers, not just those partnered with HyperJar.

Let’s go back to that £100. Remember over 30 days it’d earn 41p via HyperJar. Well, earning 2.02% with Virgin Money would add on 17p after a month. Spent via an Amex at 1% would earn £1. So in total you’d have £1.17 rather than 41p – much better.

FinTech can still be good for savings

I do want to end on a more positive note. Just because I hate this feature with HyperJar, I’m a huge fan of fintech innovations that help us save more money (like Plum and Monzo), or better manage our money (like Yolt and MoneyDashboard). And though it’s not perfect the Chip+1 account does offer a decent rate on savings at the moment.

So don’t be put off all apps because of this – just operate with some healthy scepticism. And don’t worry, I’ll continue to share the good and the bad here on the blog.

Cash Chats #175: Low-spend lockdown update & the best current and savings accounts

Back in January I talked about the pros and cons of no-spend challenges, and suggested you join me with a low-spend lockdown.

Well, lockdown has gone on for longer than was suggested, but I’m still going strong – and here’s my progress report on the first two months.

Plus, my monthly update of the best current and savings accounts as of March 2021.

Or you can also listen to Cash Chats on all podcasting apps. Click through to your favourite

More from Cash Chats

If this episode has saved you money, please do tell a friend!

It’d be great if you also leave a review and rating. Here’s how to do it on Apple Podcasts and iTunes. 

Don’t forget to join the Cash Chats community on Facebook.

Further reading

If you’ve got five minutes, please do fill in my annual listener and reader survey.

MUSIC

The music used on Cash Chats is Easter Island by Lonely Punk and provided on a creative commons licence.

M&S Bank to close all current accounts

What to do if you have a Marks & Spencer Bank current or savings account.

In August, all existing current accounts at M&S Bank will close, and the linked monthly savings account will also shut. The accounts are already closed to new customers.

All 29 in-store branches will also close at the start of July, though the bank will carry on providing credit cards, loans, insurance and other savings accounts.

The retailer says it’s “evolving” to reflect the way customers use their bank, with the branch closures a reflection of the move to online banking.

So if you’re an M&S Bank customer, what do you need to do?

Your current account

If you do nothing, the account will be frozen in August and you’ll have to contact the bank in order to access any money left in there. So it’s important you either withdraw your money and close the account or switch your account. I favour the latter.

Switching your M&S Bank account

It’s really easy to to do this via the Current Account Switch Service (CASS), and comes with a guarantee that all payments in and out will be moved to your new account. Plus, if you switch you’ll also be able to nab a freebie from a different bank keen to get your business.

If you’re overdrawn there’s no guarantee a new bank will also offer you an overdraft, so it might be worth looking at options to clear that if it’s a worry.

Switching takes seven working days, so there’s no rush to move. You’ve got time to wait and see what switching offers come along, but there are some you can get if you want to switch right away.

HSBC Advance Account: Free £125

You’ll only be able to switch to this account for the bonus if you opened your M&S Bank account prior to 1st January 2018.

If you are eligible you’ll need to transfer over two direct debits or two standing orders. The latter are really easy to set up. You’ll get the payment within 20 days of the switch completing.

First Direct: Free £100

As with the HSBC switch, you’ll need to have opened the M&S account before 1st Jan 2018. You need to pay in £1,000 within three months, and the money will be paid within 28 days of this happening.

This is a good option if you want to keep the £250 0% overdraft buffer, and First Direct is the only other bank to offer it.

Virgin Money: Free wine & charity donation

This account from Virgin Money will give you 12 bottles of Virgin Wine and a £50 charity donation via Virgin Giving.

You need to transfer or set up two direct debits and put £1,000 into the linked easy-access saver and keep both active until you’ve got your free wine.

More on these and other bank rewards and offers in my ultimate bank account guide.

Closing your M&S Bank account

You can do this by contacting M&S Bank, though you’ll need to have a zero balance first. If you don’t do this it’ll automatically be closed in August.

You will still be able to see the balance online or via the app after this date – but to access any cash left in there you’ll need to contact the bank.

Statements

You won’t be able to access old statements once the account is closed, so it’s worth downloading these.

Your monthly saver

On hearing the news I’m sure a lot of customers will be frustrated about this linked regular saver closing – it will have been the reason for lots of people to open the account in the first place.

Though the most recently opened monthly savers were only paying 1%, many will still be part way through a year set at 2.75%.

The good news is you’ll get the interest for the full year, no matter how long left you have to save. The bank will assume you’ve paid in the maximum £250 a month and add interest accordingly.

If you want to get the best rate for your savings once you withdraw it from the monthly saver, or find a new regular saver, here’s my updated list of the top paying accounts.

Andy’s deals of the week 5th March 2021

Watch the latest episode, or read on for more links and details

1. Quidco: Up to £10 bonus cashback

Until midnight Thursday (tonight) the cashback on offer for opening a TSB Spend & Save account via Quidco is increased to £55 from the standard £30.

2. Waitrose: Flower discounts

On Friday 5th March only Quidco is giving 25% off all purchases on Waitrose Cellar. And that can be combined with the 25% off when you buy 6 bottles promotion running until the 9th March. AND it can be combined with the Mother’s Day hub promo above.

3. Amazon: £5 off for streaming a song

Another Amazon credit deal! This is annoying as I’m trying to encourage you all to use the retail giant less!

Anyway, this one could get you £5 credit to use on a £20 purchase. You’ll need to check you’re eligible and stream a song in full on the free Amazon Music service.

4. Amex Business: Up to £330 in bonus points

The American Express Business Gold card has increased the reward points you’ll earn in the first three months to 50,000 (worth £250 cash, or more in Nectar points) with a minimum spend of £5,000.

Plus you can get up to £80 cashback. And you can get the bonus if you haven’t had a personal Amex rewards card in the last six months (it’s two years for personal welcome bonuses). So it’s worth looking at if you think you’ll spend that much on your business.

5. LAST CHANCE – Free bonus Nectar point promotion

This offer for free points via the Nectar app ends Tuesday 9th March 2021. I won 1,000 points worth £5.

6. Brewdog: 20% off for some

If you claimed the free beer in the offer I shared earlier this year, you’ll now be able to get 20% off orders at the Brewdog online shop.

7. Mother’s Day: Flower discounts

It’s only 10 days until Mother’s Day, so if you’re thinking of sending flowers here are some decent discounts from the likes of Bloom & Wild, Bunches and Freddie’s Flowers.

Cash Chats #174: Your Money, This Week (Budget Special)

Your weekly digest of the biggest money stories from the last seven days, this week focusing on the 2021 UK Budget as announced by Chancellor Rishi Sunak.

I’m delighted that my guest this week is Claer Barrett, the Financial Times Consumer Editor and host of the FT Money Clinic podcast. Together we’ll help you get underneath the policies to see how they’ll actually affect you.

This episode features:

  • Furlough extension & support for self-employed
  • What it means for the rich/poor divide
  • The sleight of hand tax increases
  • Whether the new £100 contactless limit is good or bad
  • & More

If you’ve got five minutes, please do fill in my annual listener and reader survey.

Or you can also listen to Cash Chats on all podcasting apps. Click through to your favourite

More from Cash Chats

If this episode has saved you money, please do tell a friend!

It’d be great if you also leave a review and rating. Here’s how to do it on Apple Podcasts and iTunes. 

Don’t forget to join the Cash Chats community on Facebook.

Further reading

MUSIC

The music used on Cash Chats is Easter Island by Lonely Punk and provided on a creative commons licence.

Ask Andy #3: Your questions answered

This week I answer your questions on different addresses on your credit report, what interest you’ll get with Starling, how to meet minimum deposits on new current accounts and more.

I love hearing from you, whether it’s on the blog, social media, YouTube or on email. Often you’re asking me questions about your finances, and I’m always glad to help if I have the time.

But I realised that my answers could also be useful to other followers. So I’ll be putting my responses to the best questions into regular articles here on the blog.

Right over to the latest questions…

Can I have different addresses on my credit report?

My husband and I have been saving to buy our first home and fingers crossed will be in a position to be homeowners this/next year. I wondered if you could help me with a few questions –

Over the last few years we have done a mix of living with parents & housesitting for friends/family. My bills/paperwork are registered at my Mum’s address however as she lives on her own so benefits from single allowance on council tax/TV licence, she understandably doesn’t want me registered to vote at hers. Does it cause problems/issues with my credit rating if my bills/paperwork are registered at her address but I register to vote using my in-laws address?

I currently have a part-time job with a charity which I love, however it’s unlikely they’ll be able to increase this to be full-time which I’ll need to help with getting enough for a mortgage. Does it affect my mortgage changes if I have say 1 full-time job or 2 part-time jobs (earning the same total as the f/t job)?

Emma, via email

Hi Emma.

Hmm, so there’s no easy answer. You really should have the same address for everything so you would ideally register to vote at your mum’s house.

But you’re not allowed to register at a property you don’t live at. So that means you have to register at your in-laws. And then move all your accounts to there too.

However when you do this it could hurt your score temporarily too (as you’re now at a new address) – but I’d expect that’s better than not registering to vote at all. And you’ve got time for this to right itself.

On the second point, it’s all about total income. So two jobs earning the same as one shouldn’t really make any difference.

Would negative interest rates affect my fixed savings?

I’d be interested to know how negative interest rates would work with fixed/term/notice accounts or premium bonds.

David, via YouTube

If an account is fixed then negative rates won’t change what you get. If it was to happen it could mean notice accounts change the rate they offer (but you’d be able to withdraw the cash immediately). Premium Bonds could also reduce the win rate.

Will Starling Bank pay me interest?

Hi Andy I’m a big fan of your YouTube channel and was just wondering if you wouldn’t mind to give me some advice…

I’ve got roughly £25,000 in the Santander 123 current account however I’m aware the interest rate will drop to 0.3% pretty soon…

I have my direct debits in this account, savings and wages all in this one account…

I was thinking of switching it all to the Digital Starling account as it had 0.5% interest up to £85,000 and just keeping saving in that account…? 

Would that be advisable as I have a very poor knowledge of banks and savings accounts and the interest rate at this time is really poor..!

Hope this message finds you well and please keep up the good work you do.

kind Regards

Anon via Facebook

Hi,

Tthe Starling rate is actually 0.05% – so it’s not the place for savings (though it is a good account for banking).

You could keep using Santander for your bills etc, but move to the cheaper 123 Lite, then put your savings in a separate account

The best of the current lot are here, or you could look at Premium Bonds

Should I skip autosaves on Chip?

Sadio via Twitter

Hey Sadio. If it’s asking you to skip autosaves then you’re on the paid ChipAI tier (they made the fee mandatory in early December). If you want to avoid this £1.50 every four weeks then move it down to the free ChipLite. You’ll only earn interest on £2k but that’s probably best.

That’s because after the fee you’re really getting around 0.86% on the full 5k. But if you treat the extra 3k as separate it’s less than 0.6% – which you could beat with a Club Lloyds account (and also get free movie rentals/magazine subscription and access to a 1.5% regular saver).

Here’s more about Chip+1.

What direct debits count for a bank switch offer?

Both my wife and myself have opened our individual accounts [for Virgin Money]. This might be a silly question, but are incoming direct debit payments acceptable towards qualifying for the wine deal ?

Thomas, commenting on the blog

Hi Thomas. They’ll need to be direct debit payments out, so things like your energy bill, membership, charity donation or credit card payment

Will I still get TV if I get rid of Virgin?

My aerial is through virgin box will it work with now box without arial

Lorraine, commenting on the blog

Is it just the cable TV input? If so that won’t work with Freeview. If you also have a roof aerial though for terrestrial TV it’ll work with your TV or a Freeview recorder.

But that shouldn’t matter. NOW TV is all about signal coming via your broadband. So it doesn’t use an aerial at all (there were some older boxes that had this feature but they’re no longer available).


I don’t earn enough to pay into a new bank account for the bonus

Hi.  I am thinking of opening another current account as I only have 1.  I didn’t know you could have multiple different ones.  But I don’t think I can use the switching to get more out of it as I only have a low paid part time job. I see a lot of accounts you have to put so much in each month. I don’t earn anywhere near enough to do that.  I just want a separate one from my main one to use online and shopping but won’t be a disaster if I get hacked, etc. Any idea which account would be best for that?

Jacqueline via the Facebook group

You can get around the minimum monthly deposits quite easily. Say it asks for £1,000. You don’t have to put in £1,000 in one go, and you don’t have to keep it in there. You could for example, transfer over £250, then transfer it back to your other account, and repeat it another three times. You can even set this up as standing orders so it’s done automatically!

Will Sky give me a better deal?

Hi Andy. You probably get a million questions and I apologise in advance.  

My parents have sky HD multi room and paying the maximum with an increase due.  I know if they change to Sky Q they will get a good deal but their internet is not fabulous and they are elderly so no good with technology if it goes offline. 

If I call Sky do you think they would do a deal with their existing HD boxes please? 

Thank you for your time. You are fabulous. My Daughter has just opened a free business bank account thanks to you. 

Best wishes 

Jeanette, via Facebook

Hi Jeanette, It’s always worth haggling with Sky to see what deal they’ll give. If you say you’re planning on leaving you tend to get the best deals – even if you don’t actually intend to go. 

It’s always harder with older parents – my folks wanted to stick with BT so they pay a little more as a result, but I still managed to haggle them a better deal.

How to ask me questions

The best ways to get in touch is in the Andy Clever Cash Facebook community

Just post your question any time, or ask me live in my weekly Q&A each Thursday (which is also on Instagram).

You can also comment on individual blogposts and videos or ask me questions via these channels:

I can’t promise I’ll be able to answer all questions but I’ll do my best.

Budget 2021: What you need to know

What you need to know about furlough, tax hikes and more.

This spring Budget, as announced by the Chancellor Rishi Sunak on 3rd March 2021 is the probably the most packed in the seven years I’ve been writing about them.

A lot of the measures where leaked in the days ahead, but there was plenty of new announcements, and I’ve compiled a list of the key ones below.

It was billed as a Budget to protect jobs, so there wasn’t a huge amount on how we’ll pay for the additional spending – but we still heard about a few of the ways money will be raised in taxes.

You can watch this round up video or keep reading

More detail will come in the next few days, and I’ll add information below as it’s revealed.

I’ll also be talking to the Financial Time’s consumer editor Claer Barrett on Friday’s episode of my Cash Chats podcast to analyse everything. You can subscribe now on your favourite podcast app so you don’t miss it.

Jobs & benefits

Furlough extended

The Coronavirus Job Support Scheme, due to end on 31st April 2021, will now finish on 30th September 2021.

Employees on furlough will continue to receive 80% of their wages up to £2,500 a month, though from the summer businesses will have to contribute some of the cash. In July it’ll be 10% of the 80%, and in August and September it’ll be 20% of the 80%.

Watch more about the furlough extension in this video

Self-employment scheme extended

Those eligible for SEISS (Self-Employment Income Support Scheme) will be able to apply for another three-month payment in April, covering 80% of profits up to £7,500.

There will also be a fifth (and final) grant to cover May to September. Those who have seen a turnover loss of 30% or more will get the same 80% (so up to £7,500). But if the turnover drop is less than 30% the grant will be reduced to 30% of those profits (capped at £2,850). It’ll be available from July 2021.

What’s also different this time is that it’ll now be based on the 2019/2020 self-assessment form, which brings in around 600,000 people who have previously missed out.

Nothing for ExcludedUK

Once more there was nothing to help the remaining 2.4m people who’ve had no support in the last year because they were limited company directors, freelancers, people on fixed term contracts or people earning a mix of PAYE and self-employment income.

Universal Credit uplift

The £20 extra weekly payment for low-income households claiming UC will be extended for six months. It will now stop at the end of September 2021. This was after a huge amount of pressure from the oppostion and other groups.

Eligible Working Tax Credit recipients will receive the same amount but as a £500 one-off payment.

The surplus earnings threshold for UC will remain at £2,500 for another year and then revert to £300.

Training grants

The government’s incentive for employers to bring on apprentices between April and September 2021 will be doubled to £3,000 per apprentice.

From June there will also be subsidised management training (Help to Grow: Management) and in the Autumn free digital training available (Help To Grow: Digital), as well as discounts on software. You can register interest here.

Tax & Savings

Green bond for savings

A new “Green bond” will be available to the public to put their savings in accounts that’ll help fund green initiatives. It’ll be from NS&I (National Savings and Investments) from the summer of 2021. The rate hasn’t been announced.

Income tax freeze

The different income tax thresholds were due to increase slightly from April 6th and this will go ahead, but they’ll stay at this level until 2026. This means:

  • The first £12,570 earned is tax free (Personal Tax Allowance, though it reduces for earners over £100k)
  • The next £37,700 is taxed at 20% (basic rate tax)
  • Earnings above £50,270 are taxed at 40% (higher rate tax)
  • Earning over £150,000 are taxed at 45% (additional tax rate)

This is really a stealth tax increase as you’ll lose out in real terms as inflation means prices you pay elsewhere will have gone up and if you get a salary increase you could be moved into the higher tax bracket.

Corporation Tax

In April 2023 Corporation Tax will jump to 25% on company profits from its current 19%.

Companies with profits of under £50,000 will see the rate remain at 19% under a “Small Profits Rate”, while the increase will be tapered above this. In total only 10% of businesses will pay the full rate (those with profits above £250,000 a year). The differnet tiers haven’t been revealed.

This is less of a blow for small businesses as was feared, especially those with smaller profits. It’s a big increase for big companies, but no doubt something the likes of Amazon and Facebook can avoid as we didn’t see a mooted digital sales tax.

Pension, capital gains and inheritance tax freezes

Other tax thresholds will stay at the same rate including Inheritance tax, Capital Gains Tax and the Pensions lifetime allowance. These will stay the same until 2026.

Booze increase frozen

All planned alcohol (Scotch, wine, cider and beer) will be frozen for another year.

Travel taxes

The petrol duty increases will also not happen in April.

Other travel taxes such as Air Passenger Duty, Vehicle Excuse Duty and company vehicle benefits will increase inline with inflation.

Housing

Stamp Duty holiday extended

The £500,000 threshold where no Stamp Duty is required will carry on for another three months in England and Northern Ireland.

Then from July until the end of September the nil-rate band will be £250,000. From 1st October it will return to the normal £125,000.

Scotland and Wales are still to announce what they are doing.

New 95% mortgage scheme

The government will guarantee mortgages for homebuyers to encourage more lenders to offer 95% mortgages. So it means you’ll be able to buy with a 5% deposit, subject to meeting the usual affordability criteria.

It’ll be capped at properties worth £600,000, but it won’t be restricted to first-time buyers or new build homes as other schemes have been.

Homebuyers will be able to fix for up to five years and the scheme will run until December 2022.

Shopping & retail

Contactless limit to increase to £100

You’ll now be able to tap your card without entering your PIN on payments up to £100. This is a massive jump up from £45, which was only increased from £30 a year ago.

It might take a short while for retailers to change systems for this to work.

VAT cut extended

The 5% rate of VAT (down from the usual 20%) for hospitality and tourism will remain until end of September.

It’ll then go to 12.5% for the next six months, before returning to 20% in April 2022.

No new schemes to get people shopping

There was no repeat of Eat Out To Help Out or similar schemes to get us shopping.

Non-essential and leisure retailer grants

“Non-essential” retailers that will be able to open in mid-April will be able to claim “restart grants” of up to £6,000 per site.

Hospitality and leisure businesses in England that will open later – such as pubs, hotels, restaurants, gyms and hairdressers – will be able to apply for grants of up to £18,000 each

There’s a similar fund set up for the other UK nations to distribute to retailers.

Business rate cut

Until the end of June, Business Rates will remain at zero for eligible retail, entertainment and leisure properties. It will be discounted by two-thirds until 31st March 2022.

Other announcements

Recovery loans scheme

Any business can apply for loans between £25,000 and £10m, with the government guaranteeing 80% of the money borrowed.

Super Deduction on tax for business investment

Companies spending money on equipment will be able to offset 130% of the cost against profits for two years.

More grants for sport and the arts

Most museums, cinemas, theatres and music venues have been closed for almost a year. An extra £300m will be added to £1.57bn Culture Recovery Fund, £18.8m going to community initiatives and £77m to Scotland, Wales and Northern Ireland.

Another £300m will go to support sports such as cricket and tennis, and there will be money for a 2030 UK and Ireland World Cup bid.

Green grants

A new national bank based in Leeds will be funding public and private green initiatives.

Funding for vulnerable groups

There will be funding for some groups:

  • An extra £19m to tackle domestic abuse
  • £10million for military veterans with mental health problems
  • A lifetime commitment for victims of the Thalidomide scandal

Visa reform for “highly skilled”

To encourage overseas workers from industries such as science, tech and engineering it’ll be easier to get a work visa via a points-based scheme.

Cash Chats #173 Pay less for your broadband

This week it’s a solo episode featuring another money makeover, my occassional feature designed to help you save hundreds of pounds on your everyday finances.

The focus today is your broadband bill – an expensive but essential outgoing.

Plus if you’ve got five minutes, please do fill in my annual listener and reader survey.

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Further reading

MUSIC

The music used on Cash Chats is Easter Island by Lonely Punk and provided on a creative commons licence.

Eating ethically

In an ideal world I’d always stick to my principles, but it’s not always easy, especially with food.

Seeing as it’s currently Fairtrade Fortnight, a two-week celebration of the Fairtrade stamp and all the good the Fairtrade Foundation does, I thought I’d delve a little deeper into some of the foodie consumer choices we can make to see just how easy or hard it is to make a stand.

My ethical eating challenges

I’ve had spells where ethical decisions have heavily influenced how I ate, but I always seem to make compromises which water down my resolve. Sometimes it’s down to cost, other times it’s convenience.

But there’s also an aspect of feeling overwhelmed and even confused by the decisions that need making. This is the biggest challenge I find to eating ethically. Even when I feel I’m doing a “good thing”, there’s something I’m not doing which cancels it out.

I know it’s not realistic for me to get it right all the time, so I’ve reached a happy medium where I’ll do what I can.

I still try to do more, and over the last year I’ve moved to only Fairtrade chocolate (thanks to the delicious and good value Tony’s Chocolonely) and reduced my meat consumption.

If this sounds like something you’d also like to do more of, then here are a few of the ethical dilemmas to consider at the supermarket.

It won’t always be easy, and I can’t promise you answers – but it will hopefully help you focus on where to concentrate your efforts.

Fair pay and rights for producers

Brits are a caring bunch. Each year we give more and more money for humanitarian causes – basically helping people. With food, this often boils down to workers’ rights, pay and conditions.

Fairtrade

Fairtrade is probably the biggest help here. From bananas to coffee, and even things like wine and nuts, this stamp tells us the farmers are getting a fair deal. I like Fairtrade, and genuinely believe it’s a good thing, not just via the price paid to producers, but also in the wider work the Fairtrade Foundation does in communities across the world.

But it’s not perfect. Sometimes prices still aren’t enough. And I have concerns “greenwashing”. Some big brands, such as Nestle, appear to have a small number of products certificated by the scheme (though last summer they dropped Fairtrade choc from KitKats). This gives the appearance that they are an ethical brand, yet the vast bulk of their business carries on with normal, and often unfair, working practices.

However, the argument the other way is persuasive too. Even a small amount of big brand products certified as Fairtrade can make a big difference to producers due to the scale these products are sold at.

I’m not entirely convinced by this, but overall I think yes, buying Fairtrade does make a difference.

Other certification schemes

Recently there’s been a problematic development. A few big brands are replacing Fairtrade with their own schemes.

A few years ago, Green & Blacks (owned by Mondelez, which also owns Cadbury’s) released a new type of choc which, for the first time, wasn’t Fairtrade. Instead it’s under Mondelez’s own Cocoa Life programme, and other certified choc made by Mondelez will follow suit and drop Fairtrade.

Sainsbury’s also switched all its own-brand tea from Fairtrade to its own “fairly traded” scheme. And as mentioned, Nestle dropped KitKats to its’ own scheme.

I find these other schemes more difficult to trust. As a consumer I don’t know what the label promises, and without wider oversight how can we be sure it’s really any better than anything else.

Personally, I’d aim to stick to Fairtrade if you can, and it’s worth putting pressure on the manufacturers and retailers to do the same. 

UK producers

But eating ethically to help people isn’t just about overseas farmers. You might remember the milk price wars from 2015, where farmers revolted at the price supermarket were forcing them to accept. The amount didn’t even cover the cost of production (and in some cases it still doesn’t).

It’s difficult to know when a fair price is being paid. As a rule Co-op, Waitrose, Marks & Spencer are better options, though Tesco and Sainsbury’s both promise a fair price to dairy farmers.

Animal welfare

Meat

Obviously the most ethical way to support animal welfare is to not eat meat.

About 15 years ago I briefly gave this a go. I was in Australia’s outback and I’d just seen a double-decker, double-length lorry transporting cows. Really distressed cows. Seriously, the noise they were making was just heartbreaking. Then the driver got out and started jabbing through the small holes in the truck with an electric cattle prod, and he did it with a lot of enthusiasm. It made me feel sick.

I’d always been concerned about animal welfare but this was what prompted me to take some action. I was now a vegetarian. Except it didn’t last. The very next morning, more out of muscle memory rather than a conscious decision, I ate a sausage roll! I’d lasted just 20 hours. No doubt that’s the most pathetic attempt at vegetarianism ever.

I spat the sausage roll out and started again, avoiding meat for a few more weeks before deciding I’d instead just eat high-welfare meat.

In the supermarket Soil Association certified organic is usually the highest standard, followed by free-range and then outdoor reared and RSPCA Assured certified (previously called Freedom Food). Some supermarkets, including Waitrose and Marks & Spencers, also have their own higher standards which are similar to the RSPCA requirements.

Of course, these all cost a lot more money so I tend to stock up on special offers and reduced food and whacking them in the freezer for later use.  

What makes this rule difficult is eating out or going to a friend’s for dinner. I vividly remember eating a pea risotto on a date, while she tucked into a steak.

So for the last ten or so years I’ve instead gone for a more flexible approach. If I’m out, I’ll eat what is on offer – though I’ll try to pick an ethical option.

And at home or out it’s so much easier now veganism has become mainstream. There are some really good meat substitutes available from supermarkets, and of course just cooking veg based meals. We’re trying to have a couple of meat free days each week.

But importantly I’ve not had a KFC or dodgy late-night kebab since that day in 2006.

Fish

Look here for MSC certified fish (it’s a blue sticker), which means the stock levels in the sea are sustainable and ok for you to eat. Oh, and I know dolphins are mammals, but try to buy line-caught tuna rather than net caught.

Eggs

Really easy here isn’t it? Always buy free-range. Except even then it’s not all rosy for the chickens. This Guardian article is particularly enlightening. Soil Association certificed organic once more has the highest welfare standards. Still don’t buy anything that’s not free-range or above.

Dairy

A few years ago I watched a BBC Three comedy/documentary by Simon Amstell (off Never Mind the Buzzcocks). I didn’t realise he was a vegan, and this was his ode to giving up meat completely. It’s a weird watch, and (deliberately) disturbing at times.

But it did make me think differently about dairy farming. Though Soil Association has the best standards for the welfare of the cows, there are still ethical concerns – a big reason many people do go vegan.

If this is something you’d like to know more about, I’d recommend watching the programme on iPlayer.

Politics and the environment

I could write a lot more here on these topics, but I just don’t have the space in this article.

The environment

The hottest issue for the last few years (literally) and it’s been the biggest motivator in people trying veganism.

Buying local and seasonal certainly helps reduce carbon emissions, though they’re nothing compared to the pollution caused by farming meat.

Some argue that even veggie and vegan staples such as quinoa, soy and almond milk have an impact on the environment. Which is true, though no where near as much carbon emissions are produced, so eating less meat can be a good move. 

Another easy way to help is to reduce food waste. Chucking away food you forget about or don’t finish means you’ll buy more grub. That doesn’t just cost you more money, it means more food miles, processing etc in the replacement food you buy. Your freezer can be your friend here.

Packaging and plastics are huge here too. Can you buy loose rather than packaged fruit and veg? Or meat and fish off the counter rather than shelves? Try to recycle and reuse as much packing as possible – or ideally avoid it. I don’t use those small bags for loose fruit and veg, and I’ll always bring my own tote bags for packing.

Your money can also actively help the environment if you pick things like Rainforest Alliance certified coffee.

But there’s so much more you could do, so it’s up to you where you focus your efforts. I still haven’t got into reading more about palm oil which seems to be in almost everything, but it’s one to avoid if you can.

Politics

Obviously your decisions will depend on your wider political views. A couple of the main issues I struggle with are:

So many brands owned by bigger conglomerates. Pringles are a good example – they were owned by Proctor & Gamble who test on animals (obviously not the crisps) until recently. And PepsiCo has been criticised for supporting modern slavery through its palm oil production (which also increases deforestation).

It means that it’s often impossible to know if I’m inadvertently buying something ultimately owned by a brand doing something I disagree with.

There also are groups that call for consumers to boycott produce that’s originated in Israel, as it could actually be from the occupied territories. Though equally it could be from within Israel. Or there are reports which connect avocados with Mexican drug cartels. It’s difficult to know!

Again, I think the answer is to find out about issues you are particularly passionate about and see if there are any real villains you need to avoid. And build from there.

How supermarkets measure up

As I said earlier, I try to stick with Waitrose and M&S Food, particularly for meat. Ethical Consumer magazine scores all the supermarkets on politics, animals, people, the environment and sustainability.

At the time of writing, Co-op, Waitrose and M&S all do well, with Asda and Tesco at the bottom of the table.