The Chartered Institute of Payroll Professionals ……………………………………………………………Policy News Journal
Cost of essential bills has risen faster than average wages 9 June 2016
Brits’ budgets continue to feel the squeeze, with regular household bills having increased by 20 per cent since 2007, according to the Bacs Bill Tracker .
The Tracker, created by Bacs Payment Schemes Limited (Bacs), the people behind Direct Debit in the UK, shows that by the end of Q1 2016 the average amount paid out by households in the UK to cover essential bills had grown to £674. This is up from £562 in March 2007 and represents an increase of 20 per cent, or £112 per month, equating to a hefty annual rise of £1340. Unfortunately for bill payers, average wage levels have failed to keep pace with these increases. In fact, over the period between 2007 and 2015, data from the Office for National Statistics (ONS) shows that average wages grew by 12.4 per cent in comparison. The Bacs Bill Tracker data is drawn from 100 million actual anonymised monthly transactions processed by Bacs as householders use Direct Debits to pay for their essential household bills, including energy, water, mortgages and rent, council tax, broadband and phone, TV licensing, and household insurances. It does not include elective personal bills such as gym memberships or mobile phone payments. Mike Hutchinson, from Bacs, said: “These latest figures reflect the financial burden being faced as the cost of household bills increases steadily, while wages fail to keep pace. With 73 per cent of regular household bills paid by Direct Debit, this data gives a clear indication of the upward financial pressures across a basket of core bills. Splitting costs across the year could relieve some of the strain on hard-pressed family budgets and, with the discounts offered from many billers and service providers for paying by Direct Debit, there’s an opportunity to save some vital pounds.”
Back to Contents
Unpaid Work Experience (Prohibition) Bill 10 June 2016
A Bill has begun its passage through the Houses of Parliament which will ensure the prohibition of unpaid work experience for a period exceeding four weeks with the same employer.
The Unpaid Work Experience (Prohibition) Bill will amend the National Minimum Wage Act 1998 to ensure persons participating in a scheme designed to provide work experience, for a continuous or non-continuous period which exceeds four weeks, are paid beyond this point at least the relevant minimum wage rate. The Regulations provide that a person undertaking work experience who has ceased to be of compulsory school age, but has not attained the age of 26, is eligible to receive the national minimum wage at the rate specified for workers of the person’s age.
When the Bill becomes an Act of law it will extend to the whole of the UK.
Back to Contents
Payroll fraud costs UK firms £12bn per year 14 June 2016
HRreview has reported that the Annual Fraud Indicator 2016 found the annual total cost of fraud in the UK stands at £193bn per year, £12bn of which is due to payroll fraud.
Businesses in the private sector are losing a total of £144bn a year through fraud, with £12bn being lost through payroll fraud alone.
cipp.org.uk
Page 138
of 588
Made with FlippingBook - Online magazine maker