Instant access savings accounts paid an average 0.81% interest in December, the lowest rate for five years.

Bank of England figures also show that interest on notice accounts fell to its lowest level on record, at an average of just 0.82%. The rates tumbled following the Bank of England’s decision to slash the Bank Rate in an attempt to stop the contraction of the economy.

Record lows were also recorded for cash ISAs, with a return of 3.20%, and fixed rate bonds, at 2.09%.

Last April the Bank Rate stood at 5%. Last spring the interest rate for instant access accounts averaged 2.19%, notice accounts averaged a return of 2.99%, cash ISAs averaged a 4.56% rate of interest and fixed rate bonds a 5.32% return.
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A government scheme to help thousands of families facing the threat of repossession is being rolled out throughout England.

Under the £200 million scheme, people struggling to pay their mortgage will be allowed to sell a share in their home, or the whole property, to not-for-profit housing associations and remain in it as tenants on subsidised rents. The programme was devised last year by the National Housing Federation and the Council of Mortgage Lenders.

The government says that the scheme could help up to 6,000 households across the country avoid repossession over the next two years. One of several initiatives launched to help struggling homeowners, the scheme, launched in September, was trialled by 80 councils, and has now been extended to all local authorities in England. Similar schemes will be launched in Scotland, Wales and Northern Ireland.

Housing minister Margaret Beckett said that the Mortgage Rescue Scheme would enable vulnerable people to remain in their home.

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Despite receiving millions of pounds worth of bail-outs, lenders are still being cautious when it comes to offering mortgages to first time buyers.

Just 10 lenders are currently offering 90 per cent loans to value, in comparison with 41 lenders offering 95 per cent loans last year.

Due to the current economic downturn, many lenders have tightened their criteria for offering a mortgage. This means that first time buyers must raise a bigger deposit on a house. According to statistics from the Council of Mortgage Lenders (CML), 40,000 home loans were approved in October last year - less than half the number approved during October 2007.
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More than 10 million people in the UK could be paying for the wrong insurance policy because of a change in their circumstances, according to Barclays.

Life changing events such as a new job, a baby or taking out a mortgage for the first time could all mean that certain policies become unsuitable, particularly when it comes to life insurance, health insurance and income protection. According to research by Barclays, 40% of protection policy holders have had such an event since they last reviewed their cover. In the current economic climate it is especially important to regularly check the terms of your policy, since job losses and repossessions are set to rise further in 2009.
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Business Secretary Peter Mandelson today unveiled long-awaited plans to provide £20 billion of short-term loans to small businesses. Lord Mandelson said that the intervention was “crucial” at a time when scores of businesses were going bust every day.

Over recent months the economic downturn has resulted in a restriction in credit to UK firms, with many loan requests being refused as lenders try to protect their own balance sheets during the current financial crisis. The new plans will allow banks to lend to businesses that would normally be refused loans because of the shaky economic climate and the falling value of their assets.

As part of the measures package, a £10 billion working capital scheme will secure up to £20 billion for companies with sales of up to £500 million. An additional £1.3 billion in bank loans will be made available to small firms with a turnover of up to £25 million, and a capital for enterprise fund worth £75 million will cater for small businesses which urgently need equity.
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Order one main meal at Pizza Express this January and get the second completely free! What’s more, Pizza Express will pay for the more expensive of the two, so this offer is well worth it.

To claim your free main course, simply visit http://www.pizzaexpressoffers.co.uk/, simply fill out the form and print off the online voucher.

This offer is valid until 29th January 2009, and can be redeemed on any day of the week. There is no limit to the number of vouchers you use per party. For full terms and conditions click here.

One in five people travelling abroad for a skiing holiday this winter wrongly believe that their European Health Insurance Card will cover them for all eventualities, according to research by insurance company esure.com.

The study found that a fifth of all Brits setting out on skiing holidays this season, some 400,000 people, have neglected to take out travel insurance, meaning they face huge medical bills should they be injured on the slopes. Of these, five percent believe their EHIC will cover them for any accident.

Whilst the EHIC, formerly known as the E111, covers the cost of medical treatment in the EU, it does not cover travel to and from the hospital or repatriation costs, meaning that should you need to be airlifted to safety, you will have to foot the bill - as much as £1500 in European resorts.
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De Vere Hotels have made selected rooms available at £19 a night, but only if you book before 15th January. The deal applies to weekend bookings up to and including 28th February 2009, subject to availability. 20 hotels are taking part in the promotion, including the majestic Hartsfield Manor in Betchworth, Surrey, and Hunton Park near Watford, Hertfordshire.

For more information click here.

Discount fashion retailer Primark has launched an inquiry into whether UK factories which supply its knitwear have broken UK employment, tax and immigration laws.

TNS Knitwear, a Manchester based supplier to the fashion chain, has been accused of hiring illegal immigrants from India, Pakistan and Afghanistan, and paying its workers only £3 an hour, barely more than half the minimum wage in Britain, which currently stands at £5.73 per hour for workers aged 22 and over. Employees have purportedly worked 12 hours a day, seven days a week for the firm. The accusations come just one year after Primark was found to be supplied by companies that used child labour in India.

Primark, one of the few retailers defying the credit crunch, has said that it has launched an investigation into the practices of TNS and its subcontractor Fashion Waves.
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By installing smoke alarms which are connected to the mains in your home, you could reduce your chances of making a claim, according to the Royals Society for the Prevention of Accidents (RoSPA).

Generally, mains assisted smoke alarms are more reliable than battery powered ones, as batteries are liable to go flat, and it can tempting to take batteries out of smoke alarms to use in other appliances, after which people often forget to replace them.

A spokesperson for the organisation said, “Batteries can also run out, go flat and people forget to replace them. With the mains wired ones, obviously that is not a problem.”

Statistics from RoSPA reveal that smoke alarms failed to operate in 12 per cent of fires in 2006.
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