Football fans who plan on attending the World Cup Finals in South Africa next year have been urged to purchase travel insurance early to cover themselves for any cancellations.

M&S Money said that many travellers need to use insurance before their holiday begins in case their flights or accommodations are cancelled unexpectedly. The insurer’s premier travel insurance policy offers up to £6,000 cover for any irrecoverable unused travel and accommodation costs in the case of illness, being called for jury service or if eave is withdrawn for customers working in the emergency services or Armed Forces.

Steve Price, M&S head of general insurance, said: “It’s great news that England have qualified for the World Cup and thousands of fans will now be looking forward to heading to South Africa next June.

“Tickets for the matches will no doubt be hot property, but fans should also think about what they would do if the worst happens. Travel insurance can provide financial support long before you step on to a flight, so England fans would be wise to invest in a comprehensive policy now.”

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UK households saw their income drop by an average of £31,000 last year because of the credit crunch and recession, new figures reveal.

A study for the BBC found that falling house prices were responsible for a £422 billion decrease in the value of the UK’s housing wealth, while falling share prices reduced other financial wealth by £393 billion.

According to calculations by the Halifax bank, this was the first such drop in household wealth since 2001. The bank worked out that the accumulated wealth of the UK’s 26,652,000 homes fell by a total of £815 billion  in the course of last year as the economic downturn undermined house prices and stock market investments - an overall drop of 12%.

“It is a huge drop to happen in one year,” said Martin Ellis, chief economist at the Halifax.

“But we have had the biggest house price fall yet seen in just one year, combined with a fall in equity prices,” he added.

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Mortgage lending is on the up, having risen 19% higher during July than in the same month of last year, according to the Council of Mortgage Lenders (CML).

This marks the first significant increase since February 2007, when the number of home loans increased by 5.6 per cent compared to the same month a year earlier, the group said.

However, the CML said that the figures should be treated with caution, warning that ongoing problems affecting the mortgage market could hinder further growth.

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The Bank of England’s Monetary Policy Committee voted yesterday to keep interest rates set at 0.5% for the sixth consecutive month.

The MPC also decided against increasing the amount of money the Bank is pumping into the economy through quantitative easing - the option favoured by three members of the nine-strong committee - keeping the size of the scheme at £175 billion. It said that the Bank would carry out quantitative easing for another two months, adding that “The scale of the programme will be kept under review.”

The MPC’s decision follows recent evidence that the UK economy may be returning to growth after five quarters of recession in a row, including a rise in manufacturing output, a tentative rise in house prices and reports of increased activity in the services sector.

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The Bank of England is widely expected to keep interest rates set at 0.5% for the sixth month in a row when it announces its decision later today. It is also tipped to maintain its programme of quantitative easing - pumping money into the economy to stimulate growth - but is not likely to extend it.

Though the Bank conceded that there is evidence to suggest Britain is emerging from recession, it warned that recovery is not guaranteed, and that it could take months for the full impact of its policies to be felt.

Last month the Bank’s Monetary Policy Committee (MPC) surprised markets by increasing its quantitative easing programme by £50 billion to create up to £175 billion on the UK’s balance sheet, with three of its nine members, including Bank of England governor Mervyn King, voting for an even larger increase.

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One in seven motorists has lied to their car insurance company in order to reduce premiums, a new survey has revealed.

According to research by insurer Salaam Halal, some 14% of drivers admitted that they or their partner had deliberately submitted false information in order to benefit from cheaper insurance.

The worst culprits came from Wales, where 21% of drivers admitted they were likely to lie when applying for insurance. People living in the East of England were most truthful, with only 10% of motorists providing false applications.

People most commonly lied about the location of their car when applying for insurance, with 39% of those who had been dishonest claiming they parked their car in a garage, when in fact they kept it outside.

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More than 2,000 families will move into a new home after the government today gave the go-ahead for the largest council house building project in a generation.

New council houses will be built in 47 regions across England, including 12 housing projects in the Midlands, seven in the North West, six in London, six in Yorkshire and Humber, six in the South West, five in the North East, four in the South East and one in eastern England.

Work will begin by the end of the year, with some accommodation available to struggling tenants within 12 months. The government will provide £127 million of funding towards the £250 million scheme, and councils will pay for the remainder.

Most social housing is currently built by housing associations which were responsible for the construction of almost 40,000 properties last year.

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Tenants’ ability to strike a deal with landlords over rent has diminished as fewer properties are coming onto the rental market, surveyors say.

The falling cost of rents slowed in the three months to July, according to survey by the Royal Institution of Chartered Surveyors (Rics).

As the market stables, homeowners who previously let out their properties are deciding to sell their homes. This leaves tenants with less bargaining power over the price of rent.

However, Simon Rubinsohn, chief economist at Rics, said that tenants were still in a “relatively strong” position compared with two years ago.

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Barclays, the UK’s second-biggest bank, has been fined £2.45 million by the Financial Services Authority (FSA) for ’serious’ breaches in its reporting of trades.

The fine, which is the eighth largest to have ever been handed down by the city watchdog, was levied against Barclays because of the bank’s failure to report in full 57.5 million transactions.

The FSA said the fine reflected the “serious nature of Barclay’s breaches”. It added that the bank had “failed to conduct its business with due skill, care and diligence.”
Barclays avoided a significantly larger fine of £3.5 million by agreeing to an early settlement.

Under FSA rules, banks such as Barclays are required to submit a full report of all financial market transactions by close of business the day after it has been carried out.

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The RBS-NatWest banking group has announced it is slashing its overdraft charges, going against the grain of the rest of the industry.

The move comes ahead of a decision of the new Supreme Court on whether or not the Office of Fair Trading (OFT) can regulate these charges.

From 1st October, customers who bank with RBS or NatWest will be charged just £5 if a cheque bounces. Previously the banks levied a charge of £38. In addition, the fee for paying an item on an overdrawn account falls to £15 from £30.

The RBS-NatWest banking group is currently majority owned by the taxpayer.

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