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Nearly half of adults have not had the “difficult conversation” about finances on death

Palmers Solicitors in Essex

Almost half of Brits who have a parent, guardian or partner have not had the “difficult conversation” about finances on death, a major study has revealed.

The finding – which forms part of new inheritance whitepaper, Wills and financial planning – it’s time to talk – suggests that millions of families could be left vulnerable to the laws of intestacy or lengthy probate battles in the event of an unexpected accident or illness.

Published by investment firm Ampla Finance, the survey of 2,165 adults reveals that almost one in two (44 per cent) Brits have not tackled the “difficult conversation” with family members around financial arrangements following their death.

In addition, almost nine in 10 (89 per cent) adults say they know nothing about their parents’ wider financial situation – such as if they have credit card debt or outstanding loans.

The research also reveals that just one in 10 (11 per cent) Brits “have enough understanding” about the probate process to complete it, despite just 14 per cent of families having appointed a solicitor.

Furthermore, just 12 per cent of respondents said they were encouraged to review their Will or funeral arrangements as a result of the coronavirus pandemic.

The study comes as the significance of family inheritance shifts. While a gift left in a Will used to be considered a “windfall” or “bonus”, almost three in five (57 per cent) adults now see inheritance as a “key financial pillar” and will use it to pay bills, clear personal debt or help fund a house deposit.

Commenting on the paper, Steve Gauke, Director of Business Development at Ampla Finance, said the survey “highlights a widespread lack of awareness around family finances and the probate process”.

“The UK probate system is notoriously complicated and increasingly slow moving,” he said.

“The lack of knowledge around its workings evidenced in this white paper shows this can catch many people out. Unforeseen delays can badly impact a family’s financial planning, so we need greater education around probate.

“We need to encourage a frank conversation on family finances, even though we know it’s difficult.”

For help and advice with related matters, please get in touch with our expert later life planning and probate team today.

General Export Facility supports hundreds of businesses with export finance throughout pandemic

Palmers Solicitors in Essex

An innovative new export finance scheme has helped support more than 100,000 jobs throughout the pandemic, new figures have revealed.

The research, published by UK Export Finance (UKEF), the Government’s export credit agency, shows that the General Export Facility (GEF) has helped hundreds of businesses access the funds they need to “go global”.

According to the study, UKEF provided £12.3 billion in support for UK exports in the 2020-21 financial year – almost three times that provided in the previous 12 months.

The agency also helped some 549 companies over the same period – more than double the number from two years ago – and supported “up to 107,000” trade-dependent jobs.

But Marcus Dolman, Co-Chairman of the British Exporters’ Association (BExA), attributed the “record” figures to the success of the new GEF scheme.

Targeted at small and medium-sized enterprises (SMEs), the GEF supports exporters by providing an 80 per cent guarantee to banks to incentive lending.

Exporters can access facilities – such as trade loans, bonding, and letter of credit lines – of up to £25 million with maximum repayment terms of up to five years.

UKEF says the scheme has helped “thousands of businesses” to fulfil multiple export contracts, pay for labour costs, build their inventory, and ease cash flow constraints.

The Export Development Guarantee (EDG) scheme, meanwhile, is aimed at larger contracts of between £100 million and £500 million.

Mr Dolman said: “UKEF has stepped up and provided much needed support to sustain exporters through the pandemic.

“The new EDG and GEF products are already proving their value to UK exporters and to supporting UK jobs. It is also heartening to see increases in UKEF’s traditional support. The rise in the number of exporters supported is positive.”

For help and advice with related matters, please get in touch with our expert corporate finance team today.

Employers step up with boost to low pay

Palmers Solicitors in Essex

There has been some good news for workers at the bottom end of the pay scale, according to a new survey.

Analysis shows that employers, have responded positively to April’s hike in the National Living Wage (NLW), topping it up further in many cases.

The research also shows that there has been little or no negative effect on employment since the introduction of the National Living Wage (NLW) in 2016. The NLW applies to workers over the age of 23. The National Minimum Wage rates apply to those up to the age of 22.

The independent Incomes Data Research’s (IDR) latest survey is based on responses from 56 organisations, three-quarters of which are in the private sector and include the Co-op, Costa Coffee, John Lewis, Tesco and Wilko and covers more than 800,000 employees.

The median lowest pay rate across the survey is £9.28, some 37p above NLW rate of £8.91.

This is in part because many employers pay their lowest grades above the official minimum.

Ken Mulkearn, director of research at IDR, said employers paying above the NLW demonstrates change is afoot in the UK employment market.

He said: “The fact that the latest increase, at 2.2 per cent, is much lower than most of the preceding ones means that the risk of a negative impact from this year’s rise is reduced for most businesses.”

However, he highlighted some businesses may struggle to pay above the NLW due to the impact the pandemic has had on their profits.

Laura Gardiner, director at the Living Wage Foundation, said despite the incredible difficulties of the past year, they’ve seen record numbers of businesses committing to their staff and accrediting as Living Wage Employers.

She said: “This has taken our network to almost 8,000 strong.

“They have found that paying the real Living Wage has given their businesses the resilience they need to survive and prosper through the pandemic and beyond. I’d encourage all responsible businesses to consider becoming a Living Wage employer today.”

The Living Wage Foundation, is a campaigning organisation in the UK, and therefore has no legal grounding. The Living Wage for the UK is set at a recommended £9.30 per hour and for London at a recommended £10.75 per hour (these are figures published for the 2019/20 tax year).

The IDR research also found the majority (78 per cent) of employers believe the NLW is set at an appropriate level, whilst a fifth (20 per cent) feel it is too low.

Just two per cent said they think it is too high.

Louisa Withers, director at IDR, said: “Some employers also voiced concerns about the knock-on impact of a rising minimum wage on differentials with rates for staff higher up pay structures.”

IDR is an independent research organisation specialising in the pay and employment field.

For help and advice on matters relating to employment law, contact our expert team today.

Commercial property eviction ban extension sparks dismay

Palmers Solicitors in Essex

A ban on landlords evicting firms for unpaid commercial rent is being extended for another nine months, sparking dismay from senior property industry figures, with one describing it as ‘crazy.’

The ban, which stops landlords taking tenants to court for non-payment, was due to end on 30 June.
Treasury Secretary Stephen Barclay said the delay in easing lockdown restrictions, had presented additional challenges to business.

It is estimated that firms in retail and hospitality are £5bn in rent debt.

Mr Barclay told the Commons: “Existing measures will remain in place, including extending the current moratorium to protect commercial tenants from eviction to March 25, 2022.”

He also announced plans for a binding arbitration scheme to resolve disputes between landlords and commercial tenants. Mr Barclay said the scheme should be in place for when the eviction ban is lifted.

But Mr Barclay added: “To be clear, all tenants should start to pay rent again in accordance with the terms of their lease or as otherwise agreed with their landlord as soon as restrictions are removed on their sector if they are not already doing so.”  

While retailers and hospitality firms welcomed the measures, there were claims that some profitable tenants were abusing the ban to avoid paying rent they can afford.

Jonathan De Mello, partner at independent retail property consultancy CWM, said: “It’s crazy. I’m not sure who they are consulting with or who made that decision. This absolutely screws landlords over because it’s such a long amount of time.”

He said the arbitration process was “almost pointless” because landlords and tenants had largely reached their own agreements.

British Property Federation chief executive Melanie Leech said: “Another blanket extension to the moratoriums will provide further opportunity for those well-capitalised businesses that can afford to pay rent, but are refusing to do so, to continue their abuse of Government and property owners’ support and will cast a long shadow over future investment to build back better.”

However, Kate Nicholls, chief executive of UKHospitality, welcomed the plans, saying the extension “will banish a grim shadow” hanging over the sector.

Thousands of companies, especially in the hospitality sector, are still unable to trade normally, among them nightclubs and leisure firms.

In April last year the Government blocked legal attempts to evict shops, restaurants and other businesses that had stopped paying rent, as part of emergency measures to soften the economic impact of the pandemic.

Hospitality leaders had called for an extension of the moratorium and for more financial support from the Government.

Earlier this month, the chief executives of trade groups UK Hospitality and British Retail Consortium (BRC) told MPs that both sectors have accrued a combined £5bn in rent debt.

Data for the first quarter of 2021 shows that only 74 per cent of rent was collected by landlords 60 days following the end of the period after tenants were battered by the pandemic.

Hospitality, leisure and retail operators have also benefited from a business rates holiday since the start of the crisis.

Helen Dickinson, chief executive of the British Retail Consortium, many of whose members have felt lockdown most acutely, said the extension comes “in the nick of time”.

For help and advice with related matters, please get in touch with our expert team today.

Restrictions on statutory demands and winding up petitions extended until September

Palmers Solicitors in Essex

Provisions preventing insolvency during the coronavirus pandemic will be extended, the Government has confirmed.

It means the restrictions on statutory demands and winding up petitions will remain for a further three months until 30 September 2021.

Launched as part of the Corporate Insolvency and Governance Act in March 2020, the temporary rules are designed to protect vulnerable businesses from aggressive creditor enforcement where their debts relate to the pandemic. The measures being extended include:

  • Statutory demands and winding-up petitions will continue to be restricted to protect companies from creditor enforcement action due to debts related to Covid-19
  • Larger suppliers will not be able to cease their supply or ask for additional payments while a company is going through a rescue process
  • Entry into a moratorium will remain relaxed and a company will be able to enter a moratorium if they have been subject to an insolvency procedure in the previous 12 months.

Welcoming the move, Dr Roger Barker, Director of Policy & Corporate Governance at the Institute of Directors, said: “During the pandemic, it has been essential to provide company directors with the means by which they can sustain inherently viable businesses.

“An important component has been the temporary suspension of the potential liability faced by directors if they continue to operate a company that is facing financial difficulties. During the exceptional circumstances of the pandemic, this has been an appropriate step for government to take in order to ensure that viable businesses survive and are in a position to contribute to a meaningful economic recovery.”

According to the latest statistics, almost eight in 10 (80 per cent) small and medium-sized businesses say their revenue has declined during the pandemic, while one in four (25 per cent) are concerned about defaulting on loans and a similar number (28 per cent) doubt their ability to sustain their supply chains.

For help and advice with related matters, please get in touch with our expert corporate law team today.