Dear listener

You have probably never heard of VocaLink. But if you have your pay or pension transferred directly to your bank then most likely VocaLink makes the transfer. It runs most of the plumbing that our money flows through – the BACS and Faster Payments systems for the banks as well as the infrastructure of the ATM network. But unknown to most of us – and certainly without asking – it has started analysing the data that runs through its pipes. And this week it published an index of take-home pay based on the money transferred to the bank accounts of people employed by about 200 of the top 350 companies listed on the London Stock Exchange.

It shows that pay in this sample has risen by just 0.5% in the year to February. Within that group, pay in the manufacturing sector has fallen by 0.6% and in the services sector has risen by 0.6%. With RPI inflation at 5.1% that means a considerable fall in living standards. And the +0.5% rise is the lowest it has been equal to the level last May when inflation was also 5.1%.

VocaLink publishes a similar index for public sector pay based on 600 employers. That rose by 1.3% in the twelve months to February. But as VocaLink points out the pay freeze from April is likely to hold that figure down in future. More ammunition for those who say public sector pay is better than pay in the private sector.

That is a topic close to my heart this week as I have been subject to a lot of abuse this week for saying – or not denying – on BBC Breakfast and other outlets that people working in the public sector now earned more than those in the private sector. I based my remarks on the average earnings figures from the Office for National Statistics which show that effect. However, further investigation makes me think that it is not quite that simple. And perhaps the best we can say is that, well, we cannot say. Hence one of the segments in this week’s programme…

***IN MONEY BOX THIS WEEK***

We will start with the Hutton report – indeed Lord Hutton himself. As part of that look at public sector pensions and his plans for them we will look at public and private sector pay. And at public and private sector pensions. And we will reveal what Hutton left out. And why that is so crucial. What do you think?  Send your views about public and private sector pensions to moneybox@bbc.co.uk.

A committee of MPs has supported stories we have done in the last year (one in the last month) on the growing cost of car insurance because of criminal activity and the carousel of referral payments that powers the motor accident repair industry. We hear from a garage insider about how much these payments can be. And I interview the committee Chair and ask her if she has been tough enough.

Held over from last week – as April 5th looms, banks, building societies and others vie for that coveted ‘best buy’ label for their cash ISAs? What are the real best buys? And what tricks do lenders use to get that table topping rate?

And 5th April is also a key deadline if you have not yet claimed childcare vouchers and you pay higher (40%) or additional rate (50%) tax. Act by then or get less subsidy.

I can’t promise we won’t drop one of those and put in something else. As you know, news – like other things – happens. But that is our current agenda for Money Box, live on Radio 4 on Saturday just after noon. The repeat is back this Sunday at 9pm and you can of course listen any time via the podcast page www.bbc.co.uk/podcasts/series/moneybox. Check out our website www.bbc.co.uk/moneybox to follow links, download transcripts, send us stories or ideas you want us to look into and Have Your Say on the Hutton pension reform plans.

This newsletter is available at bbc.co.uk/moneybox/newsletter around the time it hits your inbox (tell your friends who don’t subscribe) and you can join more than 4000 others who enjoy my random but timely thoughts on money 24 hours a day at www.twitter.com/paullewismoney.

Best wishes,

Paul

PS don’t forget the programme trail on Breakfast on BBC 1 around 0840. And I am back on Breakfast on Thursday at 0640ish and then answering emails from viewers at 0810ish. All these times may vary.

Dear Listener

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