Dear Listener

It was government reports a go-go this week as large policy documents were rushed out before Parliament adjourns for its summer recess on Tuesday.

But one key White Paper has been delayed six months. The major reforms to state pension, with a single tier 140 pound a week paid to everyone who reaches pension age in future and who has 30 years contributions, will not now appear in the spring as promised in the Budget. It will be delayed until the autumn. While the spring traditionally ends in Whitehall on the summer solstice - 21 June - the autumn can stretch right up to the last day before the House rises for Christmas.

Also delayed is the promised information on how state pension age might be changed further. The current plan to raise it to 68 from 2046 will certainly be brought back. And a possible link to rising longevity has also been mooted. But the statement on these changes – which the Budget also promised in the spring – will be delayed to the autumn as well.

So not two more Budget u-turns, but certainly two Budget promises stuck in really heavy traffic.

www.parliament.uk/business/publications/hansard/commons/todays-written-statements

Another key change to benefits was announced. Benefits paid to people who are bereaved will be radically changed from April 2016 at the earliest. Instead of a weekly allowance that can last up to 20 years there will be a lump sum payment made shortly after the death to reflect the extra costs that bereavement brings to a spouse or civil partner. The scheme will not be extended to cohabitants. Curiously this lump sum – which could be as high as 9800 pounds  – will be paid over 12 months to avoid what the White Paper calls - the high risk of people using the Bereavement Support Payment inappropriately.

Details here www.dwp.gov.uk/consultations/2011/bereavement-benefit.shtml

NB Do look at next week's newsletter for a slight correction of the paragraph above

***IN MONEY BOX THIS WEEK***

The Government did publish its response to the Dilnot Commission on paying for care. Or at least it published hundreds of pages including a draft Bill. But a lot of key details were omitted. The Government liked the idea of setting a cap on how much an individual would have to pay for their care. But it would not say where that cap would be or when it might start. It did say that a new universal deferred payment scheme would begin from April 2015. But how new was that idea? One of many questions we will be asking.

The administrators of the Farepak Christmas club announced this week that the 114,000 victims of the collapse of the club in 2008 would get a total of around 50p for every pound they lost. They have already had 17.5p and another 32p is now due to be paid after LloydsTSB agreed to put 8 million pounds into the fund following coruscating criticism form a judge in a court case. But how much are the administrators/liquidators getting?

This year it feels as if a months-worth of rain falls almost every day somewhere in the UK. So we look at flood insurance. A deal between the insurance industry and the Government to make sure everyone can at least get insurance at some price runs out in June 2013. Will that affect the premiums we all pay in future?

And RBS finally gives some more details of the compensation scheme for customers and non-customers affected by its computer breakdown which began on 20 June. RBS and NatWest are now said to be back to normal. But Ulster Bank customers are still struggling. 

That will probably stretch our 24 minutes into the Radio 4 over-running tolerance zone - around 10 seconds! Find out how we squeeze it in by listening live at midday on Saturday, tune in to the repeat on Sunday 9pm, or catch up anytime online at www.bbc.co.uk/podcasts/series/moneybox. Remember you can put in a regular order for our podcast. More than 200,000 listen that way each week. It is free.

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I will be back with the last Money Box Live of this series on Wednesday at 3pm to take your questions on floods and weather – insurance and your financial rights. You can email questions through our website or call on the day.

Best wishes,

Paul

PS I am on Breakfast on BBC One on Saturday probably around 0845 trailing one of the items from Money Box. And on Breakfast again on Thursday morning usually at 0640 and 0820 but times, and even the day, can change.

e-mail Paul Lewis