London's elderly to be hit especially hard by 'wealth test' for care

Political reporter(wp/es):

London’s elderly will be particularly hard hit by today’s Conservative party proposals that the value of their home is included in the “wealth test” used to determine whether they qualify for free care at home.

The manifesto reveals that anyone with more than £100,000 of assets will be made to pay for their care needs until that is all they have left in the world to pass on to their children.

For many thousands of the post-war generation, the first in history for whom owning the roof over their heads was a realistic aspiration, this will mean the equity they build up over their lifetimes being stripped away in their declining years.

Around three quarters of the over 65s in London are owner occupiers — around 400,000 in total — a far higher proportion than any other age group. Through no fault of their own the value of the bricks and mortar around them has soared, in some cases ten- or twentyfold, during the time they have owned it. Even the smallest one-bedroom flat in the suburbs of London now costs more than £100,000 and for many pensioners closer to the centre, houses bought for just a few thousand pounds in the Fifties or Sixties can now be worth millions.

Many will prefer to receive the care they need in the homes they paid for by their hard work over a lifetime of employment. With ever more people living deep into old age those care requirements for debilitating illnesses such as dementia can last for decades, involving bills running to hundreds of thousands of pounds.

Admittedly none will be forced to sell their homes, but they will have to take out interest-bearing loans to be repaid out of the proceeds of a sale after death,

But that will be limited comfort for London pensioners who followed the dream of ownership when they were young and hoped to pass on their homes to their children. 

Instead many will receive an inheritance hollowed out by years of care bills that will barely cover the cost of a garage in much of 21st-century London’s inflated property market.

Security guard shot during armed robbery at Nationwide bank

Crime reporter(wp):

A security guard was shot during an armed robbery at a bank in a busy north-east London town centre.

Emergency services rushed to the scene of the incident at Nationwide in Walthamstow High Street shortly before 3.30am on Thursday morning.

Officers had received reports a robbery was in progress.

A male security guard, aged 53, was found suffering from gunshot injuries, police said.

Paramedics were called and he was taken to an east London hospital.

A spokesman for the Met Police said: “His injuries are not being treated as life threatening or life-changing.

“Officers from the Met's Flying Squad are investigating.

“No arrests have been made.”

UK retail sales surge despite pay squeeze

Business reporter(wp):

Retail sales surged last month, as British consumers enjoyed the warmest April in more than 100 years and shrugged off concerns over falling living standards.

Sales increased by 2.3% last month, according to the Office for National Statistics, more than double the 1% rise forecast by economists.

The stronger-than-expected sales pushed the pound above $1.30 for the first time since last September, as traders brought forward their expectations for an interest rate rise from the Bank of England.

April’s rise was a significant rebound compared with March, when sales fell 1.4%. It was the biggest monthly rise since January 2016 and suggested the retail sector enjoyed a strong start to the second quarter.

The stronger-than-expected figures were at odds with broader expectations of a slowdown in consumer spending this year, as inflation begins to outpace wage growth, putting increasing pressure on household budgets.

“The latest data showed shoppers continued to shrug off any Brexit and political uncertainty with retail sales beating even the most optimistic expectations,” said Richard Lim, chief executive of the consultancy Retail Economics.

“Despite the surge in inflation and squeeze on households’ finances, consumers were out in force during the Easter break with the warm weather driving sales across the sector.”

However, Alan Clarke, an economist at Scotiabank, said he expected to see a consumer slowdown in the coming months, which in turn would weigh on the wider economy.

“With inflation likely to continue accelerating sharply, the headwinds facing the consumer will intensify, which in turn is likely to slow the pace of consumer spending later in the year. We therefore remain of the view that the pace of GDP growth has further downside into the end of the year.”

The rise in April was fairly broad based, with sales in non-food stores up by 2.3% and sales at supermarkets and other food stores up by 1.3%. However, department store sales were down by 0.9%.

The April jump helped retail sales over a broader three-month period grow by 0.3%. This followed a brief period of contraction. The annual rate of growth doubled to 4% from 2% in March.