Remove age cap on start-up loans

A proposal came from Lord Young, enterprise adviser to the prime minister, who said that British Business would revive if the age limits on the start-up loans are being changed. New conditions are expected to be included in their loan agreement.

The current age of limit is 30 years. Entrepreneur over this age should for the future be allowed to get taxpayer-funded loans so that they could start up a business.

When such loans started being floated the limiting age was considered to be 24, which will probably be stated into the loan agreement.

This was not the only recommendation of Lord Young in his Growing Your Business report. He also gave some suggestions on how to make it easier for small business to apply for £230m worth of public sector contracts.

Lord Young said: “Growing our smallest businesses would transform our economy – they are the vital 95%.”

He explained that the UK businesses would grow if given the proper possibility to. A good decision against the unemployment will come if half of the UK’s micro businesses took on an additional member of staff.

The principal policy adviser at the Confederation of British Industry (CBI), Hayley Conboy agreed with the mentioned report saying that if supported to grow smaller firms would become medium-sized ones.

‘Lord Young rightly identifies that the Government needs to earmark funding to effectively market existing finance and support schemes.’

Of course, not everybody reacted so positively to the new proposals. Graeme Fisher, head of policy at the Federation of Small Businesses (FSB), was not that excited as he stated that such schemes had to be carefully managed, otherwise they might not help the business but even confuse it more.



Overseas UK Pensions ‘Blocked for Spouses’

The government plans to stop giving the British state pension based solely on the work history of a spouse, to people living abroad.

According to the pensions Minister Steve Webb many of those have claimed a married person’s allowance had never in fact lived in the UK. The Legal Stop advises to enable yourself with a good retirement policy template, in order to arrange this matter.

This payment costs the UK about of £410m a year as those who receive it are about  220,000 residents living overseas.

This proposal will be announced in the Queen’s Speech on Wednesday. People who currently get this pension will not be affected.

For the future the money pensioners will receive will be based on their personal contributions during their individual working life.

Nowadays spouses are allowed to claim a “married person’s allowance” of up to £66 per week based on their husband or wife’s history.

The number of people who live overseas but are married to British citizens rises all the time and these are usually the people who claim such pensions.

Mr Webb told the Daily Telegraph:

“Say you are an American man and you marry a British woman, you can claim, if she has a full record of contributions, a pension of £3,500 a year for your entire retirement having never paid a penny in National Insurance.”

In he words of Norman Cudmore, this decision of the government is not loyal as he had served in the RAF for 22 years and worked overseas for another 16 years. Now he lived in the Philippines with his Filipina wife hoping she would receive some money in case he passed away.

The people who nowadays pay into a second state pension will lose their money as it will be abolished.

Tom McPhail, head of pensions research at Hargreaves Lansdown, said:

“From 2016 onwards the state pension will be based entirely on your individual record and there will be no inheritance of state pension rights,” he said.