The EU’s proposed Entry/Exit System (EES) is due to be implemented by October this year, but what will its impact be on UK travellers?
What is the EES?
The EES is a proposed automated IT system for registering travellers from non-EU countries (which now of course includes the UK) each time they cross a border in or out of the EU.
This scheme will replace the current system of manually stamping passports, instead getting travellers to scan their passports or other travel documents at automated self-service kiosks before crossing borders.
As well as taking passport details, automated barriers at borders will take and store biometric data including fingerprints and facial images.
The system will operate at the Port of Dover, and Eurostar and Eurotunnel terminals in the UK.
Delays to its Introduction
The introduction of EES has faced continuous delays. It was originally scheduled for 2022, before being pushed back to May 2023 then again to the end of 2023. It has now been pushed back even further, due to be introduced by late 2024.
However, Jack Steer, at the start of March this year, director of Port Operations at P&O Ferries told parliament’s European Scrutiny Committee:
“I genuinely believe that October 2024 is too early.”
Therefore, we very well may see the introduction of EES pushed back even further.
Disruption Concerns
It was hoped that an app developed by the EU would allow passengers to register fingerprints and a photo remotely to prevent long queues for people travelling from the UK.
However, the EES is now set to launch before the app has been released, as the app is not due to be ready in time, meaning initial registration for passengers will have to take place at stations.
There are fears that the time taken for people to complete this initial registration will cause long queues at the Port of Dover and at Eurostar and Eurotunnel terminals.
The European Scrutiny Committee has been warned by Ashford Borough Council that the EU’s proposed EES scheme could cause queues of 14 hours or more at the Port of Dover. The Council added that this level of disruption to the Port of Dover (a vital Channel crossing point) is likely to have knock-on effects, hindering traffic flows throughout the area. This could create large queues across the A20 and M20 which could then block access to staff and tourists trying to access Eurotunnel in Folkestone.
“Queues of more than 14 hours; vehicles backed up along major roads; businesses starved of footfall: this evidence paints an alarming picture of the possible risks surrounding the Entry-Exit System’s implementation.
“Clearly, this policy could have a very serious impact, not only for tourists and travel operators but also for local businesses. I implore decision makers on both sides of the Channel to take note of this evidence.
“The scheme is due to be implemented in October this year; the clock is ticking, and these issues must be urgently addressed.” – Sir William Cash, Chair of the European Scrutiny Committee
by Red Star Wealth
Energy bills can be really confusing, but we’re here to help break it down.
Bill Confusion
In a Which? survey in 2022, 2 in 5 adults identified areas of an energy bill that they found confusing, with 13% of customers reporting that they had to contact their providers to seek clarification or help with queries relating to bills, direct debit, or credit balances they had received.
47% of customers reported feeling stressed, and 49% anxious, when faced with their energy bills.
This highlights how many of us struggle to understand the nitty-gritty of our energy bills, and how this can have an emotional (as well as financial!) impact.
Key Terms
To gain a proper understanding of our energy bills, we need to understand the terms that are often used.
Tariff – the deal on offer from an energy company which sets out how much you pay and how long for. There are two main types of tariff: fixed and variable
Credit – where you have paid more than enough into your account with your energy supplier to cover your energy costs
Debit – where you have not paid enough to cover your energy costs and so owe your supplier money for the energy you have used
kWh – Kilowatt Hour – a measure of how much energy you are using per hour
Standing charge – a daily fee charged by your energy provider for being connected to the gas grid or electricity network. You pay this regardless of how much energy you use
Unit rate – the price for each unit of gas or electricity you use. This is calculated as pence per kilowatt hour
Wholesale costs – the price that energy suppliers buy energy at. This makes up the largest component of your bill, with suppliers then adding other operational costs before arriving at a price which is charged to you as the customer
Customer number – a unique number given to you by your energy supplier to help them identify you. Make sure to make a note of this in case you need to access your online account or contact your supplier
Energy Price Cap – a cap on how much energy suppliers can pay you for each unit of energy you use if you’re on a standard variable tariff in England Scotland or Wales. This is calculated every three months, with changes mainly based on wholesale energy costs. For more info on the Energy Price Cap, click here.
Fixed vs Variable
With variable tariffs (also referred to as ‘standard’ or ‘default’ tariffs), the unit price and standing charge can go up or down. You can usually leave a variable rate contract when you want without facing any fees for doing so.
With fixed rate tariffs, your unit rate and standing charge remains fixed. These tariffs usually last for a set period of time, such as 12 or 24 months. If the wholesale price of energy changes you will still pay the rate you agreed upon with the supplier for the remainder of your contract. So if wholesale prices go up, you could end up paying less on a fixed rate tariff, and if they go down, you could end up paying more than you need to.
When Receiving Your Energy Bill, Check…
That your name and address is correct
The billing period doesn’t cover time before or after you lived at the property
The meter serial numbers (MSN), meter point administration numbers (MPAN), and meter point registration numbers (MPRN) are the same as those on your gas and electricity numbers.
by Red Star Wealth
Last year, it was estimated that up to 850,000 eligible households were not claiming Pension Credit, with £1.7 billion of available Pension Credit going unclaimed.
How Pension Credit Works
Pension Credit is a benefit you can claim to top up your income if you’re over the State Pension age and struggling to cover costs.
It is made up of two parts:
Guarantee credit – the main body of Pension Credit, which tops up your weekly income to a minimum amount
Savings credit – which is a small top up for those with modest savings for retirement, such as in a personal or workplace pension
You might qualify for one of these or for both parts.
To claim Pension Credit you must have already reached State Pension age (as must your partner if you’re in a couple) and live in the UK.
What You Could Get
When you apply, your income will be calculated, and if you have a partner, your joint income will be calculated. Income includes:
Any pensions, including the State Pension. If you have deferred your State Pension or haven’t yet claimed a personal or workplace pension you’re entitled to, the amount you would get under it is counted as income
Any income earned from employment or self-employment
Most social security benefits, though not all benefits are counted as income. You can check the government website for more information on this
Pension Credit tops up your weekly income to the total of £201.05 if you’re single, or your joint income to £306.85 if you have a partner. You may get more if you:
Have a severe disability
Care for another adult
Are responsible for children or young people under age 20 who are in education or approved training
Have housing costs
To qualify for Savings Credit, you must have reaches State Pension age before 6th April 2016. For this, you can get up to £15.94 a week if you’re single, or up to £17.84 a week if you have a partner.
If you have over £10,000 in savings, every £500 you have over this amount will reduce your Savings Credit by £1 a week.
Click here to use the government’s Pension Credit calculator to see how much you could qualify for.
Other Perks of Pension Credit
The average Pension Credit award is worth over £3,500 a year, and it opens doors to other benefits too.
“even those only due thruppence from it should still claim as Pension Credit is the key gateway benefit that opens the door to many other entitlements.”
If you claim Pension Credit you’re eligible for other benefits, such as, but not limited to:
Council tax reduction
A free TV license if you’re over age 25
Warm home discount
Cold weather payments
Free NHS dental care
Housing benefit
by Red Star Wealth
More and more UK adults are adopting a gradual approach to retirement. In this blog, we will analyse findings from a 2022 study conducted by Smart Pension to gain an insight into changing attitudes towards retirement in the UK.
Thinking About Retirement
Since the introduction of auto-enrolment in October 2012, many workers automatically save into a pension without consciously having to make the decision to do so. This has helped to get a lot more people saving for retirement.
However, it’s still important for us to actively think about our pension and to try to maximise contributions where possible, as our pension pot will need to last us a significant length of time.
Lack of Understanding Surrounding Retirement Options
According to Smart Pension’s 2022 study, 29% of UK adults don’t have a clear understanding of the options available to them in retirement.
This figure is down from 39% in their 2021 survey, reflecting positive change in terms of how we understand our retirement options.
However, there is still a significant gap in our nation’s pension knowledge that needs to be filled.
Retirement as a Gradual Process
Smart Pension also found that retirement is now seen as more of a gradual thing, with 47% of UK respondents seeing retirement as a transition rather than a one-off event.
This makes sense, given that going from working, especially under full-time hours, to not working at all, can be an enormous lifestyle change that could seem jarring. Therefore, more and more people are reducing their working hours as a way to gradually phase in retirement.
Concerns in Retirement
The above image illustrates Smart Pension’s findings on respondents concerns about retirement.
In 2021, the biggest concern of UK respondents was having to limit their lifestyle in retirement, whereas in 2022, being able to afford daily living costs was the biggest concern. This demonstrates the impact that the continued cost-of-living crisis is having on the UK population.
Another interesting point in these findings is that in 2021, being able to afford healthcare costs in retirement was at the bottom of the list of concerns at number five, whereas in 2022, this concern leapt up to third place.
Given that we are a nation with a free national healthcare system, this is somewhat troubling, as it may link to our increasing uncertainty surrounding the future of the NHS, with many being forced to seek private treatment due to lengthy waiting times.
Supplementing Income
18% of respondents plan to supplement their pension with continued employment. Perhaps one reason behind this comes down to that earlier finding, where many are worried that they won’t have enough income in retirement to cover day-to-day living costs.
We can access most private pensions from age 55, meaning that there isn’t really a set retirement age; you can keep working for as long as you like whilst also drawing on your pension.
However, if you do continue to work whilst drawing a pension, you will lose more of your pension in tax. This is because income from your pension is treated the same as any other income, meaning that once you have used up your personal allowance, the rest of your income will be taxed in the relevant band.
The personal allowance is £12,570, so if you work whilst drawing from your pension, and the total income is below this level, you will not be taxed.
It’s worth noting here that you can’t start claiming your State Pension until you reach the State Pension age.
If you are considering phasing your retirement but aren’t sure of the best way to take your pension, or if you aren’t completely sure about the different retirement options available to you, you may wish to talk to a financial adviser. We offer confidential, personalised pensions advice if you wish to contact us at office@redstarwealth.co.uk or by ringing 01253 486346.
by Red Star Wealth
E-waste is a significant global issue, which the UK plays an enormous part in. This blog is part 2 in a 2-part blog series where we discuss all things e-waste.
E-Waste Harms
Many nations, including the UK, export electronic waste material to other countries to deal with, where a lack of labour laws and health and safety requirements mean those who process the waste for metal and mineral extraction are not adequately protected.
In fact, Uswitch estimated that around 40% of the UK’s e-waste is illegally exported to be disposed in other countries.
“What we need is to be manufacturing products here and keeping a better handle on where materials are within particular products. We should be designing them so they are more readily recyclable – better labelling and construction would allow componentry to be more readily reused and precious minerals, rescued from landfill” – Professor Richard Herrington, Head of Earth Sciences at the National History Museum
E-waste puts both the environment and workers in danger.
“E-waste can be toxic, is not biodegradable and accumulates in the environment, in the soil, air, water and living things. For example, open-air burning and acid baths being used to recover valuable materials from electronic components release toxic materials leaching into the environment. These practices can also expose workers to high levels of contaminants such as lead, mercury, beryllium, thallium, cadmium and arsenic, and also brominated flame retardants (BFRs) and polychlorinated biphenyls, which can lead to irreversible health effects, including cancers, miscarriages, neurological damage and diminished IQs” – Geneva Environment Network
When improperly disposed in things like landfills, heavy metals from e-waste can contaminate the soil, reaching through to groundwater and making their way into streams, rivers and lakes. This creates acidification and toxification in the water which can lead to the deaths of plants and animals, and makes the water unsafe for human consumption too.
E-waste is fast-growing and complex; it massively affects our environment and also has a negative impact on human health, as well as contributing to a loss of valuable raw materials.
What Can We Do?
Here, we can see a new circular vision for electronics, taken from ‘A New Circular Vision for Electronics – Time for a Global Reboot’. With this, we can see how e-waste is an issue that encompasses the entire lifecycle of electronic devices, meaning that we have a role we can play in this system to do our own part in reducing the harms of e-waste.
Some easy steps you can take are to:
Opt for a SIM only deal – consider whether you really need the latest phone model or whether the one you have now works just fine. This will help you extend the lifespan of your phone, which is important because mobiles are a huge contributor to e-waste
If you want to get rid of an old phone, TV, laptop, games console, or other electronic device you can give it to a friend or family member, donate it to charity, or sell it online
Dispose of e-waste responsibly – electronic items should not be put in the bin. Click here to find out whether you can recycle your item at home, and where to find your nearest recycling point if not
by Red Star Wealth
E-waste is a significant global issue, which the UK plays an enormous part in. This blog is part 1 in a 2-part blog series where we discuss all things e-waste.
What is E-Waste?
E-waste, short for electronic waste, is all electronic and electrical equipment and its parts that have been discarded as waste without the intent of re-use. This includes any items with plugs, cords, or electrical components, such as home appliances, children’s toys, electric toothbrushes, computers, and more.
E-waste is not biodegradable, and causes both human and environmental harm, which will be discussed further in part 2 of this blog series next week.
Some Statistics
According to Uswitch’s 2022 figures, the UK is the second largest producer of e-waste in the entire world, with 23.9kg of e-waste produced per capita.
Norway led the figures with 26kg produced per capita, but Uswitch predicted that the UK will overtake them to become the world’s biggest contributor of e-waste this year.
The Global E-Waste Monitor 2017 found that in one year, 44.7 million metric tonnes of e-waste is generated, with Europe and the US alone contributing to almost half of this.
Despite being the world-leader in e-waste recycling, the EU still only properly collects and recycles 35% of e-waste, with an even lower global average of 20%.
The Impact of Consumerism
Capitalist consumerism is hugely contributing to the issue of e-waste, as we are encouraged to crave more and more, with adverts pushing us to buy the latest phone, and special deals like Black Friday encouraging us to splash out on new TVs or laptops.
We live in a culture where we are never fully satisfied with what we have, and there is always something better and newer round the corner. And we are often shielded from the true cost of this consumerism, given that a lot of e-waste is shipped to third world countries, where other people will be the ones putting their lives in danger to sort through the parts of our old mobile phone.
For example, the total recovery rates for cobalt (used in batteries) are only 30% despite technology existing that could recycle 95%.
They also found that mining discarded electronics produces 80% less emissions of carbon dioxide per unit of gold compared to mining it from the ground.
Therefore, we are missing out on opportunities to reclaim valuable raw materials just from failing to properly process our electronic waste.
Join us for part 2 of this blog series next week, where we discuss the various harms of e-waste and steps we can take to reduce our contribution to the problem.
