Government U-turn on food vouchers

Rashford secures free school meals

The government made a U-turn yesterday, announcing that it would extend the free school meals scheme across the summer holidays. The decision followed a campaign by Manchester United star Marcus Rashford which rallied massive public support. 1.3 million kids who receive free school meals during term time will now get food vouchers for the summer holidays, in recognition that many families are under increased financial strain.

2 metre rule stays (for now)

Boris Johnson has said it’s too early to ease the 2 metre social distancing rule. Many businesses had high hopes that it would be changed to 1 metre, after the government said it planned to review the rule. But the Prime Minister cautioned that the country needs to make progress on bringing the number of cases of coronavirus down first.

Cash access trials

New trials have been announced to make sure cash is accessible to people who use it. They’ll take place in 8 communities across the country where cash machines are hard to come by. It follows a report last year which warned the UK is “sleepwalking” into becoming a cashless society - which is a problem for the 8 million people who still rely on using notes and coins.

Savings rates slump

If you’re stashing money into savings, you’ll see your returns tail off right about now. The average interest on average easy-access accounts has dropped from 0.59% in January to 0.3% today. Why? In March the Bank of England slashed the base rate as part of its response to the coronavirus crisis. Fixed-rate accounts and cash ISAs have also seen a slump.

Adviser comment: "We don’t think you need to worry too much about the rate. The important habit to get into is regularly saving part of your income. Ideally, you should include savings in your budget. Check out your plan to see your savings recommendations."