Clarke and Son News

The Office for National Statistics (ONS) has revealed that last years divorce rates were the lowest since 2000.

Whilst the highest divorce rates are amongst those in their late twenties the biggest reductions were amongst the under 40’s with rates dropping 13% and 12% in England & Wales respectively. The average age at divorce has risen over the last 10 years, and the number of people going through a second divorce has nearly doubled since 1981.

There were 141,750 divorce cases in 2005 compared with 153,399 in 2004. The majority of these (67%) were granted to wives who cited unreasonable behaviour.  Two years separation with consent was the reason given for the majority of men being awarded a divorce.

The only group, which didn’t see a reduction, was for women over 60 years of age where divorce rates rose by 2%.

Read the full report online at the ONS

The supermarket chain ASDA, which employs more than 30,000 people over the age of 50 will no longer ask those applying for jobs to give their date of birth on application forms as part of its anti-discrimination policy.

The company currently employs thousands of workers who are over 65 and were forced into retirement from other industries.  Indeed, upon reaching the age of 65 as an ASDA employee there are no presumptions that hours will be cut or that anyone will lose their job.

When asked to comment, People Director David Smith said, "We simply don’t see the point in asking people for their age when it’s completely irrelevant to our recruitment process.  We take on the best personality for the job, regardless of when they were born. Our oldest recruit was over 80 when they joined us and they’re living proof that age isn’t a barrier at Asda."

New government regulations on age discrimination come into effect on the 1st October and are set to increase the number of UK workers staying in employment once reaching retirement age. The law doesn’t, however, prevent recruiters from asking for an applicant’s age.

Research conducted by the Heyday group has found that as many as 58% of people in their 50s and 60s want to work on past retirement age, either full-time or part-time, and that mature workers are good for business and good for the economy.

Whether you are an employee or an employer who would like to know more about how these changes may affect you please contact our employment law expert Nicholas Bowers who will assist you.

The Financial Order of Foresters has been fined £55,000 for misleading adverts by the Financial Services Authority (FSA). 

Television adverts and marketing literature which ran between January 2004 and June 2005 failed to point out the risks and drawbacks of two specific policies one of which claimed to be a funeral plan when it was in fact a life insurance policy.

Whilst the penalty would have been higher had the Society not co-operated, Director of Enforcement Margaret Cole stated that. "Ensuring that financial promotions are clear, fair and not misleading is a responsibility firms should not take lightly and other firms should take heed."

The FSA were particularly worried as elderly people were targeted by some of the material.  This is the first time that a friendly society has been fined for such offences.

The Royal Institution of Chartered Surveyors (RICS) has highlighted the burden faced by today’s first time buyers.  House prices have risen by 184% since 1995, three times faster than take home pay, this has left the average couple needing £29,000 to cover their deposit and stamp duty.

The RICS has predicted that interest rates will rise at least twice over the next 12-month period, which should result in house price inflation slowing down.  The RICS cite a stable economy, low interest & mortgage rates, high employment rates and a lack of new housing as factors driving housing prices up.

In June the Council of Mortgage Lenders (CML) stated that first time buyers were paying roughly 3.21 times their income to mortgage buying a home.  Despite this being the highest recorded figure to date the number of first time buyers taking out loans is the highest since December 2002.

The mortgage lender Bradford & Bingley conducted research, which found that parents are helping to finance upto 40% of these moves. The Alliance & Leicester estimates the average parental contribution for a first time buyer is £18,000.

This comes after news that the Kent Reliance Building Society has released an interest only inter-generational mortgage, which can be inherited by the homeowner’s children.  Such mortgages are already popular in Switzerland, Japan & Ireland.

The Employment Equality (Age) Regulations 2006 which are due to come into force on October 1st are set to shake up various industries according to reports revealed by the Age Partnership Group.  The reports, which covered nine industries, showed that various employment decisions are made on the grounds of age including starting salaries, redundancy decisions and throughout the recruitment process.

These reports follow research which highlighted vastly differing attitudes between larger and smaller companies towards the introduction of this law.  With an ageing population the new laws are intended to make it unlawful to make employment decisions based on an employees age.  The legislation covers aspects such as recruitment, training, promotion and retirement.

This means that from October 1st workers will be able to claim unfair dismissal on age related grounds.  The government has predicted that the introduction will lead to an extra 8,000 cases a year equivalent to a 10% rise in UK discrimination claims.

Employers will have to give at least six months notice to those approaching retirement age and will then have to give consideration to those who wish to continue working.  This will effectively end compulsory retirement at 65.

If you would like to know how the introduction of this legislation could affect you as either an employee or an employer then please contact our employment law expert Nick Bowers.

Sources
Age Partnership Group reports
Employment Equality (Age) Regulations 2006

The UK’s largest mortgage lender, the Halifax, has announced its intentions to raise its variable mortgage rates from 6.5% - 6.75% after the Bank of England last week raised its interest rates to 4.75%.  The surprise decision was made after inflation rates rose above the governments 2% target to 2.25% in June, amongst the inflationary pressures are rising oil prices and energy costs.

The decision by the Halifax, which will come into force from September 1st equates to a £15 increase per month on a £100,000 repayment mortgage.   Northern Rock has also increased their rates by 0.25% and it’s expected that other mortgage lenders will soon follow suit.

Meanwhile the Land Registry has announced that the average price of a home is nearing the £200,000 mark as annual house price inflation is at its highest well above both general price inflation and rises in average earnings.  The average house price in the South East has increased by more than £10k since 2005 to stand at £236,915.