Money blog: English workers most overqualified of 31 biggest economies (2025)

With Christmas around the corner,Savings Championco-founder Anna Bowes tells us about a longer-term gift you might consider giving your children this year...

You have the option of offering immediate joy by getting them something they want today that they may have grown out of tomorrow or getting something that they might not be excited about today, but will be very grateful for when they are older - I am of course talking about a savings account.

It's never too late to start saving for your children but the earlier you start, the more of a difference it can make.

The type of account you choose depends on what access you want your child to have, as well as the risk you are prepared to take, but starting as soon as possible can make a huge difference.

As can choosing the most tax-efficient options, and a Junior ISA (JISA) is often the most obvious one.

A JISA is a tax-free savings account for both the parent and the child, so it can be an ideal account to place funds that you gift to your child.

Parents should be aware that there may be a tax liability on the interest earned on any money they gift to their children outside a JISA until they reach the age of 18.

If the total gross interest earned on all cash gifted by each parent is more than £100 a year, then all of it (not just the excess) will be treated as that parent's interest.

This is a key reason why parents may prefer to place money gifts in a JISA - as this tax rule does not apply.

Top JISA rates have been affected by the base rate cuts we have seen over the last few months but remain competitive, so it's well worth considering for those who'd rather not take the stocks and shares route.

Remember to keep monitoring the rate you are earning, though, as they are variable.

Workers in England are the most overqualified of 31 of the world's biggest economies, a report has found.

According to the Organisation for Economic Co-operation and Development, 37% of English workers are overqualified and they earn around 18% less than their peers in well-matched jobs.

Japanese workers are the second-most overqualified at 35%, followed by Israelis at 34%.

Belgium, Singapore and Poland have the lowest at 14%, under the OECD average of 23%.

The survey looks at literacy, numeracy and problem-solving skills in adults from 31 countries.

A worker is classified as overqualified when the level of their highest qualification is above the qualification level typically required for their role.

Responding to the report, the government said it "needs to harness" people's talents to "kickstart growth" in the economy.

Jacqui Smith, skills minister, said: "We are determined to break down barriers to opportunity by developing a culture of lifelong learning, and this report shows that we can and must do more to ensure everyone has the skills they need to get on in life."

Energy companies will be told to offer customers the option of paying no fixed-rate charges, reducing costs for people who use the least electricity as household energy debts hit almost £4bn.

Under its plan to shake up bills, the energy regulator Ofgem will mandate that energy suppliers offer low or zero standing charge tariffs.

Standing charges are fixed fees, usually more than £300 a year, paid by all households regardless of how much energy they use - and there have been growing calls for them to be scrapped.

Low or no-standing charge tariffs are offered by some suppliers already, but it is not universal, and Ofgem believes more choice is needed for consumers who are low users of electricity.

Customer energy debts have soared by 91% in the past twoyears, reaching £3.82bn in September, Ofgem said. The energy price cap, which limits electricity bills, will rise by £21 a year to £1,738 in January. Under the cap, standing charges have increased by 43% since 2019.

Tim Jarvis, director general of markets at Ofgem, said manypeople "felt very strongly" that standing charges are "unfair and prevent them from being able to manage their bills effectively".

"We want to give consumers the ability to make the choice that's right for them without putting any one group of consumers at a disadvantage. And by having a zero standing charge tariff, we would create that choice for everyone," he said.

A pub chain says it met customers' Guinness demands "by the skin of our teeth" over the weekend despite a temporary supply limit ahead of Christmas - and only sees things getting worse this month.

Guinness maker Diageo hasplaced limits on pub and bar purchasesof the Irish-made stout in the UK following a rush of sales, and said it is managing allocations of kegs on a week-by-week basis.

This was to ensure that the firm had plenty of stock across its supply chain to avoid panic buying and avert shortages.

But it has led to concern among pubs and bars this winter, with some saying the cap could leave them with far less Guinness than their customers demand.

For Irish pub chain Katie O'Brien's, which has seven pubs across England, Guinness is "built into the business model," operations director Shaun Jenkinson tells Sky News.

Read on here:

Nearly 140,000 carers owe more than £250m for overpayment of a key benefit they receive, with a watchdog warning many may be racking up debt without knowing.

The National Audit Office, the public spending watchdog, said the number who owe carer's allowance overpayment debt had risen every year since 2018, and was up by almost three quarters from 80,169 to 136,730 in 2023-2024.

In a report covering England, Scotland and Wales, it said the Department for Work and Pensions paid £3.7bn in carer's allowance to more than 900,000 claimants in 2023-2024. Carers must earn £151 a week or less to qualify for the allowance.

The NAO said the current rules created a "cliff edge", meaning a claimant - who by law must inform DWP promptly if their circumstances change - is either entitled to the whole allowance or none of it and so can "quickly build up significant overpayments".

The report stated: "This means it is important to identify an overpayment early or, better still, prevent it from occurring."

Total outstanding overpayment debt in 2023-2024 amounted to £251.7m, up from £150.2m five years ago.

Historic overpayments have led to many carers unwittingly racking up unmanageable levels of debt and some quitting their jobs as a result.

The issue of people being penalised for going over their earnings limit for carer's allowance - even by as little as a few pence per week - was previously branded a "scandal" by charities.

The earnings threshold will rise to £196 a week from April.

We covered the hardships faced by carers in a Money series earlier this year:

The average annual cost of renting is £3,240 higher than it was three years ago, new figures show.

That's a whopping £270 added to the cost of rent per month for UK households, and it's likely to be even more expensive next year.

A quarterly rental market report released byZooplahas shown the rate of rental growth in the UK has slowed slightly to 3.9%, down from 9.1% a year ago.

In London, rentsare rising at just 1.3%, down from 8.7% a year ago, while growth is 10.5% in Northern Ireland and 8.7% in the North East.

But while rents are rising at a slower pace,Zoopla predicts that they will still increase by 4% over 2025,taking the annual rental cost to £15,850.

Richard Donnell, executive director at Zoopla, noted that thenumber of rented homes had not grown since 2016 and this had created "scarcity" for renters "at a time when demand has boomed on a strong labour market and the rising cost of home ownership".

"Rental growth has slowed but we expect an ongoing lack of rental supply to keep an upward pressure on rents," he said.

"The ambitions to expand home building are important as the quickest way to ease the pressure on renters is to boost the supply of private and social rented homes."

Royal Mail has revealed the toys children are asking for the most in thousands of letters to Father Christmas this year.

An old-school classic - Lego - tops the list for the first time in seven years.

In-demand gifts from Santa also includeBarbie dolls, scooters, Squishmallow stuffed toys, and bikes.

The top 10 of most wanted presents is completed by Nerf Guns, headphones, PlayStation 5, Hot Wheels and make-up.

Click here to continue reading this story.

The number of renters put at risk of homelessness by landlords selling their home has increased by a third since the end of last year, according to analysis.

Between April and June, 7,130 privately rented households in England qualified for council support to prevent homelessness after their landlord decided to sell the property.

This was an increase from 5,400 households between October and December, according to the National Residential Landlords Association, which advocates on behalf of landlords.

"Right across the country it is tenants who are suffering as landlords decide to sell up," saidBen Beadle, chief executive of the National Residential Landlords Association.

"No amount of changing the rules about when landlords can sell will address the central problem in the rental market, namely a chronic shortage of homes to meet demand."

The NRLA said 31% of landlords are planning to sell in the next two years, compared to just 7% who are planning to rent out new homes in the next two years.

Actor Paul Mescal will sell his clothes on Vinted to raise money for charity.

The Normal People star has teamed up with the second-hand fashion store to sell pieces from his personal wardrobe that he wore during his recent Gladiator II promotional tour.

All proceeds from the sale will be donated to Pieta, an Irish charity dedicated to suicide prevention and crisis support.

The hand-picked collection includes one-off pieces that were custom-made for Paul, everyday luxury pieces and archival pieces from brands like Jimmy Choo, Av Vattev and BW Marks.

"Paul has always had a strong connection to vintage and pre-loved fashion," Felicity Kay, his stylist, said.

"He's often eager to rewear pieces we’ve styled before or items from his own wardrobe."

Paul's items will be available to purchase from 16 December for Vinted members in the UK.

Readers have taken a lot of interest after a LinkedIn poll we ran answered once and for all (sort of) whether cash or a gift card is a better gift.

Respondents overwhelmingly said they would be more grateful to receive cash, but some readers say they think this was a "lazy" choice.

Gen Z's moaning about receiving gift cards is so predictable. Cash as a gift at Christmas is just lazy.

Sometimes it's hard to find a gift for someone so a gift card shows a little thought - that you have actually thought about them and not just been a lazy so and so.

80s Baby

Others thought a gift card was clearly the worst option - some in a more sarcastic tone than others.

Why would anyone want cash which is accepted everywhere when you can have a card that can be used in a select number of places that also expires after 12 months?

Moneysense

A couple of years ago I had to help sort out the messy home of an old man going into care. Among his possessions were thousands of pounds worth of gift cards. All out of date. What a waste!

HimselfinBath

I would never buy a gift card again. We have had one turn up as supposedly "used" and two expired when there was no expiry date listed on the cards.

KM

Some readers thought gift cards would be a better present - with some improvements

Gift cards are paying to use the same amount of money in one store only - at least have it so you get 10% more cash on the gift card verses what you buy it for if you buy it a month in advance. Security for shop and deals for consumer.

Cw8

While others were put off by both...

Neither, it's Christmas, surely most people would like a bit more time with a loved one or friend especially over the holidays

Lwoolrych68

I refuse to do cash or gift cards. Even if a gift is thrown into an old drawer, at least you are remembered for one minute.

Gift cards melt into one, as people get same [the] cards from different relatives and friends. A lumped set of cards, how do you remember who gave you what?

Isla