More Pensioners Working Into Retirement

By Becky Johnson, Sky News Correspondent

As nearly 10 million people in Britain are now over 65, increasing numbers of pensioners are taking up a second career after they retire.

One in three 45 to 65-year-olds now plan to carry on working into retirement, according to a report by investment group Standard Life.

Sam Almond is 86 and lives in Altrincham, Cheshire, with his wife Hazel. After he retired from his job as the owner of a manufacturing company he began writing books about the financial markets.

His success as an author spurred him on to write a self-help book, Spinach For Breakfast, about the secrets to living longer.

He believes the key to staying young is keeping busy. Every day he gets up at 4.30am to allow time to do some exercise, eat a healthy breakfast and be at his desk for 8am.

The latest census shows the number of people over the age of 65 in England and Wales has increased by 10% over the last decade.

According to the Department for Work and Pensions life expectancy for men is expected to reach 91 by the year 2050.

One reason more people over retirement age are continuing to work is to top up their income.

The National Association for Pension Funds says nine in 10 people believe the state pension will not be enough for them in retirement.

Universities Minister David Willetts told Sky News: "One thing that we've done is transform the regime for older workers by abolishing compulsory retirement ages so that companies can keep staff for longer.

"But there may some people, who've paid off the mortgage and the kids have left home, who want to make a career change.

"We notice increasingly mature students who may have had one career but who are now thinking of getting a new qualification and starting a second career.

"I believe the more people that are out there seeking work, the more jobs get created. And if you look at the record of the last two years, despite the austerity, there have been more than one million extra jobs created in the private sector so we can create the jobs as people come forward who want to do them."

Julie Kertesz, 77, took up stand-up comedy a year ago. She says it's something she fell into by accident after realising she could make people laugh.

Originally from Hungary she has lived and worked around the world, mainly as a chemist.

She retired aged 60 but says she continued to pursue her interests in writing and photography.

She then tried public speaking and has now performed her stand-up routine in more than 50 venues across the UK.

She told Sky News: "The young people who listen to me are surprised and they like it, they say I'd like my grandmother to be like that or my grandfather.

"Don't die before you die - do things and live completely, change things because that is when you live... Even at 70 or 80 you can do wonderful things."

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Exclusive: Banks Braced For Cash Bonus Cap

By Mark Kleinman, City Editor

The two giant banks bailed out by British taxpayers in 2008 are preparing to impose a fourth consecutive annual cap on cash bonuses as they finalise staff payouts for last year.

I have learned that executives at Lloyds Banking Group and Royal Bank of Scotland (RBS) are braced for the Government to push for a £2,000 ceiling on cash payments as ministers and investors seek to drive down pay in the financial services sector.

The boardroom remuneration committees at Lloyds and RBS have begun consulting with leading investors about the size and shape of their bonus pools for 2012, with approximately eight weeks remaining until the two state-backed banks report their full-year results at the beginning of March.

No formal talks have yet taken place between the banks and UK Financial Investments (UKFI), the body which manages the taxpayer's 82 per cent stake in RBS and 41 per cent of Lloyds, about using the £2000 limit again this year.

However, several bank executives spoken to by Sky News in recent days said a repeat of the £2,000 cap was inevitable.

Any nod toward restraint would gain public support from Cabinet ministers such as George Osborne, the Chancellor, and Vince Cable, the Business Secretary.

"It would be politically impossible for the Government to sanction a removal of the cap, or even raising it modestly, given the wider economic environment," one of the bank executives said.

The £2,000 limit on cash payouts was introduced in 2010 amid pressure from Gordon Brown's Labour government a few months before the general election.

It was repeated in the following two years, and in 2012, David Cameron, the Prime Minister, said the cap was essential as part of a broader Coalition crackdown on executive pay.

The imposition for a fourth year of the cash cap is unlikely to muster significant opposition from Lloyds and RBS executives, who in previous years have complained privately that it leaves them more exposed to having employees by other banks not subject to the cap.

That is because intensifying pressure from City shareholders and new remuneration rules set out by the Financial Services Authority (FSA) have triggered a reduction in cash bonuses across the banking industry.

Both Barclays and HSBC both imposed cash ceilings on investment banking staff last year - although these were much higher than the £2000 limit at Lloyds and RBS.

The FSA has been particularly robust about banks' plans to pay bonuses for 2012, arguing that the spate of scandals which has hit the industry - ranging from payment protection insurance mis-selling to Libor rate manipulation - must be reflected in the size of payouts.

Only the cash components of bonuses for Lloyds and RBS staff would be restricted to £2,000, with dozens of staff likely to receive share-based bonuses running into tens or hundreds of thousands of pounds.

These employees will principally be employees of RBS's global banking and markets arm, although there will be fewer of them this year than in any previous bonus round since the bail-out of the banks because of the subdued performance of the division.

RBS has already side-stepped the annual row over the bonus of Stephen Hester, its chief executive. He waived his entitlement to be considered for a bonus following the IT systems glitch last summer which left millions of RBS customers without access to their accounts.

Lloyds, RBS and UKFI all declined to comment.

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Tax Cheats: HMRC Publishes Names and Photos

The names and photographs of last year's top tax cheats have been made public as part of the Government's efforts to crack down on evasion.

The 32 criminals have been sentenced to a combined 155 years and 10 months behind bars, HM Revenue and Customs (HMRC) said.

The move to publish their details is designed to shame tax cheats.

The Government invested £917m in tackling tax evasion, avoidance and fraud in 2011-12, with an additional £77m planned over the next two years.

"Most people play by the rules and pay what they owe, but HMRC is cracking down on those who don't," said Exchequer Secretary to the Treasury David Gauke.

"We hope that publishing these pictures will help get across that it always makes sense to declare all your income, and tax dodgers are simply storing up trouble for the future."

The Government hopes its crackdown will raise an additional £7bn each year by 2014-15.

Among those whose details were published was a criminal gang that has been jailed for one of the biggest alcohol-smuggling frauds ever uncovered in the UK.

The scam was worth £50m a year in unpaid duty and VAT, and allowed the gang members to spend vast amounts of money on luxury cars and properties throughout Europe.

The Prime Minister has made tackling tax avoidance a key issue of the UK's presidency of the G8 group, amid mounting concerns over the tax policies of big international firms in the country.

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Pensioners Take Up Second Career In Retirement

By Becky Johnson, Sky News Correspondent

As nearly 10 million people in Britain are now over 65, increasing numbers of pensioners are taking up a second career after they retire.

One in three 45 to 65-year-olds now plan to carry on working into retirement, according to a report by investment group Standard Life.

Sam Almond is 86 and lives in Altrincham, Cheshire, with his wife Hazel. After he retired from his job as the owner of a manufacturing company he began writing books about the financial markets.

His success as an author spurred him on to write a self-help book, Spinach For Breakfast, about the secrets to living longer.

He believes the key to staying young is keeping busy. Every day he gets up at 4.30am to allow time to do some exercise, eat a healthy breakfast and be at his desk for 8am.

The latest census shows the number of people over the age of 65 in England and Wales has increased by 10% over the last decade.

According to the Department for Work and Pensions life expectancy for men is expected to reach 91 by the year 2050, compared with 87 today.

One reason more people over retirement age are continuing to work is to top up their income.

The National Association for Pension Funds says nine in 10 people believe the state pension will not be enough for them in retirement.

Universities Minister David Willetts told Sky News: "One thing that we've done is transform the regime for older workers by abolishing compulsory retirement ages so that companies can keep staff for longer.

"But there may some people, who've paid off the mortgage and the kids have left home, who want to make a career change.

"We notice increasingly mature students who may have had one career but who are now thinking of getting a new qualification and starting a second career.

"I believe the more people that are out there seeking work, the more jobs get created. And if you look at the record of the last two years, despite the austerity, there have been more than one million extra jobs created in the private sector so we can create the jobs as people come forward who want to do them."

Julie Kertesz, 77, took up stand-up comedy a year ago. She says it's something she fell into by accident after realising she could make people laugh.

Originally from Hungary she has lived and worked around the world, mainly as a chemist.

She retired aged 60 but says she continued to pursue her interests in writing and photography.

She then tried public speaking and has now performed her stand-up routine in more than 50 venues across the UK.

She told Sky News: "The young people who listen to me are surprised and they like it, they say I'd like my grandmother to be like that or my grandfather.

"Don't die before you die - do things and live completely, change things because that is when you live … Even at 70 or 80 you can do wonderful things."

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Google Does Not 'Fix' Searches: US Regulators

Google does not unfairly favour its own services above others in search results, according to US regulators.

The Federal Trade Commission (FTC) said it could find no evidence to back claims the search engine giant "fixed" its searches.

The 19-month investigation, which amounted to nine million pages of documents, ended in agreement that Google will change some of its practices.

The search engine has said it will stop "scraping" (using snippets of) reviews and other data from rivals' websites for its own products.

Websites will now be allowed to opt out of being "scraped" without being demoted in searches.

Google has also said it will allow greater access to its Motorola patents and will use a neutral third-party to try to resolve disputes before opting for an injunction.

These patents are deemed to be "essential" for rival mobile devices such as Apple iPhones and iPads.

However, the agreement has largely been interpreted as a mild rebuke, rather than the slap that many of the search engine's rivals had been hoping for.

Making an announcement at a news conference, the FTC chairman, Jon Leibovitz, said that Google was "unquestionably one of America's great companies".

Google patents are important for mobile devices such as iPhones

He said: "Many of Google's competitors wanted the commission to go further and regulate the intricacies of Google's search engine algorithm.

"Today, the commission has voted to close this investigation unanimously. Although some evidence suggested Google was trying to eliminate competition, Google's primary reason for changing its look and feel or algorithm was to improve search results."

Google posted a triumphant response in a blog, detailing the agreement and saying: "The conclusion is clear: Google's services are good for users and good for competition."

But Beth Wilkonon, a lawyer hired by the FTC to help steer the investigation, said: "Undoubtedly, Google took aggressive actions to gain advantage over rival search providers. However, the FTC's mission is to protect competition, and not individual competitors."

The European Commission is investigating Google over allegations of anti-competitive search practices and is due to report back later this year.

The FTC announcement came as the US State Department hit out at Google for being "unhelpful" after its executive chairman, Eric Schmidt, made a trip to North Korea.

State Department spokeswoman Victoria Nuland said: "We don't think the timing of this is particularly helpful." She said that Mr Schmidt had been made aware of US concerns about the trip.

She cited North Korea's launch of a long-range rocket in December, which raised tensions in the region.

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Mortgages: Millions 'Struggle With Payments'

By Enda Brady, Sky News Correspondent

Nearly eight million people in Britain are struggling to keep up with mortgage or rent payments each month, according to the charity Shelter.

A total of 1.4 million have already fallen behind, with almost a million people resorting to high-interest so-called 'pay day' loans to make ends meet.

"It's shocking to think that so many families will be starting the New Year with a huge weight hanging over them, trapped in a daily struggle to keep their home," said the charity's chief executive Campbell Robb.

"Payday loans may seem like a quick fix, but the huge interest charges mean things can quickly spiral out of control.

"It's vital that anyone who's having difficulty paying their rent or mortgage gets advice now. Don't wait until things reach breaking point later in the year - it could leave your family's home at risk."

Mother-of-two Mandy Buxton from West Sussex found it impossible to balance the books over the past couple of years and opted to take out payday loans to get by.

It is a decision she now bitterly regrets, as she faces up to having to leave her rented property.

"I got to the point where after I had paid off the loan I had 50p left and that had to last me the month," she told Sky News.

"I realised I couldn't carry on the way I was so I had to say to my boss that I wouldn't be coming back to work because I didn't have the money to get there and back.

"If you have to take a few days off work because one of your children is ill or there is a problem it puts you in a situation where you just can't pay the bills."

But with interest rates at an historic low, how will people cope in the next few years if and when rates go back to where they were before the recession began in 2008?

Mortgage expert Paula John says many people will eventually start moving towards fixed rate mortgages.

"For hundreds of thousands of families it's only the very low mortgage rates that have been keeping the wolves from the door," she told Sky News.

"Many UK households have really been struggling over the past few years and if rates were to go up it would be a real concern.

"I think people are more financially aware now than they were a few years back and what we will see is a mass movement towards fixed rate mortgages."

Shelter say they are seeing a rise in demand for their services and point out that people are finding "there is little left of the housing safety net that was once there to help them get back on their feet".

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US Fiscal Cliff: Markets Rally After Late Deal

Global markets have rallied in response to a deal in the United States to avert its so-called fiscal cliff.

The market boost came after US Democrats and Republicans finally agreed a deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives.

London's FTSE 100 was up 2.2% at the close, after earlier busting through the 6,000-point mark for the first time since July 2011.

Key European markets were up between 2.19% to 3.81%, while in Asia Hong Kong's Hang Seng index shot up 2.9% at the close - its highest finish since June 1, 2011.

In New York, the Dow Jones Industrial Average ended 2.4% higher.

The lights of the Capitol burned late into the night as the deal went on

"Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November," Mike McCudden, head of derivatives at stockbroker Interactive Investor, said.

The fiscal cliff deal is likely to remain the focus of attention in financial markets, as US institutions open for trading.

Mr Obama welcomed the agreement and said it was just one step in a broader effort to strengthen the economy.

He said: "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2% of Americans while preventing tax hikes that could have sent the economy back into recession."

Some House Republicans had wanted to amend the bill to incorporate more spending cuts but dropped the idea.

Mr Obama headed to Hawaii for a break after the deal was brokered

In the end, 172 Democrats and 85 Republicans voted in favour of the bill, which marks a triumph for the president less than two months after he secured re-election while campaigning for higher taxes on the wealthy.

The legislation cleared the Senate hours after Vice President Joe Biden and Senate Republican Leader Mitch McConnell, veteran negotiators, sealed the deal.

The fiscal cliff deadline would have triggered tax increases of $536bn (£328bn) and spending cuts of $109bn (£67bn) from domestic and military programmes.

The compromise Senate deal extends the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 (£153,000) level that Democrats had originally sought.

But longer-term fiscal problems remain and Mr Obama will likely face more battles with the Republican-dominated House of Representatives.

"Cynics will point out that another argument has been booked in for two months' time, when the debt ceiling comes up for debate, IG market analyst Chris Beauchamp said.

"And Republicans will be looking to make progress on the spending cuts that haven't featured in the New Year deal."

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Start-Up Loans Scheme Gets £30m Boost

Thousands more young entrepreneurs could get loans to start their own businesses as the Government announces it is boosting its scheme.

Prime Minister David Cameron said funding for the coalition's Start-Up Loans scheme was being boosted by £30m to £110m over three years.

The age limit for applying was also being raised from 24 to 30 in response to what Downing Street aides said was "high demand".

Number 10 insisted the initiative was on target to issue more than 2,500 loans by March - despite criticism that only a small portion of loans had been finalised since the scheme was formally launched last autumn.

Some 3,000 people are said to have registered an interest in the money and mentoring packages, which are only available in England and being delivered through charities such as The Prince's Trust.

Those whose business plans are deemed "robust" typically receive £2,500, which can be repaid over five years at a relatively low interest rate.

"Start-Up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race," Mr Cameron said.

He said the scheme was a "great way to help this next generation of entrepreneurs get the financial help - and the confidence - to turn that spark of an idea into a growing, thriving business."

James Caan, panellist of the Dragons' Den BBC show and chairman of the company, said: "There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models".

He added: "I am delighted to see that more and more young people are now looking to set up their own business."

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US Fiscal Cliff: Markets Rally After Late Deal

Global markets have rallied in response to a deal in the United States to avert its so-called fiscal cliff.

The market boost came after US Democrats and Republicans finally agreed a deal that will stop hundreds of billions of dollars in automatic tax increases and spending cuts that risked plunging the world's biggest economy into recession.

Stocks around the world started 2013 with hefty gains as investors welcomed the vote in the House of Representatives.

London's FTSE 100 was up 2.2% at the close, after earlier busting through the 6,000-point mark for the first time since July 2011.

Key European markets were up between 2.19% to 3.81%, while in Asia Hong Kong's Hang Seng index shot up 2.9% at the close - its highest finish since June 1, 2011.

In New York, the Dow Jones Industrial Average ended 2.4% higher.

The lights of the Capitol burned late into the night as the deal went on

"Investors are trading with a sense of relief after lawmakers in Washington agreed on a compromise to avoid the fiscal cliff that has been the dominant theme in equity markets since the presidential elections back in November," Mike McCudden, head of derivatives at stockbroker Interactive Investor, said.

The fiscal cliff deal is likely to remain the focus of attention in financial markets, as US institutions open for trading.

Mr Obama welcomed the agreement and said it was just one step in a broader effort to strengthen the economy.

He said: "Thanks to the votes of Republicans and Democrats in Congress I will sign a law that raises taxes on the wealthiest 2% of Americans while preventing tax hikes that could have sent the economy back into recession."

Some House Republicans had wanted to amend the bill to incorporate more spending cuts but dropped the idea.

Mr Obama headed to Hawaii for a break after the deal was brokered

In the end, 172 Democrats and 85 Republicans voted in favour of the bill, which marks a triumph for the president less than two months after he secured re-election while campaigning for higher taxes on the wealthy.

The legislation cleared the Senate hours after Vice President Joe Biden and Senate Republican Leader Mitch McConnell, veteran negotiators, sealed the deal.

The fiscal cliff deadline would have triggered tax increases of $536bn (£328bn) and spending cuts of $109bn (£67bn) from domestic and military programmes.

The compromise Senate deal extends the tax cuts for Americans earning under $400,000 (£246,000) - up from the $250,000 (£153,000) level that Democrats had originally sought.

But longer-term fiscal problems remain and Mr Obama will likely face more battles with the Republican-dominated House of Representatives.

"Cynics will point out that another argument has been booked in for two months' time, when the debt ceiling comes up for debate, IG market analyst Chris Beauchamp said.

"And Republicans will be looking to make progress on the spending cuts that haven't featured in the New Year deal."

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Start-Up Loans Scheme Gets £30m Boost

Thousands more young entrepreneurs could get loans to start their own businesses as the Government announces it is boosting its scheme.

Prime Minister David Cameron said funding for the coalition's Start-Up Loans scheme was being boosted by £30m to £110m over three years.

The age limit for applying was also being raised from 24 to 30 in response to what Downing Street aides said was "high demand".

Number 10 insisted the initiative was on target to issue more than 2,500 loans by March - despite criticism that only a small portion of loans had been finalised since the scheme was formally launched last autumn.

Some 3,000 people are said to have registered an interest in the money and mentoring packages, which are only available in England and being delivered through charities such as The Prince's Trust.

Those whose business plans are deemed "robust" typically receive £2,500, which can be repaid over five years at a relatively low interest rate.

"Start-Up loans are an important part of my mission to back aspiration, and all those young people who want to work hard and get on in life, so this country competes and thrives in the global race," Mr Cameron said.

He said the scheme was a "great way to help this next generation of entrepreneurs get the financial help - and the confidence - to turn that spark of an idea into a growing, thriving business."

James Caan, panellist of the Dragons' Den BBC show and chairman of the company, said: "There has been a major shift in the way business is viewed by the public, and entrepreneurs are now seen as creative and exciting role models".

He added: "I am delighted to see that more and more young people are now looking to set up their own business."

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