Jade Wright

Martin Lewis explains that pension withdrawals are generally made up of 25% tax-free cash and 75% taxable income, rather than allowing people to withdraw only the tax-free portion while leaving the rest untouched. Savers can usually take the full tax-free lump sum by placing the remainder into income drawdown or an annuity, potentially reducing their tax bill if they defer taxable withdrawals until they fall into a lower tax band. Large withdrawals may push people into a higher Income Tax threshold. Lewis urges anyone accessing a pension to use the Government-backed Pension Wise service for free guidance before making decisions that could cost tens of thousands of pounds.

A temporary government VAT cut to 5% on family attractions and children’s meals is lowering costs at major UK theme parks, National Trust properties, restaurant chains and cinemas through September 1, offering substantial savings for families during the school holidays. Merlin attractions provide some of the biggest discounts, while the National Trust is reducing entry and meal prices and refunding earlier bookings. Additional savings apply at popular restaurant and cinema chains, and Knowsley Safari has introduced an unlimited‑visit Summer Savings Pass. Research shows parents face significant financial pressure over holiday spending, prompting experts to recommend combining VAT reductions with offers such as kids‑eat‑free deals, loyalty rewards and free local events to ease family budgets.

New research shows families across Britain face average summer childcare costs of £1,145 per child, with holiday clubs priced at roughly £191 per week—nearly three times the cost of after‑school care. Scotland’s average holiday club costs are lower at £179.95 per week, though childminder fees remain higher. Prices have risen sharply in several regions, with Inner London seeing a 16% increase. Coram Family and Childcare warns that high costs and limited availability put growing pressure on working families, with support options varying across the UK.