US Jobless Rate At July 2008 Low Of 5.8%

The US jobless rate has hit its lowest level since July 2008, with the economy creating 214,000 net new jobs in October.

The fall in the rate from 5.9% in September was unexpected - and highlighted some greater resilience in the labour market as more people joined the workforce.

The data was released just three days after voters, frustrated by the economy, gave President Barack Obama a kicking in the midterm elections.

Economists polled by Reuters had forecast 231,000 new jobs last month but the performance meant that job growth, following revisions, has now exceeded 200,000 in each of the last nine months, sufficient strength to keep the economy on a higher growth path.

It expanded at an annualised rate of 3.5% in the third quarter, despite early signs of weaker global demand.

The market focus was on wages, in addition to the core job numbers, as employment gains on their own will probably not be enough to convince the Federal Reserve to start raising interest rates before the second half of 2015.

Kept at near-zero since December 2008, economists expect the Fed will want to see real evidence of rising wages before raising rates so not to risk choking off economic recovery.

The Labor Department data said average hourly earnings rose only three cents last month, leaving the year-on-year change below pre-recession levels at 2%.

The participation rate, or the share of working-age Americans who are employed or at least looking for a job, increased to 62.8% while the employment-to-population ratio also rose to its highest level since 2009.

World stock markets barely moved in reaction to the figures - seen as a crucial indicator of US economic strength - with the data doing little to alter rate rise forecasts.

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Royal Mail In Stand-Off Over MPs' Inquiry

By Mark Kleinman, City Editor

Royal Mail has been secretly resisting pressure from MPs for it to appear alongside rival postal operators as part of a new probe into competition in the industry.

Sky News has learnt that Royal Mail made representations to the Business, Innovation and Skills (BIS) Select Committee requesting that it should not be forced to give evidence during the sale session as Whistl and UK Mail.

Sources said that Moya Greene, Royal Mail's chief executive, would appear before the Committee on 26 November, adding that the MPs had refused to bow to the company's desire for it to appear separately.

Royal Mail boss Moya Greene is due to appear before the BIS committee

The row is the latest development in Royal Mail's efforts to persuade politicians and regulators to commit to reforms that it says are necessary to protect the Universal Service Obligation (USO), which obliges it to deliver to every UK address for a fixed price.

"This decision might make good theatre but it won't make for good analysis of the issues," a source said on Friday.

The BIS Committee announced the launch of its inquiry in September following complaints from the privatised Royal Mail that its ability to meet its USO obligations is being undermined by the expansion plans of Whistl, the rebranded TNT Post.

Sky News also understands that Dave Ward, a senior official at the CWU union, has also been asked to appear before MPs this month, while Ed Richards, Ofcom chief executive, will give evidence in early December.

The hearings will mark the latest phase of an intensive period of lobbying by Ms Greene, who has been vocal in her criticism of the industry's regulatory regime.

Last month, she and her chairman, Donald Brydon, attended an Ofcom board meeting to warn that a review of postal markets planned for the end of next year must be accelerated to safeguard the USO.

Since listing on the stock market as part of its contentious £3.3bn privatisation last year, Ms Greene has complained that Whistl's expansion plans could cost Royal Mail £200m in lost revenue by 2017.

Ofcom is expected to decide whether to bring forward its assessment shortly.

Reiterating previous statements on the issue, a spokesman for the regulator said: "Protecting the universal service is at the heart of Ofcom's work, and our own evidence clearly shows that the service is not currently under threat.

"We are listening to the views of Royal Mail and other parties regarding competition in the market. We would assess any emerging threat to the service quickly, in the interests of postal users."

Royal Mail's shares have had a bumpy ride since last autumn's sale by the Government.

They initially surged, leading to accusations that Vince Cable, the Business Secretary, had cost the taxpayer £1bn by underpricing them.

However, the UK regulatory framework, an impending financial settlement with French competition authorities and the growing impact of greater competition - exemplified by Amazon UK's recent launch of a same-day delivery service - have weighed on Royal Mail shares in recent months.

On Friday, they were trading at just over 462p, down 20% during the last 12 months but exactly 40% higher than the price at which they floated last year.

Taxpayers continue to own 30% of Royal Mail, although there is little prospect of a sale of the remaining shares ahead of next year's General Election.

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PM Trying To 'Fool' Public Over EU Surcharge

The Prime Minister has been accused of "trying to take the British people for fools" for claiming the UK has managed to wrangle a 50% reduction on the £1.7bn EU surcharge.

Chancellor George Osborne said Britain would now pay the European Union just £850m of the original demand.

Mr Cameron described it as a victory for Britain and praised the Chancellor for securing the deal.

But shadow chancellor Ed Balls claimed the deal had not saved the UK "a single penny" and accused the pair of "trying to take the British people for fools".

"By counting the rebate Britain was due anyway, they are desperately trying to claim that the backdated bill for £1.7bn has somehow been halved," he said.

Video: Has Surcharge Really Been Halved?

"But nobody will fall for this smoke and mirrors."

The demand was made by Brussels after a recalculation of Britain's gross national income in relation to other EU states.

Mr Osborne said the deal, struck after meeting finance ministers in Brussels, was "far beyond what anyone expected us to achieve".

He said it meant the bill would be paid in two interest-free instalments after next year's election.

"Instead of footing the bill we have halved the bill, we have delayed the bill, we will pay no interest on the bill and if there are any mistakes in the bill we will get our money back," he said.

Video: Cameron: 'Good News' On EU Bill

But political opponents, including UKIP, claimed the reduction had been achieved only by bringing forward a rebate to which the UK would have been entitled anyway.

UKIP leader Nigel Farage wrote on Twitter: "Osborne trying to spin his way out of disaster. UK still paying full £1.7 billion, his credibility is about to nose dive."

Sky's Europe Correspondent Robert Nisbet said it appeared the EU would still get the full £1.7bn as a result of what he said some would call "clever accounting".

"Next year there will be two instalments that will equal £850m that will be paid to Brussels by the UK and it will get its rebate in full. So far, so good," explained Nisbet.

"But what will happen in 2016 is that an extra rebate based on increased VAT receipts will be used to settle the rest of the bill.

Video: Migrant Movements 'Not Unqualified'

"That allows the EU to claim it's getting its money, the UK to claim it's negotiated a great deal for Britain and for opposition parties to cry foul."

A Number 10 source insisted there was "no guarantee the rebate would have applied to this" before the deal was struck, and added: "Our view is that this is a very good deal."

However, Conservative MEP Daniel Hannan suggested the devil was in the detail, saying: "The EU sticks us with a bill. Ministers double it, apply the rebate, return to the original figure and claim victory. We're meant to cheer?

"Britain is worse off in absolute terms, but a straw man has been knocked down. A prelude to how the pro-EU side will fight the referendum."

Mr Osborne said EU rules would now be changed forever "so this never happens again", claiming he had got his counterparts to agree to change the system for calculating adjustments to member states' contributions.

Video: How Is The UK Seen In Europe?

The PM had earlier warned there would be a "major problem" if Brussels insisted on Britain paying the bill in full.

Mr Cameron went on the offensive after a meeting with other European leaders in Finland, saying Britain would not pay "anything like" the full amount ahead of a looming 1 December deadline.

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Petrol Price Cuts Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister has warned.

Treasury Chief Secretary Danny Alexander has demanded guarantees from fuel companies and distributors that they were doing all they could to pass on the price cuts to hard-pressed motorists.

Danny Alexander is seeking assurances on petrol prices

His comments came as Asda announced it would be cutting the price of petrol and diesel by 1p to 119.7pm and 123.7p a litre.

Asda said it was the first time its petrol had gone under 120p a litre in four years.

Video: Chancellor On Petrol Prices

It triggered a supermarket price war and Sainsbury's and Tescos quickly followed suit with 1p cuts of their own.

At a speech in Aberdeen, Mr Alexander said consumers felt petrol prices rise "like a rocket" when oil costs went up, but fall "like a feather" when they came down.

And he said people would "rightly be angry" if they felt prices were not coming down as much as they should.

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices."

However, investigations into the failure to pass on the fall in the price of oil has been inconclusive.

Video: 'We Still Pay Too Much For Fuel'

Mr Alexander has written to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He said: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

Motoring organisations were quick to say there was more then Government could do that just put pressure on oil firms.

RAC Foundation director Professor Stephen Glaister said: "It is encouraging that Mr Alexander shares the concerns of the nation's drivers but in a way he is passing the buck.

"The biggest driver of pump prices remains the Government. Well over 60% of the price is tax."

AA president Edmund King said: "They themselves could do more.

Video: Cuts: A Loss Leader Or Real Deal?

"First, policies to help strengthen the pound by just 10 cents against the dollar would double the potential for a 2p-a-litre fall in the price of petrol to 4p.

"Secondly, the Government's failure to introduce fuel price transparency, showing the relationship between oil, wholesale and pump prices, has helped no one."

Shadow chief secretary to the Treasury Chris Leslie said: "Of course it's right that drivers should benefit from falling oil prices with lower prices at the pumps.

"But since 2011 people have paid 3p more on every litre of petrol because the Lib Dems broke their promise and backed the Tories in raising VAT."

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Box Office Magic For Disney As Profits Surge

Walt Disney's movie releases have been credited with driving a surge in profits during the entertainment firm's fourth quarter.

The success of animated tale "Frozen" and Marvel movie "Guardians of the Galaxy" helped revenue surpass expectations, rising 7% to $12.39bn, ahead of market expectations.

Profits for the period rose 8% to $1.5bn with merchandise sales from "Frozen" - the biggest-grossing animation - aiding the performance.

Disney chief executive Bob Iger told an analyst call following the release of the results that the company's movie and TV offerings were helping it compete in a "new golden age for content."

The Disney Studios business has had a string of hits that is likely to continue with the first of its new "Star Wars" movies launching next year, titled "The Force Awakens."

Disney has released five Marvel franchise movies

The company also announced Thursday that Toy Story 4 will hit cinemas in 2017, directed by John Lasseter, who created the blockbuster franchise and directed the first two movies.

Mr Iger said the five Marvel movies that Disney has released since acquiring the brand in 2009 have averaged $1bn in global box office receipts.

Disney Studios had the strongest results among the media company's divisions, with revenue climbing 18% to $1.78bn.

Revenue from media and cable networks rose 5% while parks and resorts enjoyed growth of 7% to $4bn.

Disney's market value, which has almost doubled in two years, fell back slightly from a record high after the results were posted.

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PM To Warn EU Leaders Over £1.7bn Demand

By Darren McCaffrey, Sky News Politics Reporter

The scale and timetable of Britain's proposed £1.7bn extra contribution to the European Union is unacceptable, both David Cameron and George Osborne will tell EU leaders today.

The Chancellor, who is attending a meeting of Economic and Financial Affairs Council (ECOFIN) ministers in Brussels, will start negotiations with the intention of delaying and reducing what the UK should pay.

Meanwhile, Mr Cameron, at a meeting of northern European leaders in Helsinki, is trying to gain support for Britain's position with the message that it is the UK this time - but could be another country next.

The meeting is part of a two-day summit of Scandinavian and Baltic state leaders called the Northern Future Forum.

The primary aim is to promote growth and economic reform throughout Europe, but Downing Street is clear the Prime Minister will be raising other issues such as budget control and migration.

Video: PM: £1.7bn EU Surcharge 'Appalling'

Mr Cameron's hopes of winning allies in his attempt to curb internal migration within the EU have been met with strong resistance from other European leaders, including hosts Finland.

Finnish leader Alexander Stubb told the Financial Times: "We need to understand what the UK wants, and the UK needs to learn where are the limits of other member states.

"Whether some kind of arrangement can be found, I don't know.

Video: PM Defiant Over £1.7bn EU Bill

"But to start putting restrictions on free movement in one way or another I would find quite difficult."

Sweden and Germany's opposition to migration reform have made the Prime Minister's task very difficult.

But Mr Osborne may have more success with the surcharge.

Video: EC Chief: £1.7bn UK Surcharge Fair

There are suggestions Brussels may be willing to allow interest-free instalments rather than the UK having to pay the full amount on 1 December.

The Labour Party has piled on the pressure, with Ed Balls and Douglas Alexander saying "the Government must have all eyes on the detail of the deal being discussed, not looking back over their shoulders at the Eurosceptic backbenchers who still seem to be pulling the strings".

A programme of instalments will not go far enough for the UK, but could be the start of a process allowing for an acceptable agreement that Mr Cameron can sell to his party and the country.

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Morrisons Sales Slump 6.3% In Third Quarter

Morrisons has reported another big fall in sales as the supermarket sector scraps for market share amid a challenge from discounters.

The grocer posted a 6.3% drop in like-for-like sales in its third quarter - a figure that hit 8% when the effects of fuel sales were included.

Morrisons said it had previously announced that it would take time for its pricing initiatives to bear fruit.

However the group, which trails market leader Tesco, Asda and Sainsbury's in annual sales, said it remained confident in its full
year 2014-15 profit outlook.

It now expects underlying profit before tax to be in the narrower range of £335m-£365m versus previous guidance of £325m-£375m.

More follows...

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Petrol Price Guarantees Demanded By Treasury

A failure by petrol firms and supermarkets to pass on the full benefit of falling oil prices to customers filling up at the pumps would be an "outrage", a Cabinet Minister will warn.

Treasury Chief Secretary Danny Alexander is to demand guarantees from fuel companies and distributors that they are doing all they can to pass on the price cuts to hard-pressed motorists.

Danny Alexander is seeking assurances on petrol prices

Mr Alexander will use a speech in Aberdeen to say consumers feel petrol prices rise "like a rocket" when oil costs go up, but fall "like a feather" when they come down.

And people would "rightly be angry" if they felt prices were not coming down as much as they should.

Video: 'We Still Pay Too Much For Fuel'

Brent crude slumped as low as $82 (£51) a barrel earlier this week, its lowest level in just over four years due to concerns about over-supply.

The Liberal Democrat frontbencher will say: "Especially in the current economic circumstances people would rightly be angry if they feel that pump prices don't fall as much as they should on the back of falling oil prices.

"I believe it's called the rocket and feather effect.

"The public have a suspicion that when the price of oil rises, pump prices go up like a rocket.

"But when the price of oil falls, pump prices drift down like a feather.

"This has been investigated before and no conclusive evidence was found.

Video: Cuts: A Loss Leader Or Real Deal?

"But even if there were a suspicion it could be true this time it would be an outrage."

Mr Alexander promises to write to the industry's major players "seeking their assurance that they are doing all they can to pass on the benefit of falling oil prices as quickly as possible".

He will say: "When the price of oil falls, the public have a right to expect pump prices to fall like a stone, not a feather."

Pointing to the Treasury's fuel duty freeze, Mr Alexander will say: "I have made sure over the last four years that Government has helped with the cost of fuel.

"And when the oil price falls, industry must do all it can to help too."

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Banking Industry Competition Probe Ordered

Regulators have ordered a full market inquiry into banks over fears the dominance of the largest lenders is stifling competition.

The Competition and Markets Authority (CMA) said its investigation would scrutinise the personal current account and small business  retail banking sectors.

Sky News reported on Tuesday night how major banks had called off their efforts to stall the inquiry.

The UK's four largest banks, Lloyds, RBS, Barclays, and HSBC collectively supply 77% of personal current accounts in the UK - a market worth £8bn.

The 'Big Four' also control about 85% of all small and medium-sized business accounts, an industry worth another £2bn.

Video: 'Retail Banking Isn't Working'

The CMA said there has been "very little movement" in their collective market share as the level of customers shopping around and switching current accounts is "low".

It blamed limited transparency in the sector.

More follows...

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Credit Threat To Child Maintenance Dodgers

Parents who refuse to pay child maintenance face being turned down for credit cards and mortgages.

Under government plans, details of those who default on contributions towards their child's upbringing will be shared with credit reference agencies, threatening their credit score.

Having a weak credit rating can mean people are refused forms of financial credit such as personal loans, mortgages, credit cards, hire purchase finance arrangements and mobile phone contracts.

Even if someone is not turned down for credit, a blotted history could mean that they are given a smaller credit limit or charged a worse rate of interest.

Information about non-payment of child maintenance could be shared with credit reference agencies at the point where a liability order is made against a parent.

These are granted after an application is made to a court for legal recognition of a debt.

Just under 1.5 million child maintenance cases are being overseen by the Child Maintenance Service and the Child Support Agency and in the majority of cases, parents who no longer live in the family home do contribute towards their child's upbringing.

Between April 2013 and March 2014, 12,410 liability orders were granted.

The new powers, which are subject to parliamentary approval, will also mean that parents with a good payment record can ask that this information is shared if they feel that it could boost their ability to get credit.

Child Maintenance Minister Steve Webb said: "For too long, a minority of absent parents have got away with failing to pay maintenance, leaving families without that financial support.

"This Government is determined to take action to tackle this kind of irresponsible behaviour and support families.

"I would hope that we see this power used very little, because the deterrent effect of a possible negative mark on a person's credit rating will convince those who have previously failed to pay towards their children's upbringing to do the right thing."

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Juncker Says PM Misleading On £1.7bn EU Bill

The new European Commission chief Jean-Claude Juncker has accused David Cameron and his Italian counterpart of misleading their citizens over budget talks with Brussels.

He claims what the Prime Minister said publicly about the EU demand for £1.7bn contradicted what was said to other leaders behind closed doors at last month's summit.

Mr Cameron has refused to pay the bill, making clear he believed the call for extra cash and ensuing row undermined support for British membership of the EU.

The increase would add almost a fifth to the UK's annual contribution of £8.6bn.

Brussels responded by warning the UK would face "late payment fines" if it failed to hand over the cash - which reflects changes in the relative national income of different EU states - by the December 1 deadline.

Video: Oct 27: EU Demand 'Not Acceptable'

Referring to the October meeting, Mr Juncker told a European Parliament hearing: "I don't like the way that certain prime ministers behaved after the summit.

"I took notes and when I compared what they had said inside the room with what they said outside, they did not tally up."

His comments are set to further sour relations with Mr Cameron, who bitterly opposed Mr Juncker's appointment as commission boss.

France is the biggest gainer from the recalculation of national contributions to EU budgets, and is due to receive one billion euro (£800m), while EU partners including the Netherlands, Italy, and even bailed-out Greece and Ireland face surcharges.

Mr Juncker also took a sideswipe at the Italian leader Matteo Renzi, who vowed at the summit to make public the cost of European Union "palaces" in a row over Italy's budget projections, earning a sharp rebuke from then-Commission president Jose Manuel Barroso.

"I said to Matteo Renzi that I was not the leader of some gang of bureaucrats," Mr Juncker said.

Video: EU Demand: Should UK Pay More?

"I am the president of the European Commission, a political institution, and I want prime ministers to respect these institutions."

He also suggested Rome was lucky to scrape through an initial review by Brussels of its 2015 budget despite running an excessive deficit.

He said: "If Barroso only listened to bureaucrats, Italy's budget would have been treated differently."

Mr Renzi took to Twitter to hitback at Mr Juncker, demanding respect from Brussels for his country.

He said: "I'm not going to go to Brussels to have what needs to be done explained to me, and I told Barroso and Junker that."

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EU Migrants Pay In More Than They Take - Study

EU migrants contribute more to the UK in taxes than they receive in benefits and services, according to new research.

But the study showed those arriving from outside Europe over a 17-year period took more from the public purse than they put back in.

The findings come as David Cameron moves to tighten the UK's immigration controls in the face of the growing popularity of UKIP.

The Prime Minister is aware of the need to calm Tory jitters ahead of this month's crunch by-election in Rochester and Strood, where the party is desperate to prevent a second seat falling to UKIP.

The University College London (UCL) report revealed European immigrants made a positive financial contribution of £4.4bn to the UK between 1995 and 2011.

Video: Report: Migrants Boost UK Economy

However, immigrants from outside the European Economic Area (EEA) made a negative contribution of £118bn.

Over the same period, UK-born workers made a negative contribution of £591bn.

The figures improved for more recent arrivals with EU migrants between 2001-11 making a positive contribution of £20bn, and those from outside Europe £5bn.

Professor Christian Dustmann, director of UCL's Centre for Research and Analysis of Migration (Cream) and co-author of the study, said: "A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems.

"Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU."

He added: "European immigrants, particularly, both from the new accession countries and the rest of the European Union, make the most substantial contributions.

"This is mainly down to their higher average labour market participation compared with natives and their lower receipt of welfare benefits."

Responding to the report, chairman of the MigrationWatch UK think tank Sir Andrew Green said: "This report confirms that immigration as a whole has cost up to £150bn in the last 17 years.

"As for recent European migrants, even on their own figures - which we dispute - their contribution to the exchequer amounts to less than £1 a week per head of our population."

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Long-Term Shift Work Ages Brain, Study Finds

Working shifts long-term has an ageing effect on the brain impairing the ability to think and remember, according to research.

A study found changing shift patterns "chronically impairs cognition", and even had potential safety implications.

The scientists, who included British researchers from the University of Swansea, said the problems increased with the length of time people worked shifts.

After 10 years of rotating shift work the association became "highly significant".

A decade or more working rotating shifts led to a loss of brain function equivalent to 6.5 years of age-related mental decline, said the researchers.

And while stopping shift work led to gradual recovery, this took at least five years.

The scientists believe disruption of the body clock, which is based on natural day and night cycles, may cause stresses that may affect brain functioning.

Other studies have linked vitamin D deficiency due to reduced exposure to sunlight to poorer mental ability.

Writing in the journal Occupational and Environmental Medicine, the international team led by Dr Jean-Claude Marquie, from the University of Toulouse, France, concluded: "Shift work chronically impairs cognition, with potentially important safety consequences not only for the individuals concerned, but also for society."

The scientists assessed more than 3,000 workers from southern France who had their mental abilities tested on three occasions over a 10-year period.

Those taking part were aged 32, 42, 52 and 62 at the time of the first test in 1996.

Around a fifth had worked a shift pattern that switched between mornings, afternoons and nights.

Shift workers had lower average scores for memory, processing speed and overall brain function than those working normal office hours.

Compared with people who had never worked rotating shifts, participants employed this way for 10 or more years had lower overall thinking and memory scores.

The researchers said: "Measures should be considered that mitigate the impact that prolonged exposure to shift work has on cognitive abilities, including switching to normal day work."

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Holiday Pay Ruling Threatens Big Business Bill

By Poppy Trowbridge, Consumer Affairs Correspondent

A ruling by the Employment Appeals Tribunal, the UK's top employment law court, is set to determine whether businesses face a big bill for backdated holiday pay.

The cases before the tribunal involve two engineering companies, Hertel and Bear Scotland.

Workers for these companies claim their holiday pay was less than it should have been because their employers did not factor in voluntary overtime completed in the period prior to time off.

Holiday pay is averaged from the basic wage ahead of the time off and currently does not include what's earned in overtime, or commission.

A case being heard later in the year will look at whether commission should also be factored into rates of holiday pay.

While the issue could still stay tied up in European and UK courts for years to come, but some of the high streets bigger business names have begun to prepare for a payout.

John Lewis reviewed its policies this summer, and set aside £40m to reimburse workers.

The Department for Business says voluntary overtime should not be included in holiday pay and it recognises the potential impact on employers.

A spokesperson from the department said, "We understand the deep concern felt by many employers and have intervened in the Employment Appeal Tribunal cases to make our views clear."

Business groups are calling on the Prime Minister to make this employment policy a priority.

Employers are worried about the cost of backdating the ruling to 1998 - when Brussels put in employment restrictions.

Simon Walker from the Institute of Directors, said: "The holiday pay timebomb could have a hugely detrimental impact on businesses up and down the country.

"It is not an exaggeration to say that some small businesses could end up being wiped out if employers, who have acted compliantly and in good faith, face underpayment claims backdated as far as 1998."

The EU's Working Time Directive took effect in 1998.

Employment solicitor, Jessica Learmond-Criqui, said, "If one wants to be a good employer and is using good practice, one would want to be collaborative with employees and reach some sort of agreement to settle any back claims so that you've got certainty because certainty is so important for business."

Barry Smith, legal officer of the GMB union, said: "We hope the ruling will clarify the elements to be included in the calculation of holiday pay.

"For many workers, overtime, shift payments, unsociable hours payments and other allowances are currently excluded from their holiday pay and they should be included."

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JPMorgan Chase Reveals For-Ex Probe Provision

JPMorgan Chase has raised to almost $6bn (£3.8bn) the sum it has set aside to cover legal proceedings as the US Justice Department investigates its foreign-exchange business.

It announced the probe in a regulatory filing on Monday night and said it focused on its spot foreign-exchange trading activities and controls.

The largest bank in the US said it was cooperating with the investigations and was in talks with the justice department and civil enforcement authorities, but that there was "no assurance that such discussions will result in settlements."

Allegations that foreign exchange markets were manipulated have resulted in a focus on whether traders colluded via online chatrooms to set rates.

Some 40% of world's foreign exchange trading is done in London.

The Serious Fraud Office and Financial Conduct Authority (FCA) are among world bodies also conducting rigging investigations.

A range of individuals and banks are the subject of the inquiries.

Earlier this year, the FCA's chief executive Martin Wheatley said the allegations were "every bit as bad as they have been with Libor."

Royal Bank of Scotland, Barclays and HSBC collectively set aside more than £1bn in their latest financial statement to cover the foreign exchange allegations.

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Millions To Receive New Tax Payments Summary

Millions of taxpayers will receive a new annual tax payments summary from this week under a scheme introduced by Chancellor George Osborne.

Some 16 million Pay As You Earn (PAYE) taxpayers will receive the summaries in the post, which set out exactly how much they pay into the Exchequer.

Mr Osborne announced the personalised summaries - which will also set out how taxpayers' money is spent - as part of his 2012 Budget.

The statements will be delivered in the post over the next seven weeks.

Eight million people who complete self-assessment returns will also be able to access their statements online.

Mr Osborne said: "I promised that taxpayers would know much more about how much direct tax they pay and how that money is spent.

"Now we're delivering on that promise by giving 24 million taxpayers a new personal tax summary.

"It is a revolution in transparency and it will show how hard-working taxpayers have to pay for what governments spend."

Labour's Shadow Treasury Minister Shabana Mahmood said: "This Government's record on tax is giving millionaires a huge tax cut while everyone else pays more.

"Families and pensioners are paying more in higher VAT, but that tax isn't part of these statements.

"By next year families will be £974 a year worse off because of tax and benefit changes since 2010."

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New Law Plan To Tackle Mobile Phone Blackspots

Mobile telephone users could soon be able to talk to their friends even when they enter a signal blackspot, if proposed new legislation goes ahead.

Culture Secretary Sajid Javid wants to change the law to force networks to allow customers to switch providers when their phones cannot find a signal.

It has been estimated that a fifth of Britain suffers from an unreliable mobile phone signal.

The Government is expected to start a consultation process on the reforms this week.

It follows the failure of the 'big four' phone operators - Vodafone, O2, EE and Three - to reach an agreement on improving reception in areas where it is poor.

In most of the areas, at least one or two of the networks have sufficient coverage for people to receive a signal.

Mr Javid is understood to believe that the companies should be forced to allow 'roaming' between networks to ensure that everyone can receive a signal regardless of which operator they are with.

Currently, customers who have contracts with one network cannot make calls, send text messages or transfer data using another network.

Yet, whenever a customer travels abroad, they are able to use any network their operator has an agreement with.

A Whitehall source told The Daily Telegraph: "We want to eradicate this situation of partial not-spots.

"There is expected to be a consultation in the coming days and this could include a legislative option. If these companies do not change, we might force them to change."

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Thousands To Benefit From Rise In Living Wage

By Katie Spencer, Sky News Reporter

Around 35,000 people are set to benefit from a 20p rise in the UK living wage, but more than five million people are still earning below its hourly basic rate of £7.85.

Care worker Perrine Roland told Sky News about the struggles she used to have "living in poverty" on the national minimum adult wage of £6.50.

She said: "Sometimes, at the end of the month, I wouldn't have enough money for food so I would have to ask people to help me."

Today her current employer, Penrose Care, pays her the living wage.

It is one of more than 1,000 employers to adopt the voluntary rate.

"Now I'm living in a very nice house share. I have my own room and it's really improved my standard of living," she said.

Robert Stephenson-Padron, the managing director of Penrose Care, says his company's decision to adopt the wage is about "respecting the humanity of our workers".

He insists there are benefits for both employee and employer.

"We've had extremely low staff turnover, we've got exceptional care workers, and that's really flowed through into the quality of care we provide."

The number of companies signed up to pay the living wage has more than doubled this year. It includes firms like Google, Barclays and food giant Nestle.

Campaigners have targeted chains like Ritzy Cinema, Tesco and Amazon for not signing up.

Bex Hay, from Amazon Anonymous, believes employers must face up to how people are struggling.

"A lot of workers talk about earning 1p over the minimum wage," she told Sky News.

"That doesn't allow them to meet costs of raising family, paying rent and all their bills. They have to work a lot of overtime, lots of seven days a week, long hours, it's demoralising and degrading."

The argument from small businesses is that, given the UK's sluggish economy, they would struggle to pay more than the minimum wage of £6.50 an hour.

However, campaigners are adamant that figure no longer reflects the real cost of living.

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BBA: New Oversight Will Hurt Smaller Banks

By Mark Kleinman, City Editor

Smaller lenders would be hit by new rules heralding the world's toughest oversight regime for senior bankers, according to the industry's main City-based lobbying groups.

The warning is contained in a confidential paper submitted on Friday to UK watchdogs ahead of sweeping reforms that will include the threat of seven-year prison terms for directors of failed banks.

In a joint response to the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA), the British Bankers' Association (BBA) and Association for Financial Markets in Europe (AFME) said that smaller banks would suffer disproportionately high costs in order to comply with the new supervisory framework.

"Coupled with the existing funding, capital and payment access disadvantages already suffered, these new overheads will act as a further barrier to small banks which have fewer senior executives amongst whom responsibilities can be shared, reducing their ability to provide challenge and competitive alternatives in the UK retail and small business market," the lobby groups said.

Their submission, a copy of which has been obtained by Sky News, contains several other objections to the FCA and PRA proposals, including:

:: A suggestion that non-executive directors of banks would lose their independence and begin "man-marking" their full-time colleagues if they are covered by the same rules.

The response said: "The proposed regime could potentially alter the current nature of NED and executive director relationships, and impact the current collaborative and challenge-based board decision-making processes as individual NEDs seek to protect against their individual personal liability."

That warning comes weeks after Sky News revealed that two directors of HSBC's UK subsidiary were quitting in protest at the new rules, which will come into effect next year.

:: A concern that the FCA would have jurisdiction over the overseas employees of UK-based banks even when individuals have no direct connection with UK clients or a realistic possibility of causing harm to a UK-regulated firm.

:: A plan to discontinue the current FCA register of banking industry employees should be dropped because it "will have a negative effect on standards across the industry, in part because of a reduction in transparent (for the industry, consumers and regulators) of many individuals' conduct history".

:: Rejecting the idea that chairmen of banks should not be solely responsible for ensuring that whistleblowers are protected from detrimental treatment.

Regulators are likely to be particularly sensitive to the complaint about higher costs being imposed on smaller lenders following efforts led by George Osborne, the Chancellor, and Vince Cable, the Business Secretary, to pave the way for a new group of "challenger banks".

The new framework has emerged in the wake of pressure on regulators to toughen penalties in the wake of the financial crisis and subsequent trading scandals, including Libor and foreign exchange benchmarks.

Six banks are expected to pay well over £1bn to UK regulators alone to settle the forex issues, with an announcement expected next month.

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Energy Bills: UK Gas Prices Hit Record Low

UK wholesale gas prices have hit a record low, piling more pressure on energy firms to explain why household bills have not been slashed.

The latest fall in raw costs - for November and December delivery - has resulted in a 23% fall over the year so far though bills have remained largely static.

The latest drop was a response to Ukraine and Russia signing a deal to end the threat of supplies being choked off.

The deal will see Moscow resume gas flows over the winter despite their continuing sovereignty row.

The agreement also guarantees delivery to the EU. Russian gas makes up approximately 15% of UK supply.

Raw energy costs, including oil too, have been tumbling in recent months - with Brent Crude losing 25% of its value since June on the back of weaker demand as the world's economic recovery shows signs of easing.

The energy regulator Ofgem told Sky News this week it was seeking an explanation from household suppliers on why they had not passed on to customers the significant falls in wholesale costs.

So-called 'Big Six' firms responded to today's development by insisting that bills reflected long term gas costs not short term pricing.

Companies have recently been tinkering with their offerings, taking their lowest annual tariffs below an average £1,000, but are yet to signal any major cuts to bills despite their wholesale costs diving by almost a quarter during 2014.

Industry body Energy UK said: "There are good deals on the market for customers shopping around and looking to fix their payments.

"Wholesale prices are just part of the bill and, although reduced pressure on the wholesale gas market is good news in the long term, companies buy energy days, weeks, months - even years - in advance to protect customers from sudden changes in costs, and will have bought gas when prices were higher."

Energy firms must use either the wholesale market or a contract with an electricity generator to purchase their energy, which is then delivered to households.

But some suppliers are also part of companies that generate their own energy, so they effectively sell energy to themselves - a situation that has led to calls for greater transparency on profits by splitting generation and supply businesses.

Reported profit levels have recently fallen back to levels not seen since 2009 and companies have consistently argued that their profits are fair and bills reflect not only the timing of their raw gas purchases and hedging strategies but also and high investment costs.

National Grid's latest Winter Outlook report warned that spare capacity was at its weakest level for seven years - a result of several factors including the failure to keep pace with power station closures and unscheduled plant outages.

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RBS Grows Profit But Sets Aside Further £780m

Royal Bank of Scotland (RBS) has set aside a further £780m to cover the costs of conduct issues, including the PPI mis-selling scandal.

The news was released alongside its third-quarter results which demonstrated that the bank's recovery was continuing to build despite the burden of extra provisions for past mistakes.

RBS said it was taking a £400m charge in anticipation of regulatory action over the alleged manipulation of foreign exchange markets - following a similar move by rival Barclays 24-hours earlier.

It added £100m to its bill for PPI - taking the total to £3.3bn - citing "higher than expected reactive complaint volumes."

The bank, which is 80% owned by the taxpayer after its rescue during the financial crisis, said its profits for the third quarter were up to £1.27bn, compared with a loss of £634m in the same period last year.

It is the first time the bank has reported a profit for three quarters in a row since its bailout.

RBS also confirmed it was retaining Ulster Bank following a strategic review of the business.

Chief executive Ross McEwan said: "In February I placed trust at the heart of my new strategy for our bank.

"We have taken the first steps towards that goal, with early progress in making RBS simpler, clearer and fairer.

"We are reducing costs, and are on track to achieve our capital targets.

"UK and Ireland are showing signs of growth, and impairment trends are significantly better than we had anticipated at the start of the year.

"We have confirmed today that Ulster Bank remains a core part of our bank. We have a good market position and believe that, with investment, Ulster Bank can deliver attractive shareholder returns in the future.

"But we know we still have a long list of conduct and litigation issues to deal with and much, much more to do to restore our customers' trust in us."

The RBS share price rose 3% in early trading on the FTSE 100 in the wake of the update.

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