House Prices Surge For Fourth Month In A Row

House prices rose for the fourth consecutive month in August, as Government schemes and improved mortgage lending continued to fuel the revival in the property market.

Property values rose by 3.5% compared with a year ago, taking the average price for a UK home to £170,514, according to the Nationwide building society.

This marked a slight fall on the 3.9% surge seen in July, which was the biggest annual rise for three years.

"Consumer confidence has increased significantly in recent months, thanks to further modest gains in employment and signs that the UK economy is finally gathering momentum," Nationwide chief economist Robert Gardner said.

Prices rose 0.6% between July and August, which was also marginally lower than the 0.9% monthly hike seen in July.

But Nationwide said the quarter-on-quarter change showed underlying price rises have remained robust, up 1.4% in the three months to August - the strongest pace of increase since mid-2010.

The data comes after Bank of England (BoE) governor Mark Carney warned earlier this week over the risks of another housing bubble amid fears that Government stimulus measures are stoking unsustainable price rises.

He said the BoE is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed.

Policy measures such as Funding for Lending and Help to Buy are boosting the market as they help first-time buyers in particular on to the property ladder.

Figures from the Council of Mortgage Lenders recently showed that first-time buyers accounted for 45% of house purchase loans in the second quarter - the highest since records began in 2005.

The Funding for Lending Scheme encourages banks and building societies to lend more in return for discounted loans, and has been credited with improving mortgage availability and reducing rates.

Chancellor George Osborne also launched Help to Buy in April, which allows people to buy a property with a 5% deposit, with the state lending buyers 20% of the value of a new home worth up to £600,000, interest-free for five years.

But there are concerns that these schemes will push up house prices and borrowing levels, rather than spurring on more new home construction.

Mr Gardner added: "While there have been encouraging signs that house building is starting to recover, construction is still running well below what is likely to be required to keep up with demand."

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Data Watchdog Warning Over Staff Home Working

The data watchdog has warned employers about security breaches caused by staff working from home, after it fined a council £100,000 for posting sensitive information about vulnerable children.

The Information Commissioner's Office (ICO) hit Aberdeen City Council with the penalty over what it called a "serious data breach" by social services.

The breach of data occurred after a council employee accessed documents, including meeting minutes and detailed reports, from her home computer.

A file transfer programme installed on the machine automatically uploaded the documents to a publicly-accessible website.

The sensitive information revealed details about several vulnerable children and their families, including details of alleged criminal offences.

The files were uploaded between November 8 and 14, 2011 and remained available online until February 2012.

They were only taken down when another member of staff spotted the documents after carrying out an online search linked to their own name and job title.

The breach was later reported to the ICO.

The ICO's investigation found that the council had no relevant home working policy in place for staff and did not have sufficient measures in place to restrict the downloading of sensitive information from the council's network.

ICO assistant commissioner for Scotland Ken Macdonald said: "As more people take the opportunity to work from home, organisations must have adequate measures in place to make sure the personal information being accessed by home workers continues to be kept secure.

"In this case Aberdeen City Council failed to monitor how personal information was being used and had no guidance to help home workers look after the information.

"On a wider level, the council also had no checks in place to see whether the council's existing data protection guidance was being followed."

He added: "The result was a serious data breach that left the sensitive information of a vulnerable young child freely available online for three months.

"We would urge all social work departments to sit up and take notice of this case by taking the time to check their home working setup is up to scratch."

The council is now in the process of agreeing an undertaking with the ICO, which commits the organisation to improving its compliance with the Data Protection Act.

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TUC Warning Over Future State Pensions

State pensions received over a lifetime vary by tens of thousands of pounds because of differing life expectancies and locations, according to a new report.

The study by the Trade Unions Congress (TUC) showed that women in their late forties living in East Dorset can expect to live nine years longer than a woman in Corby, Northamptonshire.

As a result, they will receive £67,000 more in state pension.

East Dorset has the longest life expectancy in the UK for both men and women.

It said women in Corby - the area with the lowest female life expectancy - will receive £12,000 less in state pension over their lifetime than women retiring there in 2016, despite working for two more years.

The state pension divide for men living in East Dorset and Manchester – the area with the shortest male post-65 life expectancy – is estimated to be £53,000.

A man in his late forties living in Manchester will receive £7,500 less during his retirement than those retiring in 2016, the report said.

Life expectancy is longer in East Dorset than in Manchester

The state pension age is due to rise to 66 by 2018 and to 67 by 2028, while the divide in life expectancies between different types of workers is also expected to grow.

The report said a female managerial worker in 2028 can expect to live 3.8 years longer than a female manual worker. Their male counterparts face a gap of 3.1 years.

As a result, the amount of state pension received by different occupations varied by up to £29,000 for women and £23,000 for men.

TUC general secretary Frances O'Grady said that the Government should abandon its plan to raise the state pension age and set up an independent commission to examine health inequalities and their impact on people's expected retirement incomes.

"It cannot be right that people living in a wealthy area can receive tens of thousands of pounds more in state pension than someone living in a less well off part of the country," Ms O'Grady said.

"Particularly as richer people are likely to have earned more during the career and have a bigger private pension too.

The TUC has long fought for state pension rights

"The Government's decision to accelerate the rise in the state pension age will mean millions of people having to work for longer in order to receive less in retirement."

However, a Department for Work and Pensions spokesman said: "Life expectancy is rising across the whole of the UK and we need a sustainable state pension system.

"Future rises in the state pension age will be independently reviewed, taking in a range of relevant factors.

"These are expected to include variations in healthy life expectancy, variations between different socio-economic groups, regional variations, and wider economic considerations."

:: The lifetime state pension for men will fall from £147,000 in 2016 when the single-tier scheme is introduced, to an expected £146,000 in 2028.

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Co-op Reports £559m Loss Due To Bank Troubles

The Co-operative group has announced a half-year pre-tax loss of £559m amid a writedown of £496m on loans at its troubled banking arm.

The Co-operative Bank alone made a pre-tax loss of £709.4m in the six months to June and the group said there will be "no quick fixes" as it embarks on a four-year turnaround plan.

It admitted it does not expect its banking arm to make a profit for years and warned a restructuring of the business makes job losses "inevitable".

Part of the loss has been blamed on the installation of a new computer system by the group's former management team.

However, as part of an ambitious growth strategy, it was designed for a much bigger institution and those currently in charge say it does not suit the company's needs as a smaller operation.

Group chief executive Euan Sutherland said: "This has been a very difficult first half for The Co-operative Group and the results highlight both the well-documented challenges faced by The Co-operative Bank and the significant work to do at Group level.

"Importantly, today's announcement also underlines the need for the £1.5bn Capital Action Plan we announced in June to stabilise the Bank, which we reaffirm today and which remains on track."

He said the Co-op has "no plan B" for rescuing the bank and is confident bond holders will accept the current proposals.

He added: "We remain convinced of the considerable potential to be realised across the Group and are confident that we are well placed to restore the Co-operative brand to its rightful place at the heart of communities up and down Britain." 

Mr Sutherland took his position in May and said he has since been focused on stabilising the bank.

Banking Group chief executive Niall Booker said the business continued to see the withdrawal of corporate deposits, while retail customers remained.

Other parts of the business reported profits, with the Co-op's food group making £117m in the same period.

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UK Recovery 'On Stronger Ground'

The British Chambers of Commerce has raised its forecast for growth this year, from 0.9% to 1.3%, providing further optimistic signs of economic recovery.

But the business lobby group warned that the economy could yet be derailed by global jitters and urged the Government and Bank of England to do everything possible to ensure the recovery moves from "good to great".

Britain's growth prospects have been boosted by increasingly upbeat data in recent weeks, including an official upgrade to growth between April and June from 0.6% to 0.7%.

Services, manufacturing, construction and agriculture all expanded - the first time Britain has been firing on all cylinders for nearly three years.

The new quarterly forecast follows another upgrade three months ago when the BCC raised its growth prediction from 0.6%. It also lifted growth forecasts for 2014 and 2015 to 2.2% and 2.5% respectively.

Household consumption should grow by 1.7% this year and 2.3% next year as weakening inflation eases the squeeze on incomes, according to the BCC.

Director general John Longworth said: "Unfortunately, however, the recovery is not yet secure. We have had false dawns in recent years and although this upturn appears to be on stronger ground, we must be aware that complacency could lead to setbacks."

The services sector, which makes up about three-quarters of the economy, will expand by 1.9% this year and 2.6% next year, the BCC said.

But manufacturing will shrink by another 0.8% this year and construction will decline 1.2%, it predicts.

It also expects unemployment to fall to 2.45 million by the third quarter of next year, 200,000 lower than its prediction in May.

It reckons unemployment will hit the Bank of England's threshold of 7% - when the bank will consider raising interest rates - in the fourth quarter of next year. This is earlier than its prediction of late-2016.

The BCC also forecast that net public sector borrowing will come in at £116.3bn this financial year, £3.5bn lower than the Office for Budget Responsibility's prediction in March.

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House Prices Surge For Fourth Month In A Row

House prices rose for the fourth consecutive month in August, as Government schemes and improved mortgage lending continued to fuel the revival in the property market.

Property values rose by 3.5% compared with a year ago, taking the average price for a UK home to £170,514, according to the Nationwide building society.

This marked a slight fall on the 3.9% surge seen in July, which was the biggest annual rise for three years.

"Consumer confidence has increased significantly in recent months, thanks to further modest gains in employment and signs that the UK economy is finally gathering momentum," Nationwide chief economist Robert Gardner said.

Prices rose 0.6% between July and August, which was also marginally lower than the 0.9% monthly hike seen in July.

But Nationwide said the quarter-on-quarter change showed underlying price rises have remained robust, up 1.4% in the three months to August - the strongest pace of increase since mid-2010.

The data comes after Bank of England (BoE) governor Mark Carney warned earlier this week over the risks of another housing bubble amid fears that Government stimulus measures are stoking unsustainable price rises.

He said the BoE is "acutely aware" of the potential threats and said action will be taken to clamp down on mortgage lending if needed.

Policy measures such as Funding for Lending and Help to Buy are boosting the market as they help first-time buyers in particular on to the property ladder.

Figures from the Council of Mortgage Lenders recently showed that first-time buyers accounted for 45% of house purchase loans in the second quarter - the highest since records began in 2005.

The Funding for Lending Scheme encourages banks and building societies to lend more in return for discounted loans, and has been credited with improving mortgage availability and reducing rates.

Chancellor George Osborne also launched Help to Buy in April, which allows people to buy a property with a 5% deposit, with the state lending buyers 20% of the value of a new home worth up to £600,000, interest-free for five years.

But there are concerns that these schemes will push up house prices and borrowing levels, rather than spurring on more new home construction.

Mr Gardner added: "While there have been encouraging signs that house building is starting to recover, construction is still running well below what is likely to be required to keep up with demand."

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Serco: Police To Probe Prison Firm Over 'Fraud'

Security firm Serco faces a police fraud investigation over its £285m prison escorting contract.

Serco staff allegedly recorded prisoners as having been delivered ready for court - a key performance measure - when in fact they were not, the Ministry of Justice (MoJ) said.

The contract, which covers prison transfer services in London and East Anglia, has been put under administrative supervision with immediate effect.

Justice Secretary Chris Grayling said: "It's become very clear there has been a culture within parts of Serco that has been totally unacceptable, and actions which need to be investigated by the police.

"We have not seen evidence of systemic malpractice up to board level, but we have been clear with the company - unless it undertakes a rapid process of major change, and becomes completely open with Government about the work it is doing for us, then it will not win public contracts in future.

"The taxpayer must know that their money is being properly used."

Both the MoJ and Serco's directors have asked City of London police to investigate the actions of the staff working on the prison escorting contract. 

Evidence of potentially fraudulent behaviour emerged as part of the audit work announced by Mr Grayling in July.

The audit work came in the wake of an electronic tagging scandal, in which G4S and Serco were both accused of overcharging the Government for monitoring offenders.

In light of the new findings, Serco have agreed to repay all past profits made on the prison escorting contract and to forgo any future profits.

The FTSE 100 giant has told the MoJ that no member of the board had knowledge of the allegedly fraudulent practice.

Chris Hyman, chief executive of Serco Group, said: "The Justice Secretary is right to expect the highest standards of performance from Serco.

"I am deeply saddened and appalled at the misreporting of data by a small number of employees on the contract.

"This is a very serious matter for the customer and for us. We will not tolerate any wrongdoing and that is why we have referred this matter to the police."

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Co-op Swings To £559m Loss On Bank Troubles

The Co-operative group has swung to a half-year pre-tax loss of £559m amid a writedown of £496m on loans at its troubled banking arm.

The Co-operative Bank alone made a pre-tax loss of £709m in the six months to June and the group said there will be "no quick fixes" as it embarks on a four-year turnaround plan.

The company employs more than 100,000 people, but warned a restructuring of the business makes job losses "inevitable".

Group chief executive Euan Sutherland said: "This has been a very difficult first half for The Co-operative Group and the results highlight both the well-documented challenges faced by The Co-operative Bank and the significant work to do at Group level.

"Importantly, today's announcement also underlines the need for the £1.5bn Capital Action Plan we announced in June to stabilise the Bank, which we reaffirm today and which remains on track."

He said the Co-op has "no plan B" for rescuing the bank and is confident bond holders will accept the current proposals.

He added: "We remain convinced of the considerable potential to be realised across the Group and are confident that we are well placed to restore the Co-operative brand to its rightful place at the heart of communities up and down Britain." 

Mr Sutherland took his position in May and said he has been focused on stabilising the bank since becoming the company's boss.

Banking Group chief executive Niall Booker explained that the business continued to see the withdrawal of corporate deposits, while retail customers remained.

Other parts of the business reported profits, with the Co-op's food group making £117m in the same period.

Related stories:

Former RSA Boss Fronts Bid For Co-Op Arm

Co-Op Bank Toughs Out Customer Withdrawals

Regulator Reveals £27.1bn UK Bank Shortfall

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Vodafone Confirms '$100bn' Verizon Sale Talks

Vodafone has confirmed it is in talks with Verizon Communications about selling its stake in their joint US venture, potentially worth more than $100bn (£64.5bn).

The FTSE 100-listed firm owns a 45% stake in Verizon Wireless - America's largest mobile phone operator.

While Vodafone insisted the talks may not lead to a deal, its shares rose 9% on opening as investors welcomed the prospect of a windfall for the company which would amount to one of the largest ever corporate transactions.

While a sale would also boost pension funds, it was unclear whether the Treasury would also benefit.

It is thought that Verizon wants to pay around $100bn although reports have suggested that Vodafone would press for as much as $130bn (£84bn).

Vodafone has a market worth of just under £100bn, which means the bulk of its value is locked up in a business where it has no day-to-day control.

The Newbury-based company is likely to use the proceeds from any sale on major acquisitions or a return of cash to shareholders.

It said today: "Vodafone notes the recent press speculation and confirms that it is in discussions with Verizon Communications regarding the possible disposal of Vodafone's US group whose principal asset is its 45% interest in Verizon Wireless.

"There is no certainty that an agreement will be reached."

Talk of a sale emerged earlier this year when it was reported that Verizon had hired advisers on a possible buyout.

Then, it was suggested that any bid would consist of a roughly 50/50 cash and stock offer.

The potential value of a deal compares with AOL's record $164bn (£105bn) takeover of Time Warner in 2001.

More follows...

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Hackers: Pro-Assad Group Targets US Websites

Pro-Assad regime hackers claim to have targeted leading US media websites, shutting down the New York Times for 30 minutes.

The Syrian Electronic Army said it had hacked sites belonging to Twitter and the Huffington Post, making them unstable, as well as closing down the NYT.

The NYT attributed the meltdown to a "malicious external attack".

When users attempted to visit www.nytimes.com, the only message that appeared was "Hacked by the SEA".

Meanwhile, Twitter confirmed the hack saying "viewing of images and photos was sporadically impacted", but added that "no user information was affected".

The SEA boasted in a tweet: "Hi @Twitter, look at your domain, its owned by #SEA :)"  

The boasting tweet from the SEA hacking group

While the Twitter site continued to function as normal, the SEA claimed to have changed domain details, redirecting social media traffic to its own server.

The shadowy hacker collective has also claimed to have changed domain details belonging to the Huffington Post news site.

The latest attacks come weeks after the Twitter feed of the Associated Press news agency was targeted.

The feed falsely reported that Barack Obama was injured in an attack on the White House.

The Washington Post website was also hacked this month in an attack blamed on the same group.

The SEA infiltrates organisations it perceives to be aligned against the Assad government.

The string of cyber attacks comes as US leaders have publicly discussed the possibility of launching an attack against the Assad government.

The potential for military action comes amid claims Mr Assad deployed chemical weapons on the Syrian people, two years into the nation's civil war.

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