Quality of Financial Social Media

This BBC podcast is supported by ads outside the UK What if a marginal gain unlocked greater performance What if an insight in data could change everything at A RAMco Our focus on detail helps us deliver reliable energy to millions across the world Because margins aren't marginal There' where we can truly push the limits of what's possible A RAMco. an integrated energy and chemicals company Learn more at aramco. com The ultimate cookout starts with the ultimate ingredients. At Whole Foods Market, no antibiotics ever burgers and kebabs are prepped and ready to throw on the grill Fire up a juicy ribeye, grab creamy potato salad and savory flatbreads from the prepared foods department, and round it all out with three hundred and sixty five brand condiments, chips and dips at everyday low prices. Whole Foods Market, Make Y summer sizzle Hello, Wlcome to this Money Bx podcast The government warns it could make banks provide face to face banking as it launches a review into the effects of branch closures. On Wednesday, the state owned national savings and investments will start the process of refunding three hundred sixty seven million pounds, which it wrongly kept when thirty four thousand customers died. And a new report finds nine in ten social media posts which give financial tips are low quality. But first, newly released research seen exclusively by this program suggests a quarter of the UK's nearly six million unpaid carers have stopped paying into their pension because of the financial pressures of caring for a loved one The easiest thing to give up is paying into a pension, and if they stop work, of course, that happens automatically The same research, done by Carers UK, found three out of four carers said they're worried about their financial future Moneybox reporter Ham Whitworth went to meet Pauline Blant, who cares day and night for her seventy nine year old husband, Colin When he developed dementia ten years ago, she had no choice but to retire early from her teaching career to look after Colin full time. I thought it might help Colin's memory if I made a memory board and we could talk about his past because He's always loved football Going through old newspaper cuttings and photos of Collin's days as a professional footballer back in the sixties and seventies Well, it's very bittersweet for his wife Pauling Blants, obviously Colin goes to Turf Moore, newewcomer Blant, the star of United win. He really loved it and has that tremendous will to win But it's that football career which, life for so many others Caulin strongly believes is responsible for Collin's condition now Age seventy nine, he was diagnosed with probable CTE ten years ago when Pauline was just sixty. Cullin has dementia diagnosis Chronic traumatic enpalopathy which is basically a brain injury The tackles look quite fierce, don't they? But what I find really quite upsetting now is to see how many times he headed the ball Cone has no memory He has completely changed his personality He needs full time care He resents me having to do things for him. Colin is At the moment doubble incontinent due to his recent hip replacement operation. This is a big plastic bag. extxtra large and these are sort of incontinence pants, right Big bag of wipes. it's a full time job looking after college.. But you get so frustrated and angry with me. and he's quite verbally abusive You know, I'll be honest which is quite upsetting. What's it like for you? because It's a living nightmare, to be honest. My life has just completely stopped It's relentless You're seventy years old, you had to stop working ten years ago when Colin got his diagnosis. So not only did you miss the last years of your career, clearly you missed contributing to pension for those last few years How has that impacted you and subsequently calling financially? Things are expensive aren't they? So, you know I've got a certain amount got a mortgage now didn't expect to have Ccel tax Utility bills are huge, washing and drying, the heating has to be on, television is on constantly and water becausecause Cin recently had to have two weeks inick careir home That impacted massively, that was three thousand pounds after magic h. or have to make allowance for. This survey, Pauline suggests that carers, full time carers just like you A huge majority three quarters are worried about their financial futures. Are you? I am absolutely worried. Yes, because if Colin has to go into a care home, then obviously his pension will go to pay for that. The attendance als will stop And so I will just basically have what I have to live on so should I need anything in the house Any repairs or anything replaced That's really going to be difficult to do. That is a big worry. You know, I probably will have to downsize and you know, sell up Have I got the strength to do that, basically Where am I going to endough is my worry because As we've said, I'm seventy could potentially live for Not the ten Yes Ma I'm also going to be that much older How's my health going to be? Where do you think that's gonna to leave you I don't know. I just feel that, you know, I am where to end up not being able to do anything. Just exist Whenike you think I've done, you know, I've worked all the time and And I'm worried. I What am I going to be living in Basically. How are you going to be able to afford to live, you mean? Yeah. How am I going to afford to live I won't be able to go anywhere and So At the moment, I just have to just survive Well, thanks to Pauline for giving Moneybox that insight into the challenges so many carers face every day Live now to Helen Walker, She's chief executive of the charity Carers UK. Helen Walker poorly in quitting her teaching career early missing years of paying into her pension and those day to day financial challenges of full time caring for Colin I guess that's all too familiar a story to you Yes, unfortunately, it's an incredibly familiar story to us. When carers reduce their working hours or give up work to care, they miss out on maximizing their income, on paying into a pension and saving for the future. So many carers are retiring with eighty percent of the UK average of pension income. And we know that six hundred people a day give up work in order to care And we released a report on the tipping point at which carers feel they have to give up work in order to care just last week. and forty seven percent of them were thinking about giving up work. So this is something that is an ongoing issue. We are creating a cycle of poverty for unpaid carers. Yes Pensions Commission, which is looking into the adequacy of pensions wararned last week that many people aren't saving enough and that is a problem to them. But of course, it's particularly acute for carers and there isn't really a solution because they don't have any spare money, do they No, absolutely not. I mean, money is you know, it's tight for everybody, isn't it right now? But you heard Pauling very articulately explain there. Her costs are even greater. She needs to keep the heating on, she needs to pay for incontinence pants. Carers may have hoists in the home or an oxygen machine. You cannot make the decision to switch an oxygen machine off to save money if somebody needs it. So carers are finding themselves living with less and less. and we now have one point two million carers living in poverty and four hundred thousand of those are living in deep poverty. That's fifty percent below the poverty line. and frankly, that is not acceptable for those who are looking after the most vulnerable in our society No. I mean, of course, one solution to poverty is to give people more money or a bit more money anyway. What's available? I mean, Colin gets attendance allowance, one hundred and fourteen pounds a week. notot everyone does, because there are people who don't claim it aren't there? Pauline's too old to get carer's allowance, little though that is What else is there? What should they be doing to boost their income Yeah Well, frankly, there's not enough. You're absolutely right. As soon as you reach pensionable age, your carer's allowance just stops. Now it's possible that carers could be eligible for a thing called pension credit. But in the way that the benefit system is set up, carers have to apply for carearer's allowance, which they know they're not entitled to in order to be eligible for pension credit. And that results in, I think A UK estimated that there were sixty five thousand unpaid carers eligible for that benefit who weren't actually receiving it. So it's incredibly complex and very, very difficult. I mean I think that we should have a separate post pension age payment to recognise caring responsibilities. but yees, it's just not Yes. And of course, as you say, you claim carer's allowance and that boosts your pension credit and helps you be eligible for it. And just briefly, where can people find out more? peopleeople who think, well I need more money, How can I get it? And I need help claiming Well, the first place I'd go is to the carearers UK website carers UK dot orgot If you follow the help and advice, financial support, there's a whole section on pensionable age. There's a benefits calculator provided by turnurn to us. and there's a specific email advice at carersuK dot org comm that you can put in your own particular situation and we will help you Tleemora of Carers UK. Thankk you very much. And details of advice and support for carearers are available at bbc d. co dot uk slash actionline. And this story is part of the BBC's Caring Matters Week Find out more, just search online for BBC Cing Matters What if a marginal gain unlocked greater performance What if an insight in data could change everything at A RAMco Our focus on detail helps us deliver reliable energy to millions across the world Because margins aren't marginal They' where we can truly push the limits of what's possible A RMco an integrated energy and Chemicals company Learn more at arramco. com The ultimate cookout starts with the ultimate ingredients. At Whole Foods markarket, no antibiotics ever burgers and kebabs are prepped and ready to throw on the grill. Fire up a juicy ribeye. Grab creamy potato salad and savory flatbreads from the prepared foods department, and round it all out with three hundred sixty five brand condiments, chips and dips at everyday low prices Whole Foods Market, Make your summer sizzle The government has warned banks it will bring in new laws to protect face to face banking if a new independent review finds that's necessary. It wants to make sure that people who need to can still go into a branch and talk with a person about their finances, accounts, or indeed perhaps those of a relative who needs help or care The review has been launched because of the continuing loss of branches from all the major banks Consumer Group which says nearly seven thousand have been shut in the last ten years, and more than another two hundred are scheduled to go this year Jennifer, who lives in the Scottish Highlands, and Warren, who lives in North London, both emailed us about these problems. Jennifer was trying to get her name added to her ninety year old mother's bank account, but her local branch wasn't open We went to the next nearest branch which was a seventy mile round trip And we got there and discovered that the bank was closed with no explanation, no nse on the door, it was just closed. All our banks have shut down. There is one building society in Potter's Bar, but if we need a bank, we have to travel And sometimes it works and sometimes it doesn't work We decided we would go to the next branch that we were aware of, which was in Inverness. We were told that there was no one available to help us on that day So the suggestion was that we would make another almost a hundred mile round trip. We're quite pessimistic about being able to bank being able to access our funds being able to, uh carry our normal life basically. The next day we went and tried again the branch closer to home in Dingwall which was another seventy mile round trip They were only aware of one person in all of the Highland Council area, which is the size of Belgium. who was able to make that change and they were based the other branch in Inverness So at that point, we gave up on face to face. I think it's disgraceful that the banks pay so little attention to their customers have no regard for people who are not online. We're not robots. We don't all want to deal with AI and robotics Wed like to see a human being, a friendly face, someone who can help us that Warren and Jennifer with different reasons for wanting to visit their bank branch in very different parts of the UK. Well with me in the London studio is Charles Randall, a member of the Financial Inclusion Commission, and former chair of the F financial Conduct Authority. Charles Randall do support what the government' doing here, a review, but with it a threat to pass new laws to force banks to do more if they have to Well, Paul, I was on this program about a year ago and what I said then was There's a problem because although the FCA has the power to look at access to cash. It doesn't have any powers to look at face to face banking services. and I particularly said there's no statutory underpinning current arrangements, both banking hubs and the post office. a network I think it's absolutely brilliant news that we've got this review, and I think it's brilliant news too that the goovernment is bringing forward a clause. in its new financial Services and Markets bill so that if Richard Lloyd's review finds that there need to be powers put in place, that can be done very quickly. So it's sort of stage two to access to cash, isn't it? And you mention Richard Lloyd, who's chairing this review. He's a former director of which, a former board member of the SCA Good choice A brilliant choice, I think, and Richard doesn't need any advice from me as to how to do this work, but I'm sure he will do it in a very inclusive way. I'm sure he will get out and about around the regions and nations so that he can hear the stories of people in the Scottish Highlands, for example Well, yes, indeed,t Jennifer's trip round this place a council the sidize of Belgium to try and find a bank branch that could do what she wanted. And what are you hearing on the inclusion Commission about the effect of closing bank and building society branches? What comes to you I think it's really important to understand it's not just about people who Oh Cash users, the five million people who depend on cash every day It's also about the millions and millions of additional people who are, for example, carers. We heard the story about aalling and Collin Complex needs mean that people need to be able to come into a physical space and talk to somebody in a sympathetic environment and have their problem solved. and that involves Possibly tens of millions of people And of course, the banks sometimes demand you go in to prove your identity or to reopen the counter with the power of attorney. They have different policies, don't they? So it's not just things we might expect And of course, UK finance does say habits are changing as indeed, they are. ninety percent choose mobile, online or telephone services It does say too that as an industry, banks are committed to ensuring continued access to face to face services. Does the evidence bear that out for you Well, I think at the top of many of the banks, there is an intention to try and provide good customer service. but the problem is one of coordination, which is you don't want to be the last branch in town You don't want to be the only person who's contributing to banking hubs. Well, you mentioned banking hubs. I was going to ask you about that. That's of course, where banks share one space and you know one might turn up on a Monday and another one on a Tuesday. Are they the solution Well, I think they're a huge part of the solution. If you look at the satisfaction of people who use them, nine out of ten people are very, very satisfied with the service they get in a banking hub. But with two hundred thirty of them. Correct. and seven thousand nearly branches closed, there's a long way to go, isn't it? Yes. The government has a commitment for there being three hundred fifty banking hubs by the end of this parliament But I think one of the things that Richard Lloyd will be looking at is whether that's enough. Yes, indeed. People might think though if they've heard the figures recently on the wireless that the first three months of this year, the big four retail banks each made around two billion pounds or more in profit, should they be devoting more of their very adequate resources to serve their customers better face to face I think there is more to be done, but it is a coordination problem and Cash access UK includes, which is the body that basically delivers the banking hubs, includes some, but not all of the banks. And of course, it doesn't include any of the new digital only banks It's really interesting to reflect if you're a digital only bank customer, what will happen when you get to your sixties or seventies? Yes, indeed. That's a problem for the future that we can affward to. Charles Randall. thanks very much. And our email, of course, is Moneybox at bbc. co d. uk if you want to share your thoughts about face to face banking as many of you often do Next week, the State Bank, National Savings and Investments will begin to put right a huge error that led to its boss being replaced In March, as we reported, then, it admitted it had kept hundreds of millions of pounds, belonging to thousands of customers who had died, some nearly twenty years ago Well, on Wednesday, it will begin to contact the executivors and personal representatives of those former customers, telling them that what they are owed, Dan Whitworth' been looking at the details, Dan. Well, following a review, NSNI now says this affects the heads of around thirty four thousand customers with a total value of approximately three hundred sixty seven million pounds. Now that is less than nearly half a billion pounds it reported in March, but obviously still, a lot of estates and a lot of money Now from Wednesday, it will start to contact all affected estates where the deceased customer' account was worth ten pounds or more. interestnterest earned by the money will be paid in some cases slightly more, and any necessary expenses will be refunded And Dan there were concerns, weren't there that people might have to pay tax on this money. hasas that been clarified? It has. The Treasury Minister Tsten Bell has said there will be a full exemption from any inheritance tax, and the personal representatives or heirs will not be liable for any income tax which might otherwise be due. NSNI expects the whole process to be finished in the first half of twenty twenty seven, so obviously just over a year from now. Thanks, Dan. Nine out of ten financial posts on three social media platforms are low quality. Those are the findings of the first major academic study into financial social media posts It also found such posts are widely used by people looking for financial advice and information, and many follow the tips they find It was done by Queen Mary University of London, which analyzed three thousand posts by two thousand fivealf thousand financial influencers on Instagram, TikTok, and YouTube The researchers checked the credibility of the ideas, the quality of the explanations, and indeed whether the individuals stated honestly their expertise They concluded that nine out of ten posts had more negative attributes than positive ones Outdated money rules that I don't follow Owning a home I can invest more, spend more and be more flexible with my life by renting Avoiding credit cards. I have over twelve cards and haven't paid for a flight in years by credit card hacking How to have a money mindset? sacrifice leisure? Have faith If you get a good job, I would advise you go to the bank and set up an automatic autoraft that starves you in some way So money stacks up while you find a place to put the money whether that's crypto. or real estate or start your own business, that's probably the three best ways to do it Everyone's waiting for two point five percent mortgage rates. The Smart moveove is buying now at five percent and refinancing later at four percent. And that was the sample of posts voiced up by BBC colleagues with me in the London stududio too is Dr. Eileen Tiipo She the reader in the economics and fininance Dpartment at Queen Mary University of London Ian Tipo, you did this research, wrote this report Are those the kind of posts you're worried about? arere there others Yes. Some other examples of what's bad are guarantees to make money if you buy their course and investing, some oversimplified or outdated, tips on how to avoid paying tax in the UK and some recommendations to take out high interest loans or only pay the minimum amount in your cred card Yes, and putting your money in crypto as we haveard there as well. There is some good content though, isn't there on social media? There are some qualified people and there are some at people who describe themselves as experts who in fact are good quality Yes, that's true. whyy are they better? I mean, what do they do that's good that these other people don't? So firstly, they put disclosures or disclaimers about their conflicts of interest or saying that this is not regulated advice and go see a trusted source They also provide high quality explanations, details on how to put their tips into practice. They're transparent with their calculations and their sources Yeah, so you found some, but were you concerned that less than one in ten of them explained their expertise, did they even Le about it So I did check whether the individuals who said they were on the FCA register were actually. I didn't find very many instances of obvious fraud, but what I did see was there were a lot of people who did not have financial expertise, and they were quite open about it, partly because it also makes them relatable, so other people would want to subscribe to what they're saying Yes. I mean, are they saying things like, you know, I'm just an ordinary bloke and I think this people believe that, It's be like talking to someone in the pub though, isn't it? Yes, They're using their relatability to attract people How many people actually act on these posts and take the advice? What did your survey find on that So I surveyed over four thousand adults across the UK and one in three of them had followed some sort of guidance in the past year. W Instagram owner Meta referred us to their rules about financial scams and fraud, which they have. TikTok told us that some of the most commonly searched financial advice hashtags have warnings about risks in investing and suggests people do their own research. And YouTube told us it continues to invest significantly in policies products and practices to protect people from harmful content. Are those rules not strong enough? So I think that the crackdown by social media platforms and indeed the authorities on this kinds of illegal content is a good first step. but a lot of financial guidance does fall into a legal gray area. So as I've mentioned before, low quality is not just about this illegal content, it also includes contents that lacks key details or lacks these disclosures, disclaimers, or lacks transparency So the adults that I surveyed thought that authorities should do more, especially in this transparency dimension Yes, so the advice can be okay, but it doesn't really give you all the background. So you might think you're following it, and in fact, you're not. You're doing something perhaps a bit silly. The fininancial coonduct authority that you mentioned said it is cracking down on financial influencers. It's got rid of tw thousandelve hundred illegal adverts. It's issued warnings and tried to get accounts closed down Is that enough