Category: news

The restriction on PPI sales will probably take a year to come into effect

Banks will no longer be able to sell payment protection insurance policies when granting loans to customers, the Competition Commission has confirmed.

This “point of sale” ban was first proposed last year after a long investigation, but was held up by a challenge by Barclays bank.

PPI is supposed to cover borrowers’ loan repayments if they fall ill, die, or lose their jobs.

Lenders will have to wait seven days before offering PPI to their customers.

The Competition Commission acknowledged that the sale restriction would inconvenience some customers who wanted the insurance.

But it argued that customers would be much better off overall.

“These reforms will mean that PPI providers will, in future, face real competition where there is currently little,” said Peter Davis of the commission.

“And, in consequence, the prices consumers currently pay for PPI will fall significantly.”

The restriction covers the sale of all forms of PPI – for instance alongside credit cards, mortgages and bank loans – but with the one exception of credit given to people who buy items through home catalogues.

The implementation date has yet to be decided and the change will probably take another year to come into effect, once the commission has made its formal order.

PPI has become highly controversial after years of campaigning by consumer groups against the widespread mis-selling of the policies.

They accused banks and other lenders of foisting the insurance on millions of people, even if they could not make a claim under the terms of the policies, did not know what they were buying, or had been told improperly that buying the insurance was a requirement of being offered a loan in the first place.

The authorities, such as the Office of Fair Trading (OFT), Competition Commission and the Financial Services Authority (FSA), have been taking an increasingly critical view of PPI sales, which are now the biggest source of complaint to the Financial Ombudsman Service (FOS).

Last week, the UK’s banks announced that they were taking legal action to thwart forthcoming FSA rules that would force them to re-open previously dismissed claims and pay compensation that might total as much as £2.7bn to 2.75 million people.

The FSA has so far taken action against 24 firms for mis-selling PPI and has already halted the sale of the policies alongside unsecured personal loans where a one-off upfront premium was involved.

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Moments from the veteran singer’s life and career

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Manish Sood was suspended by the party after making his remarks about Gordon Brown

A candidate in Norfolk who described Gordon Brown as the “worst PM ever” in the run-up to the general election has apologised to the Labour Party.

Manish Sood was suspended by the party when he spoke out just days before the May election.

He had called Mr Brown “incompetent” and said he did not “know what he was talking about”.

Mr Sood, who lives in Leicester but was standing in the North West Norfolk constituency, came third in the seat.

He has now officially apologised in writing and said he hoped to resolve his membership status and the situation.

The party is now considering his letter.

This article is from the BBC News website. © British Broadcasting Corporation, The BBC is not responsible for the content of external internet sites.

Rain heralded Paula’s imminent arrival in Cuba

People in Cuba are on alert as Hurricane Paula nears the island, bringing heavy rainfall.

At 0500GMT, Paula was 50km (30 miles) north-west of the western tip of Cuba, the US National Hurricane Center said.

The hurricane, with winds of up to 130km/h (80mph), is weakening and Cuban officials said their main concern was prolonged rain.

Paula headed towards Cuba after brushing Mexico’s Yucatan Peninsula with strong winds and downpours.

Cuba’s civil defence authorities put people living in the western Pinar del Rio province on alert for Paula, which is set to be the first hurricane to hit the island during this year’s hurricane season.

The country’s chief meteorologist, Jose Rubiera, said the hurricane was expected to weaken.

“The rains at times could be strong or intense in some areas of Pinar del Rio, but the truth is they shouldn’t be that strong,” he told the Associated Press.

“They could be prolonged, however, and that could lead to heavy accumulation.”

Paula, which at one point intensified to a category-two storm with winds of up to 160km/h (100 mph), came close to Mexico’s Yucatan peninsula but did not cause any damage.

The storm also brought strong winds and heavy rain to north-east Honduras, where some 19 houses were damaged.

Mexico and Central America have been hit by a series of floods and landslides in recent weeks, with thousands of people left homeless.

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Chile’s president Sebastian Pinera and Luis Urzua, the last miner out the mine, have led a rendition of the national anthem.

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President Sebastian Pinera was applauded as he firmly placed a lid on the entrance to the rescue shaft at the San Jose mine in Chile.

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Greater Manchester Police is “tweeting” every incident it deals with in the next 24 hours.

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An attempt to rescue 33 Chilean miners trapped deep underground will begin at midnight on Wednesday (0300 GMT), Mining Minister Laurence Golborne says.

A test of the rescue capsule has been carried out successfully, descending almost the whole way down the 622m (680yd) shaft, engineers say.

Earlier, the top 90m was reinforced with metal casing to prevent crumbling.

The miners have been trapped since a collapse in the mine on 5 August, but were reached by a drill on Saturday.

The “Plan B” drill that reached the miners left the San Jose mine, near the town of Copiapo, to a rousing reception on Monday.

The drill was driven away surrounded by crowds of photographers and cheers by hundreds of people across the site.

Shortly afterwards, officials briefed the media on the latest developments in the bid to bring the miners to the surface.

Chief engineer Andre Sougarret said a formal test of the shaft had been successful, with the specially constructed Phoenix rescue capsule barely registering a scratch as it travelled up and down the tunnel.

The top 90m have been lined with metal to prevent the crumbling surface rocks from breaking away during the rescue.

But experts say the rest of the escape shaft is dug through solid rock and will not break up.

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Linda Norgrove died during a rescue attempt

The top US general in Afghanistan and the PM are to discuss the death of kidnapped British aid worker Linda Norgrove during a US rescue attempt.

Gen David Petraeus, commander of the international forces in Afghanistan, will meet Mr Cameron in London later.

His visit was arranged before Ms Norgrove was killed last week during a US special forces rescue attempt sanctioned by Mr Cameron.

A joint US/UK military inquiry will examine exactly how she died.

It had been announced that her captors killed her as the US forces attempted to rescue her, but then evidence arose that suggested she may have been killed by a US fragmentation grenade.

The prime minister’s office announced on Wednesday that a British coroner would oversee a post-mortem examination on her.

Speaking at Prime Minister’s Question Time, Mr Cameron said he had stressed to US President Barack Obama that it was “extremely important” there should be a joint US-UK investigation.

That inquiry is being led by Brig Rob Nitsch, the Head of Joint Force Support, UK Forces Afghanistan and senior US investigating officer Maj Gen Joseph Votel.

Britain’s National Security Adviser Sir Peter Ricketts will meet the Head of US Central Command Afghanistan, Gen James Mattis, later on Wednesday to discuss the case.

Gen Petraeus is also expected to discuss the UK’s defence review, due to be announced next week.

Foreign and defence ministers of Nato member countries have been meeting in Brussels to consider changes to the alliance’s strategy.

Issues like missile defence and nuclear disarmament are on the agenda, as Nato seeks to adapt itself to new security challenges against the backdrop of Afghanistan.

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Chile’s President Sebastian Pinera has told the BBC’s Tim Willcox that the miner’s rescue has ‘united Chile’.

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Walking between six and nine miles a week was key

Elderly people who get about by walking are less likely to suffer mental decline or even dementia, a study says.

Brain scans revealed that older people walking between six and nine miles a week appeared to have more brain tissue in key areas.

The Pittsburgh University study of 299 people suggested they had less “brain shrinkage”, which is linked to memory problems.

The research was reported in the journal Neurology.

The volunteers, who had an average age of 78, were checked for signs of “cognitive impairment” or even dementia.

The Pittsburgh team also had access to brain scan results from four years previously which measured the amount of “grey matter” in their brains.

This is found at various parts of the brain and is known to diminish in many people as they get older.

Each of them had been quizzed in their 60s about the number of city blocks they walked each week as part of their normal routine.

The results showed that those who walked at least 72 blocks – six to nine miles – a week had a greater volume of grey matter.

Four years after the scans, 40% of the group had measurable cognitive impairment or even dementia.

Those who walked the most were half as likely to have these problems compared with those who walked the least.

Dr Kirk Erickson, who led the study, said: “If regular exercise in midlife could improve brain health and improve thinking and memory in later life, it would be one more reason to make regular exercise in people of all ages a public health imperative.”

Susanne Sorensen, from the Alzheimer’s Society, said that the study was further evidence that a healthy heart could lead to a healthy brain.

She added: “One of the benefits of this research is that it eliminates the impact other socio-economic factors may play and focuses specifically on walking rather than exercise more generally.

“Although a link has been found between lack of exercise and brain shrinkage, we need more research to find out why physical activity may affect the brain.

“The best way to reduce your risk is to take regular exercise, eat healthily, don’t smoke and get your blood pressure and cholesterol checked.”

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Most prison governors surveyed said short sentences did not rehabilitate offenders

Short prison sentences do not reduce crime and are used excessively, a survey of prisoner governors suggests.

The Howard League for Penal Reform released responses from an ongoing research project into short sentences.

Of 223 current and retired Prison Governors Association members surveyed, only 6% agreed that short sentences rehabilitated offenders.

Justice Secretary Ken Clarke will address the governors association annual conference later.

He has called for alternatives to jail to be developed.

The survey also found that 59% of respondents disagreed or strongly disagreed when asked if short prison sentences reduced crime, including by deterrence.

Three-quarters of the respondents said they considered the current use of short prison sentences between zero and six months to be “excessive”.

Only a quarter responded that they felt that drug and alcohol problems could be “somewhat or very satisfactorily” addressed during a short prison sentence

PGA president said Eoin McLennan-Murray said: “It is mainly low-risk offenders with short prison sentences who could be more effectively dealt with by the probation service, allowing prisons to concentrate on rehabilitating serious and serial offenders.

“At this time, when spending cuts across the criminal justice system is necessary, money should be targeted effectively. Providing funds to build additional prisons is not the way forward,” he said.

Researcher Julie Trebilcock of Imperial College London said the survey showed new and important evidence about the views of prison professionals.

“The majority expressed concern that a short sentence rarely provides enough time to address the needs of offenders while they are in custody.

“The data also reveals that prison governors have some real concerns about the effectiveness of these sentences in terms of both rehabilitation and reducing reoffending.”

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Researchers believe love can act as a painkiller

Love hurts, at least according to many a romantic songwriter, but it may also help ease pain, US scientists suggest.

Brain scans suggest many of the areas normally involved in pain response are also activated by amorous thoughts.

Stanford University researchers gave 15 students mild doses of pain, while checking if they were distracted by gazing at photos of their beloved.

The study focused on people early in a romance, journal PLoS One reported, so the “drug of love” may wear off.

The scientists who carried out the experiment used “functional magnetic resonance imaging” (fMRI) to measure activity in real-time in different parts of the brain.

It has been known for some time that strong feelings of love are linked to intense activity in several different brain regions.

These include areas linked to the brain chemical dopamine, which produces the brain’s feel-good state following certain stimulants – from eating sweets to taking cocaine.

The Stanford University researchers had noticed that when we feel pain, some of the same areas “light up” on the scans – and wondered whether one might affect the other.

They recruited a dozen students who were all in the first nine months of a relationship, defined as “the first phase of intense love”.

Each was asked to bring in a picture of the object of their affection and photos of what they deemed an equally attractive acquaintance.

While their brains were scanned, they were shown these pictures, while a computer controlled heat pad placed in the palm of their hand was set up to cause them mild pain.

They found that viewing the picture of their beloved reduced perceptions of pain much more than looking at the image of the acquaintance.

Dr Jarred Younger, one of the researchers involved, said that the “love-induced analgesia” appeared to involve more primitive functions of the brain, working in a similar way to opioid painkillers.

“One of the key sites is the nucleus accumbens, a key reward addiction centre for opioids, cocaine and other drugs of abuse.

“The region tells the brain that you really need to keep doing this.”

Professor Paul Gilbert, a neuropsychologist from the University of Derby, said that the relationship between emotional states and the perception of pain was clear.

He said: “One example is a footballer who has suffered quite a painful injury, but who is able to continue playing because of his emotionally charged state.”

He added that while the effect noticed by the Stanford researchers might only be short-lived in the early stages of a love affair, it may well be replaced by something similar later in a relationship, with a sense of comfort and wellbeing generating the release of endorphins.

“It’s important to recognise that people who feel alone and depressed may have very low pain thresholds, whereas the reverse can be true for people who feel secure and cared for.

“This may well be an issue for the health service, as patients are sometimes rushed through the system, and perhaps there isn’t this focus on caring that might have existed once.”

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The government is to unveil plans for a “bonfire of quangos”, with up to 180 organisations expected to be abolished.

Ministers say this is needed to sort out the “proliferation and mess” caused by the previous Labour administration.

Leaked documents suggest Cycling England and the Advisory Committee on Organic Standards could be among those axed.

The government has already announced several quangos, including the UK Film Council and Audit Commission, will go.

The Health Protection Agency is another high-profile body whose demise will be confirmed by the Cabinet Office in a statement at about 0930 BST.

Quangos – “quasi-autonomus non-governmental organisations” – are arm’s length bodies funded by Whitehall departments but not run by them.

Opponents argue that they decrease ministers’ accountability and increase waste.

But unions say many of the coalition’s planned changes will damage public services, cost jobs and not result in government savings, as the expenses involved in abolishing quangos will be large.

The government is expected to publish a list showing there are more than 700 quangos, adding that the number and costs have risen under Labour.

But Conservative MP Douglas Carswell told the BBC that “cowardice” of politicians of all parties had contributed to the growth and that Parliament, rather than the government, should be in charge of monitoring the situation.

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SNP leader Alex Salmond is currently at the Commonwealth Games, in Delhi.

The SNP is considering an extended council tax freeze, as part of its core message to voters for the Holyrood elections in May.

Party strategists believe the issue could offer a clear dividing line between the SNP and Labour.

The move will come as the SNP’s four-day annual conference opens in Perth.

The party is seeking a historic second term in power at Holyrood, after it won power for the first time in the 2007 Scottish Parliament elections.

The SNP has funded a council tax freeze each year since entering government and, in an appeal to voters on a new policy debate website, the party wants to continue discussion on the issue.

The Nationalists say they will protect family budgets, while Labour would put up the tax.

The conference will also focus on the SNP’s achievements in power, including cutting NHS waiting times to a “record low”, building or refurbishing more than 300 schools and putting more than 1,000 extra police on the streets.

But the SNP government has also come under opposition fire for dropping key pledges, including seeking to introduce local income tax and bringing forward an independence referendum bill.

The Perth conference will open with a video message from First Minister Alex Salmond, currently at the Commonwealth Games in Delhi.

Education Secretary Mike Russell will also deliver a keynote speech to delegates.

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