TOP STORY: GOVERNMENT GREEN-LIGHTS COMBINED PENSIONS (CDCs)

The government has just given the official green light for more employers to offer a new kind of combined pension. The big idea? Pool workers’ cash together in the hope of making everyone a lot more money!

These ‘collective defined contribution’ (CDC) schemes aim to provide people with payments for life and a higher average retirement income – the government even suggests up to 60% more than regular pots(!).

What’s the deal now? Normally, with a regular workplace pension, your money is invested and managed separately from everyone else in the scheme. You take your savings as income when you retire. Simple, right?

So…what’s changing? With CDC schemes, everyone’s money is pooled together and managed by investment professionals.

The theory is that this greater scale of investment will generate much bigger returns for everyone. Then, members are paid an income throughout retirement from the pooled fund, rather than having to spend their individual pot.

Wait, so why don’t we have them already? Good question! These schemes are totally new territory in the UK – only the Royal Mail has one, and it only launched last year. Shifting to this model means designing a whole new, complex rulebook for pension companies.

Also, pooling everyone’s money does come with some risks the government is still working through, meaning they might not be right for everyone. As pensions minister Torsten Bell has said “What we’re aiming for is to give people a wider range of choices.”

So what does this mean for me? Ultimately, these new rules could vastly change how pensions work and could be a massive boost to your retirement income if you’re able to join one of these schemes!

TIP OF THE WEEK: CLAIM CASH FOR HOUSING COSTS IF YOU’RE ON BENEFITS

Did you know that if you’re on a low income and claim benefits like Housing Benefit, or the housing element of Universal Credit, you may be able to get some extra cash from the government to help with housing costs?

It’s called a Discretionary Housing Payment and it covers things like:

  • a rent shortfall
  • rent deposits
  • rent advances, if you’re moving house

The latest government figures show people who qualify get an average of £601 in support as a one-off payment.

Unfortunately, you can’t get the payment to cover council tax bills.

You need to apply through your local council – find your local council here. They will then decide whether you qualify, how much you will be paid and how long you’ll receive the payments for.

You may be able to get other kinds of housing help if you’re on benefits. Check here.

UNI FEES TO HIT £10K A YEAR BY 2026…AND KEEP RISING

Tuition fees in England will rise in line with inflation from next year, according to the government.

But what does that actually mean? The exact amount that fees could increase is yet to be confirmed, but could hit around £10,000 by our estimates. 

Currently, universities in England can charge up to £9,535 per year for a standard full-time course. Tuition fees in England are linked to the “RPIX measure of inflation”, which is 3.1%.

So in theory, this could add an extra £400 per year to tuition fees – taking it to around £10,000. 

The rules will affect new and existing undergraduate students in England, so if you’re already on an undergraduate course, you’ll pay more starting next year. 

Fees will then continue to rise each year after that. It’s a bleak update for students – so, here our are top tips for helping pay your way through your studies:

1. Understand how student loans work: The amount you pay depends on your repayment plan, which you can check by logging into your Student Finance account.

2. Apply for scholarships, bursaries and grants: Depending on your circumstances, you may be eligible for additional money that you won’t have to pay back. Contact your uni to find out what they offer. 

3. Claim your Child Trust Fund: If you’re 18-23 years old, you could have a free pot of cash (a Child Trust Fund) waiting to be claimed. You can withdraw your money from 18 and recover the account details using HMRC’s Child Trust Fund finder.

4. Consider using an ISA: ISAs allow you to save up to £20,000 each year without paying any tax on the interest or profit you earn. Cash ISAs are great for general saving and Stocks and Shares ISAs allow you to invest in the stock market.

5. Become a budgeting master: You can download our free student budgeting planner to get started. There are also lots of budgeting apps available to help you manage your spending. 

6. Use discounts and cashback: Make the most of your student discounts by registering on free platforms like Unidays and Student Beans. Some regular and student bank accounts offer cashback, which allows you to earn money while you spend.

TODAY’S BIG DEBATE: SHOULD YOUNG WORKERS FUND STATE PENSION RISES?

How do you feel about younger generations – already squeezed by a high cost of living – are funding pay rises for pensioners every year?

From next April, the state pension will rise by 4.8%, or £574.60. That’s because of a mechanism called the triple lock, which increases the state pension each year by the  biggest of: average earnings growth, inflation, or 2.5%.

A 1% rise costs the government billions of pounds a year – and that has to be funded by taxpayers.

Today’s pensioners are already wealthier on average than any generation before them, with more housing wealth, higher savings, and many with generous final salary pensions (which largely no longer exist to new savers).

Pensioners absolutely deserve security in retirement, but is this system fair any more? Let us know what you think! hello@investinginsiders.co.uk 

DEAL(S) OF THE WEEK: CLAIM £100 AMAZON GIFT CARD FROM SANTANDER; GET 4.75% INTEREST FROM ZOPA

Santander has launched a new current account offer where you can get a £100 Amazon gift card just for opening a new account – and you don’t need to close your old account, unlike most switching deals.

All you need to do is open a new account and make 30 debit card transactions within 60 days of opening it.

Santander’s Everyday current account is free – the offer also applies on its Edge accounts, but be aware these have a monthly fee.

And Biscuit by Zopa is offering a competitive 4.75% interest rate on its easy-access savings account.

The catch? You need to pay in £500 per month – but over the year, you could pocket an average of £391 free cash in return.

INVESTING INSIDERS FINANCIAL BOOK AWARDS 2025

Investing Insiders is launching a first-of-its-kind Financial Book Awards this autumn!

Whether you’ve read a book that’s transformed your finances or written one to help others, we want to hear from you. 

Awards will be given for the following categories:

  • Best for Personal Finance
  • Best for Budgeting
  • Best for Investing
  • Best for Pensions and Retirement
  • Best for Children’s Finances
  • Best for Small Businesses

Submissions will be judged by an expert panel of industry specialists, chaired by multi-award-winning financial journalist Moira O’Neill. 

Entries close next Friday, 31 October 2025.

Shortlisted entries will then be announced by 9 November 2025 and winning submissions will be announced by 10 December 2025.

Authors of the winning titles for each category will receive an engraved trophy and be featured as our top pick for 2025!

To enter, simply complete the Investing Insiders Financial Book Awards 2025 submission form  

Your Questions Answered

We’re keen to answer any and all of your burning finance questions – drop us a message to hello@investinginsiders.co.uk and we may feature your query with our response in our next newsletter.

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