Transcripts For BBCNEWS BBC News 20170929

Rates, the governor of the bank of england, has signalled theyre likely to rise in the near future. That could mean as early as november. Mark carney told the bbc, that because of the state of the economy, which is experiencing rising inflation, consumers should expect rates to increase, though he added any hike would be limited and gradual. Millions have enjoyed cheaper mortgages and loans, since rates began coming down after the financial crash in 2007, though savers have lost out. Heres our economics editor simonjack. Its been a great decade for borrowers, a miserable one for savers. Interest rates are at their lowest level since the bank of england was founded over 300 years ago. But today, the governor of the bank sent his strongest signal yet that that may be about to change. What we have said is that if the economy continues on the track that its been on and all indications are that it is in the relatively near term, we can expect that Interest Rates would increase somewhat. The last time rates went up was more than ten years ago, in 2007. Many younger borrowers have never experienced one. So, if it happens, what impact will it have . Well, the most obvious one will be on the 11 million homeowners who have variable rate or tracker mortgages. Those borrowers have an average outstanding mortgage of £116,000. A 0. 25 rise would mean an increase of £15 in monthly mortgage payments. Im actually not very happy about it, because of my mortgage. Im not in a fixed mortgage at the moment. It would be great if they started to pay me more interest in my savings. But why, after a decade of downward moves, is now the right time to reverse direction . I think this is a time where the economy is pretty strong. Especially unemployment is pretty low, so there is a good chance inflationary pressures are growing from that side. And also, inflation is above the banks target, so its a good time to raise rates from the extremely low level where they have been. Consumer debt is also worrying the bank. It grew 10 , to over £200 billion over the last year the highest level since the crisis. Now, these superlow Interest Rates made it cheaper for us to borrow and spend, but all that spending can push up inflation, which is already a bit higher than the bank would like. So perhaps time for an adjustment. There are also folks in the bank here who think its not a bad idea to have a little bit of room between us and zero, to give them more options in the future. The bank has been marking 20 years of independence from government this week. But the governor said there are limits to its power on some of the biggest issues facing the uk. The biggest determinants of the uks medium term prosperity will be the countrys new relationship with the eu, and the series of reforms that that relationship catalyses. Most of the necessary adjustments are real in nature, and therefore not in the gift of monetary policymakers. In english, that means politicians are in the Economic Driving seat now. Only two of nine rate setters voted for a rise last month, so its not a done deal. But its worth bracing ourselves for the first increase in a decade. Simon jack, bbc news. It was designed to transform the benefits system, making it simpler, and encourage people into work. But universal credit, which combines six benefits into one, has been strongly criticised by a former senior civil servant. Dame louise casey, who used to head the governments troubled families unit, has told the bbc that the way its being implemented made her hair stand on end. She says claimants could be left in dire circumstances, waiting weeks for their benefits. 0ur social Affairs Correspondent Michael Buchanan reports now from Great Yarmouth, one of the pilot areas for the new scheme. There are still some tourists in Great Yarmouth but as the Summer Season closes, the cracks in the towns charm become more obvious. Parts of the seaside resort are among the most deprived areas in england, the perfect place, therefore, to test the biggest welfare change in decades. The localjob centre has been delivering universal credit for almost 18 months. Kelly shipsey, an unemployed carer, applied for the benefit two weeks ago. Herfirst payment is due in a months time. As i speak to you, how much money do you have . Nothing. 4p. And im using that to get a mealfrom the butchers. You put in a donation, a couple of pence, and they give you a meal at the local butchers on the high street. And once thats gone, thats you. Unless my landlady will cook for me when shes in. Universal credit is hard going for many, with applicants usually waiting six weeks for any money. Any benefits they already get are stopped once a claim is launched. Ive been in debt with the rent forever, since it started. Gail edwards racked up hundreds of pounds of debt, rent arrears and utility bills, during the six weeks she was waiting for money. I hate being in debt and i dont like debt. And it ruins your life, you know, because you dont know. It spirals out of control so fast when youre in debt. And having to go to food banks, they were a godsend and they were brilliant, but it was only six months ago that i was giving stuff to the food banks myself. Great yarmouth is one of the first places to feel the full effect of universal credit. The fear is that some of the problems that have emerged, indebtedness, rent arrears, increased use of food banks, will appear in other places as well, as the benefit is rolled out across the country. For some landlords here, time has run out for their tenants. The rise in rent arrears theyve seen since universal credit started is causing them to take drastic action. Evictions have gone through the roof. Ive personally served more repossession notices in the last 18 months than i have in the last 25 years. When i have a vacancy, i will be asking the person who calls me, how do you intend to pay the rent . And unfortunately, if it is via universal credit, then the answer will be, no. At a small soup kitchen, Great Yarmouths homeless gather for some free food. Although she has a place, kelly is here too. She also needs help. Another grateful mouth is gary dunningham, a man who says hes homeless due to universal credit. As we head off towards his shelter, he says hes been turned down by 58 private landlords. As soon as i go to meet them and i say im on universal credit its a no, weve got no room. We had room and now we aint got no room. And if you tell them on the phone that you are on universal credit . They hang up, pretty much. Ironically, garys universal credit payment would cover any rent. This is where i live. Since i got on universal credit, this is what happened. This is where we are now, the situation we are in. Its hard to get out of the situation because of universal credit. Landlords wont accept us. So, for now, this is home. The government has indicated that parts of the Public Sector may get a pay rise above the 1 cap. And a lead of published today, the chief secretary to the treasury said wolpe discipline was still needed, Public Sector workers needed jobs that were fairly rewarded. The minister previously said that pay recommendations need to stay within 196 recommendations need to stay within 1 on average in line with other Public Sector paid. Ryanair has agreed to implement measures ordered by the flight regulator. The company has updated its website and e mail customers affected by its decision to ground hundreds of flights in the coming weeks. The Civil Aviation authority had threatened to take legal action against ryanair. Ukip have announced their new leader, henry bolton. The former army officer was elected their new leader to the anti Islam Campaign and murray waters came second. The victory was announced at a conference in torquay. He addressed the conference and is about ukips purpose in the future. Today the conference and is about ukips purpose in the future. Today is not only a crucial day for our party, it isa only a crucial day for our party, it is a critical day for our country. We have already heard today from a number of speakers of the importance of holding the government to task for the delivery on that mandate they were given onjune 23 last year which, so far, they have failed to deliver anything. Which, so far, they have failed to deliveranything. Ladies which, so far, they have failed to deliver anything. Ladies and gentlemen, brexit is our core task. Henry bolton. The cost of repairs to the clock tower housing big ben have doubled. The Parliamentary Authority estimated the cost of £29 million. The programme caused controversy when it was announced that big ben would only time on special occasions over the next four years were are carried out. Tributes have been paid to the british filmmaker killed while working alongside Kurdish Forces fighting so called Islamic State in syria. He died when the military base he was stationed at was attacked by eyas fighters on tuesday. His sister described him as afamily man, tuesday. His sister described him as a family man, committed to the battle for justice. Kurdish rebel group backed by the United States in its fight against the Islamic State group. We tell the stories of fighters and make stories about them. Last weekend he travelled to raqqa, one of the last remaining ideas strongholds. He upload his arrival to facebook but within days he was ambushed and killed by gunmen. Speaking for the first time, his little sister has paid tribute to her brother. First time, his little sister has paid tribute to her brotherlj first time, his little sister has paid tribute to her brother. I know that no one will everfor paid tribute to her brother. I know that no one will ever for get him andi that no one will ever for get him and i would like him to be remembered as a very courageous, loving. He was perfect. He was kind, he always had positive things to say, even if someone thought negative about something, he always had a way to change their views or encourage them. Did you ever encourage them. Did you ever encourage him to come home . My mother always did but i never said dont go or dont do this. Maybe i should have, but he was happy there so should have, but he was happy there soi should have, but he was happy there so i didnt try to persuade him. I dont want people to think that he should not have gone there or that it was too soon, obviously. He was happy there and that is where he wa nted happy there and that is where he wanted to be. Ijust want everyone to know that. Hundreds of mourners have turned up to this Kurdish Community centre in north london to pay tribute. The vigil is expected to continue until these bodies repatriated to the uk. The Foreign Commonwealth Office says it has been unable to confirm his whereabouts but has reiterated its advice against travel to syria. Joining us now via webcam is Richard Graham is the conservative member of parliament for gloucester and former work and Pensions Committee member. Thank you very much forjoining us at this late hour. When you are scrutinising universal credit, to what extent did you foresee the problems we are experiencing now . What extent did you foresee the problems we are experiencing now7m far the rollout of universal credit, which is mostly to single people rather than families, has been relatively 0k. There is an issue about how fast people are paid. Is also an issue about whether the advances that are available at getting through to the right people and, lastly, another issue about whether the department is using its ability to have automatic payments for housing deducted straight from peoples accounts rather than expecting everyone to take responsibility for that immediately. Surely it is unacceptable to use people is this way it as an experiment and say, oh, well, we will improve this as we go along. It does not prevent the hardship some people suffer. There are many different people coming on to universal credit. Some lost their jobs recently who have a small amount of savings and are waiting to get paid monthly, like they did when they were working, that is fine. For other people who are coming from very different situations, they are waiting up to six weeks for the first payment and that is difficult. It means they get into arrears on housing. What i think the Department Must do is try and sort out what sort of people are coming on to universal credit and how best to treat them. What site is there that they will do that . It seems that, from the people we spoke to, there is no help for calming. Nothing is being done to quicken things up. Is no help for calming. Nothing is being done to quicken things uplj think that ministers know what the issues are. I spoke with them before the end of the last parliamentary session. They know it is an issue, and they need to use the tools that they have effectively. 0f and they need to use the tools that they have effectively. Of that message is not getting through to the jobcentre, they message is not getting through to thejobcentre, they need to make sure that it does so that the four people come on to universal credit, they know exactly what the rules are and how quickly they will get the first payment. That one is important. So, yes, if it is decided that it important. So, yes, if it is decided thatitis important. So, yes, if it is decided that it is not working well then a call to delay things would be releva nt. Call to delay things would be relevant. My own belief is that this is something that the department should take responsibility for and get right, rather than holding up the rollout of an incredibly important new policy. Thats a summary of the news, newsday is coming up at midnight. Now on bbc news, its time for newsnight. He never under promises, but billionaire entrepreneur, and paypal founder elon musk is really heading for the stars this time. He says hes going to produce the worlds biggest rocket, to take us to the moon and mars, in the next few years