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A UK pension scheme has been branded “deeply irresponsible” after investing in Bitcoin.

The unnamed defined-benefit scheme became the first in the UK to make the plunge, using 3% of its assets to buy into the cryptocurrency last month.

Pension specialist Cartwright acted as an adviser to the scheme and said the allocation was a “strategic move that not only offers diversification but also taps into an asset class with a unique asymmetric risk-return profile”.

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It claimed its approach meant the scheme could benefit from a significant potential bonus while limiting the possible negative outcomes.

But some experts seem less enthusiastic about the decision, warning it bordered on “gambling with retirees’ futures”.

“This is a very strange decision. Pension funds should surely be investing for the long term rather than speculating over the short-term,” Colin Low, managing director at Kingsfleet, told Newspage.

“It is ironic that a pension fund, having one of the longest investment time horizons, should speculate its beneficiaries’ assets on something that has no intrinsic value.”

Daniel Wiltshire, actuary at Wiltshire Wealth, added: “This is deeply irresponsible. Pension trustees have an obligation to ensure scheme assets are managed prudently.

“This precludes taking punts on a basketcase asset class like crypto. For the sake of the members, I hope the regulator is paying attention.”

Why are people so concerned?

Bitcoin is the largest and oldest cryptocurrency, although other assets like ethereum, tether and dogecoin have also gained popularity over the years.

Some investors see cryptocurrency as a “digital alternative” to traditional money – but it is very volatile, with its price reliant on larger market conditions.

Pension scheme trustees tend to be against taking big risks with retirees’ funds.

Advice from the Financial Conduct Authority states “you should never invest money into crypto that you can’t afford to lose” and warns people to be prepared to lose all their money.

And, while a 3% allocation doesn’t sound like a lot, it’s enough to make an impact on the pension fund’s performance.

This means that if Bitcoin continues to skyrocket, it could boost the scheme in a big way, but equally if it sinks, it could have a significant negative impact.

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As a defined pension scheme, it does mean the risk is being taken by the employer should there not be enough assets to meet future pension payments, rather than being borne by members.

Laith Khalaf, head of investment analysis at AJ Bell, says plenty of people have bought crypto personally, but it’s harder to make the case for investing in it to diversify a pension portfolio.

“While the price of Bitcoin is currently riding high, in the past we’ve seen strong performance quickly giving way to dramatic price falls. That in itself is a big hindrance to Bitcoin being adopted by consumers and businesses as a means of exchange,” he says.

“If you think Bitcoin is the future of currency despite its volatility, ask yourself if you’d be willing to be paid by your employer or billed by your mortgage provider in the cryptocurrency.

“It’s possible Bitcoin will thrive and prove its doubters wrong, but it’s also possible it will ultimately become worthless.”

Just last week, it hit a record high above $£99,000 – but less than two years before that it dropped below $17,000 following the collapse of crypto exchange FTX.

Some experts believe the potential pay-off means an investment in Bitcoin is a risk worth taking.

Chris Barry, a director of Thomas Legal, says that anything less than a 5% allocation is “sensible”, and UK pension funds need to catch up to their US equivalents who have been investing in crypto for years.

“Bitcoin is the top performing asset class over the past 10 years on average, even beating the NASDAQ. The direction of travel following Trump winning the US election is very bullish indeed,” he adds.

David Belle, founder and trader at Fink Money, has a similar view, saying a pension scheme portfolio is about numbers trying to deliver a return.

“A portfolio is just numbers made up of different betas, assets which either outperform or underperform a benchmark. Crypto is a fine asset class if it fits risk appetite.”

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Suspended surgeon at Addenbrooke’s Hospital in Cambridge named

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Suspended surgeon at Addenbrooke's Hospital in Cambridge named

The suspended surgeon at Addenbrooke’s Hospital in Cambridge has been named as paediatric consultant Kuldeep Stohr.

Eight hundred patients operated on by Ms Stohr are having their cases urgently re-examined, after an external review found nine children whose care fell below expected standards.

The initial review was ordered after concerns were raised by her colleagues.

Sky News has seen a copy of the interim report which details several issues relating to complex hip surgeries performed by the surgeon.

One of the parents whose child was identified in the review showed us a recent letter from the hospital which reported “problems with both judgement and technique” in her child’s surgery.

Ms Stohr, who has been suspended since the end of January, said in a statement: “I always strive to provide the highest standards of care to all my patients.

“I am co-operating fully with the trust investigation and it would not be appropriate to comment further at this time.”

Tammy Harrison
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Tammy Harrison: ‘It was hell’

Left in agonising pain

Tammy Harrison, 12, has cerebral palsy and had surgeries carried out by Ms Stohr. Her operations didn’t work, leaving her in agonising pain.

She said: “My first one was just like trauma. I couldn’t get out of bed for eight weeks. I was either stuck in bed or stuck on the sofa. It was hell.”

Her mum, Lynn, told Sky News: “There is nothing that can put Tammy back to where she was now and that’s the sad thing.

“If I could just click my fingers and have the child back that I had I would do it with a blink of an eye.”

Lynn Harrison
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Ms Stohr operated on Lynn Harrison’s daughter

So far, there’s been no confirmation of any wrongdoing in Tammy’s care.

But her family have a meeting at the hospital this week to find out more.

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The trust has asked a panel of specialist clinicians to review all the planned operations carried out by Ms Stohr at Addenbrooke’s. One hundred emergency trauma cases will also be looked at.

Addenbrooke’s is a major regional trauma centre and treats serious emergency patients from all over the region.

One clinician at the hospital told Sky News that the review of so many patients was “creating a lot of extra work”, which was “slowing things down” for other patients awaiting treatment.

Addenbrooke's Hospital. File pic: PA
Image:
Addenbrooke’s Hospital. File pic: PA

At least one extra locum consultant has been helping the team, as they work through the caseload.

Trust apologises

Sky News has been told Cambridge University Hospitals Trust had wanted to identify Ms Stohr before but had been threatened with a legal injunction.

The trust has apologised unreservedly to families and patients. But what’s troubling many is the fact concerns were raised about Ms Stohr a decade ago.

Chief executive of Cambridge University Hospitals Trust, Roland Sinker, has set up another review to examine whether opportunities were missed, and action could have been taken sooner.

The Department of Health described the ongoing situation as “incredibly concerning.”

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Starmer promises ‘bold changes’ to rules over electric cars in wake of Trump’s tariffs

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Starmer promises 'bold changes' to rules over electric cars in wake of Trump's tariffs

Sir Keir Starmer promised “bold changes” as he announced he will relax rules around electric vehicles after carmakers were hit by Donald Trump’s tariffs.

The prime minister said “global trade is being transformed” after the US president‘s 25% levy on imported cars, and 10% tariff on other products, came into force.

Jaguar Land Rover has said the firm will “pause” shipments to the US as it looks to “address the new trading terms”.

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Labour made a manifesto pledge to restore a 2030 ban on the sale of new petrol and diesel cars after it had been rolled back to 2035 by Rishi Sunak’s Conservative government.

Sir Keir Starmer. Pic: Reuters
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Starmer promises to ‘back British business’. Pic: Reuters

Sir Keir will officially confirm the ban in an announcement on Monday but regulations around manufacturing targets on electric cars and vans will be altered, to help firms in the transition.

Luxury supercar firms such as Aston Martin and McLaren will still be allowed to keep producing petrol cars beyond the 2030 date, because they only manufacture a small number of vehicles per year.

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‘Nothing off the table’ over tariffs

Petrol and diesel vans will also be allowed to be sold until 2035, along with hybrids and plug-in hybrid cars.

The government is also going to make it easier for manufacturers who do not comply with the government’s Zero Emission Vehicle (ZEV) mandate, which sets sales targets, to avoid fines, and the levies will be reduced.

Sir Keir said: “I am determined to back British brilliance.

“Now more than ever UK businesses and working people need a government that steps up, not stands aside.

“That means action, not words.”

Officials have said support for the car industry will continue to be kept under review as the full impact of the tariffs announced last week becomes clear.

Transport Secretary Heidi Alexander said the industry deserves “clarity” in the economic context.

She said: “Our ambitious package of strengthening reforms will protect and create jobs, making the UK a global automotive leader in the switch to EVs, all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.”

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Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the government had “recognised the intense pressure manufacturers are under”, while Colin Walker, a transport analyst at the Energy and Climate Intelligence Unit, said the ZEV mandate is a “global success story” in driving a surge in sales of electric vehicles.

Tariff impact on UK businesses revealed

Some 62% of UK firms with trade exposure to the US are being negatively impacted by Donald Trump’s tariffs, according to the British Chambers of Commerce.

Its survey of more than 600 businesses also found 32% of firms with trade exposure to the US said they will increase prices in response.

The survey also found 41% of firms with no exposure to the USA said they would be negatively impacted by the tariffs.

Some 44% of firms with exposure to the US said the UK should seek to negotiate a closer trade relationship with the US, while 43% said they wanted closer trade with other markets.

Just under a quarter (21%) said they thought the UK should impose retaliatory tariffs.

The survey also found that 40% of firms considered the 10% tariffs to be better than they had expected.

It comes as KPMG warned US tariffs on UK exports could see GDP growth fall to 0.8% in 2025 and 2026.

The accountancy firm said higher tariffs on specific categories, such as cars, aluminium and steel, would more than offset the exemption on pharmaceutical exports, leaving the effective tariffs imposed on UK exports at around 12%.

Yael Selfin, chief economist at KPMG UK, said: “Given the economic impact that tariffs would cause, there is a strong incentive to seek a negotiated settlement that diminishes the need for tariffs. The UK automotive manufacturing sector is particularly exposed given the complex supply chains of some producers.”

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Girl, 10, and father, who died in caravan park fire in Lincolnshire named

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Girl, 10, and father, who died in caravan park fire in Lincolnshire named

Two people who died following a fire at a caravan site near Skegness have been named by police.

Lincolnshire Police said 48-year-old Lee Baker and his 10-year-old daughter Esme Baker, both from the Nottingham area, were killed in the blaze.

However, formal identification is still yet to take place and “could take some time”, the force said.

Emergency services were alerted to a fire at Golden Beach Holiday Park, in the village of Ingoldmells, at 3.53am on Saturday.

In a statement issued through police, a member of the Baker family said: “Lee and Esme were excited to be spending the first weekend of the holidays together.

“We are all utterly devastated at what’s happened.

“This loss is incomprehensible at the moment, and we ask for people to give us space to process this utterly heartbreaking loss.”

A GoFundMe page set up for the victims’ family described the father and daughter as “two peas in a pod” who were “both happy-go-lucky people who loved life”. It has so far raised more than £3,000.

The police force, together with Lincolnshire Fire & Rescue, are continuing to investigate the cause of the blaze.

Detective Inspector Lee Nixon said: “We believe we might be close to arriving at a working hypothesis.

“We are working hard to validate the facts available to us to be able to provide answers for the family and loved ones of those who were very tragically taken by this fire.

“Yet the evident intensity of the fire has made this task incredibly challenging.”

Dan Moss, from Lincolnshire Fire & Rescue, said: “Our thoughts and deepest condolences are with the family at this time.

“Our Fire Investigation Team is working with colleagues from Lincolnshire Police, and a full investigation into the cause of the fire is ongoing.

“Once investigations are complete, local fire crews and our community fire safety team will be on hand to talk to people in the area and address any fire safety concerns they may have, at what will be an upsetting time.”

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