STRAIGHT TO THE POINT

I’VE deferred taking my state pension. Will it still go up every year in line with the cost of living?

P. U., Fareham, Hants. YEs. Basic state pension should rise each year in line with the highest of prices and earnings growth of 2.5 pc every year — the so-called triple-lock promise. However, the part of your pension built up by deferring will go up only in line with inflation as measured by CPI. MY CAR insurer sent me a quote for £1,076 before my renewal period. I went online and found another firm would cover me for £178. I can’t help be angry at my old insurer. Is this normal practice?

M. I., Kendal, Cumbria. UNFORTUNATELY, yes. insurers routinely put up the cost of cover each year and hope you do nothing. A fifth of motorists fall for this trick. the moral of the tale is: always shop around. I’VE been made redundant and told I’ll get pay in lieu of notice. Is this tax-free?

C. S., by email no. MANY people have heard their redundancy pay is tax-free and you can receive up to £30,000 in a specific redundancy lump sum free of income tax. However, if your contract says you will get pay in lieu of notice, then this doesn’t count as redundancy pay. it is essentially just earnings, so tax and national insurance will be deducted as usual. I RECEIVED a small work bonus and decided to use some of it to pay off a chunk of our £47,000 mortgage. However, my lender RBS said there would be a penalty of nearly £1,000. This does not seem fair, as I am reducing what I owe.

F. H., High Wycombe, Bucks. Most lenders will let you overpay by up to 10 pc a year without charge (for you, this would be £4,700 this year). However, anything above this tends to incur a penalty, usually between 2 pc and 3 pc of your mortgage balance. the type of deal you have and how long you have had it can affect how much you have to pay.