The same surge in borrowing costs that is piling pressure on the Government is creating an unexpected windfall for people approaching retirement.
UK gilt yields, the return someone gets from lending money to the government, have climbed to their highest levels in years.
And while this is bad news for the economy – as it means the Treasury has to spend more money servicing debt – for some retirees, the picture is very different.
What to know as Argentina threatens Falkland Islands oil fields

Argentina’s President has said he will impose sanctions on oil drilling off the Falkland Islands amid heightened tensions between the UK and Argentina.
In a national address, Javier Milei said the “winds of change” favoured Argentina’s claim to control over the British territory, as the US reviews its position on the dispute.
Milei seeks oil firm sanctions
- The Argentine President said he would boost efforts to levy penalties against the companies, as well as their shareholders, directors and suppliers.
- Milei pledged to increase defence resources to build a naval base in the nearby Tierra del Fuego province.
- He has also promised to send Congress an urgent “national sovereignty defence” bill aimed at strengthening Argentina’s response to what he called unauthorised operations around the islands.
Urgent threat to Argentine interests
“If we do not act swiftly, in a few months they will have the material capacity to access the oil that lies underneath our sea – something that has never happened before.
Milei said Argentina had determined that the Sea Lion offshore project, operated by Navitas Petroleum and Rockhopper Exploration, could begin oil development in the coming months.

Long-running soveriegnty dispute
The Falkland Islands have been a self-governing British Overseas Territory subject to a long-running sovereignty dispute with Argentina since the 19th century.
Argentina invaded the islands in 1982. The conflict lasted 74 days and ended in Argentine surrender after claiming the lives of 649 Argentine military personnel, 255 British military personnel, and three Falkland Islanders.
In a 2013 referendum, Falkland Islanders voted overwhelmingly to remain a British overseas territory, with 99.8 per cent voting in favour – and just three votes against.
‘Falkland Islanders choose to be British’
In a statement on X, Defence Secretary Wes Streeting said: “The Falklands are British because Falkland Islanders choose to be British.
“Our commitment to the Falklands is absolute and unshakeable.”


Trump suggests he would not help UK in Argentina invades Falklands
Milei’s comments follow a suggestion by Donald Trump that he would not back the UK if Argentina invaded the Falkland Islands.
Trump, who has strongly criticised the UK’s stance on the US-Israeli war on Iran, told GB News: “Your country was not there to help me.”

Inside the BBC meltdown over licence fee’s future


Scrambling to find £500m
The BBC is scrambling to cut £500m from its budget after executives discovered a gap in finances which shocked even new director-general Matt Brittin.
It comes as the number of households paying the £180-a-year licence fee fell by half a million last year to 23 million, the latest BBC accounts show.
The previous year, accounts showed a 300,000 drop in licence fee payers.
The BBC’s chief financial officer, Bérangère Michel, said earlier this year that the drop in TV licences had “resulted in an unsustainable financial position”.
More job cuts to come
The BBC must cut £500m from its budget by 2028 – with £160m to be delivered immediately. The corporation has already announced 550 job cuts in news, nations and TV and radio content as part of the first stage in its savings plan.


Other cost-cutting options include cutting BBC Four arts and its archive channel and moving its content to BBC Two. The BBC Three youth channel could also be under threat.
‘Every part of BBC affected’
- More shows are set to be axed, following this week’s decision to scrap , insiders said.
- In a staff memo, seen by The i Paper, interim BBC head of news Jonathan Munro, said the 200 job closures announced in June would be followed by “further post closures (in news)” in the coming months.
- “Every part of BBC News will be affected, including senior leaders, and we’re reviewing some on-air roles,” said Munro.
Familiar faces set to depart
There will be familiar faces leaving, presenters, on-screen correspondents. They will be looking for a small number of expensive on-air people who they might try to persuade to leave sooner than they expected. It’s all up in the air.
A leading news figure told the i paper

Four things to know as Reform reported to the police over ‘funding breach’
Reform UK has been reported to the police over allegedly breaching political donation rules.

The allegations
In the Channel 4 report, Reform’s Dan Jukes, discusses with a donor ways to allegedly get around electoral rules by securing a £500,000 donation via a foreign source.


The report, carried out by Verbatim Investigations, appears to show head of policy James Orr, suggesting the donor’s father could pay for polling. The report claims Reform commissioned three polls £32,500 in total and that the public was not told who commissioned or funded them.
The law
Under UK law, foreign companies are not a permissible source of funding for political parties, including payments for studies and research. Accepting donations from them could constitute a criminal offence.
Reform claimed it was the victim of a hoax and denied any wrongdoing.
Reform’s response:
Reform UK has been the target of a hoax perpetuated by foreign-funded, climate change activists posing as would-be party donors. The party denies any wrongdoing.
A Reform Spokesperson
Reform UK has a robust vetting process for prospective donors approved by the Electoral Commission.

Who reported Reform?
- The Lib Dems have written to the Met Police and Electoral Commission saying that James Orr, a senior adviser to Farage, facilitating the donation from an impermissible donor would breach the Political Parties, Elections and Referendums Act.
- Labour also intends to report the matter to the police, it is understood, while the Greens have called for an investigation.
- The Met said it is assessing the reports.
‘No money reached Reform UK at all,’ says Orr
Orr, Reform’s policy head who is at the centre of the allegations, said that “no money reached Reform UK at all”.
“It was a public poll arranged by an independent person paying an independent pollster, and those polls were published immediately for the general public,” he said in a video posted to X.

Two rescued a week after Nepal floods
Two people have been rescued alive from a hydropower tunnel in Nepal, nine days after
a catastrophic flash flood killed more than 1,200 people.
Some 39 workers are still believed to be trapped inside the Trishuli 3A Hydropower Project, according to Suresh Raut, a senior official of the Nepal Electricity Authority (NEA).
Huge rescue mission
Hundreds of the more than 5,000 still missing are labourers working in a vast network of tunnels at hydropower sites along the river.


Engineers have been pumping air into the hydropower tunnels as part of the huge rescue operation. Aside from the tunnel, it is estimated that over 5,000 people remain missing in Nepal and Tibet.
The rescues inject hope into an otherwise gruelling mission through thick mud.
A tunnelling expert told the news agency that teams had already dug through debris blocking the tunnel for 50-60 metres (164-196 feet) before finding survivors.
They were hoping for a breakthrough, said Arnold Dix, president of the International Tunnelling and Underground Space Association.
“After a week of 24/7 heartache, we might, just, be back in miracle country.”
Watch more from The i Paper

How to be more grateful for daily life in five easy steps
The world feels like a difficult place at the moment, and it can feel very hard sometimes to find things to be thankful for; when we are overwhelmed, we have less capacity to notice and reflect on the good things. Yet, ironically, proactively cultivating gratitude is one of the things that can actually help us feel less stressed.
NHS GP dR RADHA

The science
Research has shown that feeling or expressing thanks can actually alter our brain.
- The balance of neurotransmitters change; more serotonin and dopamine (feel good chemicals) are produced.
- This can be long lasting if we make gratitude a regular habit.
- We also get a decrease in our cortisol (stress hormone) levels which helps lower anxiety.
- Being grateful can strengthen the nerve pathways which triggers positive emotion.
How can we build gratitude?

Change your words
Instead of seeing something as a problem, try to see the opportunities within it.
Our brains are very receptive and what we read or write can alter our emotional system.


Express it
This will not only make you feel good, but you will also get a positive response from others.
How can we build gratitude?
Notice more
Throughout your day, try to notice all the things that are going well; has someone opened a door for you, or smiled?


The basics
By being thankful for the small things every day, we are far more likely to be and stay healthy so that we can enjoy them.
What to do
Gratitude can lead to feelings of optimism, lower our blood pressure, and improve sleep quality.
- Write down what potential good aspects there are to the things you don’t feel like doing, or even what could be worse about it.
- Spend a few minutes writing down three things that you are looking forward to that day, or the good things that have happened to you that day.
- Say thank you to yourself for the things you have achieved, or managed to get through and changed that day.
Sales of battery
electric vehicles hit a record high last year.

Starts at £22,995 for the smaller battery
Available with either a 40kWh battery or a larger 52kWh pack, that offers almost 255 miles, the latest, retro-inspired Renault 5 is both a joy to behold and a hoot to drive.
The interior has been lavished with a level of detail that’s typically reserved for more expensive cars.

A champion of EV efficiency

It offers a remarkable 491 mile range on a single charge from the 85kWh battery.
It is a technological masterclass inside with the ability to option screens that span the entire width of the dashboard, including an optional display for the front passenger.
Priced from £37,400

It’s a lot of money to part with, but this is arguably all the car you will ever need.
The £89,000 Macan is a premium SUV that somehow manages to blend Porsche’s reputation for dynamics and sporty driving with everyday practicality.
The 95kWh batteries can go from 10 to 80 per cent in as little as 21 minutes from the fastest public charging outlets.
With the business class-style six seat configuration costing a staggering £76,995, it is by far the most expensive Kia ever made, but it backs up its financial demands with a suite of genuinely useful and impressive onboard technology.


It’s fast, goes a long way between stops and charges relatively quickly but the interior is bland, the onboard technology is infuriating and the experience is devoid of emotion.
All of its gadgetry can’t disguise the fact that performance is weak, even for a typically zippy EV, the ride is fussy at slower speeds and it’s not in the least bit enjoyable to drive on a country road.

- While good value (prices start at £17,935) for the 200-mile max range, there are more interesting options from Hyundai, Citroen and Renault for similar money.

The kitchen gadgets under £25

Victorinox paring knife
It’s comfortable to hold, with a point sharp enough for scoring pastry.
ProCook cast iron pan
For unbeatable searing and heat-retention, cast iron is the top choice.


Tesco chopping board
Priced at just £22, I’ve yet to find another board that matches it for sheer value and quality.
The kitchen gadgets under £25
Pyrex jug
It is the perfect vessel for blending smooth sauces, melting butter, or warming stock. It won’t stain like plastic and the red measurements never fade.


Salter scales
“I’ve had my slim little set of Salter Disc Scales for over a decade, and I’m delighted to see they are still made to exactly the same reliable design today.”
Microplane grater
It uses photo-etched stainless steel teeth that stay razor-sharp for a decade, something the lookalike copycats simply can’t match.
Braun hand-held blender
It’s an essential for everything from making velvety soup to getting the lumps out of white sauce.
Bodum cafetiere
As well as delivering great results, cafetieres are easy to clean and there’s no ongoing filter paper costs or pod recycling to deal with.
The kitchen gadgets under £25
Oxo peeler
What truly sets it apart is the chunky, rubberised handle that absorbs pressure and stays completely non-slip, even if your hands are wet. It is inexpensive and incredibly durable.


Falcon pie dish
Made by fusing porcelain onto heavy-gauge steel for smooth durability, it is dishwasher, freezer, hob, air-fryer and oven-safe.
The golden rules for a happy, secure relationship
Psychiatrist and neuroscientist Dr Amir Levine, author of bestselling book , explains why we behave the way we do in love.

Golden rules for happy relationships
Start with your own behaviours
The foundation of a secure, connected life is being what I call CARRP: that means being consistent, available, responsive, reliable and predictable. All of these qualities can be enacted in small gestures every day.


Express your needs
People need consistency and connection to feel safe. This is not, ‘You hurt my feelings by never replying to me’, it’s more ‘this is the kind of contact that helps me feel secure’.
Golden rules for happy relationships

The appendix ‘inflammation’ rule
If a relationship repeatedly inflames your nervous system, you need to disengage and deprioritise it.
Lean on community
You don’t need hundreds of friends. You need people and places that regularly remind you that you belong.


Stop blaming childhood
Humans are much more complicated than: ‘this happened to you, therefore you are doomed to be anxious’.

Reach for a
secure script
When something unsettles you in a relationship, your first reaction is not always the most accurate one.
If you’re anxious, your brain may jump very quickly to: ‘this is the beginning of the end’. If you’re avoidant, your brain may say: ‘this person wants too much from me, I need to get away’. So one very practical thing you can always do is pause and ask: ‘What would a secure person do here?’
Loneliness elsewhere
When people talk about loneliness, they often assume it means you don’t have enough people in your life. But you can be surrounded by people and still feel lonely if those relationships leave you feeling excluded, ignored or disconnected.

What to do
- Build a community that works for your temperament and gives you regular, reliable moments of connection.
- You can still be kind to people while not treating them as someone who belongs in your inner circle.
- Explain what you need. Sometimes people simply don’t realise how you are experiencing them.
- Check in with people: does this person actually feel that I’m reliable? Do they experience me as predictable? That’s the only way that you can start to become more secure.
This is because higher long-term bond yields can translate into higher rates on annuities – a fixed income for life that people can buy with their retirement saving pots.
Why are gilt yields rising?
The renewed conflict involving Iran and the US is part of the reason gilt yields are going up, as it has had an impact on oil prices, which is expected to mean a big rise in inflation.
Put simply, investors want a bigger return for lending when inflation, government borrowing and the economic outlook all look uncertain.
“Rising energy prices and the building risk that inflation will go higher than previously expected from food and energy is causing the market to price in more rate hikes from the Bank of England over the next couple of years. The market curve for Bank rate has gone from 3.75 per cent to 4.5 per cent. That is pushing up gilt yields at the short end,” explains Thomas Pugh, an economist at RSM UK.
Pugh also says that uncertainty around “excessive government borrowing” is also driving up longer-term gilts.
What does that have to do with your pension?
With annuities, you use a pot of money saved for your retirement, and buy an annual income with it. To provide that, insurers invest the money you give them, including in long-term assets such as government bonds.
When those bonds offer higher yields, insurers can potentially generate more from the money they receive from customers. That can allow them to offer higher annuity incomes.
15-year gilt yields are particularly relevant to annuity pricing and have reached about 5.62 per cent, their highest level in 28 years.
Data from financial services provider Legal & General shows that in 2021, a healthy 65-year-old using £100,000 of pension savings could have bought a single-life annuity paying around £4,860 per year.
Today, Legal & General says that same £100,000 could secure approximately £7,700 per year – an increase of almost 60 per cent, or roughly £2,840 more annual income.
Mike Batty, Legal & General’s director of retail retirement and product strategy, said: “Annuity rates today remain significantly higher than they were five years ago, reflecting the increase in long-term gilt yields over that period.”
Exactly what you’ll receive from your pension savings depends on multiple factors.
Andrew King, pension technical specialist at Evelyn Partners, said: “Annuity rates can, however, vary dramatically with the individual’s age, health and address, as well as the type of product chosen – with options for inflation protection, periods of guaranteed pay-outs, and joint-life death benefits.”
Batty says more people are opting from annuities than five years ago, and this partly down to rates, but also down to certainty.
He said: “Increasingly, we’re seeing people value the certainty that an annuity can provide. A guaranteed income for life can offer reassurance for those approaching retirement, or deciding to stop work entirely, particularly during periods of economic volatility.”
Legal & General research found that people are almost three times more likely to consider buying an annuity because it provides a stable income that makes it easier to plan their finances (29 per cent) than because of annuity rates alone (10 per cent).
Choosing a monthly payment from an annuity can also help people budget if they’ve been used to a monthly income and outgoings during their working life.
What are the alternatives to an annuity?
The alternative to an annuity is using drawdown, where you keep you pension pot invested and pull money from it ad-hoc.
This doesn’t give you the certainty of an annuity, but in some cases it may be more lucrative, particularly if your investments perform well.
The longer you live, the better value an annuity will prove as well.
If you use a £100,000 pension used to buy an annuity paying £8,000 per year, your money would theoretically be repaid after 12.5 years, but at the same time, the purchasing power of that £8,000 could have fallen significantly by then.
The alternative is buying an annuity with inflation protection, though this may well be smaller than you’d receive without that protection.





















