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Peace of mind while you travel.

For such an important product, travel insurance is often all too easy to overlook. As with most kinds of insurance, you always hope to not need it, but on the off chance that you do fall ill or injure yourself on your travels, you could find yourself facing huge bills if you don't have adequate cover.

Travel insurance is for more than just medical bills though - the right policy will also pay out if your flight is delayed, or if your baggage goes missing, for example.

Arguably the most important thing you'll need travel insurance for is to cover you should you fall ill or injure yourself while abroad. Medical treatment can be very expensive in other countries, as can travel in ambulances should you need to be transported to a hospital from far away. Travel insurance policies will typically cover you for a huge amount of expenditure on medical bills for a relatively low up front cost.

It's not just for medical bills though. Many policies will also cover you for:

Often, travel insurance providers will refuse to cover you for treatment related to any pre-existing medical conditions. This includes anything that you've had treatment for in the past.

Just Travel are different. They have a large panel of specialist insurers so that they can get you a tailored policy that gives you exactly the kind of cover you need, regardless of your medical history.

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Best travel insurance UK 2024 guide

We all deserve a break now and then. And the last thing you want to think of when booking your holiday is something going wrong. But it’s better to be prepared than caught off guard. That’s why you should always consider travel insurance when going on a trip.

But how can you find the best travel insurance policy for your needs? Read our guide below to find out more.

Why do I need travel insurance?

Travel insurance protects you financially if your trip away doesn’t go as planned and you incur unexpected expenses for delays, losses or medical treatment.

All travellers can benefit from travel insurance. But travel insurance is particularly important if you are going on an independent trip without a tour operator, because if something goes wrong, you will have no other help.

There are three main types of travel insurance:

• Single-trip cover: this is the most typical form of travel insurance, covering you for a one-off trip or holiday. There will be a time limit on the cover that can range anywhere between one month and 365 days
• Annual multi-trip cover: this allows you to make multiple trips, or have multiple holidays, in a 12-month period, all under the same travel insurance policy. There may be a cap on how long each individual trip can be
• Long stay, or backpacker, cover: this is normally used for around the world trips, gap years, and longer cruises, and can last for up to 18 months

To find the best UK travel insurance, compare policies before you go to ensure you get the right coverage for you and the specific trip you’re planning.

How to find the best travel insurance policy

When comparing policies to find the best travel insurance for your trip, you should consider: 

• Type of cover you need
• Excess (how much you’ll be expected to pay out yourself before the policy will cover you)
• Amount of medical coverage, and why pre-existing conditions aren’t included
• Limit on baggage claims
• Coverage for specific sports and activities
• Any potential rewards and discounts
• Add-ons, such as gadget insurance

Best travel insurance deals and discounts

Looking for the best travel insurance deals from the best travel insurance companies? In most cases, the easiest way to find the best travel insurance deals is to use a comparison website. Travel insurance comparison websites let you compare costs and coverage side by side to find the best UK travel insurance.

The four main comparison websites – Moneysupermarket, Comparethemarket, Confused.com and GoCompare – also often have certain deals and discounts when you buy travel insurance from them, offering some of the best travel insurance deals on the market.

Moneysupermarket : Find the same deal for less, and it will price match and give you a choice of a £20 gift card. Only on annual travel insurance.

Comparethemarket : Two for one cinema tickets with Meerkat Movies and savings at restaurants when you dine out or order pizza in with Meerkat Meals, as well as 25 per cent off coffee and pastries at Caffè Nero every day of the week through the Meerkat app.

(In November 2023, Confused.com and GoCompare had no deals or discounts for travel insurance).

Price is obviously a big consideration when you are looking for the best travel insurance – you’ve probably already spent a lot on your holiday. But you may be able to get much better coverage for just a few pounds extra, so it’s worth scrolling down the comparison site’s list of providers before buying.

Medical costs abroad will undoubtedly be the biggest expense you face if you fall ill abroad, so don’t scrimp on those.

Then think about your next biggest expense (probably cancellation/interruption of your trip) and make sure that you have high-value coverage for that.

If you find you can get much higher coverage (the maximum amount you can claim per type of claim, such as medical or baggage) for not very much more money, go for the slightly more expensive option.

Going direct

Comparison sites won’t always find you the cheapest deals, however. For example, Direct Line offers some of the best travel insurance with Covid cover and is not on comparison websites.

Some of the best travel insurance companies also offer discounts for buying directly from them, as follows:

Bundled coverage options

When looking for the best travel insurance for your holiday, it can make sense to buy a bundle of coverage under one policy.

Comparison websites will often offer add-on gadget cover, winter sports cover or cruise cover all under the one policy. If you need that extra cover, it is typically cheaper to buy your travel insurance this way rather than as separate policies.

What is covered by travel insurance?

The best travel insurance companies will offer you comprehensive coverage across all types of claims. It’s easy to compare the best travel insurance deals using a comparison website.

Medical coverage

This covers you for medical expenses you incur if you become ill or have an accident while away. The best UK travel insurance will have a high level of medical coverage.

For example, medical coverage will pay for any necessary treatment if you come down with severe food poisoning or you fall through a window and have to be taken to hospital in an ambulance.

• Avoid hefty bills or debt for medical assistance outside the UK
• Access better treatment – for example, at private vs public hospitals
• Often, as long as you declare existing conditions or pending treatment or tests, you are covered if you fall ill during your trip (check policy exclusions)
• Even the best travel insurance companies will likely charge you more if you have a pre-existing medical condition
• You might have to pay part or all your medical expenses first, then claim on the policy afterwards
• Even the best travel insurance companies do not cover events that happen after you have consumed alcohol excessively or taken recreational drugs or other substances

Trip cancellation/interruption

This insurance pays out the cost of your missed trip if you have to cancel or cut your holiday short due to unforeseen circumstances.

For example, cancellation insurance would normally pay out if you broke your leg just before you were due to travel and had to cancel your trip.

Interruption insurance would cover you if you had to come home early for certain reasons beyond your control – for example, if the area you were staying in was engulfed in wildfires.

• Money you would have lost on pre-paid, non-refundable travel expenses is paid to you under the policy
• It can be especially valuable if the trip you are planning is very expensive, as this is money you would lose if you couldn’t go
• You’ll usually only be covered if your trip is cancelled or cut short for specific reasons listed in your policy
• You usually won’t be covered if you miss your flight because you are held by customs or cancel because of a work issue or a pre-existing medical condition that is not covered

Baggage cover

This insurance covers the cost of replacing your luggage if it is lost or stolen.

For example, if an airline loses your luggage in transit or your suitcase is stolen from your hostel while you’re away, you can make a claim for the cost of replacing its contents.

You may also be able to claim for costs related to baggage delay if the airline temporarily misplaced your baggage.

• You can claim for the actual cash value of your belongings or the cost of replacing them (whichever is less)
• High-value items, such as jewellery or sports equipment, can be very expensive to replace without travel insurance
• Standard policies usually place per item and total limits on claims.
• If you are taking very expensive items away, check your policy carefully to ensure that you’re covered (and potentially get a separate policy)
• Some items could be covered by your home insurance policy, so check your policy carefully to see what is any isn’t. It’s also important to note that, should a lost item be covered by both policies, you can only claim once; an attempt to claim twice would be considered fraud

Personal liability

This insurance covers you if you are held responsible for harming another person or damaging their property.

For example, it covers you in situations where you cause serious damage to your holiday accommodation or accidentally stumble into someone else, causing them to need medical treatment.

• The cost of defending yourself in a legal case or repairing/replacing damage could be extremely costly without travel insurance
• Your travel insurance company will take over dealing with a foreign legal system
• You’re covered for the cost of any compensation (up to certain limits)

Limits: 

• Not all travel insurance provides personal liability as standard
• Policies may exclude personal liability while you partake in adventure activities
• Claims related to you committing a crime or damage by wilful negligence won’t be covered
• You likely will not be covered if you admit liability or make an offer to pay before talking to your insurer

Finding the best travel insurance with Covid cover

Looking for the best travel insurance with Covid cover? Many travel insurance policies now include cancellation cover for reasons related to Covid. This often applies within two weeks of being due to travel, according to the Association of British Insurers, but individual policies can vary.

To make a claim, insurers often require proof in the form of a medically approved positive Covid test. A lateral flow test or self-diagnosis is usually not accepted.

What Covid-related cover to look for

The best travel insurance with Covid cover should include the following:

• Cover if you can’t start your trip because you tested positive for Covid before travelling
• Cover if you or family members cannot return home because you/they test positive for Covid during the holiday
• Cover for additional costs, such as alternative flights, accommodation and Covid tests
• Cover if you cannot reach your final destination during transit due to Covid-19

Travel insurance providers with comprehensive Covid cover

Looking for the best travel insurance providers with Covid cover? Most travel insurance policies now offer some kind of Covid cover, but Churchill, Direct Line, M&S and Aviva have some of the most comprehensive offerings, with cover for cancellations and expenses related to Covid.

• Covid covered as standard on travel insurance policies
• Cover for trip cancellations if you, a close relative or a travelling companion is diagnosed with Covid-19 or another pandemic disease
• Cover if you or a person you’re planning to stay with must quarantine (abroad or in the UK)
• Cover if you can’t use pre-booked and pre-paid accommodation affected by Covid-19
• Cover for quarantine or where the Foreign, Commonwealth & Development Office (FCDO) advises against travel within 28 days of departure
• Cover for emergency medical expenses abroad due to Covid-19

Direct Line

• Cover for travel to a destination where the FCDO is advising against all but essential travel 
• Cover for medical expenses if you catch Covid-19 while you’re away 
• Cover for additional accommodation and transport if you have to quarantine due to Covid
• Cover for cancellation costs if you or a close relative get Covid-19 before you go
• Cover for quarantine or if the FCDO changes its advice after you book your trip
• Cover if you have to cut your trip short if the FCDO changes its country advice unexpectedly

• Cover for emergency medical expenses if you catch Covid-19 during your trip
• Cover for unrecoverable costs up to £6,000 if you must cancel your trip or return early, including if you have to self-isolate or quarantine before you travel due to Covid-19
• Cover for if you need to cancel your trip due to a positive Covid-19 test or if the FCDO advise against travel to your destination in the 31 days leading up to your trip
• Providing you haven’t travelled against FCDO advice, you’ll also be covered if you catch Covid-19 while abroad

• Coverage of up to £5,000 per person if you must cancel your trip due to getting Covid (you’ll need to provide confirmation and evidence of a positive test result)
• Cover for Covid-related emergency medical treatment and expenses while away
• Cover if you unexpectedly need to quarantine, including extra travel and accommodation costs to get home (provided a return trip was booked) 
• Cover for costs for any accommodation and excursions unused due to getting Covid where the costs can’t be recovered elsewhere
• No cover you if you travel against FCDO advice*
• No cover if you can’t travel because you don’t meet the entry requirements of a country (such as having had Covid vaccinations)*

* It’s worth noting that these clauses are not unusual and the majority of providers will have something similar

Tips for selecting the best UK travel insurance packages

Need some help picking the best UK travel insurance packages to make sure that you get the best travel insurance deals? Here are some tips for picking the best policy features for you.

Coverage limits

When looking for the best travel insurance companies to go with, check coverage limits. These are the maximum amounts your travel insurer will pay if you need to claim. You’ll see when you compare travel insurance policies that coverage limits vary for each type of claim and between policies.

The government-backed MoneyHelper website recommends that the best UK travel insurance should have the following minimum coverage for each type of claim:

• Medical: £1m or more for travel to Europe and £2m or more for the US
• Cancellation/interruption: £2,000 or more
• Missed departure: £500 or more
• Delay: £200 or more
• Baggage cover: £1,500 or more
• Personal liability cover: £2 million or more

Deductibles/excess

Deductibles, also known as the excess, is the amount you have to pay out of your own pocket before your travel insurance will start paying for your claim.

You have to make a trade-off when it comes to choosing the excess and the best travel insurance policy for you.

The lower the excess on a travel insurance policy, the better for you if you have to claim because you will have less to pay from your own pocket (or, more often, deducted from your claim).

But lower excess travel insurance policies are more expensive because the insurer knows it has more to pay out if you claim. Higher excess policies are cheaper, but you’ll have more deducted from your claim.

An exclusion on a travel insurance policy is an event the policy will not cover you for.

Common exclusions on a standard travel insurance policy may not be obvious. According to the ABTA – The Travel Association, these include:

• Incidents that occur after drinking too much alcohol or taking drugs
• Theft of unattended possessions
• Sports, extreme sports and activities such as skiing, white water rafting and bungee jumping
• Medical treatment resulting from existing medical conditions you have not declared or conditions preventable by vaccine or advisable medication, such as antimalarials
• Medical costs if you stay abroad after your doctor says you are fit to return to the UK
• Strikes and industrial action if it was known when you booked your trip
• Rescheduled flights where the airline has cancelled and then rescheduled your flight
• Travel to destinations where the FCDO advises against all but essential travel

To get the best travel insurance deals, one way around some of these exclusions is to buy add-ons for adventure activities. In addition, make sure to declare all pre-existing conditions and keep an eye out for any travel disruptions before you book.

Pre-existing conditions

Pre-existing conditions are illnesses or medical conditions you have and are aware of before you travel.

Travel insurance companies will ask you to disclose any pre-existing conditions. If you use a comparison website, it will be among the first questions you’re asked before it shows you quotes. It’s important to be honest.

Some travel insurance companies, but not all, will offer cover for pre-existing medical conditions, while others will offer cover but exclude any claims arising from that medical condition. This will depend on the person being covered and the medical condition.

Most price comparison websites include an option to show insurers who do offer coverage for pre-existing conditions, so that would be a good place to start.

The following are likely to be considered pre-existing conditions you should disclose, according to the government-backed MoneyHelper website:

• A condition where you are on a list for an operation
• A condition where you are waiting for test results
• Anything you have been to the doctor about in the last year, including minor things
• Any serious conditions you’ve ever had – for example, cancer, heart trouble, respiratory problems or a mental health breakdown

A good tip for everyone, but especially if you have a pre-existing condition, is to buy your travel insurance as soon as you book your holiday. If your condition gets worse and forces you to cancel your plans, you’ll be covered from the day the policy starts.

On family group policies, the cost will be determined based on the riskiest traveller (according to insurers), which could be someone with a pre-existing condition or an older individual. In this case, it is often cheaper for the group for that person to get a separate policy.

Add-on options

Add-ons are extras you can purchase in addition to a standard travel insurance policy. They cost a bit more, but you may find you’re not covered without them. 

Gadget insurance

This covers things that a standard policy may not, such as your mobile phone or laptop. If these items are covered, you may find the claim limits are far less than the cost of replacing them.

Before you add this option to your travel insurance, check your home insurance policy, because you may already be covered.

Winter sports/adventure activities

Riskier activities, such as skiing or white water rafting, often require extra holiday insurance because insurers think that you are more likely to need to make a claim doing these things.

Winter sports/adventure activities cover is worth getting, or you may find you are not covered for medical expenses if something goes wrong.

Standard travel insurance is generally meant for land-based holidays so you’ll need to opt for a specialist cruise policy if your holiday is a cruise.

European FCDO travel advice extension

Most standard travel insurance policies are invalid if you travel when the FCDO advises against “all but essential travel”.

This add-on allows you to travel to Europe with a valid travel insurance policy, even if the FCDO has advised against it.

This can be an expensive add-on, but if you really must travel to a risky area, you will need this extension in order to make sure you have cover.

Best holiday insurance summary

Choosing the right travel insurance is an essential part of enjoying peace of mind while you are on holiday.

When looking for the best travel insurance deals, don’t just pick the cheapest policy. Instead, look for the cover limits that match your requirements. For example, baggage cover of £5,000 isn’t worth having if your baggage is worth £1,000; cancellation cover up to £10,000 isn’t worth having if your holiday cost you £2,000.

The easiest way to compare the best travel insurance is usually by using a travel insurance comparison website.

Think about the sort of activities you’ll be doing while you’re away. You may need extra holiday insurance for things such as winter sports or scuba diving or if you are going on a cruise.

Be honest about any pre-existing conditions when buying your travel insurance, or you won’t be covered if you have to claim.

The best travel insurance is a safety net for you and your family to enjoy your trip away stress-free, knowing that you’re covered for everything from medical expenses to cancellations if things go wrong.

Frequently asked questions about the best travel insurance UK packages

Is travel insurance necessary for domestic travel within the uk.

Even where medical costs in the UK are covered by the NHS, a sudden illness could lead to other expenses, forcing you to cancel your trip, the costs of which travel insurance would cover.

Lost or stolen luggage and broken gadgets or other claims for damage can just as easily occur in the UK as abroad.

What is annual travel insurance, and is it a good option for frequent travellers?

Annual travel insurance is a policy that covers you for multiple trips away within any 12-month period. It is often cheaper than buying a separate policy for each trip if you are planning to go away multiple times in one year.

Annual travel insurance is also useful if you are planning a long trip visiting several countries, as often insurers require you to buy travel insurance before you leave the UK rather than abroad mid-trip.

Are there any travel insurance companies that specialise in certain types of trips or travellers?

Specialist travel insurers cater to specific groups of people. It can make sense to seek out travel insurers that cover your needs.

Adventures Insurance, Sports Cover Direct and Snowcard tailor their travel insurance to those who enjoy activity holidays and extreme sports, for example.

Senior travellers are the focus of policies from All Clear, Avanti, Co-op Insurance Services, Free Spirit Flex, Good 2 Go Extra, Goodtogo Insurance, Saga, Staysure and Total Travel Protection.

Insurers offering business trip cover include Allianz, Direct Line, Coverwise and Insure & Go.

How do I make a claim with my travel insurance company?

To claim on your travel insurance while you are away, make sure that you take your policy number with you and the emergency number for your insurer. If you are travelling abroad, take any international numbers too.

Call your insurer as soon as you realise you need to make a claim. Keep all receipts and medical expense forms. If you are travelling with other people, make them aware of your policy details and the insurer’s phone number in case they need to call on your behalf.

To make a claim when you return home, check the following:

• You haven’t left it too late to make a claim
• What you’re claiming for is covered
• The excess is not more than the value of your claim (if so, it’s not worth claiming)

Notify your insurer as soon as possible for a claim form, send it back fast and keep a copy of it. You should also include copies of paperwork to support your claim, such as receipts or medical certificates (keep copies of the originals in case your claim is queried or refused).

Laura Miller

Laura Miller is a freelance journalist, editor, and producer. She has a wealth of consumer finance experience, having written about money matters and business for over 15 years.

During her tenure as a freelance writer, she has worked for ITN, Wired, and The Sunday Times, as well as financial institutions such as Aegon, the Chartered Insurance Institute, and Pension Bee, where she’s presenter of the Pension Confident Podcast.

Laura has previously held roles at The Times, where she was the Acting Editor of Times Money Mentor, The Telegraph as a senior finance reporter and was the co-host of the It’s Your Money Podcast, which was renowned for making complex finance issues accessible, and The Financial Times, where she worked as a News Editor. Laura has also worked at CNN, Politics.co.uk, and as a producer at Radio 5 Live.

Connor Campbell

Connor Campbell is an experienced personal and business finance writer who has been producing online content for almost a decade. 

Connor is the personal finance expert for Independent Advisor, guiding readers through everything they need to know about car insurance and home insurance. From how much it costs to the best insurance providers in the UK, he’s here to help you find the right policy for your needs. 

In his capacity as writer and spokesperson at NerdWallet , Connor explored a number of topics close to his heart, such as the impact of our increasingly cashless society, and the hardships and heroics of British entrepreneurs. His commentary was featured in sites such as The Mirror , the Daily Express and Business Insider . 

At financial trading firm Spreadex, meanwhile, his market commentary was featured in outlets such as The Guardian , BBC , Reuters and the Evening Standard . 

Connor is a voracious reader with an MA in English, and is dedicated to making life’s financial decisions a little bit easier by doing away with jargon and needless complexity.

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Martin Lewis talks specialist Travel Insurance

“You have a pre-existing condition… You’ll be looking at some form of specialist insurance policy to get the price down,  places like AllClear Travel …”  – Martin Lewis (Founder of Money Saving Expert)

How you can save money and travel with peace of mind

It was great to be a suggested Travel Insurance provider on The Martin Lewis Money Show.

Leading financial expert, Martin Lewis raised a lot of valid points about how you can make sure you get the right travel insurance cover, at the right price.

Basic travel insurance – like the policies of some bank accounts – often  provide no cover for pre-existing medical conditions.  Or the premium greatly increases once conditions are included.

On the other hand, specialist Travel Insurance providers have the expertise to offer the right cover at a sensible price.

ABTA recently revealed that  40% of British holidaymakers  went abroad in 2017 with the wrong cover. This led to a staggering  9.9 million travellers  being at risk of having their claim turned down last year! And if you need any more convincing about having specialist cover, consider these claim statistics:

• An air ambulance from the USA cost between  £80,000 – £100,000
• An insect bite cost one traveller a £136,000 bill
• Travel insurers pay out more than £1,000,000 every single day

Not got around to buying your travel insurance yet?

If you already realise the importance of travel insurance, but you just haven’t got round to buying it yet, have another listen to Martin Lewis:

“If you have booked your holiday, but don’t have travel insurance, do it tonight, otherwise you’re running a risk. Don’t leave it, that’s pointless.”

If you want your travel insurance to cover you for cancellation, have your policy in place  as soon as you book your holiday .   This important to get full protection, and for your own peace of mind. Read on for the reasons why…

To cover your pre-existing medical conditions:

If you have a  pre-existing medical condition , it can be vital that your travel insurance includes cancellation cover. If you have a last-minute medical emergency, you won’t want to lose out on the money you’ve spent if you can’t travel. Provided you declare all your medical conditions at the time you take out your policy, you should be able to recover your costs and re-book your holiday for when the doctor declares you well enough to travel.

To cover more than the GHIC

In the show, Martin also talks about the GHIC (then EHIC). He explains that Travel Insurance often includes cover for repatriation and cancellation (as well as lost or stolen baggage) – all of which you don’t get with a GHIC.

You can use the following checklist to make sure your Travel Insurance cover is comprehensive:

• Cancellation:  if you need to cancel your holiday before go
• Medical expenses : for illness and accidents when you are abroad
• Personal accident : for death or permanent disablement
• Curtailment : when needed to cut your holiday short
• Lost documents : cover for passports, tickets etc
• Possessions & baggage : for lost and stolen bags including contents
• Personal liability : when an accident caused by you affects a third party

So don’t take the risk – take out comprehensive travel insurance as soon as you’ve booked your holiday.

Which means all that’s left to do is enjoy your trip! And should anything happen..  your specialist insurance will take care of you 24/7  – wherever you are.

We hope to help you travel with peace of mind soon!

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Martin Lewis warns of travel insurance 'mistake' to avoid when booking your holiday

The Money Saving Expert said that his 'heart sinks' when holidaymakers come to him because the error means they can't get a refund from their airline

• 18:34, 12 JAN 2023

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Martin Lewis has issued a word of warning to anyone planning a trip abroad as peak holiday booking season gets under way.

The MoneySavingExpert founder shared a number of top travel tips in his latest newsletter - including how to steer clear of a "mistake" that many holidaymakers are guilty of when it comes to booking their holidays. This error, according to the finance expert, is leaving their travel insurance to sort out closer to the time.

Martin wrote: "Each spring without fail, someone asks me a heart-breaking question. Usually they've been diagnosed with cancer or another serious condition that needs long-term treatment, and they won't be able to go on their summer holiday.

READ MORE: Martin Lewis urges Brits to spend £1 now to save hundreds in the future

"Yet the airline won't refund them - within its rights as the ticket is not faulty," he explained. "I say, 'that's what travel insurance is for'. Sometimes though, they tell me they haven't got round to getting it yet.

"My heart sinks as I have to tell them there's no recourse. Half the point of the cover is to protect you if things happen that stop you going, so get it ASAB - As Soon As you Book."

Martin went on to explain the cheapest options for travel insurance based on what your holiday plans are. If you are planning more than one holiday this year, he advised, then you should opt for annual travel insurance as this will usually work out cheaper than booking insurance separately even for just two trips.

If you are only going away once, Martin suggested taking out single trip insurance - and shopping around a few providers to find the best one to suit your circumstances. Prices start at around £9 per week for one person travelling, with the cost depending on your age and where you're going - though prices can "rocket" if you are aged 66 or over or have a pre-existing medical condition, he warned.

In addition, the money expert advised seasoned travellers to check whether they can save money on travel insurance with a packaged bank account which offers protection for a monthly fee. "Used smartly, these can get you £100s of insurance at a fraction of the cost, beating standalone policies," he explained, suggesting Nationwide's FlexPlus as MSE's "top pick" which also provides mobile phone insurance and breakdown cover.

Finally, Martin urged holidaymakers to ensure they have a valid EHIC (European Health Insurance Card) or its replacement the GHIC (Global Health Insurance Card) card before they travel. These free cards entitle you to medical treatment in state-run hospitals and GPs in EU countries and Switzerland for the same price as a local.

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By Dan Whitehead , West of England and Wales correspondent

The number of second homes being put up for sale in one part of Wales has increased by more than 250% - as homeowners and businesses criticise the Welsh government's council tax premium.

Many councils in Wales now charge an inflated tax rate for second homes, up to 300%, with the aim of freeing up rarely used housing stock for locals and generating income.

In Pembrokeshire, the council tax premium increased to 200% in April, trebling the cost for homeowners and leading to many selling up.

Figures show that this July 135 second homes were listed for sale in the county, a rise of 255% compared to the 38 on the market at the same time last year.

Despite the influx of listings, actual sales are at a record low.

Estate agent Hamptons says second home sales accounted for just 4.5% of sales in Pembrokeshire in the first six months of 2024 - compared to 21% a decade ago.

Local agents say the properties coming onto the market are too expensive for first-time buyers - and that many homes are being listed in a loophole to avoid the increased tax.

Read the rest of Dan's report here:

Workers should still receive pensions from their employers, even if they don't pay into it themselves, a leading thinktank has said.

The Institute for Fiscal Studies has proposed employees should receive an employer pension of at least 3% of total pay, irrespective of whether they also contribute (currently you have to pay in to qualify for your employer to match you - the amount they contribute depends on the company).

But the proposed change would particularly benefit women, part-time workers, young adults and lower earners, it was suggested.

It could also benefit 22% of private sector employees who either opt out of their pension scheme, or who are not automatically enrolled due to their earnings being too low.

The age range targeted by automatic enrolment should also be widened from 22 to state pension age to 16 to 74 to try and help more people in paid work save for later life.

The IFS has also suggested default employee contributions should be targeted at people on average incomes and above, to help middle and higher earners better supplement their state pension.

For example, the IFS has suggested a 12% default contribution rate of earnings above £35,000.

Less than half of private sector employees who save into a workplace pension contribute more than 8% of their earnings, researchers said.

Our business presenter Ian King  investigated the retirement crisis facing the country earlier this summer - read his analysis here:

A scenic reservoir that went viral during the pandemic has gone up for sale (once again) and could be yours for £25,000...

Brombil Reservoir in Margam, Neath Port Talbot, saw a surge in visitors during COVID after millions viewed it on a TikTok about the UK's hidden gems.

In 2023 it first went up for sale for £75,000.

Speaking to the BBC at the time, estate agent Robin James said: "It's a one-off, to be honest, it's not something that's ever come up in the 24 years that I've been here."

Well, far from being a one-off, it appears to have spent more time on the market than off.

With a guide price equivalent to an average home in the area, it seems the sale didn't go as planned and its new owners put it back on the market (reportedly an hour after buying it).

The land was put back on the market on 27 February this year at £30,000 and was bought for half that on 11 March, according to the BBC.

Now it has a new guide price, of between £20,000 and 25,000.

But while it may seem cheaper than buying a house, it's not without its liabilities.

Samantha Price, who handled the sale for Watts & Morgan, told the BBC in March: "Brombil is actually high risk, because it is above residential units, so it's quite important that those items on that report are done within the set criteria."

Expedia has launched its first loyalty programme in the UK. 

The One Key scheme is available for free for travellers who book flights, holiday homes, hotels, car rentals and activities on the travel website as well as Hotels.com and Vrbo. 

It works by allowing you to earn a percentage of the programme's reward currency, called OneKeyCash, on purchases. 

You can also earn the currency with most airline loyalty programmes, meaning you can get the rewards and still claim your frequent flier miles.

£1 of OneKeyCash equals a £1 discount on eligible bookings. 

The amount you earn on each booking depends on whicj one of the four tiers you are on. 

You move through the tiers by booking more trip elements, e.g. flights, rental cars and hotels. 

With each higher tier, you can access better savings. 

The tiers are: 

• Blue members - save 10% or more with member prices.
• Silver members - five trip elements per year - access to savings of 15% or more; earn rate can reach 3% in OneKeyCash for stays at VIP access properties, plus a perk like food and beverage extras. 
• Gold members - 15 trip elements per year - save 20%; earn rate can reach 4% in OneKeyCash for stays at VIP access properties; a perk like food and beverage extras and room upgrades.
• Platinum members - 30 trip elements per year  - access to savings of 20% or more; earn rate up to 6% in OneKeyCash for stays at VIP access properties; perks like food and beverage extras and room upgrades. 

Here's an example: A family of five staying five nights in a holiday home, flights and a car for five days would equal 15 trip elements. This would then unlock Gold status. 

Or, a 10-night family holiday in a hotel, with flights, a rental car for 10 days, four activities and one airport transfer would equate to 30 elements, which would unlock Platinum status.

VIP access properties are stays that consistently receive high guest reviews on Expedia and meet the sites' quality standards. 

Your membership tier resets each calendar year. The smallest booking fee you are able to gain rewards on is £20. 

Your OneKeyCash will not expire as long as you earn or use it at least once in 18 months. 

It might be too soon to be talking about Christmas, but this is a bit of an early present for some retail workers...

More than 300 John Lewis and Waitrose stores will remain closed on Boxing Day and New Year's Day, despite the holiday being seen as a lucrative day for retailers.

It comes as there has been a growing call to give retail staff the time off over the festive period, with Home Bargains set to close all of its branches on Christmas Day, Boxing Day and New Year's Day.

Big brands, including Wilko and The Range, closed their stores on the 26 December last year, so there is potential for more to follow suit again this year.

Some premium Waitrose sites attached to petrol stations will remain open, and as well as the John Lewis in Trafford and Stratford shopping centre. 

The boss of Octopus Energy has said suppliers should "be helpful" to elderly people losing their winter fuel payments.

Greg Jackson, who founded Octopus in 2016, said while some people were receiving it who didn't need it, "there's grey area of people losing it that need it - that's where we can help".

Winter fuel payments will now be restricted to just those receiving pension credits, which means about 10 million people will lose out this winter. About 11.5 million people previously received it.

The government argues it is right to means-test the benefit, worth up to £300, in order to tackle what it calls a “black hole” in the public finances.

But it has prompted outcry, including from some Labour MPs, with critics pointing out that pension credit only tops up income to £11,300 a year for individuals, meaning many who do not qualify could still struggle to pay bills.

Mr Jackson, who has been vocal in his support for previous Labour policies, said: "In these transition periods, it's easy for people to kick and scream.

"Alternatively, companies and others can say: 'How do we make this work in a way that is best for Britain and, in our case, best for our customers?'"

He added that the government has got to "make difficult decisions. So now let's be helpful in making sure that when you make those decisions, we can look after the people who will be worst affected."

However, ministers should keep a "close eye on the impact" of the policy if this winter is colder than usual, Mr Jackson said, and be "ready to act" if more support is needed.

Last year, his company's UK energy retail arm took on £69m of costs to lower customer bills.

The comments come just weeks before energy bills are due to get more expensive, after Ofgem increased the quarterly price cap, meaning bills are set to increase an average of £149 from October.

The average price tag on a home has jumped by nearly £3,000 this month, according to Rightmove.

Across Britain, the typical price being asked for a home coming on to the market increased by 0.8% or £2,974 to reach £370,759.

The price increase has come because the housing market in general appears to be recovering - compared to where it was this time in 2023.

Mortgage rates have been edging down, property choice has grown and earnings are rising faster than inflation and house price growth, all contributing to a market rebound.

Rightmove said the average property is still taking 60 days to find a buyer, which is three days longer than at this time last year, suggesting that buyers are taking their time to find the right home at the right price.

This means homeowners shouldn't let the increased activity make them feel over-optimistic and should still price competitively to sell their homes.

By James Sillars , business reporter

The focus of financial markets this morning is firmly on the US central bank.

The Federal Reserve is widely expected to cut interest rates for the first time since early 2020 on Wednesday, signalling a long-awaited drop in borrowing costs ahead.

The easing in the inflation crisis, which was largely caused by Russia's invasion of Ukraine, and a slowdown in US growth is allowing the Fed to move.

But investors are increasingly pondering whether the rate-setting committee will opt for a bigger cut than the 0.25 percentage point reduction most had initially expected.

They cite data suggesting US rate policy is too restrictive given weakening economic fundamentals.

The effective split in market opinion over a 0.5 percentage point reduction pushed the dollar down against major currencies. It was trading a third of a cent lower versus the pound at $1.31.

As for stock markets, the FTSE 100 and US futures showed a fairly muted start to the week amid market closures for public holidays in China and Japan.

The FTSE was four points lower in early deals. Miners saw the main declines.

Analysts credited renewed economic weakness in China revealed in data over the weekend.

The Scottish Highlands could become the latest place in the UK to introduce a tourist tax.

If implemented, it would allow hotels, B&Bs, campsites and holiday lets in the hugely popular mountainous region to charge overnight guests an additional fee.

The money would be used by local councils to reinvest in services and facilities largely used by tourists and business visitors.

Last year, politicians in Scotland took the first step towards tourist taxes after passing the Visitor Levy (Scotland) Bill which allows councils that want to introduce a visitor levy to do so, after consultation with local communities, businesses and tourism organisations.

Highlands Council plans to start its three-month consultation later this year - with a price for the tax yet to be determined.

"Tourism is one of our most important sectors and the levy would form an essential part of how we sustain, maintain and develop the services and infrastructure which the sector relies on," Inverness councillor Ken Gowans said in favour of the tax.

"The upcoming consultation will give everyone the opportunity to put forward their views on how a levy scheme should operate and what the proceeds should be spent on."

The Highlands - which made National Geographic's Best of the World list last year - attracts millions of tourists annually and lays claim to hotspots such as Ben Nevis, Loch Ness and John o' Groats.

Various other UK cities have already implemented additional visitor fees, including Manchester, which charges £1 a night on most paid accommodation establishments across the city.

A £2 per room per night additional fee was implemented across Bournemouth, Christchurch, and Poole in July.

Under the Visitor Levy Bill, the earliest any form of tourist tax across Scotland could come into force would be spring 2026.

Every Monday we get an expert to answer your money problems or consumer disputes. Find out how to submit yours at the bottom of this post. Today's question is...

My holiday cottage cancelled my booking 24 hours before my holiday, there are no alternative options similar to what I booked for a similar price. Do they need to pay me for the extras of booking last minute? Dave

We asked Scott Dixon, AKA The Complaints Resolver , to answer this one...

The first thing you need to do is check the T&Cs and see what their cancellation policy is.

Do they allow a host to cancel a booking with only 24 hours' notice?

A trader cannot revoke a contract unless the T&Cs include a fair term that stipulates how and when they can do so - the Consumer Rights Act 2015 protects you here.

So are they in breach of contract?

If so, you can typically expect a full refund via the same payment method (you do not have to accept a credit note/vouchers), although that does not address the problem of finding alternative options comparable to what you booked at a similar price.

A refund would only cover the original price and any extras paid to restore you to the original position you would have been in before you entered into the contract.

If they won't give you a refund, as a last resort you can take your case to the Small Claims Court in England and Wales, or use the respective legal routes in  Scotland and Northern Ireland .

But again, legal action would only cover the original price you paid.

Go to third parties

If you booked the holiday cottage via a third-party listing site such as Airbnb, check their host cancellation policy. The listing site may levy penalties on the host if they have breached the cancellation policy.

If you booked it with a letting agent, you ought to be offered a full refund and possibly compensation. 

You could try and claim on any travel insurance policy you may have in place.

If you are struggling to get a refund, you can contact your bank or credit card provider within 120 days of payment and raise a chargeback to dispute the transaction.

Stress there has been a "breach of contract" under the Consumer Rights Act 2015, as chargebacks are often rejected on the first attempt.

Your bank or credit card provider will reverse the payment and give the holiday cottage provider an opportunity to present their case.

If you paid at least a deposit by credit card and the stay was more than £100 (likely to be the case), you can make a S75 claim under the Consumer Credit Act 1974 against the credit card provider who is jointly liable.

Again, you need to cite "breach of contract" under the Consumer Rights Act 2015 and push hard on it.

One route to get the additional compensation you asked about

If your credit card provider or travel insurance provider rejects your claim, ask for a deadlock/final response letter so you can refer your complaint to the  Financial Ombudsman Service .

This usually means that they need to restore you to the position you were in before you entered into the contract and whether it is appropriate to award compensation for any distress or inconvenience caused.

This feature is not intended as financial advice - the aim is to give an overview of the things you should think about.  Submit your dilemma or consumer dispute via:

• The form above - you need to leave a phone number or email address so we can contact you for further details
• Email [email protected] with the subject line "Money blog"
• WhatsApp us  here

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