There is a bill going through Westminster about better financial regulation within the United Kingdom. When the Financial Services Authority was set up it was designed to better regulate what had previously been industry self regulation of differing financial products and agencies within the United Kingdom so that one of them using the stock market could cause it to crash and higher inflation as p...art of a managed macro econimic policy of stable growth and low inflation. However as part of the realignment within the financial sector now that regulation is comprehensive and possible rising bills in the micro economy there is a risk from teh payday loan sector for those on low incomes, be it shops or websites.

These are the equivilant of credit cards but on equal or even higher rates of interest should you default on them. The people who are in this situation unless they are on state income support and then able to get a grant from the social fund for a debt relief order or bankruptcy are in real financial problems and need to speak to the money advice service www.moneyadviceservice.org.uk and a financial advisor at the citizens advice service who can help them with claims for rent and council tax benefit, credit union support / grant through the civic centre of the local authority and where necessary help with emergency food through the Foodbank Charity based within the churches.

At present the Jersey government is seeking to become totally independent from the United Kingdom if its way of earning a living (like the other crown dependant islands Guensey and Sark nearby) in terms of being a tax haven is removed by at statute at Westminster that has no representation in the elected house at present from them.

The channel islands have like other locations in the past been the equivilant of English Speaking Genevas who have stored and by having low taxes increased the wealth of individuals and companies so that these amounts can be withdrawn for use in their home nation for shares and businesses, the old adage of wealth being 'passed down the generations' for things such as rail infrastructure, privatised utilities and the like.

However in the past these laws have allowed for arms dealing and funding of related industries outside of lawful defence of nation states under the UN and international law that is recorded so as to prevent arms proliferation and ensure that nuclear energy is regulated by teh IAEA.

As such what could happen:

1) Constitutional unity within the Channel Islands in order to stabilise those states under teh Crown
2) Absorbtion into teh UK as part of a federal constitution with representation

How to avoid the bankers problems and survive

1) Retail banking is protected and is being more so your wages and benefits going there are ok, savings up to £50,000 are protected under FSA guidelines (though the DWP rules that savings over £16,000 are regarded as taxable an you lose income support an have to pay for your own basic health care (dentistry, chiropody, and in England prescriptions tho...ugh there is a NHS prepayment certificate).
2) Speak to your housing benefit officer at the council and ask that in defence of your credit rating you want like the ill and elderly for your benefits to be paid in the following way:
a. Housing and council tax direct to the landlord and local authority so that you or your kids don’t overspend and end up on rent arrears.
b. Income support into a savings account
c. DLA into an account that can pay for your carer and treatment / transport where there is less concessionary travel than greater London (ie less frequent trains and buses and not the Freedom Pass) and you can ensure through the citizens advice / law centre that where they need help they and you have a contract of employment / taxi account as well.
d. Main benefit (ESA, Income Support, Incapacity Benefit) into a current or savings account with debit card to pay for utilities, food and the like.
e. Family allowance and Child benefit to the mothers account for paying for childcare and household expenditure so that the household functions.

That way the landlord can invest and maintain the property and if housing budgets aren’t raided, invest in new shared ownership properties which maintains the housing stock and allows for purchase of properties where insurance can’t meet the repairs for flood damage as part of its statutory duties (same for housing associations), you maintain day to day expenditure and can save for holidays if you don’t qualify for respite care.

3) Shares and unit trusts and other investments are regulated by the FSA / Financial services Commission (being reformed)
4) There are credit unions for lower interest on borrowing and higher for savings. These are counted in some local authorities as ‘protected assets’ which enable the council to borrow against for infrastructure (but not more current expenditure) depending on devolved assembly and government guidelines.

shares are allowed and permitted as savings for those on sickness benefits. Responsible ones (ie those who've been given taxation advice at teh dwp, now on www.direct.gov.uk, www.hmrc.gov.uk) within the UK tax jurisdiction keep these within permitted limits, but in the past these have been 'tips of the iceberg' for investments overseas. These are quite lawful ways of 'blind trusts' and charities to provide ongoing support for people such as injured soldiers.

also theres the money advice service

www.moneyadviceservice.org.uk