The state is not there to pay for pampered poodles’ accommodation

The state is not there to pay for pampered poodles’ accommodation.”The Queen also indicated she would contribute to Prince and Princess Michael of Kent’s income in retirement, even if they move out of the flat after the end of the decade.The Prince and Princess issued a statement expressing “gratitude to the Queen for her generous support”. A spokesman added: “The times have changed and they acknowledge a need for change. But they are delighted that they will be able to continue their work for the diverse causes and charities which they cherish and, at the same time, have received an endorsement and encouragement to continue undertaking their public engagements.”The former home of Princess Margaret, who died in February, will be taken over by the Historic Royal Palaces, a self-funding charitable trust.As well as administering the Kensington Palace State Apartments, already open to the public, the trust manages the Tower of London, Hampton Court Palace, the Banqueting House in London’s Whitehall, and Kew Palace. Norman Baker, the Liberal Democrat MP for Lewes, said: “It’s welcome that this abuse of taxpayers’ money is ending but the subsidies that have been in place should now be repaid as part of this deal.

The Queen has agreed to pay this rent from her own funds for up to seven years,” Buckingham Palace said yesterday. “This is in recognition of the work in support of the monarchy and various charities that Prince and Princess Michael of Kent have undertaken at their own expense, and they have never received any public funding for their work.”Earlier this month, The Independent reported Prince and Princess Michael were paying a nominal rent despite calls for change this summer from the House of Commons Public Accounts Committee and opposition MPs.MPs welcomed the Queen’s intervention but called for all the subsidy since 1978 to be paid back. The money will be paid to a government fund used to maintain occupied royal palaces.”It has been agreed it is appropriate that rent should be paid on the apartment occupied by Prince and Princess Michael of Kent. She will pay £60,000 in 2003-04 and £120,000 a year afterwards for up to seven years. Buckingham Palace confirmed yesterday the Queen will pay market rent rates for the prime London property from next year from her private savings. The Queen has agreed to pay almost £1m rent to allow Prince and Princess Michael of Kent to stay in their apartment at Kensington Palace until the end of the decade, Buckingham Palace announced yesterday. But the Chancellor, Gordon Brown, is not committed to continuing them beyond 2004.

Internal linksPensions shake-up offers cash for delaying retirementHow proposals will affect your moneyIndustry gives cautious backing to overhaul of pensions regimeHamish McRae: We should rejoice in an ageing society, so long as we plan properly for itLeading article: The Government rests halfway up the mountain of pension reform. The difference is that restrictions are being scrapped to encourage you to continue working. Most people will ease off, and rely on their pensions, but the longer that moment can be put off the easier it will be for the individual – and the taxpayer.After all the pension scandals in recent years – the Robert Maxwell fraud and the Equitable Life disaster – why should I entrust my savings to the pensions people?The Green Paper will not make pensions safer. But if, as the proposals envisage, more of us work longer, that will have the effect of reducing our dependence on pensions.

It is certainly a good idea to put some money away elsewhere.Will this make any difference to my existing occupational scheme?Not directly, but the removal of the Minimum Funding Requirement will make it more attractive for employers to offer pension schemes, so yours should be more likely to survive than it was before.What do I do if my pension scheme goes belly-up?The Green Paper recommends the creation of a pensions regulator to focus on protecting the benefits of scheme members, anticipating problems and watching out for instances of fraud or incompetence.Are there any alternatives to pensions?Yes, individual savings accounts (ISAs) make more sense for many, as you can put up to £7,000 a year into them and all capital gains, dividends and interest are tax-free. But if you do not want to do that, you can retire at the normal age. Look out for the next step, to raise the retirement age to 70, which will make it compulsory to keep working or look to social security benefits to bridge the gap.What if I’m incapable of working beyond 65?You will receive the state pension and any private or occupational pension, as now. The proposals also take off some of the pressure to save so much – but only because it will be easier to carry on working beyond age 65. If you want to stop working earlier than that, you simply have to save more.I’m 65 next year.