'Bedroom Tax' To Hit Thousands Of Families

By Emma Birchley, East Of England Correspondent

Thousands of families living in social housing are facing a cut in their benefits from April because they are seen to have too big a home.

The under-occupation penalty, dubbed "the bedroom tax", aims to encourage households to downsize if they have spare rooms, freeing up their properties for larger families.

But council house tenant Eddie Bird says the policy fails to take into consideration individual cases. His wife Shirley has terminal cancer, and weighing just five-and-a-half stone, needs her own room.

"Any form of movement on the bed and it affects my wife. She's in constant back pain," said Mr Bird. "There's no room for separate beds so I sleep in the box room."

They have been told they will lose nearly £14 a week in benefits.

"It's going to affect my wife's quality of life. We have a Motability car but if we can't afford to put petrol in it, we can't go on any day trips."

The Government hopes the policy will make better use of almost a million rooms that are not used and help reduce the £23bn housing benefit bill.

Eddie Bird says he will lose out despite his wife having terminal cancer

Communities Secretary Eric Pickles said: "We've put a fairly sizeable sum aside to be able to ensure that those kind of cases can be paid for.

"But the general idea that there has to be a limit on the amount of benefit that people receive I think is a correct one.

"And these are exactly the same kind of rules that have existed in the last few years in private rented (accommodation), so we are applying to public housing.

"If it was good enough for private renting, it's got to be good enough for public housing."

But critics question how you can penalise tenants for not moving somewhere smaller when there simply are not enough suitable sized properties available.

It is something the Coast and Country Housing Association has seen in South Teesside. They have 10,000 properties but only two one-bedroom apartments available.

Chief executive Iain Sim said: "We had the pasty tax last year - this is the nasty tax. This is hitting people directly who through no fault of their own are under-occupying the property that they live in.

"The cut in their benefit will range from 14% for one room up to 25% for two rooms. That's a loss in income of between £10 and £22 a week. That's a lot of money to take from people with very limited incomes."

The change is expected to affect 660,000 claimants.

Some households will be exempt if, for example, a non-resident carer for a disabled person helps at the home overnight.

But as Eddie and Shirley Bird are married they will not be eligible for this exemption. Their only hope is that they will qualify for financial assistance from a fund called the Discretionary Housing Payment scheme, but it is not guaranteed.

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Ski Death: Tributes Paid To UK Schoolgirl

Tributes have been paid to a girl who died after falling from a ski lift during a school trip to the Italian Alps.

The 13 year-old girl, named in reports as Poonam Bhattal from Slough, in Berkshire, was "a beautiful girl" who will be "dearly missed", friends said on Twitter.

One user, @jaskiretxo, said: "Poonam Bhattal a beautiful girl who we were all so lucky to have known, may our thoughts be with Amreeta and her family. RIP beautiful xox".

Another, @TharanVirdi said: "Poonam, You will be dearly missed, thoughts and prayers go out to your family. Waheguru #gonetoosoon #RipPoonam x".

Italian police in the resort of Claviere have spoken to her classmates who said the teenager's skis had crossed with the person sitting next to her, causing her to slip.

The friends said they had ''tried to hold onto her'' but she slipped off. Investigators say she started to slip while about six feet from the ground but eventually fell further up just as the lift operator stopped it after hearing screams.

The schoolgirl was having ski lessons with classmates from the Guru Nanak Sikh Academy in Hayes, Middlesex, when she got on the chairlift around 9.30am.

Although Poonam initially survived the fall, she died while on her way to a hospital 25 miles away in Susa.

Local police commissioner Francesco Destro told Sky News: "The ski lift was moving very fast and rising fast when she fell." He said he could not recall a similar accident.

Mr Destro added that the girl initially answered questions when officers rushed to her aid but "did not make it".

The school's principal, Rajinder Singh Sandhu, broke the news of the teenager's death to her family.

In a statement, he said the half-term excursion was led by the deputy head of the school with the help of two assistant head teachers and "a massively experienced team of eight staff".

"The leader of this trip and everyone associated with it is devastated by the death of an absolutely lovely student."

Skibound, the company which organised the trip, confirmed the report, saying in a statement: "The thoughts and condolences of all at Skibound are with the family, school and friends. All our efforts are focused on ensuring they are supported in any way possible through this very difficult time."

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US Snow: Storm Leaves Four Dead In America

At least four people have died after a massive snow storm blanketed much of central US, causing road accidents and disrupting travel.

The winter storm, which prompted tornado warnings, affected millions of people in 24 states before the system petered out over the Great Lakes.

Places in Kansas and Missouri saw a foot (30 centimetres) or more of snow, with emergency crews spending hours digging out and clearing miles of roadways.

Gusty winds and snow-covered roadways made commutes dangerous.

Local television cameras in Kansas City, Missouri, captured a large bus slipping in the snow and crashing into a large lamppost. No one was hurt.

A man stands next to his trapped car in Kansas City, Missouri

In Gladstone, also in Missouri, a dance studio's roof collapsed from the weight of snow.

Further north in Cincinnati, Ohio, slippery roads meant a dangerous situation many drivers. One lorry ended up partially hanging off an overpass of a busy road after the driver lost control.

In Cleveland, Ohio, a Continental Airlines plane skidded off runway, ending up resting on its nose, but no one was hurt.

A family attempts to clear a driveway in Overland Park, Kansas

Scattered power cuts were also reported as ice weighed down power lines and strong winds knocked down trees.

Roads and even major highways became completely impassable in some areas

The Minnesota State Patrol blamed the snow for over 500 accidents on Friday.

One driver was killed when she lost control, came to a stop in oncoming traffic and was broadsided by another vehicle in a St Paul suburb.

A 12-year-old boy died from injuries suffered in a collision on an icy highway in northern Nebraska.

A woman in Iowa was run over by her car, which had gotten stuck on her steep, slippery driveway. And a 70-year-old woman from Kansas died after her car slid and collided with a train.

Nobody was hurt when a plane skidded off the runway in Ohio

The National Weather Service said as much as 17 inches of snow had fallen in parts of Colorado and Kansas.

Over the weekend, a second system of winter weather is expected from the Gulf of Mexico - smothering parts of the East Coast with up to two feet of snow on Saturday and Sunday.

The governor of Missouri declared a state of emergency as the storm lashed the midwestern state with a dangerous mix of ice and snow.

A dance studio's roof collapsed under the weight of the snow in Missouri

"I urge all Missourians to keep a close eye on the weather and avoid unnecessary travel," Governor Jay Nixon said.

The state of Kansas shuttered government offices on Thursday to keep non-essential workers off the treacherous roads and scores of business owners and school officials followed suit.

The blizzard conditions were so intense in some areas that snow ploughs were getting stuck and ambulances had trouble getting patients to hospitals.

The storm comes after play at the World Golf Championships-Accenture Match Play Championship in Tucson, Arizona, had to be postponed after a blizzard covered the course.

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Italy: Briton Held Over Tour Guide Murder

By Nick Pisa, Sky News Reporter

A Briton has been arrested in Italy for the murder of a tour guide and the attempted killing of another man.

Jason Peter Marshall, 24, was held by police early on Saturday after they traced him through his mobile phone signal to a late night bus.

Police believe he met both men through gay internet chat rooms.

He was arrested after a 55-year-old man was found severely beaten in the bedroom of his apartment in central Rome, following calls to police when neighbours heard screams and calls for help.

When officers arrived on the scene, the victim identified Marshall as his attacker and described how he had been threatened with a gun, badly beaten with a telescopic cosh and smothered with a pillow.

Marshall is said to have fled the apartment with €400 (£348), credit cards and the victim's iPad as he allegedly tried to erase all traces of contact between him and the victim.

Marshall, who is originally from Greenwich, southeast London, is said to have arrived in Italy last month and police in Rome have confirmed he is also the prime suspect in the murder of tour guide Vincenzo Iale.

The 68-year-old was found strangled and stabbed to death in his flat at Torvajanica, on the outskirts of Rome, four weeks ago with his bank card missing.

Police said Marshall was being held in Rome's Regina Coeli jail on suspicion of murder, attempted murder, kidnap and possessing offensive weapons.

Sources said the victims had been targeted through gay internet chat rooms.

A Rome police source said: "This could easily have been a double murder investigation and the second victim - although badly hurt - can think himself lucky he is not dead."

No one from the British Embassy in Rome was immediately available for comment and Marshall is expected to be questioned further by prosecutors ahead of appearing before an investigating judge.

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Exclusive: RBS Mis-Selling Bill To Add £1.1bn

By Mark Kleinman, City Editor

The state-backed Royal Bank of Scotland (RBS) will next week set aside another £1.1bn to compensate customers for mis-selling products to consumers and small businesses.

I can reveal that the bank is preparing to say in its full-year results announcement next Thursday that it is increasing its provision for mis-selling interest rate swaps by roughly £700m, which will take its cumulative bill to £750m.

City sources say that RBS will also announce that it is raising its payment protection insurance (PPI) mis-selling bill by just over £400m, meaning it will have put aside just over £2.1bn for its part in the industry-wide scandal.

The new provisions will further elevate the total bill for Britain's biggest banks from two of the sector's biggest mis-selling episodes. RBS's new PPI charge will mean that the four major lenders have had to provide more than £11bn for compensation, while its hit on interest rate hedging products will enlarge the industry bill to £1.6bn.

Neither of those figures will, however, include imminent upward revisions in both categories by both HSBC and Lloyds Banking Group, which also report full-year results in the next ten days.

Both RBS and Lloyds, which are 82% and 39% owned by British taxpayers respectively, will report losses for 2012.

RBS is also expected to confirm that it is examining a separation of its US retail banking business, Citizens, through a stock market listing in the US, in a move that over time could raise billions of pounds for the British lender.

George Osborne, the Chancellor, is likely to welcome the move when he appears in front of the Parliamentary Commission on Banking Standards on Monday.

Both Mr Osborne and David Cameron have been increasing the pressure on RBS's management, led by chief executive Stephen Hester, to accelerate the group's restructuring.

Mr Hester is expected to respond next week by pointing to a further retrenchment of its investment banking operations. RBS, he is understood to be preparing to say, will continue to reshape its operations into a British retail bank that is also able to support the international business objectives of core UK clients.

The new provisions for PPI and swaps mis-selling will reflect ongoing claims trends and the recent agreement between the major banks and the Financial Services Authority to offer redress to small business customers according to a defined framework.

Barclays added another £1bn to its own mis-selling tab when it reported its full-year results earlier this month.

The major banks have grudgingly accepted the swaps settlement with the City regulator although they have argued that many of the cases for which they will have to pay compensation should not be categorised as mis-selling.

They have also pointed to the vast numbers of bogus PPI claims they have received, many of which have been paid out anyway. The industry has been discussing the imposition of a time limit on PPI mis-selling claims although at least one major bank is lukewarm about the idea.

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Teen Dies After Being Sucked Into Drainpipe

A teenage boy has died after being sucked down a drainpipe while he was collecting golf balls in floodwaters.

The body of Luke O'Neill, 17, was found by his friend while he was scouring reeds near the exit of the drain at the Kew Country Club in New South Wales, Australia.

Police said Luke was in waist-deep water scooping golf balls with some friends when he was suddenly dragged into the large drainpipe by the force of the water.

The area has been hit by heavy rain

A 16-year-old, who has not been named, was also pulled into the pipe as he tried to find Luke at the drainpipe entrance, according to The Sydney Morning Herald.

He travelled under water for the length of the 100m pipe but ended up in a dam at the other end where he was able to escape.

Inspector Kim Fehon, from the Mid North Coast local area command, said: "They were just looking for the golf balls, it was a regular thing they did."

Luke, who was a member of the Camden Haven Bombers AFL club, was described by a member as a very gifted and "wonderful boy".

Committee member Chris Wright said: "He was the type of kid who could turn his hand to anything."

Torrential rain and gales have battered the Mid North Coast region for the second time in a month.

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Pistorius: Oscar 'Will Never Be The Same'

Oscar Pistorius says he just wants to "be alone" since his release on bail and is feeling "a lot of remorse" over the death of his girlfriend Reeva Steenkamp.

The Olympic athlete is staying at his uncle's home in Pretoria after a court banned him from returning to the luxury home where he shot Ms Steenkamp through a bathroom door.

His spokeswoman in South Africa told Sky News: "He told me, 'I just want this time to be alone'. He is in his room, he's spending time alone and he's feeling a lot of remorse."

Barry Steenkamp, left, at his daughter's funeral

The athlete's family has also released a new statement, saying: "Oscar will never be the same ... having to live with the knowledge that he caused the death of the woman he loved, and that he can never undo the immense pain and loss this has caused Reeva's family and friends".

His uncle Arnold added: "We are acutely aware of the fact that this is only the beginning of a long road to prove that, as we know, Oscar never intended to harm Reeva, let alone cause her death."

Pistorius, 26, is accused of premeditated murder after the Valentine's Day shooting. He denies murder.

Lawyers for the defence and prosecution are starting work on the trial phase of a case that is likely to grip South Africa and the world, with the next hearing set for June 4.

The athlete arrived at his uncle's house on Friday after paying 10% of his one million rand (£73,000) bail at Pretoria's Brooklyn police station, where he had been held for a week.

Ms Steenkamp was killed on Valentine's Day

Meanwhile, Ms Steenkamp's father has told a South African newspaper that Pistorius will "suffer" if he is lying about how she died.

The Beeld newspaper quotes Barry Steenkamp as saying Pistorius will have to "live with his conscience" if his assertion that he accidentally shot the 29-year-old law graduate is false.

Horse trainer Mr Steenkamp said he might be able to forgive Pistorius one day if the double-amputee Olympian is telling the truth.

Her mother said that Pistorius' family had sent a card and flowers offering condolences for the death of her daughter but she added it meant little because: "They are not to blame."

Pistorius is staying with his uncle Arnold

However, Mike Steenkamp said the timing of the family's actions was poor and that they had not initially tried to contact Reeva's bereaved parents.

Chief magistrate Desmond Nair approved bail for Pistorius on Friday at the end of a two-hour summary in which he found the accused was unlikely to skip bail, be violent or approach any witnesses.

Nair said he had been influenced by Pistorius' decision to submit a detailed affidavit, in which he claimed he accidentally shot Ms Steenkamp through the bathroom door at his home in the east of Pretoria, thinking she was an intruder.

Under his bail conditions Pistorius must surrender any firearms and his passport and can not enter any international departure hall.

Ms Steenkamp's friend Kim Myers attended the bail hearing on Friday

He is also is banned from using any prohibited substance or alcohol and must report to police twice a week as part of his bail conditions.

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British Man Drowns At Egypt Resort

A British man has drowned while swimming in the sea off the popular Egyptian resort of Sharm el Sheikh.

A British embassy spokeswoman in Cairo confirmed that the 50-year-old had drowned while swimming on Friday.

However, she said she could give no further detail on the circumstances surrounding his death.

The Red Sea resort of Sharm el Sheikh

Sharm el Sheikh is one of the main Red Sea resorts and attracts millions of tourists each year.

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AAA Credit Rating Lost: Osborne Defiant

George Osborne has come under attack over what Labour calls his "catastrophic economic policy failure" after the UK lost its top-grade AAA credit rating.

International agency Moody's downgraded it by one notch to AA1, citing slow growth and a rising debt burden.

The Chancellor said the coalition would not "run away" from its economic problems and it was determined to stick by its plan for recovery.

The downgrade is a major blow for Mr Osborne, who has been coming under increasing pressure to take action to stimulate the economy.

In the last election, Mr Osborne made safeguarding Britain's credit rating one of his key pledges.

He has used maintaining the rating for government bonds as one of the main arguments for the Government's austerity programme.

The Chancellor insisted the Government was delivering on its commitment to tackle the UK's debt.

He said: "We have a stark reminder of the debt problems facing our country - and the clearest possible warning to anyone who thinks we can run away from dealing with those problems.

"We are not going to run away from our problems, we are going to overcome them."

He added: "In the end, the test of our credibility as a country is there every day in the markets when we borrow money on behalf of this country from investors all around the world.

Moody's said it did not expect Britain's slow recovery to change

"At the moment we can do that very cheaply with very low interest rates precisely because people have confidence that we have got a plan, we've got to stick to that plan and we are going to deliver that plan."

Labour's shadow chancellor Ed Balls told Sky News: "They (the Government) are paying the price for an absolute catastrophic failure of economic policy and everybody can see that now pretty much other than the chancellor and the prime minister.

"Until they face up to reality, we're just going to have more of the same."

Moody's said Britain's recovery was proving to be significantly slower than previous rebounds from recession and it did not expect the situation to change.

"(There's) increasing clarity that, despite considerable structural economic strengths, the UK's economic growth will remain sluggish over the next few years," it said.

Moody's is the first of the major credit rating agencies to knock the UK off of its top rating.

The ratings agency also cut the Bank of England's AAA rating by one notch, also to AA1. The US' top credit rating was downgraded by one notch in 2011.

Sky's Economics Editor Ed Conway said: "The fact that Britain has lost its AAA crown for the first time since credit ratings were given to the UK back in the 1970s, is a really big blow to Britain's reputation.

"It's something of an economic blow, but in a way it's more of a political problem for George Osborne. He made a key part of the Conservative election pledge to safeguard Britain's credit rating."

Moody's said that the British economy is constrained both by the troubled global economy and the drag from businesses and the Government slashing its debt burdens.

"Moreover, while the Government's recent Funding for Lending Scheme has the potential to support a surge in growth, Moody's believes the risks to the growth outlook remain skewed to the downside," it said.

Labour has insisted that withdrawing demand from the economy has put it more at risk by stunting growth.

Mr Balls said: "This credit rating downgrade is a humiliating blow to a prime minister and chancellor who said keeping our AAA rating was the test of their economic and political credibility.

"In the Budget the government must urgently take action to kick-start our flatlining economy and realise that we need growth to get the deficit down. If David Cameron and George Osborne fail to do so and put political pride above the national economic interest we face more long-term damage and pain for businesses and families."

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Banksy's Missing Mural Set To Make A Mint

A Banksy mural that was removed from the side of a Poundland shop under mysterious circumstances is expected to sell for up to £460,000 at auction.

Slave Labour, which shows a young boy hunched over a sewing machine making Union Flag bunting, appeared on the wall in Wood Green, north London, last May, just before the Diamond Jubilee celebrations.

But the mural by arguably the world's most famous graffiti artist disappeared last weekend and is now being sold thousands of miles away in Miami, despite pleas from Wood Green residents who are upset by its disappearance.

Fine Art Auctions (FAA) featured the artwork on the front page of its website ahead of its Modern, Contemporary And Street Art sale.

The auction house expects Slave Labour to reach between $500,000 (£328,063) and $700,000 (£459,288).

A rat holding up a sign saying "Why?" has been stencilled next to the empty space where the mural stood, with some speculating it could be another work by Banksy.

What was once art was turned into a hole in the wall

The disappearance of the Banksy graffiti prompted Haringey Council to launch a campaign to bring it back to the UK.

The council has called on the Arts Council and Culture Secretary Maria Miller to intervene. So far however, they have not succeeded in halting the US auction.

Councillor Alan Strickland said: "The community feels that this artwork was given to it for free, and that it should be kept in Haringey where it belongs, not sold for a fast buck.

"This is an area that was rocked by riots less than a year before this mural was painted, and for many in the community the painting has become a real symbol of local pride."

The council is investigating how the removal of the mural occurred, but a Metropolitan Police spokesman said: "There have been no reports of any theft.

"It appears there has been a decision by someone to remove it for sale - there is no suggestion of any crime being committed."

A solicitor for property firm Wood Green Investments, which owns the Poundland site where the Banksy was painted, told the Financial Times: "If they deny removing the mural they will become embroiled in an international criminal investigation that has already involved the FBI.

"But if they admit to consenting to (its removal) then they will become the target of abuse. As a consequence, the advice to my client has been to say nothing."

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