Riot Payouts: Victims 'Failed By PM And Mayor'

Labour has accused David Cameron and Boris Johnson of breaking promises to more than 130 victims of the London riots who have made compensation claims but are yet to receive a single penny.

The Opposition said of all the claims, less than 16% of the requested cash has been paid out more than two years after violence and looting broke out across the capital.

Shadow home office minister Steve Reed, who uncovered the figures through freedom of information requests to the police, claimed  the riot victims felt "abandoned and ignored by the Government and the Mayor of London".

"With the eyes of the country on him, David Cameron promised the victims of the riots they would not be forgotten and would not be left out of pocket," he said.

"It's disgraceful there are still residents and business owners in London facing financial hardship because they have received either too little compensation or nothing at all."

But a spokesman for Mr Johnson's mayoral office for policing and crime said it was "simply untrue to say that people are yet to receive a penny" following the violence.

A carpet showroom in Tottenham was among the buildings torched

"All of the outstanding claims are either funds owed to insurance companies, or to settle under-insured elements of claims," he said.

"Everyone who wasn't insured and made a valid claim has been paid, and over 96% of insured claims have been settled. Only the most complex cases remain.

"In the last year the number of outstanding claims has reduced by over two thirds. During the summer the Deputy Mayor for Policing and Crime met with a number of claimants and the insurance industry to hear their concerns and to help resolve the final issues around remaining cases, so that they are moved forward in a timely manner."

Policing, Criminal Justice and Victims Minister Damian Green said the Met police and the Mayor's office were "working hard to resolve" the outstanding claims "as quickly as possible".

He added: "In order to make sure the compensation is as quick and efficient as possible in future, the Home Secretary commissioned an independent review in to the Riot Damages Act, which made several recommendations. We will be launching a public consultation on next steps early this year."

The figures released by the Met showed 3,447 claims had been made by March 31, 2013, and 3,535 claims by November 6, 2013. By March 31, 2013, £250.1m had been claimed, and by November 6, 2013, claims had reached £299m.

Cash totals paid out by the Met Police were £35.8m(14.3%) on March 31, 2013, and £46.9m (15.7%) on November 6, 2013.

The total number of outstanding claims on November 6, 2013, was 133.

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Madeleine McCann Parents In Court Setback

A request by Madeleine McCann's parents to give evidence at a Portuguese libel trial over a book by a former local police chief has been rejected, according to a family source.

Kate and Gerry McCann are suing Goncalo Amaral over claims he made in The Truth of the Lie, which they say damaged the hunt for their missing daughter and greatly added to their anguish.

The McCanns are also taking legal action against his publisher and the makers of a documentary based on the book.

They had wanted to testify in the court case, which is taking place in Lisbon.

Goncalo Amaral at the launch of his book in 2008

But a family source said permission had been refused ahead of the next hearing date, which is on Tuesday.

The couple are said to be disappointed by the decision, and their lawyer Isabel Duarte is likely to appeal against the judge's decision.

An application by Mr Amaral to give evidence is also understood to have been turned down.

Mr McCann's sister Trish Cameron told the court last October that the family's pain over Madeleine's disappearance was "multiplied 100 times" by the book, while the trial previously heard how Mrs McCann had considered suicide in the aftermath of its publication in 2008.

Madeleine McCann disappeared from her family's holiday apartment in 2007

Madeleine's mother travelled to Lisbon at the start of the trial, and her husband has attended several times in the hope of being able to give evidence.

Madeleine, who was then nearly four, disappeared from her family's holiday apartment in Praia da Luz in the Algarve on May 3, 2007, as her parents dined at a nearby restaurant with friends.

British detectives launched a fresh investigation into the youngster's disappearance in July this year - two years into a review of the case - and made renewed appeals on television in the UK, the Netherlands and in Germany.

After shelving their inquiry into Madeleine's disappearance in 2008, Portuguese authorities said in October that a review had uncovered enough new information to justify reopening it.

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Mark Denton: Two Men Charged With Murder

Two men have been charged with the murder of Mark Denton, who died from serious injuries in Hartlepool on New Year's Eve.

The pair, aged 21 and 23, will appear at Teesside Magistrates' Court today, said a statement from Cleveland Police.

A 17-year-old has been released without charge.

Police said Mr Denton had been at a party in Hutton Avenue, Hartlepool, on December 31.

Officers cordoned off the property on New Year's Day to carry out a forensic examination.

Police cordoned off a house in Hartlepool on New Year's Day

Mr Denton's family said his death had left them "devastated and heartbroken".

A statement said: "He was a loving uncle, brother, son and boyfriend and he will be sadly missed by everyone.

"Our hearts will never heal from the loss of Mark, he was a larger than life character and our loss is immeasurable."

Mr Denton is understood to be have been a promising middleweight amateur boxer when he was younger and was well-known in the local boxing community.

A Facebook page has been set up in tribute to him.

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Mental Health Nurses In Police Stations Pilot

A £25m pilot scheme aimed at reducing reoffending by mentally ill criminals will place mental health nurses in police stations and courts.

Police officers spend an estimated 15% to 25% of their time dealing with mental health problems - the equivalent of around 26,000 officers.

But the pilot, which is to be tested in 10 areas across England, will mean that people with mental health problems will be treated "as early as possible".

Care and support minister Norman Lamb said identifying people with mental health needs who come into contact with the criminal justice system at the earliest possible stage will help to "divert" them away from offending again.

He said that "too often" criminals with mental health problems, learning difficulties or substance misuse issues are only diagnosed once they reach prison.

The majority of people who end up in prison have a mental health problem, a substance misuse problem or a learning disability, and one in four has a severe mental health illness such as depression or psychosis, a Department of Health spokeswoman said.

Care and Support Minister Norman Lamb (front) at a police station

According to the Mental Health Foundation, more than 70% of the prison population has two or more mental health disorders and the suicide rate in prisons is almost 15 times higher than in the general population

Over the next year, the money will be used to join up police and courts systems with mental health services in Merseyside, London, Avon and Wiltshire, Leicester, Sussex, Dorset, Sunderland and Middlesbrough, Coventry, south Essex and Wakefield.

Mentally ill people, as well as those with substance abuse problems and learning disabilities, will be assessed when they come into contact with police.

The information will be shared with officers and the courts system to ensure charging and sentencing decisions take into consideration a person's health needs, the spokeswoman said.

It will also mean treatment is given sooner which will help stop reoffending, she added.

Paul Jenkins, chief executive of charity Rethink Mental Illness, said: "All too often, the way our criminal justice system deals with people with mental health problems leads to poor outcomes for individuals, frustration from police officers, magistrates and others, and such a waste of resources as people are needlessly sent to prison through a failure to respond to some of the underlying issues in their lives.

"We welcome this initiative, which has the potential to stop people going unnecessarily to prison, reduce reoffending rates and save millions in taxpayers' money."

If the pilot is successful, the measure will be rolled out across the rest of the country by 2017.

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New Year: 'Multi-Sensory' Fireworks For London

Revellers in London have been treated to the world's first "multi-sensory" fireworks display as people around the world welcomed in the New Year.

More than 250,000 people lined the Thames for the display, which saw peach snow and orange-scented bubbles descend on a section of the crowd.

Fireworks explode over Edinburgh Castle

In Scotland, about 80,000 were in Edinburgh city centre for the famous Hogmanay street party.

There was music from the Pet Shop Boys as well as traditional Scottish sounds at an outdoor dance event.

But those venturing outside to welcome in 2014 were contending with some horrible weather - with the Met Office issuing more than 100 flood alerts.

Thousands enjoyed the celebrations in London

Spectators in London said the show was the best ever.

Harriet Dudley, from Brighton, said: "This was the best ever show and I'm so glad I came to watch - I feel so emotional. It was, like, four-dimensional."

Referring to London's show, Mayor Boris Johnson said: "There is no better way to celebrate the highs of 2013 and the start of an exciting new year than by seeing one of the world's most dazzling firework displays, now augmented in more ways than one.

Dubai's fireworks display is billed as the largest ever

"Watched by millions around the world, and hundreds of thousands of people from the banks of the Thames, it highlights our capital's fantastic community spirit and its premier position on the global stage."

Up to 100,000 people in key viewing areas by the Thames were given packs featuring scratch 'n' sniff programmes and LED wristbands.

They also had seven kinds of fruit-flavoured sweets that linked to the tastes and smells of the multi-sensory display.

Peach snow and orange-flavoured bubbles descended in London

The UK celebrations were among displays from around the world including the largest ever fireworks display in Dubai.

The six-minute extravaganza included 500,000 fireworks from 400 firing locations, all synchronised by 100 computers from stations across the city.

Spectators said the show was better than last year's

Later, there will be a celebration parade in London which features music from around the globe.

It leaves from the Ritz Hotel at noon before winding through Piccadilly, Pall Mall and Trafalgar Square and ending in Parliament Square.

Fireworks in Moscow

About half a million people are expected to attend.

Those attending the event may have to contend with a miserable start to the year, weather-wise, with rain and strong winds predicted.

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Cornwall: New Year Paddler Swept Away By Sea

A major search is under way for a person who was swept out to sea after going for a New Year's Eve paddle with friends.

They were in the sea at Loe Bar, near Porthleven, Cornwall when the missing person, who has not been named, was swept off their feet by a large wave.   

One of the group alerted Falmouth Coastguard, which mobilised rescue teams from Penzance, Porthleven, Mullion and Porthoustock, and RNLI lifeboats from Penlee and Lizard.

A helicopter from RNAS Culdrose also helped in the search in atrocious conditions.

Phil Mathias, Falmouth Coastguard watch manager, said: "The weather for searching has been particularly challenging and as the night has gone on, conditions have deteriorated."

The search was suspended at 4.30am, but resumed at first light with fresh search teams.  

Meanwhile, a woman has drowned after being swept out to sea off the north Devon coast.

A coastguard helicopter and lifeboat crews were sent to find the unnamed woman, who was pulled from the water at around 1pm on Tuesday.

"She was airlifted to North Devon District Hospital where attempts to revive her were sadly unsuccessful," a Devon and Cornwall Police spokesman said.

The woman, thought to be a holidaymaker visiting Croyde Bay, was swept out in rough waves near Braunton.

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Online Music Streaming Doubles In UK In 2013

Online music streaming in the UK has doubled in the last year, according to new figures.

But that has come at the expense of album sales, which have seen an overall dip during 2013 due to the decline in CD sales as people turn to digital listening.

Research by music trade body the British Phonographic Industry (BPI) and the Official Charts Company shows 7.4 billion tracks were played on paid-for or ad-funded streaming services in the last year - twice the 3.7 billion figure of 2012.

Around £103m was brought in over the past 12 months by subscription services - up £26m on the previous year.

Runners-up Bastille saw their album Bad Blood become the most streamed

The total income generated by streaming will be much higher as the figure does not include the cash from advertising on free streams and on services such as YouTube.

Album sales were worth £772m last year, which is down £29m compared with the previous year.

CD sales of 60.6 million were down almost 13% on 2012, but still account for almost two-thirds of the album markets in the UK.

Digital sales of 32.6 million - up nearly 7% - now represent almost 35% of the total market.

Rock quartet Arctic Monkeys were the most streamed artists of the year.

The band, who headlined Glastonbury and whose fifth album AM was nominated for the Mercury Prize, beat Bastille into second place, with French duo Daft Punk third.

The biggest-selling album of the year was the compilation Now That's What I Call Music 86, selling 1.1 million copies, way ahead of the biggest seller by an artist which was One Direction's Midnight Memories, shifting 685,000 copies.

A report in trade magazine Music Week last month said 2013 is the first year since the 1980s in which there has been no million-album-selling artist in the UK.

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New Year's Eve Death In Hartlepool: Teen Held

A teenager is in custody after a man died following an incident at a house on New Year's Eve.

Police were called to an address in Hutton Avenue in Hartlepool at 10.20pm.

A 31-year-old man was taken to hospital with serious injuries and later pronounced dead.

He has been identified locally as amateur boxer Mark Denton. Next of kin has been informed.

Neighbour Bobby Gill told Sky News: "He was a good lad, he was no angel but no one deserves this to be killed on New Year's Eve.

"He had been to a party here, he walked through the door and someone hit him over the head with a metal bar or an icepick or something like that."

A 17-year-old was arrested and is being questioned in connection with the incident, Cleveland Police said.

A post-mortem examination will be carried out to establish the cause of death.

Officers have cordoned off the address and are carrying out house-to-house enquiries in the area.

Police are asking anyone with information about the incident to contact them on 101.

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New Year Honours: Women Overtake Men

By Tom Parmenter, Sky News Correspondent

More women than men have been named in the New Year Honours List for the first time ever.

Actress Penelope Keith is made a dame along with Professor Julia Slingo, chief scientist at the Met Office, and Professor Susan Bailey, president of the Royal College of Psychiatrists.

Singer Katherine Jenkins, actress Lynda Bellingham and Arsenal Ladies footballer Rachel Yankey all receive OBEs, while businesswoman Karren Brady gets a CBE.

Ruth Jones, star and co-writer of Stella and Gavin & Stacey, is awarded a CBE.

Ruth Jones gets a CBE

In all, 611 women are honoured, accounting for 51% of the list, the highest total since the Order of the British Empire was founded in 1917.

Keith said she was "elated, exhausted and thrilled."

The 73-year-old, known for her crisp diction and roles in sitcoms such as To The Manor Born and The Good Life, receives her honour for services to the arts and to charity.

She said: "It's the big one. I had already got an OBE and then a CBE, so I don't know what is better than the icing on the cake - but this is."

Former England footballer David Beckham and Wimbledon winner Andy Murray had both been tipped for knighthoods but both missed out.

Marcus Setchell, the doctor who oversaw the safe delivery of Prince George, is recognised for his work caring for the Duchess of Cambridge.

Michael Crawford picks up a CBE

Actor Michael Crawford, who played Frank Spencer in 1970s sitcom Some Mothers Do 'Ave 'Em, said his CBE for services to children's charities was "the most wonderful surprise".

The parents of murdered teenager Jimmy Mizen were given MBEs for their work setting up a foundation in their son's memory.

Mother Margaret Mizen told Sky News that she heard about the award in November but had to keep it secret.

"I just couldn't believe it I was in total shock," she said.

"We were determined not to be beaten by what happened.

"We go into schools and prisons and we share Jimmy's story but we don't go in telling them what to do, to put their knives down or put their guns down ... but we tell them how special they are."

Julie Bailey, who led the campaign to highlight the scandal at Stafford hospital, dedicated her CBE to her late mother Bella.

She told Sky News: "We haven't let powerful people silence us and brush it under the carpet we have just kept our heads down and kept going with dignity and respect."

MBEs have also been awarded to DJ Pete Tong, Grand Designs presenter Kevin McCloud and 90-year-old Bettina Dawson, who has been serving fish and chips to the people of Moffat in Dumfries and Galloway since 1928.

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David Attenborough's 'Ghastly' Night Shifts

By Richard Suchet, Arts and Entertainment Correspondent

Sir David Attenborough says he struggled to acclimatise to night shifts during filming for his new documentary.

The 87-year-old historian admits he found 20 nights shooting at London's Natural History Museum a gruelling experience.

He told Sky News: "The first night you think, 'My God this is rather interesting'. Night two you think, 'Yes, well I hope this isn't going to go on much longer'. On day three you think, 'This is absolutely ghastly. Where is a bar of chocolate to console me?'

"But then by night four you are switched and it's as though you have gone to Australia. You're time-lagged.

"But lots of people at 87 spend their nights awake for worse reasons than mine."

His 90-minute film Natural History Museum Alive 3D brings his favourite ancient creatures to life with spectacular 3D and CGI effects.

Sir David's new film is set in London's Natural History Museum

As he explores the museum alone in the middle of the night, Sir David offers his scientific insight as he appears to interact with a sabre-toothed tiger, giant predatory birds, snakes, and dinosaurs.

"I have a bit of a qualm because here I am, a natural historian, and I'm supposed to be dealing with real creatures and what I say is supposed to be true and yet now I have to act a bit, to pretend there's a Dodo there," he says.

"Am I trying to deceive people? Well, we got rid of that problem by making some of the creatures we bring to life simply skeletons - they don't even have skin or feathers or scales, so that people know that this is a trick.

"But I hope they will believe in me as a natural historian enough to know that we're making it as truthful as we can, but at the same time playing this particular game.

"This museum is the great treasure house of natural history. I was a boy in the 30s and living in the Midlands, and to come to London to the Natural History Museum was an enormous thrill.

Sir David filmed at the museum for 20 nights

"It's an astonishment. Kids come in and their jaws sag."

Sir David, who has been making nature documentaries since the 1950s, insists he has no plans to retire and says he is still brimming with ideas for programmes.

"There are a lot of people at 87, friends of mine, who aren't in the position to be doing what I'm doing," he said.

"They don't get about as much or can't remember as much. Who knows what old age is going to do to you?

"And the fact that I feel relatively spry, I feel that I would be very ungrateful if I decided I wasn't going to take advantage of that good fortune.

"Last night I was finishing a script on the evolution of flight amongst animals."

Sir David's Natural History Museum Alive 3D airs on Sky 3D and Sky1 HD on New Year's Day.

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Adam Pickup: Body Found In Missing Teen Search

Police searching for teenager Adam Pickup have found a body they believe to be the missing student.

The 17-year-old had not been seen since the early hours of Saturday morning, when he got separated from his friends during a night out in Manchester city centre.

But officers searching for Adam - whose disappearance prompted a nationwide appeal - have discovered a body in an area near Deansgate Train Station.

Police say there do not appear to be any suspicious circumstances surrounding the death.

Chief Superintendent Nick Adderley, from Greater Manchester Police, said: "While formal identification has not taken place we believe this is the body of missing Adam Pickup. His family has been informed.

Adam left Fab Cafe in Portland Street and was seen later in Oxford Street

"This is a heart-breaking time for Adam's family and our thoughts are with them.

"Our initial indication is that that there are no suspicious circumstances surrounding his death, however speculation as to what may have happened will not give the answers Adam's family is looking for.

"We will now carry out a thorough investigation which includes a post-mortem examination.

"We would like to thank the media and the wider public for all their support during this appeal, including on social media."

Two men who were earlier arrested have been released without charge.

Adam was known to have left Fab Cafe on Portland Street at around 3.20am on Saturday morning.

Police had earlier released CCTV footage showing Adam walking down nearby Oxford Street along with an unidentified man and woman, who officers had urged to come forward.

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Bosham Murder Hunt As Woman Found Dead

A 55-year-old woman has been found murdered at a large family home in a picturesque south coast seaside village.

The victim, who has not yet been formally identified, was discovered with a serious head injury at the house at Smuggler's Lane, in Bosham, near Chichester, West Sussex, on Monday morning.

According to neighbours, the woman had been staying at the house while the owners were away over the Christmas holidays.

Police teams working at the house on Tuesday

A neighbour, who did not wish to be named, said: "They (the owners) have people staying in the house while they are away for the holidays, it could be friends, it could be family.

"It is not rented out, people come because it is a nice place to visit. We do not know who they were, they have been there since Christmas.

"There were cars parked in the drive, they were entirely well-behaved, they came gently and went gently, we heard absolutely nothing."

The home has children's play equipment in the garden outside

She added: "I am just very sad for our neighbours and for everybody. You can't imagine coming back from holiday to this, it must be just horrendous."

Police said that the death was being treated as suspicious and was being investigated by detectives from the Surrey and Sussex Major Crime Team.

Detective Chief Inspector Jon Fanner said: "At this stage we are keeping an open mind as to the motive, but we are appealing for witnesses who may have seen anyone acting suspiciously in the area from late afternoon on Sunday, December 29 to around 9am on Monday, December 30.

"Please call us if you know anything, no matter how insignificant you might think it is. It could be important to the investigation.

"This is a rare incident for Bosham, which is a safe area. We have increased our neighbourhood policing patrols in the village and if anyone has any information or concerns, I would urge them to speak to one of the officers who are there."

Forensics officers were working at the home, which is valued at £1.5m and has children's playground equipment outside, on Tuesday morning. Neighbours said that they thought the couple who lived there had twin daughters.

Bosham has a rich history and legend has it that King Canute  lived  in the village and it was there he ordered the waves to retreat.

Bosham church features on the Bayeux tapestry and King Harold sailed for Normandy from Quay Meadow in 1064.

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Crime Statistics Revamped To Boost Transparency

Police in England and Wales are to change the way crime statistics are recorded to show the public the reasons why many are not solved.

Policing minister Damian Green said the new system, to be phased in from the start of the new year, should bring greater transparency to the way crimes are dealt with.

However Labour expressed concern that the Government was simply trying to disguise the impact of its policing cuts on the crime figures.

Currently around 70% of crimes are recorded as "undetected", with no indication as to why they did not lead to criminal charges.

But under the new framework, there will be a series of category headings indicating why no action was taken.

They will include "prosecution prevented" on the grounds that a suspect has been identified but is below the age of criminality or is too ill to stand trial.

Other headings will include "evidential difficulties", such as a key witness is unable or unwilling to give evidence, and "prosecution not in the public interest".

Mr Green said: "Recording offences as 'undetected' leaves victims feeling neglected and police investigations misunderstood - it does not properly reflect police work and that is why we are scrapping it.

"By introducing new categories, the police will be able to demonstrate the hard work they do and increase public transparency in policing."

For Labour, shadow crime and security minister Diana Johnson said that while greater transparency in the crime statistics was welcome, it could not disguise the fact that fewer cases were being solved under the current Government.

"No amount of changing the statistics can get away from the fact that fewer prosecutions are taking place for domestic violence, child sex abuse and rape on this Government's watch despite more crime being recorded for these most serious crimes," she said.

The new framework will come into force in Humberside on January 1 and will be rolled out across the rest of England and Wales from April.

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NHS: Migrants To Be Charged For A&E Care

By Darren McCaffrey, Sky Political Reporter

Visitors and migrants who use NHS accident and emergency services in England are to be charged, ministers have announced.

The move is part of an extension of the NHS charging strategy intended to deter so-called "health tourists" while trying to recoup up to £500m a year.

Critics have accused the Government of trying to grab headlines rather than helping the NHS.

Ministers say no-one will be turned away in an emergency, but there will be a bill to pay afterwards for those from overseas.

Health Minister Lord Howe said: "Having a universal health service free at the point of use rightly makes us the envy of the world, but we must make sure the system is fair to the hard-working British taxpayers who fund it.

"We know that we need to make changes across the NHS to better identify and charge visitors and migrants. Introducing charging at primary care is the first step to achieving this.

"We are already looking at taking action and next year we will set out our detailed plans to clamp down on the abuse of our NHS."

Doctors' leaders warned the proposed changes could cost more to administer than they would actually raise for the NHS while deterring some people desperately in need of treatment from seeking care.

Dr Mark Porter, chair of the British Medical Association (BMA) council, said: "This could mean the system of administering the new charging system will end up actually costing more to run than it collects in revenue."

The announcement has been timed less than 48 hours before restrictions on migrants from Bulgaria and Romania end.

A major influx of immigrants could put additional strain on the NHS and other public services.

Labour argue ministers are putting spin before substance.

Lord Hunt said: "Labour is in favour of improving the recovery of costs from people with no entitlement to NHS treatment. Rather than more grand-standing, the Government needs to deliver practical, thought-through changes to make that happen.

"Instead this out-of-touch government is left asking doctors and nurses to act as surrogate immigration officials."

Also under the proposed changes, migrants and overseas visitors will have to pay for primary care services such as minor surgery carried out by GPs, while prescription charges will be extended.

There will also be higher charges for services which are subsidised for patients entitled to free NHS treatment, such as optical and dental care.

But consultations with GPs and nurses will remain free of charge, to ensure initial access remains to prevent public health risks such as TB, HIV and sexually-transmitted infections.

Details of the scheme are still being worked out and ministers won't have a full plan until March.

But the Government will be hoping its crackdown down on health tourism will resonate home and abroad.

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Weather: More Rain And Strong Wind On The Way

Further rain and strong winds have been sweeping the UK - just as engineers restored power to homes hit by poor weather over Christmas.

The last households cut off from electricity by the Christmas storms have now had power restored, the Energy Networks Association says.

Tens of thousands of homes across the south east of England, north Wales and Cumbria have been without electricity over the last week because of damage caused by the storms.

The latest storm is now moving across the UK from west to east.

The Met Office has issued weather warnings. Northern England could see gusts of 50mph to 60mph inland, and up to 80mph over coasts and hills.

The Scottish Environment Protection Agency has more than 20 flood warnings in force, while the Environment Agency (EA) has almost a dozen for England.

And the unsettled weather looks set to continue into the New Year after the Met Office issued a severe weather warning for rain on New Year's Day.

Some 1,300 properties have been flooded during the recent storms in England.

Meanwhile, energy companies have been criticised for their slow reaction to storm damage.

The executive of one of the UK's biggest power distributors has admitted its efforts to restore power to thousands of people should have been better.

Basil Scarsella, chief executive of the UK Power Networks, said the company it was not prepared for the storm and too many staff were on holiday.

A Christmas bauble lies in a puddle in Yalding, Kent

The company, which owns electricity lines and cables in London, the south east and east of England, said it will increase payments for 48 to 60-hour outages from £27 to £75 for those affected on Christmas Day.

Additional payments will be made to customers who have been without electricity for longer than that time - up to a maximum of £432.

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CBI: Firms Must Boost Pay After Long Squeeze

The director general of the CBI has called on businesses to improve pay levels as the Labour leader Ed Miliband charts what he sees as the "biggest cost-of-living crisis in a generation".

In his New Year message, Mr Miliband signalled his determination to keep up the pressure on the Government over the squeeze on living standards, despite growing signs the economy is finally beginning to pick up strength.

He sought to counter the increasing optimism of the Conservatives about the state of the economy by accusing them of ignoring the fact that many people were still no better off.

He said: "People are thinking they have made the sacrifices - and the Government keeps telling them that everything is fixed. But it does not seem fixed to them. Surely we can do better than this as a country.

"The Tories want to change the conversation from the cost of living crisis. They will talk about anything else. Inherent in their vision is not a solution to the cost of living crisis, but the problem."

Ed Miliband says living costs must be fair for all famlies

He said the party would use the coming year to show how it would make "big changes" to the economy to enable the country to "earn and grow our way to a higher standard of living for people.

"People do not want the earth. They would much prefer some very specific promises, specific things about what a government will do - whether it's freezing energy bills, taking action on pay day lenders, or tackling issues around childcare which lots of working parents face.

"All of this is adding up to a programme for how we can change things. It's clearly costed, it's credible and it's real."

John Cridland wants the spoils of recovery to filter to all workers

Families have been facing a squeeze on living standards as levels of pay increases fail to match the speed of rising prices.

As Mr Miliband outlined his attack on the Government, the CBI's John Cridland said firms face a challenge to make sure economic growth filters through to the workforce as economic recovery takes root.

In his own New Year message he said that businessmen and women have a "spring in their step" compared with a year ago and firms "must support employees in every part of the country to move up the career ladder, while also giving a helping hand to young people taking their first tentative steps into the world of work".

Mr Cridland said: "As the financial situation of many firms begins to turn a corner, one of the biggest challenges facing businesses is to deliver growth that will mean better pay and more opportunities for all their employees after a prolonged squeeze."

He said it was positive news that jobs were being created, adding it was shaping up to be a full-time recovery with the majority of new jobs being permanent.

For the first time since the start of the recession, 2014 will see most firms increasing the size of their workforce, boosting their graduate intake and the number of apprentices they take on, he predicted.

"The good news is that wages will pick up in the year ahead as growth beds down and productivity improves.

"But there are still far too many people stuck in minimum wage jobs without routes to progression, and that's a serious challenge that businesses and the Government must address."

Mr Cridland spoke of the importance of skills, calling for a Ucas-equivalent vocational system to help raise awareness and parity of esteem for alternative routes to higher skills.

"If 2013 was the year that business trust took a hammering on a range of issues from corporate taxation to energy prices, then 2014 must be the year that business leaders take action to rebuild that trust," he said.

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Fresh Misery As Another Storm Heads For UK

Fears of fresh flooding have been raised as another band of persistent rain and heavy winds heads towards the UK.

The latest storm pushing in from the Atlantic will arrive in the West on Sunday evening, before spreading northeastwards overnight and potentially causing disruption on Monday morning.

It comes as the chief executive of one of the UK's biggest power distributors admitted its efforts to restore power to thousands of people should have been better.

Basil Scarsella, chief executive of the UK Power Networks, said the company was not prepared for the storm and too many staff were on holiday.

Flood alerts remain in place in Odda's Chapel in Deerhurst, Gloucestershire

The Met Office has issued a severe weather warning over fears of severe gales with gusts up to 80mph affecting Wales, and southwestern and southern England.

It has also warned of the danger of ice patches in the South West as temperatures plummet below freezing.

That is likely to add to the misery of thousands who have been left without power and suffered flooding in their homes over the Christmas period.

A Christmas bauble lies in a puddle in Yalding, Kent

The Energy Networks Association said the number of homes still without power was now around 1,500.

UK Power Networks, which owns power lines and cables in London, the South East and East of England, said it will increase payments for 48 to 60-hour outages from £27 to £75 for those affected on Christmas Day as a "gesture of goodwill".

Additional payments will be made to customers who have been without electricity for longer than that time - up to a maximum of £432.

Mr Scarsella said: "We could not have avoided the damage caused by the storm but we could have responded to it better.

Floodwaters have still not receeded in Apperley, Gloucestershire

"A lot of our employees had gone away for holidays so it meant we had a level of depletion in our resources - and that caused problems with getting people's power restored.

"It's difficult to justify saying the company has performed well when customers have been without power for five days, but once we had an idea of how bad it was we were able to mobilise as many engineers and office staff as possible."

The company said 169 customers in Kent, 22 in Surrey and 112 in Sussex remained without power as a result of storm damage.

In a statement, regulator Ofgem reminded energy companies they are obliged to get power back on as soon as possible.

It said: "These obligations are backed by strong regulatory incentives put in place by Ofgem on the companies to maintain service levels and restore supplies. These include loss of revenues and awarding compensation payments to customers off supply."

A satellite map showing the storm front moving in. Pic: Met Office

Around 1,300 properties have been flooded during the recent storms in England, the Environment Agency said, while flood defences have protected more than 80,000 properties. Some 71 flood alerts and 14 more serious flood warnings remain in place across the country.

It warned the predicted rainfall meant there is a "continued heightened flood risk" across southern England, especially southwest England where river levels remain high and the ground is already saturated.

Flood warnings and alerts in England. Pic: Environment Agency

A Downing Street spokesman said ministers held a Cobra emergency meeting on Saturday where it was agreed financial assistance will be given to local authorities facing an undue financial burden because of the storms through a process known as the Bellwin scheme.

Nazaneen Ghaffar, Sky News weather presenter, said: "Outbreaks of rain and strengthening winds will continue to quickly spread eastwards overnight.

"It will potentially give some high rainfall totals and strong winds, particularly across southern England and South Wales where gusts in excess of 50mph are likely."

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Fire Service Teams Trained For Water Rescue

By Adele Robinson, Sky News Correspondent

The number of emergency rescue teams in England and Wales equipped to tackle flooding has more than quadrupled.

Some £2.5m has been spent funding teams, mostly within the Fire Service, until 2017.

The Fire Service is now being described as a "rescue service that occasionally goes to a fire".

Roy Harold, the chief fire officer association's capability lead for flood rescue, says the number of water rescue teams have risen from 40 to 180 and include paramedics, the RNLI, the RSPCA, and the AA.

"In the last floods in 2007 my own county, in Norfolk, had no Fire Service teams able to turn out and assist in a flood," he said.

Some £2.5m has been spent training teams for water rescue operations

"At the beginning of December we had 19 teams available including a dive unit, specialist flood rescue teams ... We've gone through an absolute transformation in what we can do and how we can help."

The government is also spending more money on tackling the risk of flooding than ever before.

A spokesperson from DEFRA said: "We're currently spending over £2.3bn on tackling the risk of flooding. Together with contributions from other partners, this is more money than ever before.

"We have secured a historic six-year settlement on capital spending for flood defences. From 2015 we're spending £370m on building new flood defences, rising to over £400m in 2021."

At a water rescue course in North Wales run by the West Midlands Fire Service, officers are being trained how to help people stuck in swollen rivers.

The government is also spending more to tackle the risk of flooding

Chris Darnley from West Midlands Fire Service says the experience is invaluable.

"Most of our training uses breathing apparatus and stuff and you can press a button and it stops there, fans come on, and it gets rid of the smoke. Here you're at the mercy of the river if something happens," he said.

Meanwhile, a warning is being sent out this winter to the public regarding cold water and flooding hazards.

Terry Robinson, water rescue instructor for the West Midlands Fire Service, says people need to be vigilant.

"Any river is going to be dangerous, when they're swollen there are so many more features that come into play, just normal trees and stuff ... are suddenly out of the water and become a far greater hazard.

"As people are walking their dogs, the paths become submerged that they would normally walk on and there would not usually be there, they think they would be safe in ankle deep water but they're not."

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Anti-Smoking Campaign: New Ad Targets Addicts

By Gerard Tubb, Sky News Correspondent

Smokers are being targeted by a new TV advertising campaign which aims to scare them into giving up.

Graphic images of polluted blood flowing through the body of a smoker and damaging cells in his brain are used to reinforce the message that smoking increases the risk of dementia and strokes.

The campaign, funded by Public Health England, was launched by the Chief Medical Officer, Professor Dame Sally Davies.

"We know about the serious effect smoking has on the heart and lungs but smokers need to be aware of how much potential damage is being done to the brain and other vital organs through toxins in cigarettes entering the blood," she said.

"Smoking is the major cause of premature death, with one in two smokers dying prematurely from smoking related diseases, and it is extremely worrying that people still underestimate the health harms associated with it."

Government figures show more than one in five adults in the UK admits to smoking, at an estimated cost to the economy of £5bn per year in health costs, sick leave and lost productivity.

More than one in five adults in the UK admit to smoking

The TV advert, to be shown in England from tomorrow, along with a billboard advertising showing clotted blood dripping from a cigarette, has been welcomed by Joe Korner from The Stroke Association.

"It is well known that smoking harms our health but the link between smoking and stroke is less well known," he said.

"Stroke is a major cause of death and adult disability in the UK and you are twice as likely to have a stroke if you smoke. The more you smoke, the more your risk increases."

Smokers outside the Sant' Angelo restaurant in Wetherby in West Yorkshire who watched a preview of the advert said it encouraged them to consider giving up, or smoking less.

Jo Maltby, 40, has smoked for 20 years and says she tried to give up many times before.

"That probably would give me a bit more of an inclination to (give up) because I have children," she said.

"Obviously the more damage I do to myself the less chance they've got of me being around."

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Ferry Rescue: Police Make Arson Arrest

A 26-year-old man has been arrested on suspicion of arson after a fire alert on a North Sea ferry sparked an emergency evacuation.

Northumbria Police said they had also arrested a 28-year-old man on suspicion of affray.

Two crew members and four passengers had to be winched off the ferry, which was heading to Amsterdam, after they inhaled smoke when the fire broke out 30 miles off the Humberside coast.

The six people were taken to Scarborough Hospital by RAF helicopter but are not thought to be in a serious condition.

The ferry looped back when it was 30 miles off Flamborough Head

A further 15 passengers and eight crew members were treated by doctors for smoke-related injuries on board the ferry.

The fire broke out in a cabin on the DFDS King Seaways ferry at around 10.45pm on Saturday night but was extinguished "within 15 minutes", according to the company.

RAF helicopters from Leconfield near Hull, and Boulmer, Northumberland were scrambled to the vessel along with two RNLI lifeboats from Bridlington and Filey.

Passengers were reunited with friends and family at Newcastle Ferry Port

The 30,000-tonne ship returned to Newcastle Ferry Port, in North Shields, at around 4am and passengers were kept on board until 9am while police investigated.

Police said earlier that a passenger had been detained by the ship's staff following the incident.

Olivia Elliott, who was in a nightclub on the ferry when the alarm went off, told Sky News she "panicked" not knowing how serious the situation was.

"(It was) scary out there in the middle of the ocean. You've never been in that situation before - you don't know what to do."

This photo of the RAF helicopter was taken by a passenger

She added: "The captain came on the tannoy and said we needed to evacuate to the outer deck because there had been a fire.

"We were outside for about 40 minutes before we were allowed to go back in."

Despite the emergency, she said most people remained calm.

Another passenger, Steven Basford, said: "They sounded the fire alarms, high-pitched alarms, and then made an announcement we would have to evacuate to an outside deck.

"Then, when we started to evacuate to go further up the boat, you could see smoke in the corridors and in the common area and it hit home more then."

Passengers were kept on board until 9am on Sunday while police investigated

Lynn Smith-Davis told Sky News the ship's crew had handled the emergency well but that some passengers had started fighting.

She said: "There was no panic where we were, but then later on when we were inside sitting in the bar and cafe area some people started fighting - fights broke out, which really didn't help the situation."

Were you on board the King Seaways ferry? Email your pictures and video to news@sky.com, text 84501 (costs 25p, network charges vary), or tweet @SkyNews

DFDS Seaways said 946 passengers and 127 crew members were on board the ferry and added that "psychological assistance" would be provided to anyone who needs it.

Police arrived at the Newcastle Ferry Port in the early hours

Spokesman Gert Jakobsen said the company would help people find alternative crossings to Amsterdam.

He added: "The cabin that was burnt is very damaged and there has been some smoke damage to surrounding cabins but the ship's function has not been affected in any way and is safe to travel."

According to the DFDS Seaways website, the 26-year-old vessel has room for over 1,500 passengers and 600 cars and was renovated in 2006.

It offers entertainment including restaurants, bars, a nightclub and a casino.

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