The Telegraph Frontpage for Thursday 2023 January 12

By Danny Boyle Post is piling up after Royal Mail’s international division was hit by a suspected cyber-attack – following strikes that caused huge backlogs (above). Meanwhile, we report on the risk of hundreds of thousands of households defaulting on their mortgages.

750,000 households could soon default on mortgage

More than 750,000 households are at risk of defaulting on their mortgages over the next two years as rising borrowing costs make payments unaffordable, the financial regulator has warned. The Financial Conduct Authority (FCA) said that more than 200,000 households had fallen behind on payments by the end of last June, with bills overdue on about one in 40 home loans. Nikhil Rathi, the FCA’s chief executive, has suggested that many households were already thousands of pounds behind. The warning, issued in a letter to MPs on the Treasury select committee, will trigger fresh fears that a wave of forced property sales could bring down house prices in the coming months. Szu Ping Chan writes that it comes amid the biggest living standards squeeze on record, with rising interest rates and the highest inflation for 41 years. Meanwhile, extra pressure is being piled on public finances because more millionaires are leaving the UK than arriving. According to analysis by a migration consultancy, the country has suffered a net outflow of 12,000 wealthy individuals since 2017. Rachel Mortimer explores what is to blame for Britain “losing its shine” among the super-wealthy.

Suspected cyber-attack halts Royal Mail overseas Parcels and letters are stuck in limbo after Royal Mail’s international division was hit by a suspected cyber-attack. More than half a million items were piled up in warehouses after a computer system used to send them abroad was paralysed. The chaos comes after months of strikes that have already created huge backlogs of mail. It is understood the attack crippled software used to generate customs labels for outgoing post. Matt Oliver reports on what it means for customers.

What Prince Harry really owes to the Palace courtiers Until now, the Duke of Sussex’s three-year moan against the Royal household had referred obliquely to “the institution”, a faceless monolith constructed to crush his hopes and dreams. In his memoir, he focuses his anger on three individual courtiers, but cannot bring himself to utter their names. They are the Bee, the Fly and the Wasp. Gordon Rayner explores how the role these three royal private secretaries played in Megxit has been seriously misjudged by the Duke of Sussex.

Also in the news this Thursday Investigation | A shipment of uranium discovered at Heathrow could have been part of a dry-run operation by Iranian terrorists to test the resilience of security measures during recent Border Force strikes, a military intelligence expert has warned. Counter terror police have opened an urgent investigation after the radioactive substance was identified amongst a consignment of scrap metal on board a flight.

Jeff Beck | One of the greatest guitarists of all time dies at 78 Sir Rod Stewart and Ronnie Wood have led tributes to the “groundbreaking” Jeff Beck, one of the greatest rock guitarists of all time, following his death at the age of 78. Court | Bank chief ‘was punched to death by drunk stranger’ Trans | Girls’ schools in England ‘could have to admit male pupils’ ‘Field’ | Leading American university removes ‘racist’ word Still on the road | Britain’s oldest lorry driver to continue working

Around the world: ‘We have Briton’s body’

The body of one of the two British aid workers missing in Ukraine was discovered by forces from Russia’s private Wagner militia. The group shared photographs of passports belonging to both Andrew Bagshaw, 48, and Christopher Parry, 28, that they say were found on the body of one of the pair. US correspondent Josie Ensor has the full story.

Aid worker Christopher Parry in the town of Bakhmut earlier this month. Credit: Reuters

Comment and analysis

Allister Heath | The death of the NHS is killing the whole country Con Coughlin | Putin now faces his own 1917-style catastrophe Michael Deacon | BBC is so wrong to cancel Sir Francis Drake Telegraph View | More people should go private, not fewer Reader letters | Hope that British tanks will help the Ukrainians

Editor’s choice

	Success the best revenge | From bit parts to Golden Globes – the rise of Jennifer Coolidge
	Jools Holland | ‘People lose their sense of purpose when they leave the Armed Forces’
	Dear Richard Madeley | ‘I feel bored and undervalued at work. Should I quit my job?’

Business briefing: Blow to net zero One of Britain’s last coal-burning power facilities is to be kept open for two years longer than planned as the energy crisis deals a blow to the green agenda. The German energy giant Uniper is poised to keep the unit, at its Ratcliffe-on-Soar power station in Nottinghamshire, open until 2024 after an appeal from ministers – after initially intending to shut it in 2022. National Grid left the door open for extending the life of other coal-fired plants.

Here is a selection of articles we think you’ll be interested in today.

Girls’ schools in England ‘would have to admit male pupils under Scotland trans laws’ Jeff Beck, dead at 78, remembered as one of the greatest guitarists of all time ‘I pretended a delivery driver set my house on fire just to get through to Evri’ Prince Harry didn’t like these men – but their job was to save him from himself Bank chief ‘was punched to death by drunk stranger’