Category Archives: Consumer affairs

Jeremy Hunt makes U-turn on planned cut to energy support

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Campaigners unite with suppliers to call on ministers to give long-term help to struggling households

Ministers are under pressure to announce plans for a social tariff to help Britons struggling with their energy bills over the long term, after the government performed a U-turn on a planned cut to support for households.

On the morning of the chancellor Jeremy Hunt’s budget speech, the government confirmed the energy price guarantee would continue at its current rate, which limits a typical annual household bill to £2,500. It is being extended from April, when it was due to expire, for a further three months until the end of June.

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Extra costs for customers on prepayment meters to be scrapped in budget

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Treasury says move will save four million households £45 a year on their energy bills

Prepayment meter customers will no longer be charged more to receive their energy under reforms to be announced in the budget.

The chancellor is to end the “prepayment premium” from July, saving more than four million households £45 a year on their energy bills, according to the Treasury.

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BBC to suspend licence fee for King Charles coronation ceremony

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One-off dispensation for weekend celebrations will allow venues to screen events without a TV licence

The BBC is to suspend the licence fee as part of a one-off dispensation for the king’s coronation weekend.

The move will allow venues to screen the live coronation ceremony coverage on 6 May and the coronation concert on 7 May without needing to buy a TV licence.

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UK cuts back on cooking Sunday roasts as energy bills soar

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Cost of living has made more than a third of adults reconsider cooking end of week meal, survey finds

More than a third of people in the UK have cut back on cooking Sunday roasts because of the soaring cost of energy bills, according to a survey.

A total of 36% of UK adults said the cost of living crisis had made them reconsider a homemade roast dinner at the end of the week. The figure was even higher among those aged 16 to 34, with nearly half (47%) saying they have avoided cookingroasts.

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‘Greenwashing’ firms face steep new UK fines for misleading claims

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Legislation could see companies fined millions of pounds for making unproven environmental assertions to sell their products

When the hydrogen-powered Hyundai Nexo car was launched in the UK in the spring of 2019, it was described as “so beautifully clean” that it “purifies the air as it goes”.

Hyundai Motor UK claimed that if 10,000 of its cars were on the road, carbon emission reduction would be “equivalent to planting 60,000 trees”.

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Hunt says UK can’t afford ‘major’ new scheme to help people with energy bills from April – politics live

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Chancellor’s comments follow call from consumer champion Martin Lewis to cancel the rise in the energy price cap

This morning the Daily Mail splashed on a story about AstraZeneca building a new factory that had been planned for the north-west of England in Ireland instead. Sir Pascal Soriot, the company’s chief executive, suggested the government’s plan to increase corporation tax was a key factor (although, as my colleague Nils Pratley reports in his analysis, other factors are relevant too). The Mail is one of the Tory papers pushing for tax cuts and it reports the story as evidence that supports its case.

Asked about the AstraZeneca decision, Jeremy Hunt, the chancellor, said today he was “disappointed” but that he would not implement tax cuts funded by borrowing. He told reporters:

We’re disappointed that we lost out this time and we agree with the fundamental case they’re making which is that we need our business taxation to be more competitive and we want to bring business taxes down.

But the only tax cuts we won’t consider are ones that are funded by borrowing because they’re not a real tax cut. They’re just passing on the bill to future generations.

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Act now on energy bills subsidy or see fuel poverty surge, says Martin Lewis

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Jeremy Hunt urged to reconsider raising state-subsidised energy rate from April as market prices make delay affordable

Jeremy Hunt must act now to reverse plans to raise energy bills from April, MoneySavingExpert’s Martin Lewis has warned, saying the change cannot wait until the spring budget next month.

In a letter to the chancellor seen by the Guardian, Lewis warned more than 1.7m more households could be plunged into fuel poverty if he does not urgently commit to freezing energy prices.

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Stop UK mobile and broadband firms ‘lining their pockets’, urge consumer experts

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Companies facing backlash amid warning of mid-contract price rises of up to 17% during cost of living crisis

Britain’s telecoms regulator is being urged to intervene over concerns that mobile and broadband operators are “lining their pockets” with £2.2bn of above-inflation price rises during the cost of living crisis.

While ministers have urged employees to show pay restraint, the mobile phone and broadband firms are facing a consumer backlash as they announce record price increases.

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Scams: FCA blocks more than 10,000 ads from Instagram, Facebook and YouTube

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Financial watchdog warns over rise of ‘fin-fluencers’ targeting younger people on social media

More than 10,000 misleading financial promotions and scams aimed at consumers via social media sites such as Instagram, Facebook, YouTube and TikTok have been identified and targeted by the financial watchdog during the past year.

The Financial Conduct Authority (FCA) said the use of social media marketing channels and the rise of so-called “fin-fluencers” – particularly directing investment products at younger age groups – exploded last year, resulting in a record number of takedown notices and alerts.

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Australian banks should reimburse scam victims, ACCC and consumer advocates say

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‘Glaring lack of regulations’ means Australia is a ‘wild, wild west’, Consumer Action Law Centre policy officer says

In October 2021, Victorian education consultant Anne lost almost $100,000 within 48 hours after scammers hacked her email, posed as her, and directed her clients to pay invoices into a different account.

“[My client] rang me and said ‘did you get the money’, I said ‘no’. But the bank said it was too late, it was gone,” said Anne, who is using a pseudonym for privacy reasons.

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Energy suppliers to be investigated over Britons forced on to prepayment meters

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Ofgem could look to take legal action if companies are not taking proper care of vulnerable households

Energy companies are to be investigated by the regulator Ofgem after the number of households struggling with their bills being forced on to prepayment meters has increased sharply.

Ofgem could consider taking legal action if it determines that the rise in the number of homes being forced on to prepayment meters is proven to show companies are not taking proper due care of vulnerable households.

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Consumer watchdog calls on public to report social media influencers failing to disclose posts as ads

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Influencers who are in breach of the Australian Consumer Law can face penalties of up to $2.5m

Australia’s consumer watchdog is embarking on a dob-in-an-influencer campaign targeting social media stars who fail to declare their posts as advertisements.

This week the Australian Competition and Consumer Commission (ACCC) put out a call on social media, asking the public to send in examples of influencers who appeared to be promoting a brand or product online without disclosing it was an ad.

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Energy bills: calls for ‘social tariff’ when UK government support ends

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Charities and non-profit bodies urge Jeremy Hunt to introduce discount tariff from April 2024

Jeremy Hunt is facing calls for a “social energy tariff” providing cheaper gas and electricity for low income households to be introduced when government support ends next year.

In an open letter to the chancellor, 95 charities and non-profit organisations have urged the government to move quickly to legislate for a change in energy bills for “those in greatest need to ensure they are able to live in their homes comfortably”.

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Call to end forced installation of UK prepayment meters after millions suffer without power

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Report shows 3.2m people disconnected last year as they ran out of credit

Ministers are being urged to stop the forced installation of prepayment meters after revelations that 3.2 million people – the equivalent of one person every 10 seconds – were left with cold and dark homes last year as they ran out of credit.

As energy prices surged this winter, suppliers have stepped up the use of court warrants to force their way into homes to install prepayment meters, with some magistrates approving hundreds of applications at a time. For homes with smart meters, the change can be made remotely without even needing a warrant.

Rhiannon, a single parent with a baby who suffers from depression, fell behind on her payments after she separated with her partner. Her landlord allowed her supplier access to fit a prepayment meter. She has resorted to warming baby milk at her GP’s surgery and staying warm in her dad’s car.

Rona uses a wheelchair and lives with her daughter who has special educational needs. She is reliant on family to go to the Post Office to top up and was left without heating, lighting or means to make food over Christmas.

Alice, a woman with a lung condition who was moved on to a prepayment meter due to debt and couldn’t afford to top up. Her supplier told her she could not be helped again because she had been helped before, but being cut off prevents her charging her breathing machine.

Andy, a diabetic who was moved on to a prepayment meter and left without power for a week despite needing to keep his insulin in the fridge.

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Energy bill support for UK businesses to be cut by Jeremy Hunt

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New scheme for companies, charities and public sector organisations to offer discount on wholesale prices

The chancellor, Jeremy Hunt, is poised to announce a cut to the financial support offered to businesses to help with their energy bills.

A new scheme to provide support for businesses, charities and public sector organisations at a less generous level than the current scheme is expected to be presented in the House of Commons on Monday.

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Energy efficiency ‘war effort’ needed to cut bills and emissions, say MPs

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Ministers missed crucial opportunities but should use energy windfall tax to speed up insulation efforts, committee says

A national “war effort” on energy efficiency is required to cut energy bills, reduce climate-heating emissions and ensure energy security, according to a cross-party committee of MPs.

Boosting efficiency in homes and businesses is the fastest way to cut energy use but the government missed a “crucial window of opportunity” last summer, the report from the environmental audit committee (EAC) said. The energy bills crisis was sparked by Russia’s invasion of Ukraine in February 2022, while political turmoil in the UK resulted in three prime ministers in office between July and October.

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Disabled people among hardest hit by cost of living crisis, finds study

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People with disabilities more likely to cut back on energy use and food, Resolution Foundation says

Disabled people in the UK are much more likely to struggle to heat their homes and cut back on food this winter, according to a report highlighting “massive” income gaps amid the cost of living squeeze.

Research from the Resolution Foundation found people with disabilities had an available amount to spend that was about 44% lower than that of other working-age adults, exposing them hugely to the rising cost of essentials.

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Why are wholesale gas prices falling and will it cut UK bills?

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Falls could lower cost of government subsidies and reduce risk of power cuts this winter

Economic forecasters could be forgiven for reading the outlook for 2023 through their fingers as strikes, cost of living pressures and a potential global recession paint a gloomy picture. But wholesale gas prices have offered a sliver of optimism, with a sharp fall in recent days. Here’s why they are tumbling – and what it means for consumers.

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Bank branches ‘still vital’ as squeezed UK households seek cash and advice

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Quarter of consumers more likely to visit branches amid struggles with surging energy, food and housing costs, finds KPMG survey

Cost of living pressures have increased the number of customers relying on bank branches to help manage their squeezed budgets, research shows.

While the Covid-19 pandemic accelerated the adoption of online-only banking, particularly during lockdowns, research from the accountancy firm KPMG showed a quarter of UK consumers were more likely to visit bank branches now that households were grappling with surging energy, food and housing costs.

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Sales shoppers say Australia’s cost of living crisis drives search for Boxing Day bargains

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Consumers are ‘freedom spending’ after an intense year, but on essentials rather than big-ticket items

With the cost of living crisis biting into budgets, Angela Jakovljebic decided to give her three daughters gift cards as presents, to spend on the post-Christmas sales.

Emily, Lilly and Mila weren’t too happy about their gifts when they received them, they say. But they felt better when they saw the sales in Parramatta.

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