Category Archives: Consumer affairs

Bank of England governor dampens hopes of interest rate cut

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Andrew Bailey says cost of living had been higher than expected in December despite ‘encouraging’ inflation news

The Bank of England governor has doused hopes that better-than-expected inflation news last month will accelerate cuts in interest rates, stressing the need for further evidence of wage moderation before Threadneedle Street moves.

Appearing before the House of Lords economics committee on Wednesday, Andrew Bailey said it was “encouraging” that inflation had remained unchanged at 4% in January but the previous month’s figure for the cost of living had been higher than predicted.

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Savings passbooks popular as Britain turns to cash amid cost of living crisis

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While some banks and building societies scrap system, others report increase in usage by customers

While some banks are scrapping passbook savings accounts amid suggestions they are past their sell-by date, other providers have reported an increase in their usage as people turn to cash to help them manage the cost of living.

Newcastle building society said that in 2023 it issued about three times as many passbooks as it did in 2021, and that it is getting new customers on the back of decisions by rivals to axe them.

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Private rents in Great Britain hit record high, data shows

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Rightmove says average advertised price outside London is up 9.2% on a year ago despite fall in some regions

Average private rents in Great Britain have climbed to new record highs, though in some regions there has been a small fall in the amount new tenants are being asked to pay, data shows.

The typical advertised private rent outside London for new properties coming on to the market rose to a record £1,280 a calendar month in the final quarter of 2023, according to the property website Rightmove. That is £2 higher than the £1,278 figure recorded in the third quarter – a sign that rental growth is slowing.

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Ofcom to set out possible Royal Mail reforms – and Saturday deliveries could end

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Regulator’s review will look at evidence and options on how universal postal service ‘might need to evolve’

Royal Mail could be allowed to end Saturday postal deliveries as part of Ofcom’s review into how the service may need to be reformed.

Next week, Ofcom will publish a document outlining “potential options for the future of the universal postal service”.

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Retired teacher’s pension stopped as provider refuses to believe she is not dead

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Payments halted four times and left Eileen McGrath without income over Christmas

A retired teacher has had her pension payments stopped four times because her pension provider repeatedly refuses to accept that she is not dead.

Eileen McGrath, 85, was left without income over Christmas when Teachers’ Pensions, which administers payments on behalf of the UK government, wrongly matched her with a deceased stranger.

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‘We’ve got to break them up’: farming groups say supermarkets use market power to distort prices

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Claim comes amid state and federal inquiries into Australian grocery sector and what producers say is a widening gap between wholesale and shelf prices

Farming groups have accused the major supermarkets of using their power to distort the market, leading to elevated prices for shoppers and low prices for producers.

The claim comes amid falling global prices for agricultural goods that have failed to dent grocery bills, and growing scrutiny of supermarket pricing practices through newly announced federal and state parliamentary inquiries.

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Queensland launches inquiry into grocery price gouging following premier’s meeting with major supermarkets

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Executives of Woolworths, Coles and Aldi have agreed to appear at hearings, Steven Miles said, amid concerns from farmers and consumers

Queensland’s state government will launch an inquiry into alleged grocery price gouging – despite the jurisdiction having few powers to combat the issue, the premier said.

The premier, Steven Miles, said terms of reference are being drafted and the committee will be formed in the first sitting week of parliament for the year, next month.

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‘Greedy and dishonest’ touts sold tickets worth £6.5m, court hears

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Ed Sheeran and Little Mix fans among those targeted by firm that resold on Viagogo and StubHub

Ticket touts acting out of “greed and dishonesty” sold tickets worth £6.5m to music fans, a court has heard, as a woman known as the “Ticket Queen” pleaded guilty to fraudulent trading nearly seven years after being named in an Observer investigation.

TQ Tickets Ltd, owned by Maria Chenery-Woods of Norfolk, used fake identities to hoover up large numbers of tickets for acts such as Ed Sheeran and Little Mix, prosecutors for National Trading Standards said.

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BT scraps above-inflation price rises for mobile and broadband customers

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UK’s mobile and broadband firms were accused of ‘greedflation’ last year by the Guardian

BT has become the first major telecoms company to scrap controversial above-inflation price rises for mobile and broadband customers – but not before pushing through a final increase this year.

The owner of mobile operator EE has moved to address the pressure on consumers from rising household costs during the cost of living crisis, after telecoms companies were criticised for increasing bills.

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French post office opens changing room for online shoppers

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Customers can collect their parcels and try on items in one trip during trial at La Poste branches

It is an increasingly common irritant of modern life. You order an item of clothing online; you wait with anticipation for it to arrive, and five minutes after it has arrived you’re packaging it up because it doesn’t fit.

For shoppers in France, however, the national post office may have the answer – or at least a way of making the process less logistically challenging. It is experimenting with in-store changing rooms to cater to people who want to quickly return purchases they do not want.

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Queensland farmers call for probe into price gouging after premier writes to grocery giants

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Peak body says farmers aren’t getting ‘fair value’ as Steven Miles demands answers from supermarkets on overcharging claims

A peak body representing Queensland farmers has increased pressure for an inquiry into price gouging after the state’s premier wrote to the big supermarket chains demanding answers over a “widening gap” between the prices farmers receive and those customers pay.

The Queensland premier, Steven Miles, sent a letter to the CEOs of Coles, Woolworths, IGA and Aldi on Friday telling them about his “growing concern” about the disparity between checkout prices and the value farmers receive for their stock.

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UK shoppers spent £13.7bn on groceries in run-up to Christmas

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Consumers buy more items – including plenty of parsnips and sprouts – to beat last year’s spend by 7%

UK shoppers spent £13.7bn on groceries in the run-up to Christmas – 7% more than a year before – as they sought out bargains and switched to discounters to try to offset price inflation.

The number of items bought rose by 2% in December as prices climbed by 6.7%, according to analysts at Kantar, although that was down from 9.6% in November – making it the biggest monthly drop in inflation the data firm has ever recorded.

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Call to end ‘cruel’ winter rises as energy bills go up by £100 a year

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Campaign groups call on regulator to abolish January bill increase, saying households are facing an ‘assault from all sides’

Midwinter energy price increases should be abolished to protect households from unaffordable bills “at the worst possible time”, according to a coalition of leading charities.

Charities and campaign groups have called on Ofgem, the energy regulator, to scrap future January bill increases as it prepares to raise the cap on energy prices by 5% from Monday.

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Inflation calculator: find out how much UK household price rises affect you

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This online tool will help you discover what is contributing to your household’s cost of living increases

Inflation has been soaring in the UK, with people being hit by higher prices for everyday essentials, but cost of living pressures are finally starting to ease.

The latest inflation rate for the 12 months to November 2023 means that goods and services cost 3.9% more than they did a year ago – in most cases, surpassing any pay rises workers can expect to receive.

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UK telecoms firms told to safeguard at-risk customers in switch to digital landlines

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Minister’s move follows reports of pensioners left unable to call for help

Telecoms providers have been forced to pause plans to impose digital phone lines on vulnerable customers after reports of pensioners left unable to call for help during power cuts.

Companies including BT and Virgin Media have been forced by Michelle Donelan, the technology secretary, to sign a charter to safeguard at-risk households during the nationwide switchover from analogue to internet-based landlines.

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Lifetime Isas: calls to increase price cap that ‘fines’ first-time buyers

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People who want to buy property costing more than £450,000 say they unfairly face losing money

Campaigners are pressing for changes to a UK government scheme for would-be first-time buyers that “fines” people if they use it to buy a home costing more than £450,000.

Martin Lewis, the founder of MoneySavingExpert.com, is among those calling for an urgent revamp of the rules that apply to lifetime Isas, which let people save for a first home or for their retirement.

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Currys boss: minimum wage hike shows government does not ‘care’ about retail

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Planned 10% UK increase as business rates rise will put pressure on already overburdened industry, says Alex Baldock

The boss of Currys has accused the government of failing to “understand or care” about UK retailers by pushing through a “big hike” in the UK’s minimum wage.

Alex Baldock’s comments come weeks after chancellor Jeremy Hunt announced plans to increase the legal minimum wage for the UK’s lowest paid workers to £11.44 an hour, representing a hike of almost 10%, from April 2024. The move will force employers to pay full time workers around £1,800 more per year.

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Thames Water appoints Chris Weston as boss with up to £2.3m package

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Former British Gas executive tasked with leading turnaround in face of debts and controversy over sewage

Thames Water has appointed a former British Gas executive as its new boss with a pay package of up to £2.3m a year and tasked with leading a crucial turnaround as it faces mounting debts and controversy over dumping sewage in Britain’s waterways.

Chris Weston replaces Sarah Bentley, who resigned with immediate effect in June amid a backlash over the firm’s poor environmental track record. Weston will take up the role on 8 January.

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UK ad watchdog to crack down on ‘biodegradable’ and ‘recyclable’ claims

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Consumers left angry and dismayed when they found out the truth about these terms, says Advertising Standards Authority study

Plastic bottles, takeaway cups and food packaging that could take an unlimited amount of time to break down are being advertised as “biodegradable”, with the advertising regulator calling for more clarity on such claims from businesses.

British consumers believe they are making green choices while disposing of waste when they are often not, according to a new report. The study, from the Advertising Standards Authority (ASA), based on extensive interviews with consumers, found widespread misunderstandings around common terms such as “biodegradable”, “compostable” and “recyclable”, leaving participants angry when they discovered what they meant.

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Iceland boss hits out at parent ‘exploitation’ in baby milk market

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Richard Walker calls for price cap on infant formula as competition watchdog finds evidence of greedflation

The boss of Iceland has hit out at “exploitation” of new parents and joined calls for a price cap on baby formula after the competition watchdog found evidence of greedflation by leading manufacturers.

The Competition and Markets Authority (CMA) on Wednesday revealed manufacturers had increased prices by more than their costs during the inflation crisis, fattening profit margins and imposing an average 25% increase on shoppers in two years. It warned competition could be hampered because the market is dominated by two companies, Danone and Nestlé, which between them account for 85% of sales.

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