Category Archives: Consumer affairs

‘People are paying too much’: Coalition could break up big insurance companies, Dutton says

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Opposition leader says more competition needed as growing numbers unable to afford home and car insurance

The opposition leader, Peter Dutton, says the Coalition could seek to break up insurance companies found to be gouging policyholders and more competition is needed in the sector.

In an interview with Sky News on Sunday, Dutton said the Coalition’s divestiture policy – which threatens to carve apart big supermarkets and hardware chains as a “last resort” to combat price rip-offs – could also be applied to big insurers.

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Bereaved parents launch court challenge over UK benefit ‘discrimination’

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Widowed parent’s allowance claims for those not married or in civil partnership can only be backdated from 30 August 2018

Two bereaved parents have filed a case at the European court of human rights, claiming that the UK government’s treatment of them is discriminatory.

Jyotee Gunnooa and Andrew Byles lost their partners but were unable to claim a benefit for widowed parents because they were not married or in civil partnerships when the deaths happened.

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Almost 40 firms banned from installing UK insulation amid botched jobs outcry

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Schemes backed by previous government to improve energy efficiency have left homeowners unable to sell

Almost 40 building companies have been blocked by the government from installing insulation amid a growing outcry over the profusion of botched jobs across the UK.

Ministers also announced that any homes found to have received botched insulation would have the issues put right by the installer responsible at no extra cost to the homeowner.

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Woolworths selling downsized’ Brut deodorant for more than double unit cost of old product

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Consumer advocates call for more transparency around ‘shrinkflation’ as supermarkets continue to defend against price-gouging allegations

Australia’s biggest supermarket chain, Woolworths, is selling a significantly smaller stick of Brut deodorant for more than double the unit price of the old product, in an extreme example of “shrinkflation” that leaves shoppers paying more for common household products.

While not unlawful, the pricing decision rubs against heightened public criticism of strategies employed by supermarkets, which have consistently defended themselves against price gouging allegations during a cost-of-living crisis.

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One in six UK workers skipping meals to make ends meet, says TUC

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Trade unions body finds 17% have skipped meal in past three months, and as many as 10% do so most days

As many as one in six workers in Britain are skipping meals to make ends meet as households remain under pressure from the higher cost of groceries, energy and other essentials.

Highlighting the impact of the cost of living crisis on working households, figures from the Trades Union Congress (TUC) showed 17% of full- or part-time workers had skipped a meal to reduce their spending in the past three months.

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UK music industry hails proposals to crack down on ticket touting

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Resale prices could be capped at 30% over face value, while resale websites face greater legal obligations

The price at which tickets for live events can be resold is to be capped under “gamechanging” proposals put forward by the government to crack down on touting in the sector.

In a move hailed by music industry figures, the culture minister, Lisa Nandy, has launched a consultation that she said would end the “misery” of fans being exploited by touts, some of whom have made huge profits by selling hundreds of tickets a year.

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Millions of households in Great Britain face higher energy bills as price cap rises

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Average annual bill in England, Scotland and Wales increases by 1.2% to £1,738 from New Year’s Day

Nine million homes will face higher energy bills from Wednesday as Britain braces for freezing temperatures and snow warnings for the new year period.

The average energy bill for households across England, Scotland and Wales will rise by 1.2% from New Year’s Day to £1,738 a year for a typical household after the energy regulator raised its cap on gas and electricity charges.

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Number of UK retailers on brink of collapse soars by 25%

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Report for final three months of year shows pressure driven by rising costs and weak consumer confidence

The number of UK retailers on the brink of collapse soared by a quarter in the final three months of the year, driven by a combination of rising business costs and weak consumer confidence, according to a report.

The proportion of retail businesses classed as being in “critical” financial distress jumped 25% to 2,124 in the fourth quarter compared with the third, the insolvency specialists Begbies Traynor said.

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Retailers warn inflation could hamper UK shoppers in run-up to Christmas

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British Retail Consortium figures come alongside data showing a fall in household disposable income

Shoppers’ ability to afford Christmas treats has been put under threat as retailers warned November could mark a turning point for inflation, with the recent fall in prices slowing amid increased fresh produce costs and fewer discounts on the shelves.

Shop prices fell by 0.6% in November, compared with a fall of 0.8% in October, according to the latest report from the British Retail Consortium (BRC) and research firm NielsenIQ. The slowdown in deflation was driven by non-food goods and a slight increase in fresh food prices, including seafood.

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Energy bills, mortgages, food: will cost of living surge again under Labour?

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The government claims to be fixing the economy but households may face more pressure in the months ahead

Labour swept to power in the wake of a cost of living crisis that hit households hard, with the price of food and energy rocketing alongside the impact of Liz Truss’s disastrous mini-budget on mortgage rates.

At 2.3%, inflation is nowhere the 10% peak after Russia’s invasion of Ukraine, but it is creeping up, and could hit 3% in 2025, say forecasters.

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UK bank fraud victims could face £100 excess on refund claims

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Despite new rules, many lenders have decided to implement the optional exemption

Some victims of bank transfer scams will not get a penny back despite beefed-up rules designed to better protect consumers from fraudsters, because several big banks have introduced an excess on refund claims.

New rules requiring banks and other payment companies to reimburse fraud victims who have been tricked into sending money to scammers took effect last month, and included an optional £100 excess that firms can apply to a claim.

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E.ON must pay £14.5m to prepayment customers after billing failures

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Ofgem says nearly 250,000 people will each receive average of £144 in compensation and refunds

The energy regulator has ordered power supplier E.ON Next to pay £14.5m in compensation to nearly 250,000 prepayment customers, after an investigation found “unacceptable” failures to pay credit they had on accounts or final bill payments they were owed.

Ofgem found that the customers were affected over an 18-month period from early 2021 to late last year by an error in E.ON Next’s billing system. About 100,000 of the affected accounts were also in credit.

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UK’s inflation jump dashes hope of interest rate cut in December | Heather Stewart

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Rate cut unlikely until 2025 as energy prices blamed for stronger-than-expected inflation of 2.3%

Any lingering hope that the Bank of England might deliver a pre-Christmas interest rate cut next month appears to have evaporated, after official data showed inflation jumping to 2.3% in October.

The CPI measure had been expected to tick up, after dipping to 1.7% in September, but 2.3% was stronger than expected.

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Higher employment costs and interest rates to push UK firms into financial trouble; Trump tariffs would ‘hit growth’ – business live

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Rolling coverage of the latest economic and financial news

Begbies Traynor also reveals that their employment costs are expected to rise by £1.25m due to the increase in employers’ national insurance contributions.

The company is “reviewing options to mitigate the impact where possible”.

“Additional headwinds for UK business from increased employment costs and the prospect of higher for longer interest rates are likely to extend the period of elevated insolvency levels, increasing the need for advice and support from our insolvency and business recovery professionals.”

“We have made a very good start to the year with double digit growth in revenue and profits driven by positive momentum across the group. This gives us confidence that we will deliver market expectations for the year as a whole.

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Britons warned to expect ‘disappointing’ rise in energy bills in January

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Price cap for Great Britain forecast to rise to £1,736 a year for average dual-fuel bill, according to Cornwall Insights

Britons have been warned to expect a “disappointing” rise in energy bills in January, adding pressure to household finances, despite earlier hopes that prices may ease early next year.

The price cap for Great Britain is forecast to rise to £1,736 a year for the average dual-fuel bill, according to Cornwall Insights, a well-respected energy consultancy. This is a rise of 1% from the current price cap, which increased last month to £1,717 a year for a typical consumer.

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Is your air fryer spying on you? Concerns over ‘excessive’ surveillance in smart devices

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UK consumer group Which? finds some everyday items including watches and speakers are ‘stuffed with trackers’

Air fryers that gather your personal data and audio speakers “stuffed with trackers” are among examples of smart devices engaged in “excessive” surveillance, according to the consumer group Which?

The organisation tested three air fryers, increasingly a staple of British kitchens, each of which requested permission to record audio on the user’s phone through a connected app.

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Indie brewers ditch ‘craft beer’ tag as drinkers are ‘misled’ by global brands

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Survey shows many consumers unaware that previously standalone businesses now owned by big corporations

Small breweries in the UK are ditching the term “craft beer” in favour of “indie beer”, warning that global corporations have bamboozled many drinkers into believing that formerly independent brands are still artisanal hidden gems.

In a survey by YouGov that marks a new phase of the bitter war over what constitutes “craft beer”, consumers were asked to say whether 10 beer brands were made by “independent craft breweries”.

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UK ‘risks repeat of surging energy bills’ amid continued reliance on gas

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Energy crisis panel warns country is ‘dangerously unprepared’ and must shift away from gas quickly

Britain is at risk of experiencing a repeat of the sharp increase in energy costs which has fuelled the continuing cost of living crisis because it relies too heavily on gas, according to an expert panel of industry leaders.

The Energy Crisis Commission has warned that the UK is still “dangerously underprepared” for another crisis because it continues to rely on gas for its power plants and home heating.

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Battery-operated items from Temu tested by Choice fail Australian safety standards

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Consumer advocate says results are a ‘worrying reminder’ children are at risk from insecure battery components on most items

An LED-lit tutu skirt, a spinning top and a set of building blocks are among a number of dangerous toys that were sold by Chinese-owned shopping platform Temu, Choice has found.

Choice tested 15 toys operated by circular coin or button-style batteries, including watches, a writing tablet, a musical keyboard, a cartoon projector and a electronic pet game from Temu in May.

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Shoppers to no longer pay fees when using debit cards under new Albanese government plan

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Treasurer says uncovering ‘unfair’ practices also part of proposed surcharge revamp designed to give consumers better deal and cut small business’s costs

The federal government is preparing to ban debit card fees and instruct the consumer watchdog to investigate excessive card costs, as the unpopular system of transaction charges gets set for an overhaul.

The proposed changes would mean consumers no longer pay a fee when using their debit card to buy their morning coffee or make a major retail purchase. Credit card fees would still apply.

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