Category Archives: Money

Asda’s profit margins at the pump have trebled, MPs told

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Competition regulator tells business committee of ‘significant change’ in retailer’s fuel pricing

Asda’s profit margins on fuel have tripled since before the pandemic, according to the competition regulator at a bad-tempered parliamentary hearing where the supermarket chain’s co-owner repeatedly refused to explain its pricing strategy.

Mohsin Issa declined to answer multiple questions on whether Asda had increased its profit margins on fuel since its takeover in 2021, prompting MPs on the business select committee to become increasingly furious as the retailer insisted it had not changed its strategy.

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Grant Shapps appears to row back on supermarket petrol prices law

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Energy secretary backs voluntary price comparison scheme in meeting with supermarket bosses rather than new law

The energy secretary, Grant Shapps, appears to have rowed back on plans for a law to force supermarkets to make fuel prices more transparent, instead backing a voluntary price comparison scheme in a meeting with supermarket bosses.

Shapps on Monday endorsed the non-mandatory scheme, which had been suggested by the competition regulator, after a summit with retailers that he had promised would involve him holding “rip-off retailers” to account.

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UK supermarket food prices up by more than 25% in two years, says Which?

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Retailers should be forced to display detailed price information on loyalty card deals, says consumer group

Supermarket food prices have increased by more than 25% over the past two years according to the consumer group Which?, with the size of the rise reinforcing the case for retailers to be forced to display detailed price information on loyalty card offers and promotions so shoppers can find the best deal.

Which? said the government needed to close loopholes that result in “confusing and inconsistent” pricing practices of some supermarkets. Last month it reported Tesco to the UK’s competition watchdog because it does not provide unit prices – such as the price for each 100g or 100ml – for the loyalty card offers it uses as a sales tactic to pull in shoppers.

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UK savings: more accounts now offering 6%-plus interest

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Government-backed NS&I increases its rates, as building societies and banks launch better deals

Amid the mortgage misery, there was more good news this week on savings rates, with a growing number of accounts now paying 6%-plus interest.

Meanwhile, the government-backed NS&I – a favourite of many in these uncertain times – has upped the rates on some of its popular fixed-rate accounts.

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Record UK pay growth adds to pressure for interest rate rise

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Jeremy Hunt and Bank of England’s Andrew Bailey call for wage restraint to help curb inflation

Wages increased at a faster rate than expected in May, putting pressure on the Bank of England to push up the cost of borrowing at its next meeting in August.

Earnings growth hit 7.3%, driven by the strongest rise in private sector pay growth outside the pandemic period of 7.7%, the Office for National Statistics said.

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‘It’s like a hostile environment’: London’s creative core at risk as artists in poverty quit

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UK capital as ‘huge generator of wealth’ under threat as a third of visual artists struggle to pay for studios

What makes Britain’s capital city so magnetic? Familiar landmarks? The nightlife? Or its financial, fashion and art trades? Maybe. But behind the glamour and money a network of artists is giving London the crucial appeal of a place where new things happen, while working on the edge of poverty.

A survey released on 13 July is to reveal just how close many of London’s visual artists are to giving up on a career that has pushed them to the bottom of the pile. Close to a third of those asked said lack of funds might force them out within five years. And just under half said they cannot afford to build savings or pay into a pension plan.

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UK house prices fall at fastest annual rate since 2011, says Halifax

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Average price of property drops by 2.6% year on year in June as mortgage rates climb

UK house prices experienced their biggest annual fall in 12 years, according to Halifax, the latest sign that soaring interest rates on mortgages is bringing a halt to the housing boom.

The average price of a UK home tumbled 2.6% year on year last month, the largest annual decrease the lender has reported since June 2011, a significant acceleration from the 1.1% decline record in May.

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Benefits claimants in UK were underpaid by record £3.3bn last year

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National Audit Office criticises Department for Work and Pensions over its ‘material fraud and error’

Thousands of people in the UK could receive a payout after official figures revealed that benefit claimants were underpaid by £3.3bn last year, the highest level on record.

The Department for Work and Pensions also admitted that as many as 330,000 people, some of whom have since died, may have missed out on as much as £1.5bn of valuable state pension entitlement – a disclosure that prompted some commentators to warn of a new scandal. Steve Webb, the former pensions minister, said: “The scale of these errors is huge.”

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Average rate on five-year fixed mortgage deal in UK climbs above 6%

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Rate is at highest level since last November, and average two-year fix is now 6.47%

A typical five-year fixed mortgage deal in the UK now has an interest rate of more than 6%, putting further pressure on borrowers who are hoping to buy a home or reaching the end of their existing deals.

Data from the financial information firm Moneyfacts shows the cost of a five-year deal for homeowners rose to 6.01% on Tuesday, up from 5.97% on Monday. It is the highest level since last November, after mortgage rates had been driven up by the mini-budget chaos of last autumn.

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Court hears councils’ legal challenge over London Ulez expansion

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Five Tory-led councils seeking to block mayor’s plans to extend ultra-low emission zone to whole of capital

A legal challenge to plans to expand London’s ultra-low emission zone (Ulez) to the whole of the capital will be heard in the high court on Tuesday as five Conservative-led councils seek to block the proposals.

The Ulez is due to expand at the end of August from the boundary of the north and south circular roads to throughout Greater London, requiring drivers of the most polluting vehicles to pay a fee when using them in the area.

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Watchdog summons UK bank bosses to discuss weak savings rates

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Financial Conduct Authority to meet executives on Thursday as part of its investigation into savings market

UK bank bosses have been summoned to a meeting with the financial watchdog this week amid mounting concerns that they are profiting from rising interest rates by offering paltry savings rates to customers.

Executives from the big high street names Lloyds Banking Group, NatWest, HSBC and Barclays, as well as from smaller lenders, are due to attend a meeting at the Financial Conduct Authority (FCA) on Thursday to discuss concerns that savings rates are lagging far behind the soaring costs of mortgages and loans.

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California man hid mother’s death for more than 30 years to collect benefits

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Donald Felix Zampach collected over $830,000 in his mother’s social security and military retirement payments

A California man has pleaded guilty to hiding his mother’s death for more than three decades while he collected her social security and military retirement payments, a scheme the US attorney said is believed to be the longest-running and largest fraud of its kind in the district.

Donald Felix Zampach of Poway, about 20 miles north of San Diego, collected over $830,000 of public funds and nearly $30,000 in fraudulently opened credit cards over the course of three decades, US attorney Randy Grossman said last week.

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International Energy Agency warns of higher bills this winter

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Fatih Birol says China’s economic recovery combined with harsh winter could pile pressure on gas supplies

The head of the International Energy Agency has said energy prices may spike again this winter, forcing government to subsidise bills – just days after state support for UK households fell away.

Fatih Birol said a rapid improvement in the Chinese economy, coupled with a harsh winter, could put pressure on gas supplies and push up bills for consumers.

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Direct Line ordered to review five years of car claims after underpayments

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Insurer told to reassess vehicle write-offs to identify any unfair settlements

Britain’s second-biggest car insurer, Direct Line, has been ordered to go back through five years of claims after admitting it had underpaid some customers who had their cars and vans written off.

After an investigation into the car insurance market that began in December 2022, the Financial Conduct Authority (FCA), this week ordered Direct Line to conduct a review of claims where vehicles had been written off “to identify any policyholders who received unfair settlements and provide them with appropriate redress”.

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Water firms push for bills in England to rise by up to 40%, say reports

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Plans drawn up to pay for cost of dealing with sewage crisis and climate emergency

Water companies are reportedly pushing for bills in England to rise by up to 40% under plans being drawn up to pay for the cost of dealing with the sewage crisis and the climate emergency.

The increases are due to be announced next year and could drive annual bills up from an average of £450 to £680 in parts of the country by the end of the decade, according to a Times report citing consultation documents.

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‘We’re kicking ourselves that we didn’t do a five-year mortgage fix in 2021’

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Anguished families talk about how the Bank of England’s 13th consecutive interest hike is affecting them – and their fears for the future

Liam, 36, a senior IT manager and married father-of-one from Newcastle upon Tyne, is one of millions of homeowners whose mortgage payments will rise even higher after the Bank of England on Thursday put up the base interest rate to 5% – a 15-year high.

Together with his husband, Liam bought his four-bedroom house in 2019 for £269k, and the couple’s three-year mortgage deal, refixed at 1.64% in 2020 just before the first lockdown, expired in March.

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From Brexit to Beyoncé: why UK inflation is still so painfully high

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The cost of living is falling in Europe and the US but is still rising in Britain. We look at the major culprits

The Bank of England has struggled to understand why inflation remains high in the UK. It has fallen in France, Germany, the US and especially Spain, where inflation dropped to 2.9% in May compared with the UK figure of 8.7%. Here we look at the many reasons for the current crisis.

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Labour piles pressure on Sunak with plan to prevent ‘mortgage catastrophe’

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Shadow chancellor Rachel Reeves says party would force banks to take a range of steps to protect borrowers

Labour has piled further pressure on Rishi Sunak to take action to help struggling mortgage holders as the Bank of England prepares to raise interest rates again to levels not seen since before the 2008 financial crash.

Rachel Reeves, the shadow chancellor, said on Wednesday that if Labour were currently in power, it would force banks to offer a range of support to borrowers, including letting them move on to interest-only mortgages and extending their repayment period.

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Sunak, Hunt and homebuyers brace for an economic Big Wednesday

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The midweek inflation bulletin could be the most significant piece of government data published this year

This Wednesday will mark the longest day of the year and not long after the sun comes up the Office for National Statistics (ONS) will publish its latest cost of living bulletin. To say the data is eagerly awaited is an understatement. There is unlikely to be a more significant piece of official data released in the current parliament.

The reason is simple. Despite raising interest rates 12 times since December 2021 in an attempt to quell upward price pressures, inflation is proving harder to shift than the Bank of England imagined.

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