Tag: households
More than eight million households will receive a £301 payment from today
: Tempted to open a new credit card? It might get more difficult. Powell warns of ‘tighter credit conditions for households and businesses’
How trio of Britain’s biggest power firms are ‘ripping off households by gaming National Grid’s systems’
THREE of the UK’s biggest power firms have ripped off households by over half a billion pounds by gaming National Grid’s systems, it is claimed.
Vitol VPI, Uniper and SSE have been manipulating the electricity market by saying they will power down their generators at peak times, only to then demand a much higher price from the Grid to keep running.
Energy supplies are most under pressure in the evenings, when people cook dinner, turn on lights, and use heating and hot water to bathe.
The Grid sends out requests to power firms for more electricity when its supplies are under pressure and offers a higher payment to generators to step in to the gap.
But some have been announcing they will switch off, often with just a few hours’ notice ahead of the peak times.
Then they earn four times as much by switching back on just hours later to meet the Grid’s anticipated shortfalls.
An investigation by Bloomberg of over 100million market records found these firms have racked up more than £525million in inflated revenues with these tactics.
The grid had to pay £42million on just one cold day last November to traders using their off-on technique.
Simon Francis, of the End Fuel Poverty Coalition, said: “This is absolutely outrageous.
“These traders are part of the reason why Britain’s energy system is completely broken.
“These shadowy practices are causing sky-high energy prices for British consumers.
“It is not just ripping off customers, it is ripping off taxpayers as the Government is having to step in to help with energy bill support.
“Disabled people have been unable to afford to charge their wheelchairs because of rocketing electricity prices — and yet these companies are making bumper profits.”
The energy firms say they comply with the regulations, but energy regulator Ofgem has called the allegations “serious”.
An Ofgem spokesman said: “Our first job is to protect consumers, and all attempts by energy companies to exacerbate tight market conditions, whether intentional or not, are in not their interests.
“We are taking action to introduce a new obligation into electricity generation licences.
“This will prohibit generators from affecting the balancing mechanism in this way for excessive financial gain.”
CASH WOE SWIPES AT DATE APPS
RISING household bills have led to a “cost of loving” crisis as romantics cut back their spending on dating apps.
The volume of dating transactions — which includes spending on apps such as Tinder, Hinge and Bumble — fell by a third in February, a survey of more than 2,000 people by Nationwide found.
Overall spending rose by 10 per cent last month, as consumers had to fork out more on utility bills, mortgage payments and food.
To save cash, nearly a quarter of people have cancelled subscriptions, with outlays on TV streaming, music and meal boxes falling by 6 per cent in February.
Stretched finances mean 38 per cent of consumers had to use credit cards to afford essential items before pay day.
Mark Nalder at Nationwide said: “The number worried about their finances has fallen slightly, but there are people relying on credit.”
IT’S ADIOS MY AMIGO
AMIGO LOANS has said it’s winding down its business and will halt all lending after failing to raise capital from investors.
The sub-prime lender had been looking to raise £15million to pay compensation to over 200,000 customers who had been mis-sold products.
Those customers have now been left in the dark.
The financial regulator said it would have fined Amigo nearly £73million — only that might have affected the payouts customers would receive.
DIY GLOOM SIGN
WICKES is the latest retailer to hint that the DIY boom is starting to falter.
The firm posted a 38.4 per cent fall in pre-tax profits to £40.3million last year after it counted £35million of costs relating to its demerger from Travis Perkins.
However, sales grew by 1.8 per cent to a record £1.6billion.
Sales at the start of this year are “moderately behind” a year ago.
Wickes joins B&Q owner Kingfisher in warning profits would be lower again this year as the surge during lockdown begins to fade.
UK JOBS IN CULL
ONE of the world’s biggest consulting firms, Accenture, is cutting around 19,000 jobs.
The company confirmed UK employees will be affected in its human resources, IT, finance and marketing teams, but did not say how many.
It has around 11,000 workers in London, Manchester, Birmingham, Newcastle, Edinburgh, Glasgow and Leeds.
Accenture is shutting offices globally to cut costs by £1.2billion.
Thousands of jobs have already been axed by big tech companies including Meta, Amazon and Google.
THE owner of 32Red, the Kindred Group, has been fined £7.1million and given a warning by the Gambling Commission for doing only “superficial” checks on vulnerable customers — and not doing enough to monitor for money laundering.
FALLS COST LLOYD’S £3BN
LLOYD’S of London, the world’s biggest insurance exchange, has booked £3.1billion of losses on falling government bond values and share prices in the past year.
The insurer revealed it would also have to set aside £1.1billion to cover Ukraine-related claims, lifting its likely war bill to £1.4billion.
The claims, which are related to disruption to supply chains, war damage and sanctions, are still well below the typical cost it would face from US hurricane payouts.
Lloyds suffered a £769million loss for 2022, dropping from a £2.3billion profit the year before.
The insurer is famous for its avant-garde “inside out” headquarters in the City, which has external lifts and stairs. Its roots date back to the 1600s.
CITY firms Cenkos and finnCap have agreed a £43million merger.
They will now have 230 UK staff.
The deal comes four months after a takeover attempt of finnCap by another rival, Panmure Gordon, broke down over price.
Households on prepayment meters will not pay more than those on direct debits, chancellor to promise
A million households can apply for £400 energy rebate
Households cutting energy usage to avoid blackouts ‘likely how we’ll all operate in future’
2.3m households missed an essential payment in January, data reveals
Millions of households to be hit with largest water bill increase in 20 years this spring – see if you can get help
HOUSEHOLDS will see the largest hike in their annual water bills in nearly 20 years when they rise to an average of £448 this spring.
Water UK said the 7.5% increase would see customers pay around £1.23 per day on average from April.
Households will be hit with the biggest increase in water bills in 20 years[/caption]
This is an increase of 8p per day or an average of £31 more than last year’s charges.
Experts are warning that the rise could prove the tipping point for the one in five customers already struggling to pay.
But Water UK argued that water bills remained lower in real terms than they were a decade ago.
The industry body said this year’s increase reflected higher energy costs, with water firms using around 2% of the nation’s electricity.
Firms said they were aware of the impact of price rises on lower income and vulnerable customers and had recently increased the level of support they offered by more than £200 million.
Water UK director of policy Stuart Colville said: “With an average increase of around 60p a week, most customers will again see a below-inflation increase in their water bill.
“However, we know that any increase is unwelcome, particularly at the moment.”
The Consumer Council for Water (CCW) said regional variations and factors such as whether a customer is metered and how much water they use meant some households could face rises significantly above – or below – the average.
And it said the postcode lottery of social tariff schemes meant many customers who cannot afford their bill “slip through the net”.
CCW chief executive Emma Clancy said: “Water is essential for all of us so no one should be worried about being able to afford their bill.
“These increases will bring more uncertainty to struggling households at a time when they can’t be certain they will get the help they need.”
Jess Cook, water poverty lead at National Energy Action (NEA), said: “Social tariffs are essential for low-income households.
“Discounted water bills for those struggling to pay can stop the most vulnerable from cutting back or running up debt when they can ill afford to do so.”
What help are water companies offering?
Water companies are increasing their support for low-income households by up to £200million, according to Water UK.
Some of the support is available now, while other schemes will become available over the coming weeks and months.
Below, we explain the help available from each water company, when it is available, how much you could get as well as when, and how you can claim.
Affinity Water
Affinity Water is making one-off affordability payments of up to £50 for 30,000 of its more financially vulnerable customers.
The cash will be automatically credited to customers’ annual bills around March.
The supplier said it is working through details of eligibility, but it expects some households on certain benefits, and some pensions, will get the help.
Anglican Water
Anglian Water has launched a £135million package to help 330,000 customers struggling to pay their bills.
The water company is now offering a range of services to support struggling customers.
And some customers will be eligible for discounted tariffs that could slash their bills by up to 50%.
Others can get affordable payment plans, payment holidays in certain circumstances, and direct support through the Anglian Water Assistance Fund.
The fund helps to cover the cost of bills and could even clear your water debt if you’re in arrears.
Customers in need of support should contact the water company directly – through their website, Twitter, Facebook or by calling the Anglican Water extra care team on 0800 169 3630.
Northumbrian Water
Northumbrian Water has increased the support that it has available to its financially vulnerable customers.
Struggling households can set up a payment plan, apply for a low-income discount or apply for a payment break.
The support is available to households now, and anyone who thinks they could be eligible should visit the Northumbrian Water website to find out more.
Portsmouth Water
The company has increased the length of payment holidays from three to six months to help households with their bills.
It has also moved more than 10,000 customers onto social tariffs.
If Portsmouth Water is your supplier, you should contact them directly if are having difficulties paying your bill.
Severn Trent
Severn Trent helping 100,000 additional households with social tariffs as part of an additional £30 million package of support.
More than 215,000 households are already being supported.
As part of the company’s Big Difference Scheme, households can get a reduction on their water bills if their income us below £18,278.
If you’re eligible, you could get up to 90% off your average bill.
You can apply for the scheme on the Severn Trent website.
South East Water
South East Water has increased the threshold for its social tariff from £16,480 to £18,005.
This is so that more customers can receive financial help.
Eligible households are automatically enrolled in the scheme, so there is no need to apply.
South West Water
South West Water has made nearly £70 million of support available to customers since 2020.
More than £39.2million has been given back to customers through reduced bills.
If your supplier is South West Water and you need help paying your bill, you can fill in a simple form on its website to find out what help you can claim.
South Staffs Water and Cambridge Water
The company has increased the income threshold of their social tariff from £17,005 per year to £19,050, so that more customers are eligible.
You can find out more about the social tariffs on the supplier’s website.
Southern Water
Southern Water is providing a £98m package of support for customers.
It has increased the minimum discount from 20% to 45%, with those most in need receiving up to 90% off their bills
Thames Water
Thames Water is to provide support to an additional 53,000 households this year.
The company has a range of support on offer for customers, including payment plans and debt support schemes.
United Utilities
The supplier is providing a total of £280million support help for the most vulnerable up until 2025.
It is helping through discounted tariffs and grants to individuals and families, with more than 200,000 customers set to be supported this year.
If you live in the United Utilities area, you can apply for help online.
How else can I save money on my water bills?
There’s a number of ways you can slash your water bills in 2023.
Moving to a water meter could help some save some extra cash.
However, if you do use a lot of water then it makes no sense to have a meter as your bills could go up.
The Consumer Council for Water offers a free water meter calculator that’ll tell you if you can save by fitting a water meter.
For example, if you have a big family and more people than bedrooms or simply use lots of water-intensive appliances like washing machines or dishwashers, a fixed fee will be better for you.
Having a water meter doesn’t help with the standard charge that’s based on where you live either, but it can help you cut down the costs of your personal usage at home.
Part of that is how long you spend in the shower too.
According to Uswitch, you could cut £70 from your energy bills and reduce your water bills too by reducing your wash time.
And leaving the water running while you brush your teeth could add £60 a year to your bills says Octopus.
The same goes for washing dishes, be sure you turn the tap off as if you’re doing it in the sink, leaving it running will add £25 to your annual bill.
Fixing leaks in the home is another. A leaky loo can waste between 215 and 400 litres of water per day.
Making sure you only use your washing machine or dishwasher when they are fully loaded helps too.
Plus, switching to an aerated shower head could save a household of four £75 on their energy bills and £45 on their water bills every year, Water UK estimates.
Many water companies offer free water-saving devices that shave pounds off your bills too – which can slash your bills by hundreds every year.
Contact your supplier or check out savewatersavemoney.co.uk.
In other news, a plumber has revealed a simple settings change that could save you £100s on your bill.
Plus, hundreds of thousands of struggling households could get up to £50 in extra help towards their water bills.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk