Weekly Money

Round-up of the personal finance stories you may have missed 13 to 17 April

Some 14.3 million households turned off heating at some point this winter to cut energy bills (Getty)

Debt is rising; estate agent charges outstrip property inflation; loan wars: Barclays hands cash rewards to customers; 14.3m households turned off heating; cut-price tv licence; the stories we noticed this week

17 April

Personal debt is rising, despite the fact that inflation is at an all-time low, and the latest Budget claiming that UK debt would fall next year. According to Moneysupermarket, 44 per cent more people will take on debt this year than last year.

Frighteningly, its research suggests that just under two-fifths of those in debt rely on unsecured credit to pay for day-to-day items. Unsurprisingly, 18 to 34 year olds are finding it hardest to live within their means.

“There is still a long way to go before many consumers are out of trouble,” warned Kevin Mountford of the comparison site. “It’s important that those relying on credit keep in control of the situation, so their debt doesn’t spiral out of control. Simply working out a realistic monthly budget and cutting out unnecessary expenditure should be the first step.”

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Moving home is an expensive business. In fact the additional costs of moving have increased by more than half over the last decade to £11,894, reckons the Post Office.

Rising costs include: estate agent fees, stamp duty, conveyancing fees, surveyors’ fees and removal charges. But while house prices have climbed 39 per cent in the last 10 years, they’ve been outpaced by estate agency fees which have soared 61 per cent, leaving the average fee last year at £5,214.

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Mobile phone users are collectively overpaying hundreds of millions of pounds a year on handsets they have paid off, Which? warned.

The consumer group found that almost half of mobile users who came to the end of their contract did not switch immediately, ending up overpaying an average of £92 each on handsets they had already paid for. Which? called for phone firms to separate out handset costs.

16 April

There was a huge surge in the number of people looking to find out more about the new pension freedoms that launched this month. More than 200,000 calls were made to financial firms between Tuesday and Friday last week in the first few days of the reforms, reports the Association of British Insurers.

It said its members handled a 229,932 phone calls from customers asking about the choices they have under the new rules, a 214 per cent increase in the normal average number of calls received.

On top of the average 57,483 calls made each day, more than 10,000 written and email requests were also received by pension firms, twice the normal average.

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The ongoing loan wars continue with the launch today of the lowest ever interest rate charged by M&S Bank. It’s quoted APR on loans between £7,500 and £15,000 is just 3.6 per cent, although many will end up with a higher rate, depending on their credit history. Behind the headline deal the charged rate climbs as high as 18.5 per cent for M&S customers looking to borrow less than £3,000.

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The general election has given investors “a bad case of the jitters”, warns Laith Khalaf of Hargreaves Lansdown. The company’s latest Investor Confidence Index fell 11 per cent this month, the biggest monthly fall since May 2012. Then the Greek debt crisis threatened to break up the Eurozone, and the Footsie fell by almost 10 per cent in a matter of weeks.

Now the worry is all short-term, says Mr Khalaf. “The election has the capacity to dent market sentiment but in the long term, the stock market will be driven by company profits, which are not in thrall to any political party.”

15 April

Are politicians listening to voters’ financial concerns? That’s one of the questions posed in a new BBC Radio 4 programme broadcast tonight, which I took part in. Two groups of voters were given a chance to share how they feel about whether the UK will provide a financially stable society and the results should be fascinating, judging by the recording session. What was clear to me is that there are a lot of people who feel badly let down by their MPs. Do listen to Two Rooms tonight at 8pm on Radio 4 (repeated on Saturday night at 10.15pm) and let me know your views.

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Barclays customers can cash in from a new handout from the bank from next Monday. Joining Barclays Blue Rewards costs £3 a month but then lets customers in for handouts of up to £15 a month. You’ll need to have a suitable Barclays current account with at least £800 paid in every month and two monthly Direct Debits paid out. Once signed up you’ll qualify for £7 a month paid into a Digital Wallet which can be transfered to your current account, giving £4 a month to all. To get higher monthly rewards, you’ll need to have a mortgage or insurance with the bank.

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The Co-op Bank has a new overdraft which it says “will make borrowing cheaper for all customers”. It has a simpler charging structure and fewer fees and includes a £20 buffer so you can go over their limit for up to £20 without being charged a fee. There’s also a useful once-a-year-fee waiver which gives you six days to get your account back on track to avoid fees.

14 April

Some 14.3 million households turned off heating at some point this winter to cut energy bills. And two-fifths of consumers say they left their oven door open after cooking and a quarter wore a coat, scarf or hat indoors to keep warm rather than turning on their heating, reckons new research.

Frighteningly, almost two-fifths of consumers told uSwitch that rationing their energy use affected their health or quality of life. Now the comparison site is calling on the government to extend the Warm Home Discount to help 4.8 million ‘fuel vulnerable’ households who spend more than 10 per cent of their income on energy.

Ann Robinson of uSwitch, said: “It’s unacceptable that people should feel forced to gamble with their health to try and cope with sky-high energy bills.”

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Anybody who is registered as blind or lives with someone who is, can claim a 50 per cent reduction on the cost of their TV licence. A blind concession TV licence costs £72.75 and covers any equipment used to watch or record TV at the address, including TVs, laptops, tablets and games consoles. To apply fill in an online form at tvlicensing.co.uk/blind or call TV Licensing on 0300 790 6112

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Be careful when completing your tax return. The authorities are getting tougher on incorrect returns, a new Freedom of Information request from accountancy firm Baker Tilly has revealed. It showed that the number of individual penalties for deliberate - as opposed to careless - inaccuracies in tax returns almost trebled last year, climbing from 5,162 in 2012-13 to 14,401 in 2013-14.

13 April

If you’re approached with an investment that seems too good to be true, check it out on the Financial Conduct Authority’s Warning List at the website scamsmart.fca.org.uk. It has tips on how to spot fraudsters as well as details of rogue firms.

Last Tuesday, for instance, it warned about an unauthorised New York firm called Grey Corporate Partners. The FCA said: “We believe this firm has been providing financial services or products in the UK without our authorisation.”

Anybody falling for scammers’ sales talk and investing through an unauthorised firm would have no claim for compensation under the UK’s financial regulation rules.

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Nearly half of people approaching retirement have no idea how long their pension income will last. That’s worrying, especially after pension providers reported high demand from customers following the launch of pension freedoms last week. Standard Life, for instance, said: “We have received an unprecedented level of customer contact.”

But research by Old Mutual Wealth found that retirees are banking on withdrawing on average around 10 per cent from their pension pot each year. That would leave the average pot being used up within a decade.

The firm’s Carlton Hood, said: “Working out how long your pension savings will last is not a simple matter. There is a significant danger that pension funds could run dry if people do not plan carefully or take financial advice.”