Weekly Money: the stories we noticed 18 to 22 January

The personal finance stories you may have missed this week

Investors were faced with a bear market this week (Orphaned Wildlife Center)

22 January

Mobile phone users should be allowed to cap their monthly use, a charity has demanded. Citizens Advice labelled mobile phone firms as the worst private sector debt collectors and accused them of playing a significant role in people getting into mobile phone debt. Its research analysed 26,600 mobile phone debts totalling nearly £11m. It says mobile providers should help customers manage bills by allowing them to set a monthly bill limit, as credit card companies have to.

“That would give consumers more power and help ensure they don’t build up unaffordable charges,” said the charity’s chief Gillian Guy. The Government should also ensure people can access free and independent money advice to avoid getting into debt in the first place.”

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You have less than eight weeks left to claim for compensation for mis-sold credit card security products. If you received an AI Scheme Ltd compensation claim pack in the post in August or September last year and want to claim compensation, you must return a completed form before 18 March 2016, the Financial Conduct Authority warned. If you bought a card security product branded Sentinel or Card Protection you may be eligible. Call the AI Scheme helpline on 0800 678 1930 for more information.

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The use of ‘tap and go’ plastic cards topped £1bn in November, reported the UK Cards Association. A total of 121 million contactless purchases were made during the month. The average contactless transaction value increased to £8.03 in November, from £7.72 in October. The increase followed September’s rise in the single payment limit using contactless cards from £20 to £30.

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Did you buy a lottery ticket in Worcester ahead of the recent mega rollover? That’s where the unclaimed ticket worth £33m was bought.

21 January

E.on finally followed British Gas by announcing a cut in domestic gas prices by 5.1 per cent from February but promptly walked into a storm yesterday. The move reignited complaints that the big six energy firms have been overcharging consumers in the face of falling wholesale prices, which fell 23 per cent last year. “Suppliers need to play fair with customers and start passing on the major savings they have been making from cheap wholesale costs," said Citizens Advice chief executive Gillian Guy.

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SSE is today launching the cheapest one-year fixed rate energy tariff on the market at £775. That’s more than £300 cheaper than the average standard variable Big Six tariff, and follows E.on’s new £783 fixed rate tariff launched yesterday. The move points to the importance of changing supplier to get a fair deal.

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The number of people switching bank accounts disappointingly dropped 11 per cent in 2015. There were 1.03 million switches, compared to 1.15 million in the previous 12 months. That may sound a decent figure but it means less than 2 per cent of us switch bank account each year, leaving 98 per cent of people probably paying more than they need for an account. “Banks need to do more to help their customers understand their current account usage by prompting them with clear information,” said Richard Neudegg of uSwitch.

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Confused about how much your broadband deal actually costs or compares to other offers? Ads from suppliers will soon have to be clearer by giving an upfront total monthly charge rather than the “confusing and misleading” practice of separating out the broadband price from the cost of line rental. The latter practice will be outlawed from May. “Simplifying how broadband prices are advertised is a step in the right direction, but the advertising of broadband speeds must also be tackled,” said Richard Lloyd of Which?

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Car insurance costs climbed by more than 10 per cent over the three months ending 31 December, the largest premium jump since 2010 according to the AA. The Chancellor’s insurance premium tax hike in November was partly to blame.

20 January

Rumours are growing that in the spring Budget on 16 March George Osborne will scrap the higher-rate tax relief available on pension contributions and replace it will a flat rate. That would mean all taxpayers getting the same level of tax relief however much they earn. Some might say that sounds fair, but while it would benefit the estimated 15 million workers who pay into a pension scheme, the 4.9 million people who pay higher rate tax would be hit. Suggestions are the new flat rate tax relief on pension contributions could be between 25 per cent and 33 per cent.

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Almost a third of people living with a partner worry that their relationship ending would mean losing their home, according to new research from a housing charity. Their fears are not unfounded - relationship breakdown is responsible for one in every six cases of homelessness in England, according to the latest government figures, making it the third most common cause of homelessness.

“A break-up can happen for any number of reasons, but it’s always stressful and upsetting, without the added fear of becoming homeless,” pointed out Shelter’s helpline adviser, Nadeem Khan. The charity is urging anyone going through a break-up and worried about losing their home, to get expert help. Shelter’s free helpline is on 0808 800 4444.

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Investors are feeling gloomier than ever as stock markets plunge in 2016. That’s reflected in the latest Lloyds Bank Investor Sentiment Index which dropped throughout December to its second lowest level since July 2013.

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One in three private tenants has delayed plans to buy a home and remained in rented accommodation, says Experian. A fifth reckon they would be turned down for a mortgage so feel renting is their only option, while a tenth have struggled to raise a deposit and consequently been forced to delay their plans. A further one in 20 has had to continue renting as they’ve been held up in securing a mortgage.

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The Financial Conduct Authority must ensure firms don’t rip off consumers with extortionate exit charges on those taking advantage of pension freedoms, the Chancellor said yesterday. “The Government isn’t prepared to see people either ripped off or blocked from accessing their own money by excessive charges,” George Osborne said, after setting out proposals to place a duty on the City watchdog to cap excessive early exit charges.

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Co-op members can win £1,000 of vouchers by swiping their membership card when buying in Co-op stores. There are also instant win prizes and vouchers up for grabs in the offer which runs until Tuesday, 2 February.

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Nationwide has changed its credit cards to cut confusion over rates, end dates and limits. Crucially it has promised no more automatic increases for credit card limits.

19 January

Headline UK house prices increased by 7.7 per cent in the year to November 2015, according to official figures published by the Office of National Statistics. But while experts predict further similar rises ahead, drilling down a little into the figures reveals a growing and alarming divide between England, Wales and Scotland.

While prices in England climbed by an average 8.3 per cent over the 12 months, there was a very different story in the rest of the country. In Northern Ireland the property growth was 4.6 per cent, but in Wales prices climbed just 1.3 per cent over the year and in Scotland, price inflation was a desultory 0.4 per cent.

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There’s been a sharp rise in the number of cash incentives offered with current accounts, with deals offering up to £220 a year with M&S, £175 with Halifax, £150 with Yorkshire Bank and £125 with HSBC and FirstDirect. But you should choose an account based on its overall cost, rather than the gimmicks. “That’s particularly important if you want a reasonable overdraft to cover any unexpected outgoings, otherwise you could end up being stung with excessive fees,” warned Rachel Springall of Moneyfacts.

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The cost of basic Virgin and Sky tv packages have climbed by around five times the rate of UK wages in the last seven years, reckons Freesat. A basic Sky package cost £17 in December 2008 but an equivalent package with the equivalent channel choice today would cost you £30 – a 76 per cent rise, according to the satellite TV service. It says a basic Virgin TV package cost £11 per month in December 2008 but has since risen to £18 per month – a 63 per cent rise.

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Halifax has extended its 0 per cent balance transfer credit card deal to 40 months – the longest it has ever offered. The deal runs until 15 February, but comes with a steep 2.95 per cent transfer fee.

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The Footsie is now a fifth lower than the high of 7122.74 it reached last April. But that’s no reason to panic, says Tom Stevenson of Fidelity International. “it is essential to hold your nerve when markets fall,” he said. “Volatility is the price you pay for the long-term outperformance of equities over other asset classes.”

18 January

After facing accusations of overcharging last week, the big six energy firms are today charged with failing customers when it comes to customer service. Research from consumer group Which? reveals the energy giants - British Gas, EDF, E.on, Npower, Scottish Power and SSE - all rank at best average at customer service from energy firms.

Smaller energy firms top the table, with OVO Energy top with a customer satisfaction ranking of 82 per cent, Good Energy second with 81 per cent and Ecotricity third with 77 per cent. The average score was 53 per cent, with British Gas, EDF, E.on and SSE all achieving between 52 per cent and 55 per cent. But Npower once again scored the lowest satisfaction score with 41 per cent, closely followed by Scottish Power on 44 per cent.

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StepChange has predicted that more than 20,000 people will contact it for advice today on what it expects to be its busiest day of the year. It reckons 21 million UK people are struggling with bills, with 2.6 million living with a severe debt problem.

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The property market remains buoyant in 2016, according to Rightmove. It said the price of property coming to market climbed 0.5 per cent in the last month, the second highest Christmas/New Year period rise since 2007. But there’s good news for prospective homeowners - first-time buyer prices have hardly risen, climbing just 0.1 per cent. The online property site suggests that reflects the impending stamp duty levy which could be having a calming influence sooner than expected.

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The average monthly UK rent is now £919, after climbing 3.1 per cent in 2015, says Countrywide.

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It was 26 years ago today that gold reached $850 an ounce. Today’s price? Roughly $1,089!