July 6th, 2016 | Andrew Hagger | News

New research and analysis into the cost of families from Sainsbury’s Bank has found that some children come with a heftier price tag than others. Parents of children under the age of 18 estimated that a daughter is more costly to raise than a son, across all age points.

The survey, which was conducted for the bank’s second Family Finance Report launched today, suggests that it is around £300 a year more expensive to raise a girl at ages 0-5; around £400 a year more at 6-13 years-old and around £600 a year more at 14-18.

Family size

Three quarters (75%) of parents with more than one child said that it was more expensive to raise their first child compared to subsequent children.

These findings align with Sainsbury’s Bank analysis of government data revealing that the ‘cost per head’ of each family member decreases with each subsequent child.

The average one-child family spends £621 per week – 17% (£89.60) – more than the average UK household. While costs continue to increase with subsequent children, however, the ‘cost per head’ of each family member starts to decrease after the first child; by £29 per head for a two-adult, two-child family, and by £31 per head for a two-adult, three or more child family.

Simon Ranson, Head of Banking at Sainsbury’s Bank said: “Families can be expensive, but it’s no surprise that the first child comes with the largest price tag. There’s a lot that families can do to keep these costs down, for example reusing items such as prams and toys for subsequent children. And of course, fixed costs such as accommodation and utilities – as well as the cost of food – don’t always change significantly when there’s more than one small person in the house. Many people say it’s as cheap to cook for two as for one.”

The survey showed that 40% of childhood items are reused; led by toys (72%), books (65%), clothes (64%), cots (60%), prams (59%) and bikes (48%).

Andrew Hagger, Moneycomms.co.uk said: “Couples planning their first child may take a sharp intake of breath when they see the figures in this report but at the same time it provides an important reality check and an idea of what to expect. Whether it’s a boy or a girl, household finances can be turned on their head when the first child is born – a sudden spike in expenditure and potentially less income means that the family purse needs to be managed more closely.

“Building a financial cushion in a savings account can soften the financial impact of starting a family whilst sensible use of interest free credit cards and low cost personal loans can help you to continue to manage the costs as your children grow.”

July 4th, 2016 | Andrew Hagger | News

New online research commissioned by credit information provider, Equifax, reveals that how we manage our passwords could mean we are leaving an ‘open door’ for fraudsters.

According to the responses of over 2,000 people, more than a quarter (27%) change their online passwords less than once a year and 23% never change their passwords without being prompted. It appears the over 55’s are the most lax – with 29% of them admitting to infrequently updating their passwords.

Lisa Hardstaff, identity fraud expert at Equifax, believes that the fact that people now have so many passwords to remember could be a reason why people don’t regularly update their passwords.  “Our research revealed that nearly a third of consumers (31%) have more than five passwords. This demonstrates that people in the UK are definitely doing the right thing in ensuring that if a fraudster accesses one of their passwords they can’t access all their other accounts by using the same password.  However, good practice is to ensure that you regularly change your passwords and worryingly over a quarter of Brits do that less than once a year.

July 4th, 2016 | Andrew Hagger | News

The UK’s leading funeral provider, Co-op Funeralcare, has increased its efforts to combat the rising cost of funerals by launching a new range of measures on affordability.

The measures represent the second major initiative by the Co-op this year in support of its long term commitment to improve funeral affordability. The steps announced see Co-op working with Fair Funerals to become the first funeral provider to sign up to the campaigning organisation’s new enhanced pledge to tackle funeral affordability.

Run by anti-poverty charity, Quaker Social Action, the Fair Funerals campaign was launched in 2014 as the first national campaign to tackle the root causes of funeral poverty. Recognising that many people may struggle to meet funeral costs, the campaign first launched a pledge calling for the support of funeral directors to tackle this issue in 2015.

The enhanced Fair Funerals Pledge goes above and beyond what was previously in place and requires funeral directors to help people find funerals within their budget by displaying the full price of affordable options both online and in their funeral homes. The pledge also calls for prices displayed to include average third party costs such as burial and cremation fees, a key component of overall funeral costs.

Forming part of a broader focus on ensuring that funerals remain accessible and affordable, Co-op has also today relaunched its range of funeral plans. The range now includes the UK’s most affordable** national fully-guaranteed funeral plan, the Simple Funeral Plan, which is a new addition to the Co-op’s planning range and costs £2,995 inclusive of third party costs.

Unlike other plans in the market, all Co-op’s set funeral plans fully cover all future funeral costs, including third party fees. These third party costs such as clergy fees, cremation charges, burial costs and doctors’ fees currently amount to £1,040 on average and have been rising year on year.

June 30th, 2016 | Andrew Hagger | News

1.    Ensure you’re on the electoral register. Lenders use it to help fight identity fraud by confirming a person is who they say they are – and resides at that address

2.    Pay bills on time every month – a good credit score is built up over time and this shows lenders that you are reliable

3.    If you notice anything on your credit report that could be incorrect or think you might be the victim of identity fraud – i.e. someone else has applied for credit in your name – contact the credit reference agency immediately to get this resolved

4.    Avoid keeping a high balance on credit cards. Lenders view it as excessive debt and will be concerned about your ability to repay

5.    Do not apply for products you do not need. Applying for more than four types of credit in a year can lower your credit score

June 29th, 2016 | Andrew Hagger | News

Today National Railcards* has announced a 20 per cent discount on its 16-25, Family & Friends, Senior and Two Together one year Railcards.

The sale, which will run from Monday 4 July to Monday 18 July, means Railcards will cost just £24 for a year’s unlimited usage – a saving of £6 on the usual price of £30.

Offering a third off most fares, Railcard owners save an average of £142.80 a year, more than four times its cost at standard price and up to six times as much as the discounted figure.

As well as a third off fares there are also exclusive discounts available to Railcard holders on top attractions, entertainment and UK holiday destinations.

There’s a further 10 per cent discount on the Disabled Persons Railcard, which usually costs £20 with an average annual saving of £121.79 plus special partner discounts on days out, holidays, theatre and more.

To purchase a Railcard at the discounted price visit www.railcard.co.uk between Monday 4 July and Monday 18 July.

*Railcards include the 16-25 Railcard, Two Together Railcard, Family & Friends Railcard, Senior Railcard and Disabled Persons Railcard.

June 28th, 2016 | Andrew Hagger | News

7 in 10 people taking trips in the UK this summer could be doing so uninsured, leaving thousands of pounds worth of valuables at risk of theft, loss and damage, according to new research from home insurance provider Policy Expert.

Of the 2,500 people surveyed, 63% admitted they didn’t have away from home cover included in their home insurance policy, while only a third (32%) would take out travel insurance for ‘staycations’ in the UK, such as camping, festivals or walking holidays.

Despite a quarter of people taking trips in the UK to keep costs down (24%), day-trippers and holidaymakers risk expensive dilemmas by travelling with an average £676 worth of valuables uninsured. Other reasons for holidaying in the UK included because it’s easier (46%), visiting family in the UK (28%), because there are great places on our doorstep (60%) and a worry about terrorism/safety abroad (11%)

8% of those surveyed have damaged, lost or had valuables stolen while travelling in the UK, of which a third (31%) didn’t claim on their insurance. The most common items were mobile phones, cameras, wallets/purses and jewellery.

Adam Powell from Policy Expert commented: “Wherever you’re holidaying this summer, whether that be on the white shores of the Caribbean or a pebbled beach in Wales, it’s important to ensure you’re properly insured and that your belongings are covered against loss and theft. If you don’t want to take out a separate travel insurance policy, checking the small print in your home insurance to make sure it includes away from home cover is a good place to start.”

June 23rd, 2016 | Andrew Hagger | News

Almost 5 million 18-35 year olds are planning to book tickets to music festivals this summer, carting with them £1.8 billion worth of gadgets^[1], according to gadget insurer Protect Your Bubble.

And it seems that few of them take throwaway phones. The average festival-goer carries £368 of gadgets, with almost a third (30%) packing tech worth more than £500, and one in 10 (10%) packing more than £750 in gadgetry.

Smartphones are clearly a key element of the festival experience, with the top three reasons given for taking mobile phones to festivals to contact friends if separated (75%), show off on social media (62%), and keep in touch with friends and family at home (40%).

Yet the data reveals that more than a third (36%) of 18-35 year olds who’ve been to a festival in the past three years have damaged (17%), lost (16%) or had a phone stolen (9%).

Men are more than twice as likely to have a phone stolen at a music festival as women (13% versus 6%), and will also be carrying more costly gadgets worth an average of £391, compared to £349 for women.

Age also plays a role with younger festival-goers almost twice as likely to have their phones stolen – 13% of 18-24 year olds have had a phone stolen at a festival in the last three years, compared to just 7% of 25-35 year olds.

Smartphones aren’t the only gadgets at risk. Believe it or not, one in six (17%) festival-goers take their laptops, and 16% pack their tablets.

Almost half (45%) of revellers admit they have left their gadgets unattended in their tents, with 17% leaving headphones, 12% leaving their mobile phones and one in 10 (10%) leaving tablets or laptops.

June 23rd, 2016 | Andrew Hagger | News

Retirement Advantage is warning that despite the renewed popularity of annuities following the introduction of pension freedoms, out-of-date myths about the product continue to abound.  The company is urging people to get professional financial advice before making any decisions about their pensions.

Andrew Tully, pensions technical director at Retirement Advantage, commented: ‘The pension changes have created huge interest in the market, and companies have responded with new product options. The annuity, the only sure fire bet of a guaranteed lifetime income, has also received a make-over, which has addressed many of the concerns people had about the product.

‘However, the message that annuities have changed isn’t well known unless you receive financial advice, which could potentially mean people ignore them because of out-of-date preconceptions. It’s important that retirees are fully aware of the value annuities provide. And it’s vital that everybody receives professional financial advice so they can make the best decisions for their personal circumstances.’

Retirement Advantage has compiled a list of the top 8 pre-conceptions that those approaching retirement have about annuities:

June 23rd, 2016 | Andrew Hagger | News

International travel insurance provider, Allianz Global Assistance UK, is changing traditional insurance practices to ensure a simple ‘right first time’ claim submission and speedy payment.  The company has enhanced its digital system to improve how travel insurance claims are made, after it found that 1 in 3 claims did not include the right documentation when first filed.

Confirmation of the original travel booking is the most commonly-missed document, which is also one of the most vital for a claims handler to arrange settlement. This is often received by email or accessible through a customer’s online account;  with the new system ‘booking confirmation’ can now be easily retrieved and submitted online, wherever the claimant is in the world.

Paul Doran, Head of Travel Operations for Allianz Global Assistance UK comments:  “Almost everything can now be done digitally – supermarket shopping, credit card applications, turning central heating on and off, monitoring how well you drive, and of course, instantly keeping in touch with friends and family all over the world.

“We recognised that the travel insurance industry needed to keep pace with an increasing consumer expectation that they can transact with insurers digitally.   With this in mind, there was no better place to start meeting that expectation than with the claims process. By reviewing and updating our entire claims process, with an emphasis on making it simpler for customers to send the required documentation digitally at the outset, we are significantly helping to reduce the emotional strain for holidaymakers when filling in a claim form.

“We also now provide our customers with a checklist of documents we need in order to assess a claim, which is a real benefit for consumers unfamiliar with the requirements.  The more information we receive when a claim first comes through, the quicker we can action and settle it.  Any information, receipts or documents missing will inevitably stall the assessment process which understandably causes frustration and stress for the customer. We are continually looking at ways to improve the customer’s claims experience, to ensure it does not add unnecessary strain at what can often be a stressful and upsetting time for those having to make a claim.”

June 17th, 2016 | Andrew Hagger | News

A third (30%) of UK adults have admitted to using something personal, such as their date of birth, maiden name or home address to create their password, much of which is easily accessible online. Almost half (44%) said they rarely or never change their online password – further increasing the risk.

The findings also show that, when it comes to protecting their information on mobile devices, many Britons are leaving the door wide open to fraudsters. Four in 10 (37%) don’t password-protect their mobile devices and less than one in ten (9%) are concerned that their online security could be compromised by cybercriminals through mobile apps, many of which hold vast amounts of personal data.

The Experian research shows a trend that as awareness of data breaches increases, so do people’s expectations of organisations to safeguard their personal information. This may be part of the reason many are falling behind in protecting their own information from fraudsters. 77% now believe it is the responsibility of organisations to ensure they are well protected online, almost twice as many as in 2012 (40%).

Amir Goshtai, Managing Director at Experian says: “Whilst most of us take the necessary steps to protect our homes from burglars, not everyone is taking the same care to protect their possessions online. We wouldn’t use one key for all the doors and windows in our home – and most of us wouldn’t leave a key in the front door so anyone could get in. So we encourage people to think of their ‘21^st century keys’ in the same way – things like the passwords we use to secure the doors to our personal information online.”

Experian has partnered with the City of London Police to encourage people to review their ‘21^st Century Locks’ to protect information from the growing threat of online identity theft.