May 23rd, 2018 | Andrew Hagger | News

23 May 2018 Brits are woefully under-protected should serious illness strike, according to new research from Scottish Widows. Despite more than a fifth (21%) of people admitting their household wouldn’t survive financially if they lost their income due to long-term illness, fewer than one in 10 have a critical illness policy. People are, in fact, more likely to insure their mobile phones than to protect their own health.

Taking out life insurance also appears to be falling down the population’s priority list, with just 27% having a life policy, equivalent to 14 million people.Worryingly, this has dropped by 7 percent compared with 2017, a year-on-year decrease of 3.6 million individuals.

Leaving households at risk

This is an especially precarious position for the two-fifths (42%) of UK households that are reliant on just one income, and it’s clear that many are in lack of a ‘Plan B’. Despite 43% of people saying they’d rely on their savings if they or their partner were ill and unable to work, a third (35%) admit their savings would last no more than three months if unable to work and more than half (54%) say they’d last no longer than a year. Three in ten (30%) – or 15.5 million people – say they aren’t saving anything at all.

One in five say they’d rely on state benefits if they or their partner were unable to work for 6 months, but at a time when welfare reform is resulting in significant changes to benefits such as child and working tax credits, income-based job seeker’s allowance, income support, housing benefits and bereavement benefits, Scottish Widows says that families need to do all they can to protect themselves and their families.

On top of this, people are leaving themselves and their families unprepared for other aspects of illness or bereavement. One in five (20%) people aren’t sure who would take care of them if they fell ill, and nearly half don’t have the protection of a will, power of attorney, guardianship or trust arrangement in place for their families.

When asked why they haven’t taken out life or critical illness insurance, almost a third (30%) of the UK’s primary breadwinners say they don’t see the need for cover, raising concerns over their financial resilience should the unexpected happen.

Lack of trust and understanding

The research also reveals that a lack of trust and understanding could be contributing to the UK’s protection gap. On average, people think that just a third (34%) of individual protection claims are paid out by insurance providers each year, based on the misconception that insurers will do anything not to pay. In reality, however, virtually all protection insurance claims (97.8%) were paid in 2017.[4] In addition, almost four-fifths (78%) of people are unaware that cover often comes with practical advice and emotional care, as well as financial support, without having to make a claim.

Gary Burchett from Scottish Widows, said, “It’s a worrying truth that people are more likely to insure their mobile phones than their own health. On a societal level, we increasingly think in the short-term, caring more about tangible things in our day-to-day lives.  On a more fundamental level, we’re programmed not to think about the worst happening. Together, these are dangerous inclinations, as people aren’t thinking about insuring their health or life until it’s too late.

May 21st, 2018 | Andrew Hagger | News

21 May 2018 An investigation comparing two years of summer holiday prices has revealed that families taking kids out of school to avoid summer holiday price hikes are also being penalised with prices inflating as much as 32% for term-time holidays, travel currency expert FairFX has revealed.​

As part of FairFX’s long-running campaign investigating the school holiday price scandal, the travel currency firm compared over 350 package holidays from four holiday operators to four destinations flying from 7 UK airports in 2018 and 2016 to reveal where families are being ripped off.

The analysis showed the cost of holidays during term-time have gone up by 32% in some family holiday destinations, costing families more than £700 more in 2018 than in 2016 and rising at a faster rate than trips taken in the official school holidays.

On average, the cost of term-time holidays have increased by 21% over the last two years, compared with an 11% increase in the cost of holidays taken during the official summer break.

The new research shows that parents taking their children out of school to avoid official summer holiday dates and the associated price hikes continue to be at the mercy of travel operators.

Package price hike: How average holiday costs have risen since 2016

In terms of individual destinations, Tenerife has seen the highest increase in prices over the last two years, with the average family trip increasing by32% during term time and 31% for holidays in the summer break since 2016.

Trips to the Costa del Sol during term time have gone up by 16% while trips during the school summer holidays have seen a 2% price increase over the last two years.

Looking into the cost of holidays in 2018, families travelling abroad this year face paying an average of 22% extra for a holiday taken within the summer break, compared to the same package holiday just two weeks earlier within term-time.

FairFX found that prices shot up by an average of 22% for trips departing the weekend of July 28^th 2018, than trips leaving two weeks earlier on July 14^th 2018. These price hikes mean families face paying nearly £650 extra on average for holidaying during the official summer break in some instances.

May 18th, 2018 | Andrew Hagger | News

18 May 2018 UK motorists could save £1.8bn thanks to the first ever MOT test repair cost calculator for drivers ahead of the new MOT changes, which come into effect on 20^th May.

To help motorists estimate MOT repair test costs, WhoCanFixMyCar.com has created the first online calculator where drivers enter in their postcode and find out how much it costs to repair defects in their local area.

The new MOT test changes include how car defects are classified, in three categories; dangerous, major and minor – with dangerous and major defects resulting in an immediate MOT test fail. These defects render the car illegal to drive in the UK and will need to be repaired and retested before the driver can drive it on the road again.

Drivers can use the calculator here: https://www.whocanfixmycar.com/car-service-cost-calculator

Diesel cars will be targeted more under the new rules, with a focus on pollution and emissions. Instead of visually checking the diesel particulate filter, mechanics will need to remove and examine it to determine whether it passes, and diesel cars that do not have one or have tampered with it will incur an automatic fail. A car exhaust that emits ‘visible smoke of any colour’ will also be issued with a major fault and will fail the test.

MOT testers will focus more on steering systems, lights and brake pads, with a steering box leak, worn brake pads and blown out bulbs all resulting in a test fail.

The new MOT laws will put more pressure on motorists to have any unsafe defects repaired either instantly if the vehicle has failed the test or quickly if advisories or minors have been given.

WhoCanFixMyCar.com is an online car garage and repair marketplace connecting 11,000 garage and repair centres with drivers around the UK. The site has 1m users and recently processed more than 170,000 quotes through the site in one month.

Al Preston, co-founder of WhoCanFixMyCar.com, said,

I’m sure many drivers are nervous about the new MOT legislation coming into effect, however the stricter guidelines will ensure the safety of all motorists in the UK, which can only be a good thing. My advice would be to have your car checked over by a professional before the MOT, so you’re not surprised by any defects that can leave you carless for a while.

May 11th, 2018 | Andrew Hagger | News

11 May 2018 M&S Bank research reveals that a third of people with a garden shed admit to leaving it unlocked, with nearly one in five (17 per cent) saying they never secure it, despite the contents of a typical shed being valued at £550 on average. More than 15 per cent of respondents revealed that their shed contained more than £1,000 worth of items such as gardening goods and equipment.

Nearly a third say either they or someone they know has fallen victim to theft or damage to items stored in their shed; rising to 40 per cent for those in the North. Half of shed owners with home insurance said items stored in their shed either weren’t covered by their home insurance, or they didn’t know if they were covered.

It isn’t just sheds that are targeted by thieves or vandals; more than one in ten UK adults (14 per cent) say either they and/or someone they know, has had their garden greenery damaged or stolen.

Despite the average garden containing £369 worth of plants, bushes, trees and shrubs, it’s perhaps surprising that many garden owners didn’t know whether their garden is insured. Only ten per cent were confident that their plants, bushes, shrubs and trees were covered under their home insurance.

Paul Stokes, from M&S Bank, said: “People often invest significant time and money into their garden, and the value of items, whether in the shed or in the garden itself, can quickly mount up.

“That’s why it’s surprising that a significant proportion of homeowners still don’t know whether they have adequate cover for theft or damage to both the shed and garden, should the worst happen. As we head into spring, we would urge households to review what measures they may need to secure their garden, as well as what is included within their policy, to ensure they are covered.”

May 10th, 2018 | Andrew Hagger | News

10 May 2018 Research by Yolt, the money app backed by ING, claims that 70% of UK consumers now use a financial app to manage their finances – a figure which rises to 89% of millennials.

A marked increase from 2016 research which, showed nearly 40% of adults used apps to manage their money.

The Yolt research also found that nearly half of over-55s use an app to manage their money.  This increased interest in financial apps comes alongside the introduction of Open Banking, which promises to change the way the nation banks.

Consumers using a financial app to manage their finances have already seen benefits from Open Banking, according to the Yolt survey.  6% think there is now more competition between banks and financial service providers since Open Banking was introduced and 20% of respondents said that they are now able to see their different accounts in one place.

However, there is still a lot of work to do before all financial app consumers are aware of the potential benefits of Open Banking. Although 22% of respondents are aware of Open Banking, the majority of consumers haven’t yet seen any changes to the way they manage their money.  60% of consumers said their main bank hadn’t yet communicated the Open Banking changes to them and 22% didn’t know if they’d had any information about Open Banking from their bank.

Leon Muis, from Yolt, said:

“The UK is switched on to the benefits of money apps, from managing their finances, making payments, comparing products and much more.  Nearly three quarters of Brits are now using some kind of app to manage their money.

May 10th, 2018 | Andrew Hagger | News

09 May 2018 New research by wealth management group Tilney reveals the extent to which many peoples’ retirement preparations are in disarray, with nearly one in five UK adults admitting they have lost track of at least one pension pot.

This is a problem exacerbated by changes in the employment market with few people now sticking to one job for life, meaning most of us end up with multiple pension plans. According to Tilney’s research, the average person has worked for 5.8 employers by the time they are over 55 but this is set to rise significantly as 18-34 year olds have already had, on average, over 4 jobs and even small businesses are now required under law to auto-enrol new staff into a workplace pension. Projections by the Department of Work & Pensions estimate that the average person will have 11 employers over their working lives.

Tilney’s research has found that nearly 1 in 5 admit they have lost track of a pension at some point, the main reasons being they have “never kept an interest”, “lost paperwork” or “forgotten to notify providers of address changes”. Of those who have moved home, 13% admit they have never notified their pension providers of their change of address and a further 12% confess they are unsure. When asked how they would go about finding a lost pension, most (32%) would contact their previous employer but a fifth (20%) said they would have no idea how to find it.

One solution to this mess would be to consolidate scattered pensions into a single plan. This allows for simpler administration and oversight and the pension could then be taken from job to job, providing the employer agrees to pay into the scheme instead of their own. Most individuals (72%) have never consolidated plans and the key reasons people are they’ve never thought about it (23%) and don’t know how (20%).

The research also highlights just how disengaged much of the British public are with their retirement plans, despite the importance these assets are going to be in financing their future lifestyles. One in five respondents admit they have never checked their current workplace pension, 13% have no idea as to what their pension is worth, and a quarter of those asked were unable to differentiate whether their current pension is a defined contribution or defined benefit scheme.

Further, 47% of men and 62% of women with pension plans admit they do not know where their pension is invested and 38% don’t even know which company are managing their current plan. 62% have no idea what the annual pension allowance is, while 67% admit they find the language of pensions confusing – especially women (75%).

Andy James, Head of Retirement planning at Tilney, commented: “The research shows the worrying level to which the private pensions of millions of Britons are in complete disarray. Alongside property, pensions represent one of the largest forms of private wealth in the UK and for most people these are going to be critical in funding their lifestyles in later life. Despite this, many UK adults are not sufficiently in control of these important financial assets, which are often scattered across multiple plans, forgotten about entirely or the paperwork has disappeared down the back of a sofa. This is a problem set to worsen materially as the employment market evolves and people will end up with an increasing number of pension pots.

“It is all too easy to lose track of a pension due to a combination of inertia, disinterest fuelled by excessive technical jargon and absent minded administration. Tracking down missing workplace pensions can be particularly problematic where a previous employer from many years past has been acquired or gone bust, moved or re-branded. But it really is vital to track down these pots of assets and to determine whether they remain fit for purpose.

“One place to start when trying to track down missing pension is the UK Government’s Pensions Tracing Service,” explained James. “This is an online database which provides current contact details for past and present pension schemes and it therefore requires the individual to know the name of their former employer, pension scheme or provider. The Department of Work & Pensions is also working with the pensions industry, regulators and technology firms with a view to launching Pensions Dashboards – the aim of which is to provide a consolidated view of all pensions owned by a saver alongside the State pension. Such a development is urgently needed, however there are serious concerns about whether this will be able to be achieved by the targeted launch date of April 2019.

May 1st, 2018 | Andrew Hagger | News

01 May 2018 An army of have-a-go builders is expected to cause damage to their properties, wallets and potentially themselves as Brits get serious about ‘Do-it-Yourself’ this May Day.

A national poll commissioned by Nationwide Current Accounts reveals that May 7 could be an expensive time for DIY enthusiasts, with the research pointing towards bodged jobs, accidents, and repeated visits to the store as the nation struggles to get jobs right first time.

The survey of more than 2,000 UK adults shows that six in ten are planning home improvements next week, and for a variety of reasons too. More than a third (34%) say it’s the only time they get to do things, while just under a fifth say the three-day weekend gives them time to correct if they get it wrong.

Nationwide data reveals customers made a million transactions across the big four home improvement stores* on the last May Day Bank Holiday – one of the most popular times to do home improvements. The average spend across debt and credit cards was £40.29 per transaction, with 76 per cent more transactions than a regular Monday in May.

Costly disasters:

DIY jobs often end in disaster, with more than one in five (23%) stating they resorted to professional help in order to rectify a bungled job, with the average cost of repair being £166.76. More than one in ten (10%) have called on experts on multiple occasions.

Londoners are much more likely to suffer a disaster according to the research, with just under a fifth (18%) paying for a professional compared to just six per cent in Yorkshire and the Humber.  Equally, some 19 per cent of those aged 16-24 received help compared to four per cent of those aged 55-plus.

Of those who have experienced home improvement disasters, the top calamities include:

• Short circuit/ electricity problems: 34% have experienced
• Plaster fell off wall: 28%
• Blown a fuse/ broke appliance: 26%
• Flooding from damaged water pipe: 19%
• Fell through the ceiling: 12%
• Ruined structure of the house: 10%
• Caused a fire in the home: 9%

Despite more than half of Brits believing men and women are equal when it comes to DIY, more than a third (35%) believe men are typically more proficient, versus 10 per cent for women. However, the poll shows women are around half as likely as men to have an accident or bodge a job, at 16 per cent versus 30 per cent.

A poor worker blames their tools:

It is perhaps little wonder that DIY jobs are often calamitous. A quarter (25%) of respondents say they attempt jobs using whatever they can find lying around rather than go to the shops. Lack of preparation is also higher when younger according to the poll, with more than a third (35%) of those aged 16-24 using whatever they can find compared to a fifth (20%) of those aged 55 and above.

A further 20% of people fail to properly ‘cost’ a job, making repeated trips to the shop because they always forget something.

When it comes to jobs, Brits are willing to give most things a go. The top ten jobs that the nation feels comfortable doing themselves include:

1. Change a lightbulb: 76% comfortable
2. Hanging pictures: 71%
3. Painting and decorating: 69%
4. Change a plug: 60%
5. Putting up shelves: 54%
6. Bleed a radiator: 53%
7. Lay carpet: 24%
8. Woodwork: 23%
9. Hanging doors: 23%
10. Laminate/ wooden flooring: 22%

Carl Burke, Nationwide’s Head of Product Management, Current Accounts, said: “Do-it-yourself is as much a part of a May Bank Holiday as going to the seaside or getting stuck in traffic. As a nation we spend millions of pounds on tools and materials across Britain’s home improvement stores and online, with our data showing the average spend as slightly over £40.

“But as our research shows, the actual costs could be much higher, particularly as we often misjudge routine jobs around the house. Luckily it’s easier than ever to pay for goods, with contactless and online payments, which is just as well given that a fifth of us end up dashing to the stores multiple times because we’ve forgot that all important screw or spanner.

“Whatever the project, plan for the cost accordingly and ensure you are confident of not only attempting the job but also that it will be done properly and to budget.”

May 1st, 2018 | Andrew Hagger | News

30 Apr 2018 With the 2018 wedding season upon us, new research from American Express reveals that approximately a third (32%) of Brits will attend at least one wedding this year, spending an average of £303 on each event.

These costs can soon stack up, and with UK adults planning to attend on average three weddings in 2018, this could result in a national wedding guest bill of £15 billion. In fact, the total cost of being a guest this season (£909) will amount to more than the average amount a couple spends on their wedding rings (£809).

The largest expense for guests this year will be the wedding gift (average spend of £57), followed by hotels (£54), outfits (£50) and travel (£42). More than two thirds of guests (68%) say they will wear the same outfit instead of buying new ones, while over half (52%) will shop for an outfit in the sales, and take advantage of hotel deals (52%).

However, the research shows that guests are reigning in their wedding spending this year, cutting back by £129 compared to 2017 when guests spent an average of £432 watching couples tie the knot.

Top wedding costs for guests in 2018:

Ushers spend more than bridesmaids across the board 
The study also reveals that bridesmaids and ushers will also be some of the biggest wedding spenders this year. Bridesmaids will spend over £450 for each wedding, with the hen do being the priciest outlay (£96). Ushers spend over £100 more than bridesmaids (£553) to attend each wedding, outlaying more on travel (£128 versus £75) and hotels (£101 versus £93).

Bridesmaid and usher spend per wedding:

April 25th, 2018 | Andrew Hagger | News

25 Apr 2018 Findings across a sample of 2004 holidaymakers commissioned by peer-to-peer travel money provider WeSwap found that a whopping 2.5billion in holiday cash is withdrawn once Brits land – one of the most expensive spots to do so – meaning £125 million is charged at the convenient yet costly hole in the wall abroad.

With UK debit cards deducting up to around 3% in non-sterling transaction fees, in Aadittion to 2% overseas ATM fee based on the amount you take out, once totalled up, we’re charged at a conservative estimate a colossal £125,000,000 in ATM fees abroad.

This doesn’t include any charges by the overseas ATM itself or any fees lost by a common practice called DCC – dynamic currency conversion – where the ATM marks up the rate again at a cost to the consumer, so WeSwap estimates that the true cost could be much higher.

The nationally representative data finds 31% of UK holidaymakers – just over 14 million Brits – withdraw cash for their holidays upon arrival at their destination, roughly taking out £169.78. Across the nation, this tots up to a staggering 2.4bn in holiday spend withdrawn once we land.

The 5% ATM top-up cranks the average withdrawal up to £178 pounds. With a minimum of £9 in fees lost per take-out, WeSwap have done the maths on a few alternatives of what you could have bagged with the excess currency collected over ten transactions:

– A day trip to France
–  Once there you could buy 188 croissants
– A high-end six course wild-boar dinner in Krakow
– Hop over to Spain and purchase yourself ten litres of Sangria
– Ten pizzas in Rome perhaps
– Over to Berlin for 20 portions of Currywurst
– Or back to France where you could bag yourself 30 crepes

April 19th, 2018 | Andrew Hagger | News

19 Apr 2018 Research from Sainsbury’s Bank Travel Insurance reveals that one third (34%) of UK adults have plans to go on a package holiday in 2018, with some who already having jetted off. 15 per cent have already booked a packaged trip, a further 14 per cent are thinking about it and four per cent have already been away on one this year.

Of those who are planning, or have been on a package break, a quarter (23%) also bought their travel insurance from their holiday provider. For those aged 18-34, this rises to over a third .  Worryingly one in ten of those going on a packaged break won’t buy any travel insurance for their trip.

Karen Hogg of Sainsbury’s Bank Travel Insurance, commented: “Just because you’ve picked the ease and security of a package holiday with its many perks including airport transfers and local representatives, it doesn’t mean you can forgo travel insurance. Good quality travel insurance is imperative should you or one of your party become ill. It will also cover loss or theft of personal belongings.”

Of those who will opt for their holiday provider’s insurance package, over half  do so as they trust their holiday provider and prefer to have everything done with the same company. A quarter also mention that their holiday provider was offering the most competitive rate, while.  17 per cent don’t have time to shop around and find the most competitive deal.

Karen continued: “Not all travel insurance policies are the same so shop around for the best policy for you and make sure that it covers all of your needs so you’ll have peace of mind if anything unexpected happens.”

The research found that three in ten (30%) going on a packaged trip will look around for the most competitive quote from a third party insurance company and purchase a single trip policy, a fifth purchase an annual policy from the most competitive provider each year while one in eight have an annual policy they renew each year without shopping around.

Sainsbury’s Bank offers single trip and annual multi-trip policies at different levels of cover, Silver, Gold or Platinum. Holiday makers can also choose optional add-ons such as winter sports cover. Kids go free with single trip and annual multi-trip cover, although pre-existing medical conditions may be extra. And a 20% discount is applied when a valid Nectar card number is quoted.