August 18th, 2017 | Andrew Hagger | News

Smart connected cars and homes are keeping burglars at bay, according to a new study conducted among a panel of ex-convicts, released today by Co-op Insurance.

The study reveals that over four fifths (89%) of ex-cons would be put off targeting a smart connected home, with a further two thirds (67%) stating they would steer clear of connected cars.

When delving into the reasons as to why this is the case, over two fifths (44%) said thieves are opportunists and so would avoid these trickier break-ins.

Despite this, just 5% of UK adults have invested in smart technology for their homes and cars.**

The study also reveals the top 10 factors which ex-convicts say are biggest deterrents for home and car thieves. CCTV cameras, the sound of a barking dog and strong heavy doors are most likely to put off home burglars. Whilst, CCTV street cameras, car alarms and street lighting top the list for car thieves.

Despite this, just over a tenth (14%) of UK adults say they’ve installed CCTV cameras and whilst ex-thieves point out that motion activated security lights are a key deterrent for home thieves, just a  quarter (24%) of UK adults say they’ve installed such lights.

Further highlighting the UK’s lack of home security, over a quarter (28%) of UK adults say they don’t take any security precautions. Over half (55%) sleep with their windows open at night, a quarter (24%) leave their doors unlocked whilst at home, and over a tenth (12%) have admitted to leaving their garden gates open.

What’s more, a fifth (20%) said they actively post photos on social media showing that they’re on holiday.

Caroline Hunter, Head of Home Insurance at Co-op commented: “Our research shows that almost half (44%) of thieves are opportunists and so it’s really important that home and car owners are vigilant and think carefully about the security of their homes and vehicles.

“Nobody should have to go through the trauma of having their property burgled and there are some small measures which homeowners should be mindful of to ensure any opportunists cannot be tempted.”

When weighing up properties to target, ex-convicts advised that the most difficult break-ins are of those properties situated in cities (82%). Three quarters (75%) of ex-convicts, said properties in isolated locations are easiest to break into.

Furthermore, the study reveals that houses off dirt tracks, bungalows and properties on housing estates are among those easiest to break into, whilst mid terraces, apartments with manned security and semi-detached houses are the most difficult to target.

Former bank robber Noel ‘Razor’ Smith commented: “As a former criminal, I know all the tricks homeowners use to keep their homes safe, that’s why I find it shocking that the Co-op’s research reveals 28% of us don’t take any precautions whatsoever. Luckily there are some very simple steps everyone can take to make our homes more secure and keep our valuables safe”

August 18th, 2017 | Andrew Hagger | News

UK drivers could face hefty fines for failing to register their driving licences to their current address. According to research from comparethemarket.com, 1.5 million drivers have an incorrect address on their licence. The penalty if you are caught driving with an incorrect address on your licence is £1,000, meaning that DVLA could claim as much as £1.5 billion worth of penalties nationwide.

UK law states that it is illegal for a driver to be incorrectly registered at an address, as current residential information is required should the licence-holder be involved in an accident. Drivers who change their address on their licence must also do the same on their vehicle log book and vehicle tax Direct Debit. Changing your licence address is free of charge and motorists can still drive whilst waiting for a new licence.

Many motorists are unaware of this address requirement, with over a third (35%) admitting that they did not know it is illegal to have anything other than your current place of residence on your driving licence. Young drivers are the least engaged, with over one in ten (11%) 18-24 year olds listing an incorrect address and nearly 50% confessing they are not aware of the law.

Motorists can incur fines for a number of surprising activities. Muddy licence plates are deemed a criminal offence which could also land drivers with a £1,000, fine while splashing pedestrians with puddles can lead to fines of up to £5,000. For more unexpected driving fines, click here.

John Miles, Head of Motor at comparethemarket.com, said:

“A £1,000 fine is a high price to pay for something which is free to change. The DVLA website is clear on the penalties if you don’t update your driving licence when your address changes, but many motorists may still not realise they are breaking the law. It is worth double checking all these details, including when your licence expires and that your photograph is up to date, as these details can also incur fines if incorrect.

“If your address is different on your driving licence and motor insurance policy it won’t invalidate your cover but it’s worth making sure all your records are as accurate as possible, as factors such as your postcode can impact your insurance premium, and can ultimately impact how much you pay. With plenty of drivers waiting to buy new cars as the 67 plates enter circulation on September 1 2017, now is as good a time as any to check your paperwork is up to date.”

August 14th, 2017 | Andrew Hagger | News

Credit cards are now the most popular way for Brits to pay for holidays and an overwhelming majority who use credit cards when booking holidays will have paid off their balance in full before travelling, new research from Halifax reveals today.

Among those who use credit cards to pay initially for their holidays, 84% repay this balance in full before their departure, according to a survey of over 2,800 British adults conducted by polling agency TNS for Halifax. By contrast, those who pay off credit cards only after returning from their holidays (16%) are outnumbered five times over by this cautious majority.

This pattern of repaying holiday credit cards is also nearly identical across all income groups. For those on incomes of up to £25k in total for their household, 83% of those who pay for travel with credit cards pay off the balance before leaving. This is identical to the proportion of those whose households take home more than £75k in total. For those on more average incomes, who use credit cards to book and pay back balances before leaving, this is only marginally higher at 84%.

Across the population, credit card bookings are now the favourite payment method for Brits to book a holiday (for 56%). This compares to 30% of all British adults who use savings, via a debit account, to pay for their holidays upfront, and just 6% who pay monthly via direct debit (e.g. repayments to a travel agency).

Using credit cards when booking holidays also means travellers are protected under section 75 of the Consumer Credit Act1 (where the credit provider can take on some responsibility for breaches of contract by the supplier).

Jon Roberts, director of cards at Halifax, comments: “For the majority of holidaymakers, credit cards have become an indispensable method of payment, rather than a way of borrow for a longer period of time.

“Credit cards don’t have to be more expensive if paid off in good time, and some can even save considerable amounts if you choose the best credit cards for travel abroad – compared to more costly ways to get access to foreign currency.

“With the number of trips we make overseas up 8% in the last year*, getting a good deal matters. Holidaymakers should shop around for the best deals – considering the best credit cards for their travel plans in a similar way to how they might shop around for the best hotel deals, or minimise overseas fees for other services like data roaming. Meanwhile, the minority who do need to spread their holiday costs for longer, beyond their return, should also consider a card with an initial interest-free period, if they can make sure they pay back the balance before this ends.”

August 14th, 2017 | Andrew Hagger | News

A staggering three in 10 Brits  – the equivalent of over eight million households – have already switched their central heating on due to this summer’s terrible weather, according to new research from uSwitch.com

While much of Europe sizzles in a heatwave, the UK has been shivering through unseasonably cold and wet conditions over the summer – with some regions reaching as low as 2 degrees. In addition to the 30% of households who have already given in to the cold and switched their heating on, a further 17% – the equivalent of over 4.6 million households – are thinking about it, to try to keep warm.

One in three Brits would normally wait until the end of the school summer holidays or when the clocks go back at the end of October to turn their central heating on. By switching it on so early this year, millions of homes risk adding significant sums to their annual energy bill. With previous research finding that over a third of bill payers are already worried about how they’ll afford this winter’s bill, uSwitch.com urges consumers to check their account balance now and shop around for a better deal which could deliver hundreds of pounds of savings.

Switching the heating on isn’t the only thing Brits have been doing to stay warm through the summer months, with more than two thirds (68%) taking other forms of action. Three in 10 have worn woolly jumpers, a quarter  have put their slippers back on and 20% have been enjoying hot baths. More than one in 10 have put their winter duvet back on their bed, while 8% have unpacked their winter coat or put a fire on.

Claire Osborne from uSwitch, says: “It wouldn’t be the Great British summer without a certain amount of miserable weather, but the chilly conditions this year are enough to make anyone consider cranking up the thermostat. It’s incredible that eight million homes already have their heating on before we’re even halfway through August. It’s understandable given how cold it’s been over the past few weeks, but consumers need to consider the impact it will have on their energy bills.

August 9th, 2017 | Andrew Hagger | News

People who bank through online and mobile platforms keep a much closer eye on their finances than those who don’t, according to research from Santander UK.

One in five (20 per cent) UK adults use online or mobile banking services to check their balance or look at what they have been spending once a day or more, and more than one in three (69 per cent) do so at least once a week. By contrast, people using paper statements are much less likely to scrutinise their finances regularly. One in five (20 per cent) haven’t checked their statement in the past three months, rising to nearly two in five (38 per cent) for those in the 18 to 34 year old age group.

Regular online and mobile banking usage is not just restricted to younger age groups. While three in four (76 per cent) 18 to 34 year olds check their online or mobile banking at least once a week, this falls only slightly to 68 per cent of 35 to 54 year olds and 65 per cent of those aged 55 or over, suggesting people of all ages are embracing and enjoying the benefits of digital banking.

A spokesman for Santander, said: “Our research shows that digital banking services are enabling people to keep a closer eye on their money in a way that suits their lifestyle.  And it provides a safe store of historic statements and documents that can be viewed or printed if needed.

“The ease and convenience of online and mobile banking has been embraced by people in the UK across all age groups. However, we do realise that online is not for everybody and we offer many ways for customers to keep on top of their money – we’re here to help if they need to speak to us.”

The living room is the UK’s favourite place when logging in to online or mobile banking, with 60 per cent of those who use these services doing so here. Other popular places include:

• in bed – seventeen per cent                                      
• at work – seventeen per cent                        
• in the kitchen – eleven per cent
• travelling to work – nine per cent
• in the bathroom – seven per cent

August 9th, 2017 | Andrew Hagger | News

As A-level results day approaches (17 August), millions of UK parents could be counting the cost as their children get set for university.

A study carried out by Aviva finds parents of university students typically give their children £3,446 per year (around £287 per month), to support them through their studies. This adds up to more than £10,000 on average over a three-year degree.

However, one in 10 parents give children at university least £9,000 a year (£750 per month), while a quarter of parents (23%) give studying children at least £5,000 per year (around £417 per month) to help cover all aspects of university life, including accommodation, living costs, fees, text books and travel.

The insurer commissioned a survey of 2,000 parents who have children at university or who have been to university in the last 10 years.

Eight out of 10 parents questioned said they had given their children some financial support while studying. However, only one in seven parents (14%) said they had saved a fund which would cover all university-related costs for their children.

To put this in context, figures from Aviva’s summer 2016 Family Finances report suggest that those who recently joined higher education could find themselves with £44,000 of student debt when graduating. Alongside this, Family Finance data also shows that the typical UK family has £3,134 in savings.

Students still work to support their studies

Even with support from parents, a significant number of students still work to support themselves while studying. Forty-three per cent of parents said their children had a job during term time, while 42% said their children worked during university holidays.

Worryingly, 37% of parents whose children had paid employment while at university felt that work commitments had a negative impact on their children’s studies. Of even greater concern, one in five parents said that they didn’t feel university was worthwhile for their children.

This echoes an Aviva survey carried out in 2016, which found that 37% of graduates regretted going to university, due to the resulting debts.

Financial help from the extended family

A third of parents said their children had also received financial support from other family members or friends. Grandparents were the most likely contributors, with more than a quarter (27%) giving money to their studying grandchildren. Siblings helped out 6% of students, and 2% of students received financial support from friends of the family.

Almost a third of parents surveyed (30%) have given, or plan to give, money to their children to help with student debts, although only one in 10 (9%) will pay off these debts completely.

August 1st, 2017 | Andrew Hagger | News

Now successful current account switchers to The Co-operative Bank could be £125 better off and help give young homeless people a future by raising an additional £25 for the Bank’s charity partner Centrepoint.

From today, Tuesday 1^st August 2017, The Co-operative Bank is paying £125 to eligible customers who switch their account using the Current Account Switching Service¹. For every switch that is made meeting the bank’s offer criteria, the bank will make a £25 donation to its charity partner Centrepoint, to go towards the valuable work they are carrying out around the UK in support of vulnerable 16-25 year olds. This new switch offer reflects 25 years of the Co-operative Bank’s customer-led Ethical Policy, which clearly defines how the Bank offers an ethical approach to high street banking. To read more about The Co-operative Bank’s Ethical Policy visit: our Ethical Policy webpage

The offer is available to those switching to The Co-operative Bank’s five star Moneyfacts rated Current Account² and could also benefit from the Everyday Rewards feature which means they can receive up to £5.50 per month into their account from doing everyday banking arrangements. Customers can also choose to pay their reward to one of the Bank’s nominated charities: Amnesty International; Hospice UK; Oxfam; Refuge and The Woodland Trust. ³

For customers to qualify for the switching incentive, they need to:

• Make a full current account switch using the Current Account Switch Service;
• Make sure a minimum of four active Direct Debits are switched to a qualifying current account;
• Choose from one of the five qualifying accounts: standard Current Account, Current Account Plus, Everyday Extra, Privilege and Privilege Premier;
• Available to EU residents aged 16+.

The full terms and conditions of the offer are available here:

http://www.co-operativebank.co.uk/currentaccounts/currentaccount

Matthew Carter, director of products and communications at The Co-operative Bank said: “This new switching incentive is a way to thank our new customers for choosing to bank with us, and also enables them to help give young homeless people a future through our charity partner Centrepoint. Donations will help to fund the great work they’re doing to tackle youth homelessness across the UK, with their specific focus being on helping those young people aged 16-25 who are often the more vulnerable members of our communities.

August 1st, 2017 | Andrew Hagger | News

Following an extended price freeze, British Gas has today announced that it is hiking the cost of its standard variable tariff for electricity by 12.5% or £76 a year for 3.1 million customers.

The increase, which takes effect from 15 September will add an annual total of £235.6 million to its customers’ energy bills. While it remains the cheapest big six standard tariff it is still £286 more expensive than the cheapest deal available today. British Gas has also announced that it will give a one-off credit £76 to the accounts of more than 200,000 vulnerable customers who receive the Warm Home Discount.

Commenting on the news, Claire Osborne, energy expert at uSwitch.com, says: “With these hikes set to kick in just before the winter, this is a body blow for consumers. At a time when living costs are rising faster than wages, this hike could push many families into the red. Customers should not be lulled into a false sense of security. The British Gas standard tariff remains the cheapest among the big six but it is still £286 more expensive that the cheapest deal on the market today.

“It’s time switch supplier and send a message that price rises like these just aren’t acceptable. Seven in ten households are overpaying for their energy on expensive standard tariffs, yet within ten minutes they could switch and save hundreds of pounds – as well as protect themselves against further hikes by fixing their tariff.”

July 26th, 2017 | Andrew Hagger | News

Half of Brits opting to holiday 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.

The study of nearly 2,500 people found that half (50%) admitted they didn’t have away from home cover included in their home insurance policy. Just one in eight (13%) holiday-goers said they would take out travel insurance for their ‘staycations’ in the UK.

The research also revealed that day-trippers and holidaymakers travel with an average £676 worth of valuables, potentially risking hundreds of pounds.

While one in four (25%) opt to holiday in the UK to save money, failing to take out insurance could result in an expensive ordeal if personal items are pinched by opportunistic thieves. Almost 1 in 10 (8%) Brits holidaying in the UK has fallen victim of theft, loss or damage, of which a third (31%) didn’t claim on their insurance. The most common items were mobile phones, cameras, wallets/purses and jewellery.

Other reasons for staying in the UK included it being an easier option (42%), more spontaneous (25%) and a love for the great British countryside or seaside (53%).

Adam Powell, from Policy Expert commented: “Many holidaymakers are opting to stay in the UK for a variety of reasons, but whether you’re venturing to the other side of the world or to a seaside break on the coast, it’s important to ensure you’re covered. A fun family holiday could quickly turn sour if your valuables are stolen, lost or damaged. If you don’t want to take out a separate travel policy, check the small print of your home insurance to see if you’re covered when away from home. Having that small amount of extra cover now could go a long way should the worst happen.”

Tips from Policy Expert on preventing theft while on staycation:

• Keep purses secure and don’t put wallets or mobile phones in your back pocket
• Zip up hand and shoulder bags – carry bags in front of you with flaps against your body
• Don’t display jewellery or money – keep it safely in a pocket out of sight
• Always use your phone’s security lock or PIN number
• If you’re camping, make sure you don’t leave any valuables in your tent
• If you’re using a cash machine, be wary of who is around you and make sure your pin is covered.
• Thieves often work in groups, so try not be distracted by commotion or attention which could be a ploy
• Finally, check whether your home insurance policy includes away from home cover so if the worst does happen, you at least know you are covered financially

July 25th, 2017 | Andrew Hagger | News

The average premium quoted for a comprehensive car insurance policy is at its highest ever level according to the AA’s benchmark British Insurance Premium Index.

Confirming the chorus of concern expressed by many commentators and the financial pain felt by families, the average ‘Shoparound’ quote rose by 8.3% over the three months ending 30 June and an eye-watering 19.6% over 12 months.

The average Shoparound* quote at the end of the second quarter is £690.35 according to the Index, compared with the first quarter’s £637.51 and £577.22 a year previously.

Regionally, East Anglia has seen the biggest jump, rising by 11% to £677.14 over the three months.  The smallest increase was in Northern Ireland, up 3.5% to £952.92.

Young drivers have taken the brunt of the premium increase, with a 10.6% rise to an average quoted premium of £1,770.92.

Michael Lloyd, the AA’s insurance director says: “This is depressing news for drivers and it’s completely unnecessary.

“The main culprit is the change in the government’s so-called ‘Discount Rate’ that applies to injury payments.  For many years the rate was set at 2.5% but in March this year it was reduced to minus 0.75% which has significantly increased the value of compensation payments.  The discount rate is based on returns from Government bonds and was overdue for review, but it was slashed by a much larger margin than anyone expected.

“The increase in compensation applied immediately to both lump sum pay-outs which can run to millions of pounds for very serious injuries, as well as to lifetime Periodic Payment Orders for life-changing injuries. As a result many insurers found themselves facing immediate financial losses because of the much larger reserves needed to meet future claims.

“Because young drivers are responsible for the greatest number and highest cost of injury claims, their premiums have taken the brunt of the rises.”

Lloyd also points out that increases in Insurance Premium Tax and the continuing scandal of false whiplash injury claims, encouraged by cold-calling law firms, has also contributed to the rises.

“Despite these increases the insurance industry remains extremely competitive and, to a certain extent that has also contributed to the sharp rises we see today.  The culture of comparing prices online – which is the subject of a Competition & Markets Authority (CMA) investigation – has led insurers to offer unprofitable introductory rates to attract new business.  That that has been underlined by expert research last month** suggesting that for every £100 taken in premiums, insurers are now paying out £109 in claims and costs.