The credit crunch is encouraging Britons to put away more money over fears they could lose their job or home, according to National Savings & Investments (NS&I) survey.

Over December, January and February people saved an average £90.12 per month, up from £86.35 in 2008, the largest amount since the survey began four and a half years ago.

In spite of the downturn, the number of people who put away money in savings each month in 2008 remained static at 47% of the population. Over half of these said that they were saving in case of an emergency, the NS&I survey of survey of more than 12,000 Britons revealed.

Dan Harkins, senior savings strategist at NS&I said, “It is clear that people are aware of the need to save more in these uncertain times and it is encouraging that, despite additional pressures on incomes, the average value of people’s total savings was £17,443.”

(more…)

Energy Regulator Ofgem has cleared energy companies of getting bills wrong or benefitting from “free loans” through overcharging direct debit companies. However, the regulator said that firms needed to make monthly direct debit demands clearer to customers.

Earlier this week consumer association Which? published the results of its own survey which suggested that many direct debits for gas and electricity bills were too high, effectively providing firms with free loans until the overcharge was reimbursed.

However, the watchdog Consumer Focus said it was reassured that no malpractice had taken place.
“It will be reassuring to customers that there’s no evidence of energy companies systematically over-collecting direct debit payments,” said Audrey Gallacher of Consumer Focus.

“It’s still the cheapest way to pay for energy, and spreading the cost over a year can be a convenient way to cope with large bills.”

(more…)

MP’s have expressed dismay over the continued overpayment of tax credits.

A report from the Public Accounts Comittee has revealed that overpayments still stand at £1 billion a year. Between 2003 and 2007 overpayments amounted to £7.3 billion. £4 billion was clawed back from claimants at a later date.

The committee of MPs said that the overpayments were a burden on some of the poorest and most vulnerable members of society.

“The tax credit scheme was designed in such a way that there was always going to be a degree of overpayment,” said the conservative MP Edward Leigh, who chairs the Public Accounts Committee.

“It is the scale of that overpayment that has continually caused dismay.

(more…)

Consumer association Which? has accused energy companies of taking “free loans” from customers through monthly direct debit payments.

The regulator found that customers paying by direct debit were in credit by an average of £74 on their electricity bill and £84 on their gas bill, and that 13% of customers were more than £100 in credit on their energy bills.

This amounted to “free loans” for energy companies, Which? said in its report.

In the latest Which? consumer satisfaction survey the most common complaint was direct debits were set too high by energy providers.

“It seems incredible that energy companies can take hundreds of pounds more than they need to from their customers, and profit from the interest that this money will earn at our expense,” said Martyn Hocking, editor of Which? Money.

“While a small amount of credit built up over the summer months can be used up during the winter, it is difficult to see how a £200 credit will be used up - particularly as the customer makes the same payment each month.”

(more…)

Too skint to go out to eat? Enjoy restaurant quality food in the comfort of your own home with M&S this weekend. For just £10, two people can choose from a three course meal selection at Marks & Spencer this weekend.

Between Thursday 26th and Sunday 29th March you can choose from a wide selection of mains, accompaniments, puddings and drinks - and all for only £10.

Click here to see the full range of options.

The offer is subject to availability, and runs out on 29th March 2009.

Thousands of British holidaymakers may be choosing their holiday destination based on false assumptions as to which countries fall in the eurozone, according to a recent survey.

A report by the Post Office found that significant numbers of UK holidaymakers, concerned about the weakness of the pound and high prices in the eurozone, may avoid Europe’s cheaper destinations, mistakenly thinking that they use the euro. Others are unaware that some of the most popular destinations in Europe use the Euro.

Of the 2,000 customers interviewed for the survey, 20% were unaware that key tourist hotspots such as Greece and Portugal are eurozone members, and a staggering 43% believed that Austria, a founding member, did not use the currency.

Conversely, many tourists incorrectly thought that many of the Europe’s cheapest destinations use the euro. 33% of holidaymakers believed that Turkey, which uses the lira, was a zone member, while over a quarter said that the Czech Republic (koruna) and Hungary (forint) use the euro. Denmark has consistently been a strong defender of its own currency, the krone, yet almost half of those surveyed thought that the euro was the nation’s currency.

(more…)

Scottish GPs have narrowly voted against a proposal to tax chocolate in the same way as alcohol and cigarettes as a way of tackling obesity.

GP David Walker from Lanarkshire said that Britons no longer considered chocolate a “treat” and that many were harmfully addicted to the food, which led to weight-related conditions like diabetes.

However, delegates at a British Medical Association (BMA) conference in Clydebank, West Dunbartonshire, voted against his proposals by just two votes.

Dr Walker said that he was “disappointed” at the outcome because he saw chocolate as a “major player” in problem weight gain, but was glad his suggestion had brought the issue of obesity into the public eye again.

Speaking immediately after the BMA vote, Dr Walker said, “A little of what you fancy may do you some good, but as nearly one in four people in Scotland are obese a lack of physical activity, an unhealthy diet and larger portion sizes are clearly taking their toll on the health of Scotland.

(more…)

Treat your Mum this Mothers’ Day with this two-for-one offer at Ha Ha Bar & Grill.

Order one main meal from Ha Ha’s Favourites menu and get a second meal free when you dine with your mother. Mouth watering meal options include stuffed portobello mushrooms served with puy lentils, Oven roasted salmon and haddock fishcakes and Cumberland sausage served with Maris Piper mash and a rich gravy.

Click here to see the full menu.

To benefit, simply visit your nearest participating Ha Ha Bar & Grill with your Mum on Sunday 22nd March, order two main meals from the Favourites menu and get the cheapest one free. The offer is valid only on Mother’s Day, Sunday 22nd March 2009, and cannot be used in conjunction with any other offer. Subject to availability.

New research from the Post Office has found that a quarter of mobile phone owners are considering ditching their contracts in favour of Pay As You Go.

The mobile phone market is likely to look dramatically different in coming months as 6.5 million users consider switching from a mobile phone contract to a Pay As You Go (PAYG) option due to the current economic climate. A further 723,000 people say they are already in the process of switching to a pre-pay tariff.

Currently 32.7 million people in the UK are on PAYG - 54% of the population. But this figure is likely to rise to around 40 million, equivalent to a 65% market share.

Some Post Office branches have seen sales of mobile top-ups more than double in recent months, suggesting that sales will continue to go up sharply in 2009. Martin Moran, head of telecoms at the Post Office, said, “Clearly people are being mindful of their finances during difficult times, and taking control of their spending by switching to more manageable options for mobile phone costs.

“59 per cent of people say that having a PAYG mobile allows better control of spending and in some Post Office branches we’re seeing record numbers of people topping up their mobile phone at the counter,” he added. “We’re preparing ourselves for an increase in use of [such] services as the financial crisis deepens.”

(more…)

The cost of a barrel of oil has dipped to just $59.32 a barrel the lowest price seen since February 2007, a massive fall down from the record high of $147 per barrel this July.

Two of Britain’s biggest supermarkets yesterday sparked off a new battle in the petrol price war by promising to cut pump prices by 3p a litre to a new low of 94.9p. Both Sainsbury’s and Asda have upped the game at the pumps, with the former announcing price cuts to the 94.9p per litre of unleaded at the majority of its stores, and the latter countering by promising 94.9p nationwide on unleaded petrol and 107.9p on diesel.

This takes petrol prices down to their lowest since they began creeping up last September, and comes after an announcement that OPEC (Organisation of the Petroleum Exporting Countries) would be cutting its output by 1.5m barrels a day to 27.3m barrels starting this November – in a matter of weeks – in a bid of halt the falling price of oil.