North West Sheffield News Online

Over 10 million people could fail a credit score because they don’t have enough credit history or are not on the electoral register, according to research carried out on behalf of Kensington.

The survey of more than 2,000 adults in the UK found that 13% of people have not taken out any financial product since before the year 2000. With credit agencies unable to access data on accounts opened before this date, it means that these six million people may not have enough activity showing on their credit record to pass an automated credit score.

In addition, 9%, or more than four million, people do not know for sure whether they are on their local electoral register, which again could seriously hamper their chances of passing a credit score.

This means that over a fifth of the adult population could be prevented from getting a mortgage by lenders that operate rigid automated credit scoring system.

Here are two initial suggestions for comparison sites dealing with credit products for readers to peruse (entirely at their own risk!):

• http://www.moneysavingexpert.com/
• http://www.moneysupermarket.com/

South Yorkshire firefighters will be washing cars this Saturday (20th March) in Stocksbridge as part of the National Car Wash Day.

The event, taking place at stations across Sheffield and beyond, aims to raise money for The Fire Fighter’s Charity, which supports injured firefighters and their families.

Motorists can get their cars washed at the Stocksbridge Fire Station (on Manchester Road) between 10am and 4pm.

Area Manager Dave Kiddy said: “We are appealing for members of the public to support this event and to bring their cars along to their local fire station this weekend for their cars washing in exchange for vital donations. Along with driving away in a clean car they will also be given valuable advice on fire safety in their homes.”

The Fire Fighters Charity, previously known as the Fire Services National Benevolent Fund, supports injured firefighters and their families through emotional and physical trauma.

Despite the best training, accidents and tragedies involving firefighters sadly occur, and The Fire Fighters Charity supports those affected. The Fire Fighters Charity has two therapy and two recuperation centres in the UK to provide physical and emotional rehabilitation to the firefighters.

Big changes are due as of next month for holders of private pensions.

The normal minimum pension age for occupational and personal pension schemes rises from 50 to 55 from 6th April 2010.

After that date, policy holders will need a special reason, such as serious ill health, to be able to begin drawing their pension before the age of 55 without paying extra tax.

Currently it is possible to start receiving money from a pension scheme from the age of 50 without paying extra tax. But from 6 April 2010, this will rise to 55.

Reasons someone may receive pension payments before the new minimum age include:

• they have a protected pension age (see glossary in the document below for more information)
• they are too ill to carry on with the same job or have a serious ill health condition
• they started receiving pension benefits before 6 April 2010, having reached the current minimum age of 50

The new normal minimum pension age applies to all occupational and personal pension schemes that receive tax relief.

For those aged between 50 and 55 and already receiving pension payments, this change to the normal minimum pension age will not affect those payments.

Companies administering occupational and personal pension schemes should have advice on hand for customers seeking to know more.

The Government today announced new rights for Britain’s 30 million credit card users that should save consumers millions of pounds and give people more control over their finances.

The new rights were secured in an agreement between the Government and the credit and store card companies negotiated in the light of feedback from thousands of consumers to a Government consultation on credit cards.  The key changes will be introduced by the industry this year and given statutory force as soon as possible.

The Government’s agreement with the card companies will mean the most expensive debt is paid off more quickly, better repayment plans for new customers, a ban on credit limit and rate increases for people at risk of financial difficulty and a right to 60 days to reject interest rate increases.   The Government estimates the new rights will save consumers almost £300 million a year and one industry forecast predicts customers will gain around £500m.

Payments will go towards debt with the highest interest rates first, reversing the industry practice that prevented consumers clearing their most expensive debt until after they had paid off debt at lower rates, including 0 per cent balance transfers.

Other measures designed to encourage responsible borrowing and lending and help people avoid taking on unmanageable debts include: Read more…

The Government today announced a deal with the big six energy suppliers (British Gas, EDF Energy, EON, Npower, Scottish Power and Scottish & Southern Energy) to reduce energy bills for poorer pensioners.

As a result, up to 250,000 households should see an £80 rebate off their electricity bills. Surely welcome as the cold snap lingers in the Sheffield region.

As part of the deal, the Government says it will share data securely with the energy suppliers so that they can identify the most vulnerable pensioners.

In most cases the rebate will be awarded automatically by electricity suppliers, without the need to claim. Where this will not be possible, we will write to individuals advising what they need to do so that they do not lose out.

Those pensioners covered by the scheme do not have to do anything at the moment. They will be contacted by DWP if the scheme applies to them. Full details about all the qualifying criteria are expected to be available by the end of March. An enquiry line has been set up, which can provide more details on the Scheme.  0845 600 0033.

Help will be targeted at households where a person, or one person in a couple, is aged 70 or over, and in receipt of only the guarantee credit element of pension credit on the qualifying date of 26th March 2010. Read more…

Free money advice is now available on 0300 500 5000.

Moneymadeclear is a new advice service that includes a helpline, website and face-to-face advice services, delivered through a range of partners such as Citizens Advice Bureaux and Age Concern.

The cost of the service will be funded by a levy on the financial sector and funds recovered from dormant bank accounts, with Government meeting part of the cost in the first year.

People will be able to phone up, or talk face-to-face with independent experts – to get free advice on money worries, financial planning, or advice on their rights and actions that they can take if they feel they are not getting a fair deal.

The Government has trialled the service in the North East and the North West since last April, and has helped 500,000 people, including 23,000 who received face-to-face assistance. The new service is expected to help a million people in the next year.

The Moneymadeclear helpline is available on 0300 500 5000 and there is a website at www.moneymadeclear.fsa.gov.uk

Chancellor Alistair Darling said, “Moneymadeclear is free, impartial advice for all, whether you are unsure about the small print in a mortgage form; want advice about opening a savings account for your children or grand-children or you want some help dealing with repayments before they get out of hand. This service will provide much needed advice for one million people across the UK in the coming year alone.”

Service charge demands will shortly fall due for many flat and maisonette owners across the country.

With bills sometimes adding up to four figures, it always makes sense to check service charge demands and know what to do if there is something awry. However, some understanding of what the law says is required for a challenge to be successful.

Even after paying the bill, it can still be challenged so long as it hasn’t been specifically admitted or agreed that the charges are payable.

According to The Leasehold Advisory Service, the government’s free legal advice service for leaseholders and landlords, the first thing to do is read and understand the lease.

Liability to pay for a particular service usually depends on what the lease says. However, if the demand is unreasonably high or the standard of work unacceptable, then the law can be used to challenge the charge. Read more…

Bus travel in England will be safer, more efficient and easier to use under new Government proposals.

The plans – published today in a consultation paper – outline a range of measures to improve services including a ban on the consumption of alcohol on buses and a requirement for operators to provide more advanced warning of changes to services.

Also included in the consultation are proposals to allow local authorities to set maximum ticket prices for all, or certain categories, of passengers at a level less than the existing commercial fares.

The proposals are part of the Government’s strategy to increase bus travel in order to tackle congestion.

A Department for Business, Innovation and Skills (BIS) survey reveals that almost two-thirds of consumers are less likely to return goods bought online, compared to items purchased on the high street.

UK consumers are now ranked as the biggest online shoppers in Europe, having spent £38bn online in 2009 which accounts for 10% of total UK retail sales.

The survey for the ‘Know Your Consumer Rights’ campaign reveals:

• more than 60% of shoppers are less likely to return goods purchased online, compared to goods purchased on the high street;
• three quarters (77%) of UK consumers don’t know there are differences between online and high street consumer rights;
• more than one in 10 (13%) admit to not being sure of their consumer rights with online purchases.

The survey also reveals that consumers are just as confused when shopping on the high street:

• two fifths think that retailers always have a right to refuse a refund if they don’t have a receipt and;
• one in ten believe goods can’t be returned once they’ve left the store.

Top Tips: Read more…

As more people rely on credit cards in these economically difficult times, it’s worth examining just what charges are included – and need to be repaid!

THE Annual Percentage Rate (“APR”) figure on credit products, including credit cards, includes not just chargeable interest but also required fees, e.g., annual membership costs.

APR is also referred to as the “total cost for credit” and must be clearly explained and referred to in all advertisements or printed matter as “APR”. Based on the cost for purchases, APR doesn’t take into account cash transactions, balance transfers or their associated fees.

So how does it work?

Interest and fees

Average APR on credit cards currently stands at a whopping 18.8% in the UK. Borrowers with a good credit history should be able to get deals below this figure and it’s worth comparing credit cards to find the best deals available.

In calculating APR, creditors base their advertised figures on an assumed average borrowing of £1,500 (this is higher for “prestige” cards, often labelled “Gold” or “Platinum”). Read more…

Firefighters in South Yorkshire voted to accept a new deal over shift patterns.

This brings an end to what has been a long-running dispute.

See the BBC story at http://dlvr.it/5rNt.

UK consumers lose an average £4,950 each over a lifetime on faulty goods they failed to return to shops.

The Department for Business, Innovation and Skills (BIS) revealed recently that almost half of shoppers have at least one faulty item at home they wished they had exchanged or had refunded, with almost a third possessing up to five faulty items.

Male shoppers lose the most money – on average they fail to take back £89 worth of faulty goods a year compared to women who are losing £71 a year: a cost of £5,465 and £4,658 in a lifetime respectively.

Consumer Direct provides advice on people’s rights on 08454 04 05 06.

These two money story snippets illustrate the ongoing effect of the recession on people in work and on those who have retired …

57% of workers expect no salary increase this year. uSwitch.com says 32% of those who will receive a rise can expect an increase below 3.5% inflation rate. Nurses, civil servants and teachers anticipate the lowest increases of 1.4%, 1.6% and 1.8%, while bankers (2.7%) and lawyers (2.9%) are among those best off.

Meanwhile, the average retired household, where the main occupant is aged 65-74 years, needs to find an extra £774.70 a year to maintain the standard of living they enjoyed just 12 months ago. MGM Advantage says the corresponding figure for a home where the main occupant is aged 75 years and over is £383.91 and the average for all households is £1,222.66.

The controlling Liberal Democrat Group on Sheffield City Council said today that they will recommend increasing Council Tax, excluding precepts (e.g., Fire & Rescue Service funding), by 1.39%.

The 1.39% figure is lower than the previously planned 1.5%. The current rate if inflation nationally is 3.5%. Additionally, the Lib-Dems announced an extra one-off investment of £280,000 to help deal with potholes and increased litter caused by recent severe weather.

The Lib-Dems said they have managed to drive down costs at the Council by freezing councillors’ allowances next year and by coming up with the new investment with which to fund the lowest Council Tax increase that Sheffield has ever seen.

Cllr Simon Clement-Jones, Liberal Democrat Cabinet Member for Finance and Customer Focussed Services said, “Keeping Council Tax to an absolute minimum is a priority for the Liberal Democrats. So over the last few days and weeks we have been toiling away in the Town Hall to try and find more savings to bring down the proposed increase.

I’m delighted that not only have we managed to do this, but we have also been able to provide some much needed extra action to deal with the after effects of the harsh Winter weather.”

The 1.39% increase, excluding precepts, will represent the lowest ever Council Tax increase in Sheffield and is well below the current 3.5% rate of inflation. The recommendation will be made at the Authorities budget setting meeting this Friday 5^th March.