My pick of last week’s news is Therese Coffey’s Letter to Ofgem. I wonder what the reply will say?
Tweet of the week
Dear @Ofgem & @KwasiKwarteng. Pls reverse the recent burden shift to the standing charge (rather than unit rates) for the next price cap.
It was regressive & means cutting usage has less impact on bills. Even those using NO energy now pay £165/yr for electricity, £99 for gas.
— Martin Lewis (@MartinSLewis) May 19, 2022
Debt news
Debt Advice:
- How to report misleading debt advice adverts Money Advice Trust – a handy primer!
- Statutory Debt Repayment Plan: Consultation gov.uk: Consultation closes on 4 August. This is going to be a big one to get right., even though a lot of feels irrelevant in the current cost of living crisis.
- The journey of developing an inclusive helpline CivTech: Local knowledge is vital, for example knowing exact directions to a local food bank that might be slightly difficult to find, or the name of the person who will be able to help you when you reach your destination.
Insolvency:
- Vanguard Insolvency closed down – a rogue IVA firm my article.
- 300 jobs ‘at risk’ as half of Insolvency Service offices to close Civil Service World: this means the DRO Unit at Plymouth will be moved.
- BrightHouse loan customers unlikely to get refunds, say administrators Guardian: Creditor Greensill has received big sum but Grant Thornton decides cost of assessing other claims is too high.
Lenders’ news:
- Klarna could lose billions as spotlight falls on fintech firm Times (paywall): Billions could be wiped off the valuation of Klarna, the “buy now, pay later” fintech business, amid regulatory scrutiny, increased competition and a broader sell-off of technology shares.
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Barclay family revives plans for Very Group listing Times (paywall): The retailer makes a significant chunk of its sales on credit and had a £1.25 billion debtor book as of last July.
Why did Experian send 24 emails and offer me 39 separate credit cards when we’re in the middle of the cost of living crunch? Mail: experts warn that this excessive marketing is completely irresponsible.
Inflation:
- UK inflation hits 40-year high of 9% as energy bills soar BBC: UK now has the highest rate of inflation (9%) of any G7 country, including Germany (7.4%) and France (4.8%).
- Iceland to launch over-60s discount as cost of living soars BBC: The supermarket chain said it would offer over-60s 10% off every Tuesday to support its older customers through the cost of living crisis.
- UK consumer confidence falls to lowest level since 1974 Guardian: Consumers increasingly pessimistic about economy and personal finances amid deepening cost of living crisis.
Energy prices:
- Letter to Ofgem from DWP gov.uk: Suppliers have an obligation to support customers in payment difficulty… If suppliers are not doing so, this appears to be a direct contravention of a supplier’s Supply Licence Conditions (278a) that require suppliers to support customers in payment difficulty.
- Energy price cap set to change every three months and cheaper switchers’ deals effectively kiboshed under new plans unveiled by Ofgem MSE: While Ofgem says more frequent price changes means lower wholesale prices can be passed on more quickly, it also means the reverse is true.
- Response to Ofgem consultation on changes to the Market Stabilisation Charge Citizens Advice: the practical implications of paying significantly more for energy than they otherwise would as a result of an increased MSC were they to switch could be very damaging for low-income households.
- Watchdog urged to step in as UK’s poorest turn off energy supply Guardian: Spate of self-disconnections reflects rising costs, punitive debt collection and disproportionately high charges, says charity
Government’s £500m support scheme failing Britain’s poorest households Guardian: The funding was meant to last until 31 March, but … one in six English local authorities ran out of funding for applicants at least a month earlier, some as early as December.
The Cost of Living: Alleviating the crisis CSJ: my comment- it’s overly obsessed with UC but some very sensible stuff eg on inflation updating and deductions
Council pays family £6,000 after children forced to sleep in kitchen of overcrowded home Soth London Press: The payment comes from a calculation of £400 every month the family remained in their overcrowded home from when a complaint was first lodged.
City watchdog to ensure banks provide access to cash across UK Guardian: Regulator could fine banks failing to offer withdrawal and deposit facilities within ‘reasonable’ distance
DWP stops soaring numbers of Brits’ Universal Credit as Jobcentres reopen after Covid Mirror: DWP data shows 38,244 benefit sanctions were imposed on Universal Credit(UC) claimants in January this year – the highest for at least three years and numbers are climbing fast
News round-ups are published every Sunday.
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