Osborne fails to instil confidence in consumers

Earlier this week the Chancellor of the Exchequer, George Osborne, delivered his 2011 Budget speech, which was watched by many people hoping to get a glimmer of hope with regards to their financial situations. Osborne did announce a range of measures that were aimed at trying to boost affordability for different groups such as first time buyers and drivers. However, according to the results of a recent poll many people are still facing uncertainty and are not feeling any more confident about their futures following the budget.

The chancellor announced a number of measures designed to try and help struggling consumers in the current climate, such as a new equity loan scheme for first time buyers to help them get onto the property ladder and a cut in fuel tax instead of an increase in order to help drivers cope with the soaring cost of petrol.

Despite these measures a recent poll carried out by uswitch.com has shown that many people now feel less confident about their financial situations than they did before the budget speech was delivered. The survey resulted showed that around 36 percent of consumers were less confident about their finances now than they had been prior to the budget speech. Another 20 percent of respondents admitted that they were concerned about their jobs.

Around 58 percent of the people that were polled as part of the survey said that they believed that now as not a good time to take on any additional financial commitments or make any major decision relating to finances because of the uncertainty that they faced with regards to their finances and their jobs.

One official from uswitch.com stated: “Stripping down living costs and household bills to the bare minimum will help consumers enjoy more disposable income.”

Tags: chancellor, George Osborne, fuel, additional financial commitments, chancellor of the exchequer

Consumers advised on avoiding winter fuel hikes

With winter well on the way many people may already be getting nervous about the cost of their energy usage, and this is something that particularly concerns certain vulnerable groups such as the elderly or low income families. With many people already struggling with their finances even before having to worry about fuel bills experts have advised those concerned to take steps as early as possible to avoid costly bills.

It is advisable for those that are worried that their bills may shoot up too high over the winter period to look at other options available to them before winter sets it, and for many this may be a case of looking for a cheaper provider in the area. The cost of energy usage can vary from one provider to another so it can be well worth taking the time to look at other options and providers.

Consumers are easily able to compare the prices on offer from a wide range of energy suppliers that service their areas by going online, and a number of comparison sites are available that will make the process easier and faster. By simply typing in some details about their property and usage habits consumers can quickly find out which supplier is likely to be the cheapest, and can then easily switch and start saving money.

One consumer stated: “I was with the same energy firm for years and years, and slowly but surely I could see my energy bills getting higher and higher. It came to the point where I was paying a fortune for my energy, and I was too nervous to use the heating and hot water even in winter. However, I finally took the plunge, went online, and switched suppliers, and over the past couple of years by energy bills have been far more reasonable and affordable.”

Tags: usage, cheaper provider, energy, energy usage, ventilating, energy bills, fuel, energy suppliers

Were we already spending less on luxuries before the credit crunch?

Every week there seems to be some report or another stating how spending levels on luxuries such as holidays has plummeted since the onset of the global credit crunch, and indeed the financial situation and turmoil over the past year has made things very difficult for many households and has severely restricted spending levels, leading to a downturn in the economy. However, one recent report has suggested that families in the UK had already started spending less on things like holidays and clothes before the effects of the global credit crunch took full effect. Read more

Tags: housing, luxury goods, Office for National Statistics, credit crunch, cinema, Northern Ireland, fuel, time

Can you afford to give to charity?

Just a couple of years ago many of us were happy to give generously to a range of worth causes, and we were prepared to whip out our debit or credit cards whenever there was a charity appeal, sign up to monthly donations for charities, and make one off payments to worth causes. However, household finances have been hit hard over the past year, and households have had to cut down on their expenditure in order to keep their heads above water financially. Unfortunately, for many this has also meant having to cut back on the amount of money that they are able to donate to charity. Read more

Tags: charity, fuel, usage, high rates, Charities Commission, advice, Social Issues, Big Society

Fuel poverty could affect a quarter of households

According to a recent report fuel poverty could be affecting a quarter of households in the UK by the end of next year, with huge hikes in energy prices over the course of this year resulting in an increase in the number of households that are paying 10% or more of their total household income towards energy bills. Read more

Tags: business, fuel, Business Finance, lot, business enterprise, fuel poverty

25% of the nation could face fuel poverty

Energy prices have been at the centre of heated controversy over the course of this year. At the start of the year the big energy firms in the UK cheerfully announced that because the price of wholesale energy had risen the cost of energy usage for customers would be going up, and just weeks later, true to their word, they increased energy usage costs quite significantly, leaving already struggling household to cope with more financial worry and strain. Read more

Tags: quarter, situation, electricity bill, report, GBP, fuel, money, gordon brown

Long haul package holidays being slashed in price

With the global credit crunch still underway and soaring household bills and living costs impacting on consumers’ budgets it is little surprise that many people have decided that they either cannot afford to take a holiday at all or that they can only afford to take a break somewhere local within the UK rather than heading to some far flung destination that costs a small fortune when it comes to flights, accommodation, and all the extras. Read more

Tags: bargain, trip, way, United Kingdom, different deals, holidays, fuel

Festive spending not affected by disposable income

Consumers will still buy what they need to be able to celebrate Christmas properly, even if their disposable income does not facilitate such spending, an industry expert has said.

According to the British Retail Consortium (BRC), both consumer confidence and disposable income have fallen this year, meaning that people may both be and feel “less well off”.

Head of media at the BRC, Richard Dodd explained: “[This] is a result of interest rate rises and also other costs having risen sharply, as well as mortgages, including utility bills, fuel bills and tax bills.”

He added that despite people being less well off and having less to spend, people will still “have the presence of the food and drink they want for Christmas”. This means that retailers will not suffer dramatically even though it may not be a “spectacular” year.

Deloitte have released predictions for spending which, it says, will increase by seven per cent on last year’s figures, with average spending per capita estimated at £706 up from £662 last year.

Tags: Personal life, cent, year, fuel, fuel bills, food and drink, tax, disposable income

Rising inflation targets young and old

Inflation is rising, and it is hitting the oldest and the youngest hardest.

In October, inflation rose above the predicted rate of 2.1 per cent – itself above the Bank of England’s 2.0 per cent target – but for over-75s and under-30s, the figure was even higher, at 2.5 per cent.

The breakdown of the impact of inflation on different age groups has been carried out by the Alliance Trust Research Centre.

Younger people have been hit by above-average increases in the price of food, rent and education, while older people have been especially vulnerable to changes in the cost of food, which constitutes a high proportion of their outgoings.

Although energy costs have dropped in recent months, this has been outweighed by rising prices in other areas.

Inflation in food prices this year stands at 5 per cent, while road fuel prices are rising by 12 per cent.

Shona Dobbie, head of the Alliance Trust Research Centre, said: “Throughout the course of our study, which started in 2003, the elderly have consistently suffered the highest levels of inflation. Now they are being matched by the young.

“More than four years of higher-than-average inflation has been eating into pensioners’ budgets and it looks like this situation is going to continue for some time. We are also concerned about the more recent trend of young adults also facing inflation which is significantly higher than the headline rate, largely due to higher rents and education costs, as well as the costs of basic goods.”

Tags: above-average increases, inflation targets, road, headline rate, fuel prices, Business Finance, figure, fuel