Minimum savings will come from smart meters

There has been a lot of talk about how the rollout of smart meters for households and businesses in the UK will provide a win win situation, where consumers and businesses will save money on bills and energy firms won’t have to send out inspectors because the usage data will be sent to them automatically. It is claimed that these smart meters, which are digital meters, will put an end to the unreliable estimated bills that energy firms send out.

However, it has recently been revealed that consumers will not benefit from the smart meters because the cost of the rollout will be factored into their bills, which effectively means that they will be paying for them, yet the savings that they are set to make only comes to around £23 by 2020. The cost of the rollout is said to be around £11.3 billion and the Department for Energy and Climate Change has said that this is something that consumers will end up paying for.

The estimated saving is only 2 percent of the average household annual energy bill, and officials have said that it does not take into account any increases in energy costs over the coming years. Ofgem, the UK’s energy regulator, has estimated that bills could increase by between £168 and £700 a year by 2016 because energy firms need to invest in new power stations, which will result in costs being passed onto consumers.

Chris Huhne, the Climate Change and Energy Secretary said: “Smart meters are a key part of giving us more control over how we use energy at home and at work, helping us to cut out waste and save money. In combination with our plans to reform the electricity market and introduce the green deal for homes and businesses, the roll-out of smart meters will help us keep the lights on while reducing emissions and getting the best possible deal for the consumer.”

Tags: Minimum savings, Household, annual energy, electricity market, win situation, households, Department for Energy and Climate Change, business

Interest rate increases will mean paying out more on debt

Industry officials have said that increases in interest rates over the next four years will result in families having to find more money every year to make increased payments on debt such as credit cards, loans, and other forms of finance that are based on variable rates. This could result in families having to find a whopping £1800 a year more in order to deal with the increased interest on these debts.

For nearly two years now the base interest rate has been at an all time low of just 0.5 percent, and this is he lowest it has been in the history of the Bank of England, which spans over three centuries. However, inflation levels are now soaring and many industry officials now believe that the rate of interest will have to rise over the course of this year in order to keep a lid on inflation, which could mean more financial hardship for many households.

There are a number of experts that think the rate rises could start by this summer, which means that households would have to cope with additional interest on their debts as well as higher living costs and increased VAT, which went up by 2.5 percent at the start of this year. Mortgage payers will also be affected with extra payments, which could leave many on the financial edge and put them at risk of missed repayments.

The Bank of England said: “Currently, around two thirds of outstanding mortgages in the United Kingdom have floating interest rates, somewhat above the average over the past five years. That proportion is rising as mortgagors move on to standard variable rate products as existing fixed-rate deals expire. This exposes more households to the risk of increases in interest rates.”

Tags: variable rate products, year, Loans, households, United Kingdom, lid

Negative equity could hit many more

As a result of the house price crash that has seen a large percentage wiped off the value of UK properties over the past eighteen months it has been estimated that around one million homeowners have already been plunged into negative equity, which is where they owe more on their property than the actual value of the home. Read more

Tags: Mortgages, house value, negative equity, fall, bank of england, households

Try before you buy housing could prove effective

A recent report has shown how some housing developers are now trialling a scheme where a potential property buyer can try out the property that they are thinking of buying for a day or two before they make a decision or commitment. With house sales falling as a result of right credit conditions, falling house prices, and the global credit crunch, those that are able to purchase often need more persuasion and it seems that this try before you buy method could help developers to increase sales and buyers to enjoy increased peace of mind when it comes to making a purchase. Read more

Tags: road, age bracket, Business and Economy, households, inflation uk economy, day

Is it cheaper to be on the road now compared to twenty years ago?

Ask any driver and they will most likely tell you that the cost of keeping their vehicle on the road is extortionate. The cost of petrol is a major contributory factor, with petrol prices having rocketed by an incredible amount over recent months. The cost of insuring a vehicle has also gone up considerably, and many pay hundreds of pounds even for the most basic cover on their vehicle these days. Add to this the cost of buying a vehicle in the first place and the cost of servicing, MOTs, tax, and repairs, and you could find yourself shelling out a fortune each year to be on the road. Read more

Tags: motorists, savings, factor, half, wheel

Supermarkets cut fuel prices

Consumers in the UK have been hit with soaring petrol prices over recent months, with the cost of oil per barrel rocketing and higher petrol costs putting additional strain on already struggling household finances. Households have also had to cope with increased food prices, higher borrowing costs, and hiked up bills, all of which have left many unable to stretch their month budgets as far as they need to. Read more

Tags: oil company bp, uk, time, cost, uk families, recent peak, fuel prices, households

Council tax expected to rise by 4%

Households in England and Wales are to face increasing strain as council tax bills are to go up by 4 per cent in the next financial year, according to the government.

Figures from the Department for Communities and Local Government (DCLG) revealed that the bill for an average household is expected to rise from £1,101 to £1,146.

Those in Band D will see the payment rise from £1,321 to £1,374 because of the increases, which the government says are the smallest there have been for 14 years.

Sir Simon Milton, the Local Government Association chairman, said that the increase would put council budgets under severe strain.

“Councils have been under a real financial squeeze during the annual struggle to keep bills down,” he said.

Sir Milton added: “The stark reality is that low council tax rises have come at a cost and many councils have had to make tough decisions on spending.”

Meanwhile, shadow local government secretary Eric Pickles said that cost of living since Labour has come into power has “gone through the roof”.

Tags: cent, Communities and Local Government, bill, households, association chairman, Local Government

Drivers warned about danger of frosting

Car owners are being warned against the dangers of frosting, which leads to a large number of car thefts each year.

As temperatures across the UK plummet, Sainsbury’s Car Insurance says drivers should be aware that thieves are on the look out for frosting victims.

Frosting involves the theft of cars which are left unattended, with the engine running in order to warm it up.

Sainsbury’s says that around 120,000 households have been the victim of the crime between 2000 and 2005.

“Many thieves are opportunistic and will look to steal your car if you leave it running unattended,” said Richard Clark from Sainsbury’s Car Insurance.

“We are concerned that the predicted extreme cold weather will result in more people taking this risk and becoming victims of frosting.”

The firm is also issuing advice to drivers which they hope will help to avoid accidents during the cold weather.

Motorists are advised to get their car serviced, monitor oil, water and brake fluid levels regularly and check tyre pressure and condition.

In addition, drivers are being urged to ensure that they have antifreeze with them in the car at all times and that headlights are regularly cleaned.

Tags: households, Sainsbury's Car Insurance."We, check, oil water, water