Brexit, insurance, debt and help to buy

Fears that Britain will slide into a post-referendum recession have been allayed after a Guardian newspaper analysis showed the latest news on the economy has confounded analysts’ gloomy expectations, with consumer spending strong, unemployment low and the housing market holding steady. The finding comes as a leading think tank toned down its earlier dire warnings of economic turmoil for the UK and its neighbours in the event of a leave vote. The Paris-based Organisation for Economic Cooperation and Development said prompt action by the Bank of England to cut interest rates had cushioned the blow from June’s Brexit vote but it still believes the UK will suffer a sharp slowdown next year amid heightened uncertainty. Meanwhile, the boss of Kier Group, one of the country’s biggest construction firms, says the London property market has ‘definitely softened’ since the Brexit vote. Haydn Mursell told the BBC that demand around the rest of the country is still good, but the capital had taken most of the impact. Housebuilders and estate agents were already reporting a slowing of London’s housing market before the referendum. Insurance rip-off Elderly drivers and homeowners are being ripped off by insurance providers catering specifically to over 50s, consumer campaigners have warned, as they are paying up to four times as much for cover offered by regular providers. A mystery shop by Which? found some year-long policies offered by specialist providers were between £110 and £1,134 more expensive than the best deal given by a normal insurer. The Telegraph reports that, last night, experts said it was ‘unacceptable’ for trusted brands including Age UK and Saga to overcharge old and vulnerable customers just because were less likely to question the value of deals. James Daley, director at Fairer Finance, said: ‘These firms should be more careful about claiming they offer good value to over 50s and then in practice offering some of them very bad value.’ Microsoft

Microsoft has been criticised over its Windows 10 software by consumer rights group Which?.

The body said it had received hundreds of complaints about the upgrade, including lost files, emails no longer syncing and broken wi-fi and printing. In some cases, it said, users had had to pay for their computer to be repaired. Microsoft defended its software and highlighted that it provided help online and by phone. Which? surveyed more than 5,500 of its members in June, and said that 12 per cent of the 2,500 who had upgraded to Windows 10 had later reverted to an earlier version. Living wage The national living wage (NLW) falls short of providing a decent standard of income to low-paid staff and will need to increase sharply to offset rising rents and slowing wages growth, The Guardian reports. After a six-month review, the Living Wage Commission said it had assessed the ‘best available evidence on living standards’ and concluded that the £7.20 an hour NLW for the over 25s, introduced in April, was failing to provide the basic needs of low-paid households. Debt

Bailiffs, utility companies and local councils who chase struggling parents over unpaid debts may be unwittingly inflicting real damage to children’s mental health, The Children’s Society has warned.

A report by the charity, The Damage of Debt, finds that children in low-income families with multiple debts are at far higher risk of suffering from mental health problems than those in families who owe money to a single type of creditor.

For families in poverty, the crucial factor is the number of types of debts rather than the total amount owed. The more types of debt the worse a child’s mental health is likely to be.

The findings suggest that having to juggle a range of creditors, from utility companies to stores, banks and payday loan companies, all of which may be seeking to claw back debts at the same time, ramps up the pressure on financially stressed households, who may also owe money to friends, family and other members of the community.

Help to Buy The Bank of England says use of the Help to Buy mortgage guarantee scheme has ‘declined significantly’ over the past year. In the first three months of 2016, the scheme made up only 3 per cent of total mortgage lending for house purchases, the Bank’s Financial Policy Committee says. In other housing news, the Council of Mortgage Lenders estimates that gross mortgage lending reached £22.5 billion in August – 7 per cent higher than July’s lending total of £21.1 billion. In addition to the month-on-month rise, lending rose 15 per cent year-on-year, from £19.5 billion in August 2015. This is the highest August figure since 2007 when gross lending reached £33.6 billion.

 Energy

Angry customers who waited-in for energy supplier E.On are to receive some recompense. The company has paid £3.1 million after admitting to Ofgem, the energy watchdog, that its agents missed 35,000 appointments between 2011 and 2015. E.On came forward to Ofgem and has paid out £1.2 million to householders and £1.9 million to energy charities. Under Ofgem rules, if an appointment is missed, customers should receive £20 to £22. Because that wasn’t paid immediately, those affected have received double.