If you’re worried about your energy bills, you’ll find little comfort in a report by the Daily Express today which says that gas and electricity wholesale prices have dropped to their lowest level in nearly a decade, sparking calls for suppliers to cut bills by 10 per cent.
Prices have averaged at nine-year lows over the first quarter of this year, according to industry analysts at the ICIS Power Index. Comparison website uSwitch seized on the figures to call on suppliers to reduce standard tariffs by a further 10 per cent. Ann Robinson, director of consumer policy at uSwitch.com, said the numbers showed that consumers have ‘yet again’ been ‘short-changed by token gesture price cuts’.
UK inflation as measured by the Consumer Prices Index rose to 0.5 per cent in March, the Office for National Statistics (ONS) said yesterday. A sharp increase in air fares, due to the earlier timing of Easter, was the main reason behind the rise from February’s rate of 0.3 per cent, the ONS said. Inflation is now at its highest level since December 2014, but it remains below the Bank of England’s 2 per cent target.
Research by Moneyfacts.co.uk has revealed that rate reductions in the savings market have now outweighed rate rises for six consecutive months. In March, Moneyfacts recorded just 18 savings rate rises. But rate reductions over the same period completely overshadowed this figure, with the number of rate decreases over the month hitting 123, which means that 87 per cent of rate changes were cuts. However, the rise in inflation means that savers have little to worry about in terms of savings erosion. Given inflation is so low, the vast majority of the 811 savings accounts currently on the market (630) can beat or match inflation. Rachel Springall, finance expert at Moneyfacts, said: ‘Savers are very likely to be frustrated by the current state of the savings market, but the new Personal Savings Allowance will at least mean that an estimated 92 per cent of savers will be free from tax deductions. Despite this good news, savings rates in general are still falling, with the average one-year fixed rate bond dropping to a record low of 1.25 per cent, down from 1.42 per cent a year ago.’ The Times reports that councils have almost doubled the money that they collect from householders to let them park outside their home. A study by the RAC found that in some areas takings from residents’ parking fees had soared by 90 per cent over the past five years. At least six in ten councils have some form of residential parking scheme, with an average of £59.17 levied on householders. Motorists in one area are charged £750 a year. Meanwhile, in business news, Tesco has finally returned to growth, with like-for-like sales up 1.6 per cent in the fourth quarter. The supermarket has also shaken off its huge 6.4 billion annual loss with a pre-tax profit of £162 million for the year to February. Finally, a press release from SunLife has struck home today. ‘You’re most likely to take a trip to the vet if your pet is called…Ellie’, the insurer says. My cat is called Ellie. This does not bode well for the future.
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