2013-05-20T04:54:10-04:00 Gillian Guy http://www.huffingtonpost.co.uk/author/index.php?author=gillian-guy Copyright 2008, HuffingtonPost.com, Inc. HuffingtonPost Blogger Feed for Gillian Guy Good old fashioned elbow grease. tag:www.huffingtonpost.com,2012:/theblog//3.1304694 2012-02-27T19:00:00-05:00 2012-04-28T05:12:01-04:00

Gillian Guy http://www.huffingtonpost.com/gillian-guy/
So, without access to a bank account, basic tasks such as receiving your wages or benefit income, or paying bills, become huge and costly obstacles for people (often vulnerable) who are often already struggling in the first place. And yet, in stark contrast to the universal service obligations to meet the needs of consumers found in the energy, water and telecomms industries, financial services firms are under no such obligations.

At the same time, families are increasingly expected to engage with more complex financial products as a result of social policy changes: they must save for a pension or a child's university education; even insuring a car calls for certain legal requirements they must meet. But who is making sure that consumers can access suitable and often complex financial products and services?

As MPs scrutinise the Financial Services Bill today, they will debate what the objectives, and duties and responsibilities the new Financial Conduct Authority (FCA), which replaces the Financial Services Authority, should be to ensure that competition in financial markets delivers positive outcomes for all consumers, including the most vulnerable.

This is important because competition among firms to win the custom of consumers with greater spending power has very often led to worse outcomes for the less commercially attractive customers. For example, so-called "free" current accounts for wealthy customers are subsidised by hefty overdraft charges. These are most often levied on those who can least afford to pay them. And firms looking for ways to subsidise low headline mortgage interest rates contributed substantially to the widespread mis-selling of PPI. In situations like these the regulator must be able to step in. There is a danger that as the Financial Services Bill is currently drafted, when competition fails to deliver for consumers, the only remedy the FCA can prescribe, is more competition. It must therefore be empowered to respond effectively to market failure and it should set out, right from the start the approach it will take when such circumstances arise.

Competition is good for consumers, and it's good for firms. But by itself it can't ensure that the needs of all consumers are met, especially the most disadvantaged, who lack purchasing power. Last year the Payment Council U-turned on its decision to end the use of cheques - not because market forces responded to demand from consumers, but because of the political pressure to ensure that a service relied on by many vulnerable consumers - particularly the elderly and digitally excluded - was maintained.

The government is, and should be, responsible for policy decisions. But the regulator must be empowered to make sure firms comply with the government's social policy objectives such as financial inclusion. If this collaborative and effective approach isn't taken, the government will have to rely on voluntary agreements with the industry to ensure that consumers' essential needs are met - an approach that has many limitations. In 2005 the government launched the Financial Inclusion Taskforce to increase access to banking services for low-income consumers. And yet today, seven years later, over one million adults still live in a household where no one has access to a bank account.

Consumers need access to products which are safe and which meet their needs - and they need a regulator with the power to make that happen.]]> tag:www.huffingtonpost.com,2012:/theblog//3.1207616 2012-01-15T19:00:00-05:00 2012-03-16T05:12:02-04:00

Gillian Guy http://www.huffingtonpost.com/gillian-guy/
In a recent survey of ours 43% of people told us they are worried they can't afford their next fuel bill and one in two said their energy bills will put a strain on their finances this year.

Evidence from our bureaux paints a similar picture: a bureau in the North West of England is helping a man whose benefits have been cut in half and he is now finding that 45% of his income is spent on his energy bills. He is in debt to his fuel company, never has the heating on and only uses gas to heat the hot water. His local bureaux is working with him to help him sort out his fuel debt.

It might seem strange to be talking about high fuel bills when only last week some of the big energy companies cut their prices - a move welcomed by Citizens Advice. Although we do think that suppliers could go further and are hoping that the others companies will drop their prices too.

In the meantime people are trying to find ways to slice the size of their fuel bill - in November last year, eight times as many people came to us for online advice about saving money on energy bills, compared to the same time the previous year.

While it's rising costs (and for some people, shrinking incomes too) that are putting the pressure on the purse strings people are finding ways to reduce their fuel bills: over half said they were using the heating less and 17% don't use some of the rooms in their home in order to keep costs down.

Consumers are clearly doing what they can to spend less on heating and powering their home - and we want to help them.

That's why this week we are running Big Energy Week - a campaign to help people save money on their energy bills, get advice on any fuel debts and make sure people are getting all of the help available.

A new website www.bigenergyweek.org.uk is full of information on how you can reduce your bills and details of local events near you - there are over 100 up and down the country and all of our Citizens Advice Bureaux will have leaflets with advice on saving money on your bills.
During Big Energy Week our advisers will be out and about helping people save money on their bills by encouraging them to:

• Contact your supplier to check you are you are on the best tariff and payment method for you. Monthly direct debit is on average £100 cheaper per year than paying by cash or cheque.

• Visit an accredited switching website to see if you could get your energy cheaper elsewhere. You may be able to save up to £200 off your annual bill by shopping around for a different supplier, particularly if you have never changed energy firm.

• Insulate the walls and the loft of your home and you could save on average around £120 per year. All major gas and electricity suppliers are giving away free or discounted insulation to any household, not just their own customers. Ask if you're eligible so you don't miss out. That goes for heating oil customers too.

• Check you are not missing out on any benefits or tax credits that could up your income; your local Citizens Advice Bureaux can help you with this.

• Using less energy could save you money, just by doing simple things like turning off lights and switching appliances off at the wall. Turning your thermostat down 1°C alone could cut your heating bill by £60 on average.

• If you are unable to pay your bills you should contact your energy supplier immediately as they have to help you manage your bills in a way that you can afford.

• If you use heating oil or liquid petroleum gas to heat your home, shop around and compare prices from different oil suppliers. You could also save money by buying in bulk with your neighbours; check if there is an oil club you can join or start one up.

Big Energy Week is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the Government]]>