Tips to help your family cope with inflation
Inflation is rising at its fastest level in six years, so follow our advice to beat the great squeeze. By Niki Chesworth
Family finances are being squeezed from all sides as inflation is rising at its fastest level in six years, according to official figures.
The Retail Prices Index (RPI) rose by 4.2 per cent over the last year but there have been even bigger hikes in electricity and food prices – up by 8 per cent and 7 per cent respectively – and petrol prices which are 19 per cent higher.
1. HOUSING
The credit crunch has hit the mortgage market but there are a few green shoots. The Nationwide, for example, trimmed fixed rate mortgages by as much as 0.3 per cent last week in response to the Bank of England's £50bn cash injection to the banking system. Abbey, meanwhile, reduced its flexible and tracker rates by 0.05 per cent last week in addition to cutting some of its fixed rates by up to 0.17 per cent. As the mortgage is likely to be the biggest family bill, switching to get a better rate should be a priority.
Inflation-buster : Anyone on a variable rate mortgage has probably not benefited from the 0.75 per cent cut in Bank of England base rates since November, as lenders are not passing on rate reductions in full. Switch a 25-year £150,000 repayment loan from 6.5 per cent to 5.84 per cent and save around £732 a year. If money is really tight switch to interest-only on a temporary basis – saving a further £2,000 a year.
2. ENERGY
Further price rises are to come after British Gas warned this week of sharp increases in wholesale fuel prices. Some analysts forecast the average energy bill could rise by as much as 46 per cent this year hitting £1,327.
Inflation-busters: Some 4m households have never switched utility company from the original local monopoly supplier – even though the average family of four could save around £200 a year. Of the eight in 10 that have switched, many could benefit from changing again. Pay by direct debt, manage the account online and opt for duel-fuel for the biggest savings. Visit www.energywatch.org.uk or www.uswitch.com. Increase energy savings by a further £250 a year by following the tips at www.energysavingtrust.org.uk.
full article
Sunday, 25 May 2008
Beat half-term holiday rip-offs
Save £200 on your annual petrol bill
With clever use of websites and cards, you could save hundreds of pounds on your annual fuel bill. First find the cheapest petrol in your area, using petrolprices.com. This website will give you the rates on all forecourts within your area. Asda is consistently the cheapest. An Asda in Gateshead was charging 107.9p a litre, but a mile and a half down the road, the rates were 114.9p. With a 50-litre tank, you would save £3.50 at Asda.
You could make further savings by using an Asda credit card which offers an additional 2p off each litre, bringing your total saving to £4.50. Over the course of a year, you would save £234 assuming the difference between the stations remained the same and you filled up once a week.
Meanwhile, Tesco offers one Clubcard point for each £1 spent at a Tesco forecourt. These points are worth 1p so if you bought £50 worth of petrol you could save 50p.
Go to Manchester for £1
Virgin Trains is offering £1 singles between London Euston and Manchester Piccadilly until the end of June. It is part of a trial of online printable tickets. You have to visit virgintrains.co.uk and go to the tickets@home section on the left-hand side. You then select which times you want to travel. Prices range from £1 to £7 each way so you could book a return over the half-term holidays for £2. In contrast, a standard open return costs £230 — allowing you to save £228. Tickets are only available for travel on weekdays because of maintenance work
full article
With clever use of websites and cards, you could save hundreds of pounds on your annual fuel bill. First find the cheapest petrol in your area, using petrolprices.com. This website will give you the rates on all forecourts within your area. Asda is consistently the cheapest. An Asda in Gateshead was charging 107.9p a litre, but a mile and a half down the road, the rates were 114.9p. With a 50-litre tank, you would save £3.50 at Asda.
You could make further savings by using an Asda credit card which offers an additional 2p off each litre, bringing your total saving to £4.50. Over the course of a year, you would save £234 assuming the difference between the stations remained the same and you filled up once a week.
Meanwhile, Tesco offers one Clubcard point for each £1 spent at a Tesco forecourt. These points are worth 1p so if you bought £50 worth of petrol you could save 50p.
Go to Manchester for £1
Virgin Trains is offering £1 singles between London Euston and Manchester Piccadilly until the end of June. It is part of a trial of online printable tickets. You have to visit virgintrains.co.uk and go to the tickets@home section on the left-hand side. You then select which times you want to travel. Prices range from £1 to £7 each way so you could book a return over the half-term holidays for £2. In contrast, a standard open return costs £230 — allowing you to save £228. Tickets are only available for travel on weekdays because of maintenance work
full article
Monday, 19 May 2008
New boilers offer an escape from soaring fuel bills
For the domestic energy consumer facing ever higher bills, one of the most efficient ways to stay warm and keep the lights on has been a pipe dream so far, but record high fuel prices have focused minds on making it reality.
Large-scale combined heat and power plants are widely used across Europe to supply residential areas with warmth, hot water and electricity.
Now, a scaled-down version of the technology is becoming more attractive for use in individual households as gas and power costs soar in line with record oil prices.
Although micro combined heat and power (mCHP) mean homeowners have to invest new boilers, it allows them to sell any extra power they make back to the national grid and eventually make a profit.
At the same time, the increased efficiency cuts carbon emissions and could enable households to become entirely energy independent.
The technology has been commercially available in Britain since 2006 but is gaining popularity as oil prices drive up energy bills and public concern over global warming intensifies.
"It's part of a whole suite of solutions, which we should be developing," said Robin Oakley of environmental group Greenpeace.
"The underlying principle of getting more energy out of the same fuel is a very good one ... Realistically, at the domestic level people make a decision about a boiler when the old one breaks, but high prices are focusing everyone's minds."
full article
Large-scale combined heat and power plants are widely used across Europe to supply residential areas with warmth, hot water and electricity.
Now, a scaled-down version of the technology is becoming more attractive for use in individual households as gas and power costs soar in line with record oil prices.
Although micro combined heat and power (mCHP) mean homeowners have to invest new boilers, it allows them to sell any extra power they make back to the national grid and eventually make a profit.
At the same time, the increased efficiency cuts carbon emissions and could enable households to become entirely energy independent.
The technology has been commercially available in Britain since 2006 but is gaining popularity as oil prices drive up energy bills and public concern over global warming intensifies.
"It's part of a whole suite of solutions, which we should be developing," said Robin Oakley of environmental group Greenpeace.
"The underlying principle of getting more energy out of the same fuel is a very good one ... Realistically, at the domestic level people make a decision about a boiler when the old one breaks, but high prices are focusing everyone's minds."
full article
Sunday, 18 May 2008
PM's new homes 'not green enough'
Gordon Brown's plan to build 3 million homes by 2020 is coming under renewed criticism from a powerful group of MPs just days after Caroline Flint, the housing minister, inadvertently let slip that prices are to fall by 10 per cent.
The environmental audit committee is accumulating evidence to assess the impact of 3 million new homes. Tim Yeo, its chairman, is concerned that new homes are not near transport hubs and have few employment opportunities, so leading to increased commuting. In addition, too few new homes, he argues, are built with sustainable materials, many proposed settlements are located in flood plains, and there are fears about inferior quality. Yeo also wants more money diverted into energy efficiency. 'We are years behind other European countries,' he said.
The committee has already taken one week's evidence, with more sessions scheduled this week. The report will be published in July.
Criticism of Brown's housing plans, a central plank of his premiership, will be unwelcome for the Prime Minister whose time as Chancellor coincided with a housing boom caused in part by a lack of newly built homes. The number of new homes built this year is likely to be about 150,000 - 50,000 fewer than last year.
full article
The environmental audit committee is accumulating evidence to assess the impact of 3 million new homes. Tim Yeo, its chairman, is concerned that new homes are not near transport hubs and have few employment opportunities, so leading to increased commuting. In addition, too few new homes, he argues, are built with sustainable materials, many proposed settlements are located in flood plains, and there are fears about inferior quality. Yeo also wants more money diverted into energy efficiency. 'We are years behind other European countries,' he said.
The committee has already taken one week's evidence, with more sessions scheduled this week. The report will be published in July.
Criticism of Brown's housing plans, a central plank of his premiership, will be unwelcome for the Prime Minister whose time as Chancellor coincided with a housing boom caused in part by a lack of newly built homes. The number of new homes built this year is likely to be about 150,000 - 50,000 fewer than last year.
full article
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