Day: November 3, 2020

More than £1 billion in refunds being illegally withheld for cancelled holidays

More than £8 billion worth of package holidays are estimated to have been cancelled since the beginning of the coronavirus outbreak, with just over £1 billion still estimated to be outstanding in refunds, according to new research from Which?.

Millions of people have had a package holiday cancelled by their provider since the UK went into lockdown in March, with refunds for one in five (21%) holidays where a cash refund was requested still outstanding at the beginning of October.

Which? surveyed more than 7,500 people who have had a package holiday cancelled as a result of the pandemic to understand how the situation around refunds has developed since the UK first entered lockdown.

An estimated total of just over £1 billion is being illegally withheld in partial or full refunds from customers who requested their money back, with the survey suggesting the average cancelled holiday cost £1,784.

Under the Package Travel Regulations 2018, if a package holiday is cancelled by the provider, the customer is legally entitled to a full refund within 14 days. A package holiday is a booking comprising at least two types of travel or travel-related services made through the same source, most commonly flights and accommodation. 

Around 9.4 million people are estimated to have had a package holiday cancelled by their operator since the pandemic hit the UK. The backlog of refunds for cancellations caused by the coronavirus pandemic meant that the majority of operators struggled to refund within the legal time limit, with customer service lines overwhelmed by travellers trying to contact them to ask about their refunds. 

Some package providers reported delays in receiving refunds back from airlines, many of which – despite making commitments to the aviation regulator – continue to break the law on refunds. This has meant package holiday operators have often only been able to process partial refunds for customers. 

But while some companies have managed to get on top of the backlog caused by these delays, several other major providers have continued to leave passengers out of pocket, with Which? still receiving huge numbers of complaints from customers waiting for refunds.

The average amount of time spent contacting package holiday companies about cancelled trips was around 15.5 hours. For more than four in 10 (43%) of the cancelled holidays reported to Which?, customers said they waited longer than a month to get their money back.

During the summer, the Competition and Markets Authority (CMA) launched an investigation into package travel companies’ handling of cancellations and refunds. Following pressure from Which? and the CMA, Tui agreed to refund all customers by the 30th of September. The regulator also recently confirmed that Virgin Holidays has also committed to processing refunds for all holidays cancelled up to the end of October by 20 November.

Nearly four in ten (37%) people who have had a package holiday cancelled by their provider since the beginning of the outbreak said the experience has had a negative impact on their confidence in the travel industry. 

Which? is calling on the government to outline how it will support the travel industry through the rest of the pandemic, and is urging it to introduce a travel guarantee fund to support package holiday providers that are struggling to fulfil their legal obligations to refund customers. It should also conduct a review of passenger protections following the coronavirus outbreak.

While the CMA has already secured commitments to process refunds from some companies, it is clear that some firms are not improving their practices of their own volition. The competition regulator must continue to closely monitor operators and secure further undertakings from those that flout the law, to prevent trust in travel being damaged any further.

Which?’s advice to anyone looking to book a future holiday is to book with a provider that can be trusted to refund their money promptly if they can’t travel, and to consider booking a package over a flight-only booking, to ensure they have greater legal protections if they cannot travel because of coronavirus.

Rory Boland, Editor of Which? Travel, said: “Since Which? first highlighted the issue of holiday companies delaying or denying refunds for holidays cancelled due to coronavirus, some operators have continued to flout the law and the sums of money being illegally withheld from holidaymakers are staggering.

“It’s simply unacceptable that some of the UK’s largest operators are still getting away with breaking the law, but without meaningful intervention from the government and the regulators in this space, many people will struggle to get their money back. 

“The CMA must take firm action against any operators that are continuing to drag their feet on refunding holidaymakers, and the government must urgently set out how it will support travel companies in fulfilling their legal obligations to passengers.”

2021 holidays – the tour operators and travel agents Which? recommends:

 www.which.co.uk/news/2020/10/holidays-in-2021-the-tour-operators-and-travel-agents-which-recommends 

HOLIDAYMAKERS IN EDINBURGH OWED NEARLY £8 MILLION IN WITHELD REFUNDS

LOCAL MSP SAYS REGULATOR MUST DO MORE TO SUPPORT CUSTOMERS  

SNP MSP for Edinburgh Pentlands has demanded action after the latest estimations from Which? suggested people in Edinburgh could be owed £7,858,609 in withheld refunds for cancelled trips.

Customers across the UK are waiting on more than £1 billion in refunds according to the results of the survey of more than 7,500 people who had a package holiday cancelled as a result of the pandemic.

Expressed a proportion of population, the findings of the survey suggest that holidaymakers in Edinburgh could be owed nearly £8 million.

Holiday companies are required to refund money within 14 days but the huge number of cancellations has left many of firms overwhelmed. 21% of those surveyed who requested a refund in March were still waiting at the beginning of October.

The research also found that the average cost of a cancelled holiday was £1,784.

During the summer, the Competition and Markets Authority launched an investigation into package travel companies’ handling of cancellations and refunds.

Commenting on the figures, local SNP MSP Gordon MacDonald said: “For many people, this saga has rumbled on for far too long – it’s time for the UK government and the market regulator to get a hold of this situation.

“Times are tough financially for many local families, and while I appreciate holiday companies were inundated with refund requests earlier in the year, we are now in November.

“We aren’t talking about spare change here – the average cost of a cancelled holiday was £1,784 according to this survey.

“While we all recognise the travel industry’s acute financial difficulties, there can be no excuse for them hoarding the hard-earned cash of their hard-pressed customers.

“As a matter of urgency, the UK government needs to set out how travel companies will be supported financially to fulfil their legal obligations to passengers – and take firm action against those who continue to drag their feet.  

“I would urge anyone in Edinburgh Pentlands who is still waiting on a refund from March to get in touch with my office – I will offer any support I can to make sure you get your money back.”

£15 million to help young people’s mental health through the pandemic

Funding of £15 million is being made available to respond to children and young people’s mental health issues, with a focus on those  brought about by the coronavirus (COVID-19) pandemic.

The funding will be distributed to local authorities to support a local response for five to 24-year-olds, their families and carers.

Of this, £11.25 million will be for services in response to the pandemic, such as support for children who are struggling emotionally due to returning to school under new restrictions.

The remaining £3.75 million will be the first instalment of an annual £15 million fund to provide new and enhanced community mental health and wellbeing services. These new services will have a focus on prevention, early intervention and the treatment of distress.

Minister for Mental Health Clare Haughey said: “The pandemic has been very hard for everyone, but for many children and young people it has been particularly difficult.

“Families have told us they need more support for mental and emotional distress and for their wellbeing and resilience, delivered in a community setting. By providing funding to tackle the impacts of the pandemic, alongside a separate fund to provide long term mental health and wellbeing support, we aim to deliver help where it is needed.

“This funding is in addition to supporting the recruitment of an additional 80 mental health professionals to work with children and young people, and our recent announcement of a further £3.6 million to help provide more than 80 additional counsellors in every college and university in Scotland over the next four years. We are also ensuring that every secondary school will have access to a counsellor.”

COSLA Spokesperson for Children and Young People Cllr Stephen McCabe said: “The wellbeing of our children and young people is of upmost importance to local authorities and has been a particular priority in recent months due to the impact of the COVID-19 pandemic.  

“This funding will allow local authorities to continue their work to support  young people’s mental health and wellbeing needs arising as a result of the pandemic, and to implement new and enhanced services, providing early support for children and young people experiencing wellbeing issues, and their families. These actions will help ensure the best outcomes for our children and young people in the short and longer term.”

Joanna Barrett, NSPCC Scotland policy and public affairs manager, said: “We know that many children in Scotland have suffered difficult and traumatic experiences over the past few months.

“During lockdown, we saw a rise in contacts to Childline about mental and emotional health issues, with some children saying they had experienced suicidal thoughts. Our counsellors heard from children struggling with family relationships, sharing that arguments, increased parental stress levels and abusive home environments had impacted their mental health.

“So this investment by the Scottish Government to address these issues is crucial for the recovery of our younger generation. But it is important we also remember and support our very youngest and most vulnerable members of society, those under five, who cannot voice the impact the pandemic has had on their mental wellbeing.”

Police launch Operation Moonbeam

Police Scotland is supporting local communities across the country with a range of specialist resources to keep people safe around Bonfire Night.

Operation Moonbeam was launched in 2018 in reponse to high levels of public disorder and violence witnessed during the same period a year earlier.

This resulted in lower levels of disorder in 2018 and 2019 and similar resources will be in place this year to reassure communities and tackle criminal activity.

A number of specially-trained officers will be deployable within the North, West and East of Scotland to support local officers during this busy period.

With organised bonfire events cancelled across Scotland in light of the coronavirus pandemic, anyone planning their own garden bonfire is urged to be considerate towards neighbours and pets when setting off fireworks.

Assistant Chief Constable Tim Mairs, Gold Commander for Operation Moonbeam, said: “Typically, the Bonfire Night weekend, and surrounding days, are extremely busy for police and other emergency services.

“While the cancellation of public bonfire displays and the coronovirus restrictions in place is likely to result in a slight reduction in the number of people out and about, we cannot be complacent in terms of preserving public safety.

“Divisional Commanders will be given significant levels of specialist resource, including public order trained officers, to supplement their local policing teams and help them address any issues that arise.

“The police alone cannot tackle anti-social behaviour and bonfire-related disorder. We are once again taking a tri-service approach with the other emergency services, aimed at not only responding successfully to reports of criminality, but preventing them in the first instance.

“We have been engaging with young people extensively through our school inputs to highlight the risks associated with reckless behaviour involving fireworks and of course, alcohol.

“Parents and guardians of young people also have a vital role to play and I would ask you all have very frank conversations with those in your care about the risks of getting involved in violence and disorder.

“Let me be clear, any behaviour that puts our communities at risk, or endangers the safety of our officers and other emergency service personnel, will not be tolerated.

“The Chief Constable has made it clear that we are asking people to take personal responsibility to do the right thing to aid the collective effort of staying safe, protecting others and saving lives by preventing the virus from spreading.

“While the vast majority of communities across Scotland are co-operating with the existing restrictions, a small number are still intent on hosting or participating in parties and gatherings with other households.

“These are not confined to certain age groups and people should not be in any doubt that house gatherings allow the virus to spread. Where we encounter wilful, repeated, persistent or flagrant breaches we will, as the public would expect and support, act decisively to enforce the law.”

Deputy Assistant Chief Officer (DACO) Alasdair Perry is the Scottish Fire and Rescue Service’s Head of Prevention and Protection. He said: “First and foremost we would urge all of our communities to follow advice and guidelines around social distancing to help mitigate the spread of COVID-19.

“With many public events cancelled due to COVID-19, we know people may consider hosting their own firework events.

“But we want to highlight that the private use of fireworks can be dangerous- and that children are particularly at risk.

“We are therefore strongly encouraging anyone who does wish to host a private event to reduce the risk by ensuring to familiarise themselves with our fireworks code and fire safety guidance. Do not take risks because the consequences can be devastating.

“This is already a traditionally busy period of the year for ourselves and our partners and it is very important that we maintain an ability to respond to other emergencies.

“We know it’s a very small minority of people who engage in anti-social behaviour, but there’s no question it can impact on our firefighters and Operations Control colleagues as well as our partners.

“A deliberate fire can also put property, resources and indeed lives at risk so it goes without saying that we will always take a zero-tolerance approach to fire-setting and attacks on our crews.”

“For more information visit our fireworks safety page: https://www.firescotland.gov.uk/your-safety/fireworks-safety.aspx”

Community Safety Minister Ash Denham added: “Halloween and Bonfire Night this year are going to feel very different and at this usual time for celebration I urge everyone to follow the rules on meeting up with other households to help stop the spread of the virus.

“We know that some people may consider setting off fireworks in their back-gardens, if you do plan on using fireworks this Bonfire Night please do so responsibly and safely. We are asking families to avoid guising this year but our newly published Parent Club guidance has lots of fun and creative ideas for families to enjoy a safe celebration at home.

“Police Scotland, the Scottish Fire and Rescue Service and all emergency service workers have my complete support, particularly over the busy bonfire season.”