Tag: Which?

Ofgem demands improvements from energy suppliers on customer direct debits

Energy regulator Ofgem has told a number of energy suppliers to take immediate and urgent action, after a review found a range of weaknesses or failings in the way they charge customers direct debits.

Out of a total of 17 large suppliers in the market, the majority were found to only have minor issues, but five were found to have ‘moderate or severe’ weaknesses with Ofgem demanding immediate action.

This is an initial snapshot of findings and suppliers affected will now have to submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.

Although we have not found evidence of unjustifiably high direct debits, as an additional reassurance for consumers, the regulator will require all suppliers that increased their customers’ direct debits by more than 100% (impacting over 500,000 customers) to review them.

Where appropriate, Ofgem also expects suppliers to adjust any miscalculations, including making repayments if needed, and consider whether a goodwill payment is warranted.

The review of domestic energy suppliers found that:

  • Over 7 million energy consumers on a Standard Variable Tariff (SVT) saw an increase in their direct debit between February and April 2022
  • On average, direct debit levels for customers on an SVT increased by 62% in this period. Most of this reflects the increased cost of gas*
  • 8% of SVT customers seeing an increase (around 500,000 households) experienced an increase of more than 100% and Ofgem is concerned by this and wants to ensure there is good reason for it (e.g., coming off an SVT, increase in energy use etc)
  •  Evidence that some suppliers’ processes are not as robust as they could be, and that this could lead to inconsistent, incorrect or poor treatment for customers
  • A lack of formally documented policies and processes within some suppliers, which risks inconsistent and poor consumer outcomes.

Ofgem recognises that increases experienced by consumers will differ depending on a range of factors, and that some of these, such as recent tariff changes, high debit balances or recent meter reads, can drive large adjustments to customer direct debits.

But it is for suppliers to ensure that direct debits are set correctly based on all relevant information available, and that they clearly communicate any changes in a way that helps consumers understand their payments.

Jonathan Brearley, Ofgem CEO, said: “We know how hard it is for energy customers at the moment so it’s crucial that the amount they pay each month in direct debits is right so they can manage their money.

“Suppliers must do all they can, especially during the current gas crisis, to support customers and to recognise the significant worry and concern increased direct debits can cause. 

“We know there is some excellent service out there, but we want to make sure that it’s consistent and standard across the board. It’s clear from today’s findings on direct debits that there are areas of the market where customers are simply not getting the service they need and rightly expect in these very difficult times.

 “Today’s findings show that with the urgent changes we are now expecting, the current system will be much fairer for consumers. Bringing down the price of gas is not in Ofgem’s control; however, we will do all we can to have a fair system and ensure suppliers look after their customers.”

The Ofgem assessment divided supplier findings into three groups:

  1. No significant issues (four suppliers)
  2. Minor weaknesses (seven suppliers)
  3. Moderate to severe weaknesses (five suppliers)

Suppliers in the first group, with no significant issues found, are British Gas, EDF, ScottishPower and SO Energy. Our review found that these suppliers generally had robust processes in place, although we did make some recommendations for improvement, and Ofgem will work with these suppliers for continuous improvement. We are asking these suppliers to review customer direct debits to ensure they are correct, as an additional assurance for consumers.

The second group, with minor weaknesses, consisted of Bulb, E.ON, Octopus Energy, Outfox the Market, Ovo, Shell and Utility Warehouse. For this group of suppliers, we identified some weaknesses or gaps in their processes that could lead to poor consumer outcomes.

Examples include lack of documented policies or guidance for staff, potentially not taking account of all relevant factors when setting customer direct debits, or risks that some customers’ direct debits are not assessed when appropriate. We have started compliance engagement with these suppliers to secure improvements.

Suppliers in the third group had moderate to severe weaknesses identified. This group includes Ecotricity, Good Energy, Green Energy UK and Utilita Energy, and covered a spectrum of weaknesses, ranging from inadequately documented or embedded processes, weak governance and controls, to an overall lack of a structured approach to setting customer direct debits.

Ofgem is concerned that in some cases this could lead to customer direct debits being set incorrectly, or not being evaluated for a long time, which can cause the build-up of either unnecessarily large credit balances or debt, depending on whether the customer is under- or overpaying.

Ofgem is starting compliance engagement with these suppliers to drive rapid and robust improvements to processes and reassess customer direct debits where necessary. If these suppliers don’t take action fast enough, Ofgem will consider enforcement action.

Also in this group, with severe weaknesses were TruEnergy and UK Energy Incubator Hub (UKEIH). In both cases we found suppliers did not have a consistent and structured approach to setting customer direct debits, and found severe concerns over the maturity of their processes, putting consumers at a serious risk of inconsistent or poor outcomes, with need for rapid and significant improvement.

To this end, we are considering whether enforcement action is warranted. Since the findings were made, UKEIH have ceased to trade and so we will not pursue any further action against them.

If Ofgem does not see swift and sufficient improvement, as well as redress for consumers where necessary, the regulator will not hesitate to initiate enforcement action against more suppliers, which can include fines, enforcement orders and banning the acquisition of new customers.

  Ofgem has now instructed suppliers to:

·         review the accounts of all customers whose direct debit was increased by 100% or more between 1 February and 30 April 2022, to assess whether the uplift was appropriate

·         adjust any miscalculations and consider whether a goodwill payment is warranted in the circumstances

·         address any process issues which may have incorrectly led to significant increases or other poor consumer outcomes, such as systemic over- or underpayment, and 

·         submit action plans within two weeks to set out how they will take the required actions, which Ofgem will scrutinise for effectiveness and comprehensiveness.

Journalistic website Money Saving Expert (MSE) sent Ofgem a dossier of information earlier this year on the same issue, after it was raised by consumers.

This is all part of the wider work that Ofgem is doing to make the energy market fairer, including a robust recent review into lessons learnt from Storm Arwen, a more frequent and fairer price cap, and most recently, action to improve the financial resilience of companies.

As well as reviewing supplier performance, Ofgem also recently reviewed its own performance, through a wide-ranging report led by independent auditor Oxera.

Rocio Concha, Which? Director of Policy and Advocacy, said: “The cost of living remains consumers’ number one priority, yet Which? has heard concerning stories of consumers having their energy direct debits miscalculated or increased by huge amounts, while our research shows many customers are struggling to understand their bills and pricing.

“It’s encouraging to see the regulator taking action over poor performance and Ofgem should not hesitate to impose penalties on any suppliers that fail to make the necessary improvements.

“At a time when consumers are paying more than ever before for energy, the regulator must also work with government and suppliers to explore ways of using data proactively to offer targeted support to those in most need of help before they have to turn to debt charities.

“Which? will seek to work with businesses in energy and other key sectors to find more ways to support consumers through the tough times ahead.”

Social media sites rife with scam car insurance ‘ghost brokers’, says Which?

Social media sites are rife with dodgy companies offering car insurance that is either non-existent or missing key details, resulting in tens of thousands of drivers being potentially left uninsured on the roads, Which? research has found.

‘Ghost broking’ is a scam that cost its average victim £1,950 last year. It involves ‘brokers’ forging insurance paperwork completely or more commonly selling victims a ‘real’ policy at a reduced price, by changing some of the victim’s details in the application, such as their address or claims record. It leaves those affected potentially liable for fraud and at risk of penalties for driving uninsured.

Ghost brokers mainly operate online, particularly on social media. In May, Which? searched on social media platforms for profiles and pages that showed signs of being run by scammers.

Which? analysed the first 50 pages returned from a search for ‘cheap car insurance’ on Facebook, Instagram and TikTok. Of the 47 profiles that matched Which?’s search on Instagram, more than half, 25, appeared to be offering quotes or cover to UK drivers, while showing no signs of being authorised by the Financial Conduct Authority (FCA).

In a separate search, Which? found one Instagram profile that boasted it could save customers ‘up to 50%’ on their premium – it also offered ‘NCB (no-claims bonus) Documents’ and ‘Speeding Ticket Removal’. It had 45,900 followers – more than the five biggest insurers combined – and claimed to have ‘over six years experience in [its] field’. It also had a sister profile with an additional 15,200 followers. Which? flagged these to Instagram, and both have since been taken down.

On Facebook, seven pages of the 50 profiles were dubious. On video-sharing site TikTok, two of the 50 profiles analysed were suspect.

Experts Which? spoke with in the police and insurance industry seem to agree that ghost brokers generally operate most prolifically on Facebook and Instagram.

According to the Insurance Fraud Bureau, last year insurers collectively reported more than 21,000 policies that could be connected to the scam.

Some victims will not report being scammed because they are too embarrassed. Others might be aware their quotes have been manipulated, but ghost brokers can be persuasive in downplaying the significance of this.

Some ghost brokers also put real effort into creating a positive word-of-mouth buzz, which helps them seem trustworthy.

Some 517 cases of ghost broking – with losses totalling £1 million – were reported to Action Fraud in 2021. However, this will only be people who make a report to Action Fraud and actually know that they have bought a fraudulent policy. The true numbers are likely to be much higher.

Many of these losses, unsurprisingly, were from young drivers, who face the steepest premiums. Ghost brokers also heavily target non-native English speakers.

People who have not even bought a policy can also be affected by the scam through having their address or other details used as part of forged insurance paperwork.

To test how social media platforms are vetting unregulated insurance middlemen, Which? set up six accounts of its own on Facebook, Instagram and TikTok, claiming to be car insurance brokers.

Which? promised cheap quotes and asked interested drivers to contact via a mobile phone number or directly message through the website.

The two profiles Which? set up on Facebook were taken down by the site within a few days, as was an Instagram profile linked to an email address containing the word ‘ghostbrokerscammer’. However, a second Instagram profile, connected to a less conspicuous email with a ‘normal’ name (e.g. ‘johnsmith’), stayed up for 35 days until Which? took it down.

The two TikTok profiles, one linked to a ‘ghostbrokerscammer’ email, also stayed up for the same period.

Which? believes social media companies should have stronger processes in place to protect consumers from fraudulent pages offering financial services.

When the Online Safety Bill comes into force, platforms should be required to prevent this kind of activity. To ensure this is the case, Which? is calling on the government to amend the Bill to ensure its definition of fraud does not allow some scammers to slip through the net and to guarantee that Ofcom has appropriate powers to adequately enforce the Bill when it becomes law.

Meanwhile, consumers should be wary of insurance brokers selling their services on social media and carry out other basic background checks to ensure they are not buying a fraudulent or misleading insurance policy – and are dealing with a company that is actually authorised by the FCA.

Jenny Ross, Which? Money Editor, said: “Ghost broking is a really nasty kind of fraud, where scammers operate by stealth and typically take advantage of those who feel locked out of, or bewildered by, the car insurance market.

“Social media sites must do much more to crack down on car insurance scammers that are infiltrating their sites and harming consumers, and should address these problems now, ahead of the Online Safety Bill becoming law.

“The Online Safety Bill should require platforms to tackle this type of fraudulent content. The government must ensure this happens by amending the Bill so that its definition of fraud does not allow some scammers to slip through the net and guaranteeing Ofcom is ready to enforce these new laws when they come into force.”

Which? Money-Saving Monday: Save money on tax

As the impact of the cost of living crisis hits home for millions of people, Which? shares tips to help consumers shave money off their tax bills.

There are lots of ways to reduce your tax bill legally, whether you’re an employee or self-employed, a landlord, investor or pensioner. Simple checks can boost your take-home earnings with minimal effort. There are also tax reliefs and government schemes that can help.

Check your tax code
Consumers who pay tax via Pay As You Earn (PAYE) should check if they’re on the correct tax code, to be sure they’re not paying more tax than necessary. Those on the incorrect code might be entitled to pay less tax in the coming months, or receive a rebate from HMRC for previous overpayments. Someone might find themselves on the wrong tax code, or an emergency tax code if they’ve started a new job and their new employer doesn’t have a P45, if they’ve recently had a change in salary, or if they’ve started or stopped taxable state benefits. For example, basic-rate taxpayers given an emergency tax code that excludes their personal allowance could pay an extra £2,514 in the 2022-23 tax year.

Consumers should check their tax code each year, or after changing jobs, to make sure it’s correct for their situation. Find out the most common ones in Which?’s guide to understanding your tax code.

 Check if you qualify for any benefits
Workers on a low income with less than £16,000 collectively in any savings and investments may be able to qualify for Universal Credit, which is due to replace other legacy benefits like tax credits by 2024. Payments will vary depending on people’s circumstances. Those with children, for instance, could receive up to 85 per cent of their childcare costs, up to £646 a month for one child, or £1,108 for two children.

Every year more than £15bn goes unclaimed from the Treasury from households eligible for benefits, meaning more than seven million UK households could be missing out on benefits and other help like council tax discounts. Which? suggests checking what might be available to claim by entering details about you and anyone else in your household into the entitled to calculator.

Pay into a pension scheme
Employees can contribute to their employer’s pension scheme from their gross pay, before any tax is charged. The government then tops up the pension contribution with tax relief, providing a free bonus for saving for retirement. The effect of tax relief is that a contribution of £100 that would have been taxed at 20 per cent, and therefore worth £80 net, is paid into your pension fund without any deduction – so it’s worth the full £100.

Be sure to meet the tax return deadline to avoid a £100 fine
Around 12 million people need to submit a self-assessment tax return each year. Missing the claim deadline is a costly and easily avoided mistake. Those making an online submission have until 31 January 2023 to send in their 2021-2022 return, but for paper submissions the deadline is earlier, 31 October 2022. Missing the deadline incurs an automatic penalty of £100, even for those who don’t owe any tax. Use the Which? tax calculator to tot up your return and submit it directly to HMRC.

Reclaim overpaid taxes
Non-taxpayers and those whose income has unexpectedly fallen during the year might have been taxed more than they should have done, as HMRC assumes your personal allowance is equally used each month. To reclaim, fill out form R40 from HMRC, or call them.

Claim tax-free childcare
Under the tax-free childcare scheme, parents can claim back 25 per cent of their childcare costs up to £500 every three months. There are certain eligibility criteria, including having a child under 11 and earning less than £100,000. To get started, parents need to set up an online account, which can be used to manage payments to their childcare provider. For every £8 you deposit, the government will pay in £2, up to the value of £500 every three months, or £1,000 if a child is disabled.

Maximise your personal savings allowance
In 2022-23, savers can earn £1,000 of interest on savings tax-free if they’re a basic-rate taxpayer. Higher-rate taxpayers have a tax-free allowance of £500. This means they only pay tax on savings income that exceeds this threshold. This will no longer be deducted automatically by the savings provider. If tax is due, you’ll need to pay it via self-assessment or have it deducted via PAYE. Keep in mind that you won’t have a savings allowance as an additional rate (45%) taxpayer.

Use the starter rate for savings
If your income from a job or pension is below £12,570 in 2022-23, but you earn income through interest on savings, you may also qualify for the starter savings allowance. Any interest you earn up to £5,000 is tax-free. This will be in addition to your personal savings allowance, meaning you could earn as much as £18,570 before paying tax.

Benefit from lesser-known allowances
Consumers can keep hold of a bigger chunk of their earnings by claiming all the tax allowances they might be entitled to. Marriage tax allowance and the Rent-a-Room scheme can save significant sums, yet relatively few people are aware of them. For example, those renting out a room in their home can take advantage of the Rent-a-Room scheme, which means they can earn up to £7,500 tax-free. Marriage allowance benefits couples where one partner earns less than the personal allowance, and the other is a basic-rate taxpayer. Married couples or those in a civil partnership can transfer a 10 per cent personal allowance from the lower-earning partner to the higher earner. In 2022-23, £1,260 can be transferred, potentially saving you up to £250.

Get a reduction on your council tax if you’re a low earner
Those on low incomes may be eligible for a council tax reduction of up to 100%. Each local authority has different criteria for who is eligible to claim council tax reduction and the size of the reduction depends on income, savings and whether the claimant lives alone

Those who don’t qualify for a discount themselves, but share a property with a second adult who does (and is not their spouse or civil partner), might be able to claim a second adult rebate.

Reena Sewraz, Which? Money Expert said:  “Many people are feeling financial pressure at the moment as soaring energy and food prices, as well as tax hikes, have put a huge strain on household budgets. However, there are steps you can take to save money on tax.

“It is always worth doing a quick check to make sure you’re on the right tax code – if this is incorrect you could be eligible for reduced tax or a refund from HMRC. You can also easily check if you’re eligible to claim additional allowances and benefits from the government, such as marriage tax allowance, universal credit, or a discount on your council tax.

Switch or haggle with your broadband and mobile provider to save hundreds

As the impact of the cost of living crisis hits home for millions of people, Which? shares tips to save consumers hundreds of pounds on their broadband and mobile bills:

Broadband and mobile customers across the country are paying more than they need to for their connections – but reducing these costs doesn’t have to be hard. There are simple things all of us can do to make sure we’re not paying over the odds, such as switching or haggling, taking advantage of perks on offer or ditching costly insurance.

1. Switch provider and save £240
At the end of broadband and mobile phone contracts, Which? suggests switching providers as an easy way to save money. New customers often get affordably priced introductory offers which can cost as much as 90 per cent less than standard tariffs. In some cases, switching could save hundreds per year. Which? research found that broadband customers who switch away from the ‘big four’ providers (BT, Sky, TalkTalk and Virgin Media) typically save hefty amounts on their annual broadband bill – as much as £190. Customers with a TV and broadband package can save even more – over £200. Switching mobile providers netted customers an average annual saving of £40. Customers leaving O2 and Three made the largest savings on average.

2. Haggle at the end of your contract and save up to £162
Providers often expect and invite haggling. The biggest potential savings are available to customers with a TV and broadband deal – when Which? surveyed customers who’d haggled with their provider, it found the average saving was £128. Broadband customers who haggle save an average of £85 annually. Meanwhile, the average mobile customer saved £34 a year by haggling. Customers with the major providers saved even more: the average Three customers saved around £45 a year by haggling, and the average EE customer saved £75.

3. Think twice before taking out a mobile contract and save £288
While contracts allow customers to spread the expense, they often cost more in the long run and are sometimes subject to mid-contract price rises. For those who can afford to buy their phone outright, a low-cost Sim-only deal for the right amount of data you need can save money and help make future payments more predictable. Which? compared prices and found Three selling the iPhone 12 on a 24-month contract with 4GB of data at £42 per month, plus £29 upfront – £1,037 over the term. Purchasing an iPhone 12 outright for £629 with a rolling 30-day contract with Smarty for 4GB of data at £5 per month, could save £288 over the same period.

4. Look out for incentives from broadband providers and get £100 in vouchers
Many broadband and mobile providers offer incentives to entice new customers, typically vouchers and reward cards. Sometimes hardware is on offer too – Which? spotted perks such as free wireless speakers, tablets and televisions. Comparison sites often offer vouchers for checking broadband deals through them. Which? found that vouchers for £100 aren’t uncommon – and they’re not only associated with the priciest deals. Researchers regularly spot £50 and £75 vouchers, often for use with Amazon, John Lewis, M&S, Sainsbury’s, Tesco and Uber Eats. Consumers can explore which incentives are available using a comparison service, such as Which? Switch Broadband.

5. Don’t overpay for mobile data
Premium phones are commonly sold on contracts with high data deals, but for those who aren’t heavy data users, most of that will go to waste. Which? recommends customers keep track of their data and minutes, so they know how much they need. A low data contract such as 5GB of data from ID Mobile costs £6 a month, whereas 100GB of data from EE costs £34 a month. There are plenty of options between these extremes, such as 60GB of data from SMARTY for £10 a month.

6. Check your roaming charges
Travellers should ensure they know exactly what their provider will charge for using phone data abroad. Since Brexit, EE, Three and Vodafone have all introduced new charges for using data in Europe, whereas O2 has not. If travelling beyond Europe, the cost can vary dramatically between providers. For example, Which? found that using data when roaming in the US varies dramatically. Plusnet charges £6 per MB, compared to just 20p per MB with Giffgaff, so users could potentially save £5.80 per MB by switching.

7. Be aware of price rises to avoid paying an extra £55 a year
Popular providers such as BT, EE, John Lewis Broadband, Plusnet, Shell Energy Broadband, TalkTalk and Vodafone all include price increases in their contracts. Usually, customers are given the right to exit a contract penalty-free if the provider announces a price hike, but if they are included in the terms and conditions of the contract that no longer applies. Customers within their minimum contract period will have little choice but to accept the price increase (or to pay a pricey exit fee to terminate the contract).

However, not every provider specifies price rises in contracts, Virgin Media and Sky stick to ad hoc price rises. Other providers such as Hyperoptic, SSE, Utility Warehouse and Zen Internet all commit to keeping their tariffs the same for the duration of a contract. When Which? looked at the average amounts affected customers pay, it found that this year’s price increase would add as much as £55 to the average customer’s annual broadband bill. Customers can avoid the extra cost by switching away or picking a provider with a fixed price.

8. See if you’re eligible for a social tariff and save a potential £144
Social tariffs help financially vulnerable customers afford their broadband and mobile costs. Customers on a means-tested benefit, such as Universal Credit, could be eligible. However, Ofcom found that out of around 4.2 million households that are eligible for social tariffs, only 55,000 have signed up so far.

Several broadband providers, including BT, Hyperoptic, Virgin Media, and most recently Now and Sky, offer them for customers who receive certain benefits. Vodafone has also recently expanded a social tariff plan for its Voxi mobile network to those receiving benefits, offering unlimited 5G data, calls and texts for £10 for up to six months

While it doesn’t offer a social tariff, TalkTalk partners with the Department for Work and Pensions to offer six months of free fibre broadband to certain jobseekers. However, this isn’t available to all customers; eligibility is determined by Jobcentre staff so those on Universal Credit should ask their Jobcentre Plus work coach if they’re eligible.

The typical standard broadband package costs £27 a month, but social tariffs are available for as little as £15 a month, meaning it’s possible to save a potential £144. Social tariffs for fibre broadband are also available for as little as £15 a month.

9. Take advantage of the extras on offer
Some broadband providers also offer mobile and energy deals and offer their customers discounts on other services. For example, EE, Virgin Media and Vodafone can offer discounted mobile phone deals, while SSE and Utility Warehouse often offer discounted broadband and energy bundles.

Which? found other extras on offer from some providers that can also save money. Shell Energy Broadband gives customers access to its Shell Go+ programme, which includes three per cent off 60 litres of fuel per month. Now Broadband offers discounted Now TV services and Virgin Media customers can access discounts via O2 Priority. The savings on offer vary depending on which benefits customers take advantage of. It could be a modest £1.05 for Virgin Media customers who take advantage of a free Greggs sausage roll, or £32 annually for those taking advantage of the discounted fuel on offer from Shell Energy Broadband.

10. Look outside the ‘big four’ mobile providers
The majority of mobile customers are with one of the ‘big four’ networks – EE, O2, Three and Vodafone. These providers are often at the more expensive end of the market, particularly for low data packages. To attract customers, virtual providers sometimes run deals on their packages which can mean extra savings. Which? found that opting for a smaller provider could save £240 in the first year. A 10GB Sim-only deal with EE costs £27 a month. Smarty offers 12GB of 5G data for £4 a month for the first three months, and £8 a month thereafter.

11. Refer a friend
Many broadband providers, including BT, Virgin Media and Vodafone offer bonuses if satisfied customers refer a friend. These usually come in the form of a gift card, but some providers offer bill credit or money off tariffs instead. For example, BT offers a £50 voucher to both parties.

12. Weigh up mobile phone insurance
Customers should weigh up the extras that are bundled into their mobile phone contract, as it could work out cheaper to buy them separately or not at all. Customers might already have contents insurance which may cover mobile phones through personal possessions cover. This protects your belongings whenever you leave your home and could even offer protection when you travel abroad. If their phone is covered by contents insurance, customers could save £120 per year on mobile insurance costing £10 per month.

Adam French, Which? Consumer Rights Expert, said: “Despite the cost of living crisis, many providers have not hesitated to impose above-inflation price hikes, leaving customers feeling the pressure. But, there are steps you can take to minimise the cost of broadband and mobile bills.

“It’s worth shopping around or haggling for the best deal, particularly if you’re out of contract. Which? research has found that haggling with your providers or switching deals could save you hundreds of pounds a year.”

Which? reveals best – and worst -insurance providers

NFU Mutual has been named as the UK’s best home insurance provider in Which?’s annual home insurance satisfaction survey, while More Than finished last.

A survey of 1,284 policyholders ranked insurers on levels of satisfaction and likelihood to recommend the provider. Which? experts also examined the providers’ policies in detail – inspecting 85 policy elements. The resulting customer score and policy scores for buildings and contents cover were then combined to create a ‘total score’. 

When it comes to cover, Which? found wild variations in the levels available from insurers. The top-scoring policy for contents cover – NatWest’s ‘Premier’ policy – earned a 90 per cent rating – while the lowest score, from Admiral’s ‘Admiral’ policy, was 43 per cent.

The consumer champion is advising home insurance customers to check carefully to ensure that a policy provides the level of cover they need. But, at a time when the cost of living crisis is putting huge pressure on budgets, it is also worth considering if there are unnecessary extras that could be dropped from existing policies, as small changes can lead to significant savings.

Overall, NFU Mutual fared best in Which?’s analysis. While its ‘Home and Lifestyle’ product was beaten by some other policies’ cover, the insurer received an impressive customer score of 87 per cent – propelling it to the top of the leaderboard.

With a highly impressive total score of 79 per cent, it charges no admin fees and has a single item cover limit of £7,500 (many insurers cap this at £2,000 or less). NFU Mutual was also the only provider to receive full marks from its customers for how it deals with queries. 

NFU Mutual, along with Lloyds Bank, LV, and Saga were all awarded Which? Recommended Provider (WRP) status – an award that is based on Which?’s own assessment benchmarks, plus customer scores and star ratings gathered through its regular surveys.

Lloyds Bank was praised by customers for the clarity of its policies. Last year, it launched its ‘Home Insurance Select’ range which has three tiers of cover: ‘Bronze’, ‘Silver’ and ‘Gold’.

LV’s ‘Home Insurance’ and ‘Home Insurance Plus’ policies both performed strongly, impressing Which?’s experts, and the provider received a customer score of 71 per cent. Its Home Insurance policy includes some accidental damage cover as standard – though limited to specific types of damage, such as to cables, sanitary ware, fixed glass and home entertainment equipment (the ‘Plus’ policy has wider cover as standard). It also provides optional home emergency cover of £1,000 per call-out. 

Saga (‘Plus’) pays up to £2,000 for home emergencies and will cover up to £10,000 of students’ contents when kept away from home. It received a customer score of 70 per cent. 

More Than achieved a total score of 56 per cent – the only provider surveyed not to score over 60 per cent. Its policy scores were roughly mid-table among the 58 policies we analysed – however, it had the lowest customer score in our survey – a disappointing 49 per cent. 

Some policies were not always as generous in providing cover as some customers might expect. 

Accidental damage, for example, was the most common reason customers in the survey claimed. The cover was available in all but three (of 58) policies we examined. However, only a third of the policies covered it generally as standard.

In many cases, standard cover was restricted to specific breakages – such as to pipes, cables and windows. To receive full accidental damage cover, customers may find they have to add on additional extras to their policies for real peace of mind. 

Since January, insurance companies have been prevented by the Financial Conduct Authority from offering new customers special discounted rates for home insurance, putting an end to the widespread practice of ‘price walking’. This meant customers were charged more the longer they stayed loyal to their insurer. 

One consequence of this may be higher premiums for new policies. The consumer champion is therefore urging customers to shop around to make sure they find a deal that is right for them before committing. 

Even if customers are happy with their current provider, haggling remains an effective option when it comes to trying to reduce bills. 

Jenny Ross, Which? Money Editor, said: “With different levels of cover aimed at different types of customers, home insurance can be tricky to navigate. But taking the time to find a policy that’s right for you could save you money. 

“At a time when the cost of living crisis is affecting millions of households across the country, doing your research to strip out any extras you don’t need could save you precious pounds.”

Enjoying the holidays on a budget

Free and cut-price things to do over the Easter holidays

Which? is advising families facing cost of living pressures on how they can save money over the Easter holidays with these handy hacks for free, or cut-price, activities. 

1. Enjoy a meal out with ‘kids eat free’ offers

When dining out as a family, it is worth checking if nearby restaurants offer discounts for children. Many restaurants and cafes run ‘kids eat free’ offers during the holidays. Which? found several popular chains offered discounts at certain times, including Yo! Sushi, The Real Greek and Morrisons Cafe.

2. Visit a theme park for less

Check the prices at attractions in advance, to save. For example, Which? found an adult day pass bought on the day at Alton Towers costs £62, but only £34 when bought in advance – a 45% saving.

Shoppers can also save money on days out at theme parks and attractions up and down the country when purchasing groceries at the supermarket. 

Which? found that some Carex handwashes have vouchers for half-price entry for Alton Towers, Chessington World of Adventures and Sea Life Centres and Sanctuaries valid until May 31 2022.

Meanwhile, selected Kellogg’s cereal packs and snacks offer ‘adults go free’ vouchers for Merlin attractions valid until June 2022. 

Tesco Clubcard holders can convert points into Tesco Reward Partners Vouchers, which can be used for as much as three times the saving at theme parks, wildlife parks and more.

3. Learn something new at a free gallery or museum

Many UK national galleries and museums are free to enter and are an easy way to entertain the family for a day out. Which? members highly rated: St. Fagans National Museum of History in Cardiff, Beamish: The Living Museum of the North in County Durham, National Railway Museum in York,  Royal Air Force Museum in Cosford, Shropshire and the National Museum of Scotland in Edinburgh.

Just remember they may need visitors to book a free ticket before arrival. 

4. Burn off the Easter chocolate with some sport

There are many free sporting activities available up and down the country during the holidays. It’s worth checking local council websites for opportunities, some offer free swimming lessons for children, for example.

Alternatively, Parkruns are free weekly events, held every weekend in hundreds of locations around the UK. There are 5k events on Saturday mornings, and junior runs for children on Sundays. 

Tennis for Free also offers free tennis sessions for all ages in public parks around the country.

5. Watch the latest movies at a discount

Some cinema chains offer discounts for family films at certain times, usually in the morning. Odeon’s ‘Odeon Kids’, Picturehouse’s ‘Kid’s Club’, and Vue’s ‘Mini Mornings’ all offer discounts for both adults and children.

For example, Vue ‘Mini Morning’ tickets cost £2.49 or £2.99 if you buy online (£3.49/£3.99 at the venue).

Film fans can also get cinema discounts with dining cards Gourmet Society and Tastecard. Both offer up to 40% off some cinema chains and currently offer 90-day free trials.

Anyone who buys a policy through the price comparison website Compare the Market will get 2 for 1 cinema tickets on a Tuesday or Wednesday for a year – those who may have bought a policy recently should check if this offer is available to them.
It is also worth checking if your phone provider offers cinema discounts.

O2 customers have access to O2 Priority and can often claim free Odeon tickets to use on Sundays and Mondays. Three Mobile customers can claim £3 adult cinema tickets for Cineworld or Picturehouse using the Three+rewards app and Vodafone customers can get two adult tickets for £7 at most Vue cinemas to use each week, using the My Vodafone app.

6. Catch a theatre show for less

Although usually an expensive outing, it is possible to bag cheaper theatre tickets. Local theatres often host touring West End productions for a fraction of the cost of London shows.

Which? found tickets for The Book of Mormon in Leeds Grand Theatre starting at £15, while prices begin at £40 in London on the same date.

Most theatres offer cheaper tickets for under 30s. For example, the National Theatre offers £5 tickets if you’re under 18, and £10 tickets if you’re under 26.

Every Monday at noon, a number of tickets for Disney shows (The Lion King/Frozen) are available for £25 through DisneyTickets and some shows, including Hamilton, run daily lotteries to enter, with winners able to purchase tickets for between £10-£35 for a performance that week.

Apps such as TodayTix can save visitors up to 66% on certain shows. Which? found tickets for Roald Dahl’s Matilda on Thursday 7 April for £25. 

Often, seats at the back of the theatre cost less, but it is worth checking if the view is obstructed. Seatplan allows visitors to check out the view before purchasing tickets. 

7. Take the train to save on days out

Some train companies offer cheap train travel for children travelling with an adult. For example, Southeastern, Chiltern Railways, London Northwestern and West Midlands Railway will allow up to four children (aged 5-15) to travel for £1 on a single or return journey when joined by an adult in off-peak times.

Which? found an adult and two children could go from London to Margate and back on Southeastern services for under £30, with the children’s tickets costing £2. If two adults are travelling, they could save money with a railcard – the two together card costs £30 upfront but also saves a third on rail fares for a year.

National Rail also offers 2 for 1 tickets at a range of attractions nationwide including Thorpe Park, Chessington World of Adventures and London Zoo when purchased with a train ticket.

8. Take advantage of local libraries

As well as borrowing physical books for free, most libraries allow users to borrow e-books and audiobooks. Some can also grant access to digital magazines and newspapers. Check local library offers via on the local council website and sign up for free.

9. Explore the great outdoors

Take advantage of the free parks up and down the country. Check out the Which?  guide on the best national parks in the UK. Alternatively, plan a walk using Which?’s guide to the best UK walks.

Those in search of adventure could try geocaching tracking co-ordinates on a smartphone app to find hidden boxes known as ‘caches’. The National Trust has 10 places to try.

10. Seek out free local events

Many local councils offer free events during school holidays, so it is worth checking their websites. Search the local council’s name followed by ‘half-term activities’ to see what’s going on in that area. It is always worth checking out the local council’s website.

For example, Which? saw that Manchester City Council will be running springtime craft sessions and Haringey Council in London will offer free Easter workshops for teens aged 11-16 in creative writing, drama and film.

Natalie Hitchins, Which? Home Products and Services Editor, said: “With the rising cost of living taking its toll on household finances, millions of families are looking to cut down on their spending. However, there are plenty of fun, cheap and free activities you can do during the Easter holidays that don’t need to break the bank. 

“Theme parks offer discounted entry if you book in advance, and there are plenty of deals on offer ahead of the Easter holidays. Many cinemas and theatres also offer discounts for children. It is worth checking if your local council is running free events or workshops, while parks and museums are free to enjoy at your leisure.”

Which? reveals UK’s Favourite Walks

A magical walk in Yorkshire taking in Malham Cove and Gordale Scar has been rated the best in the UK, as Which? reveals the nation’s favourite 51 routes.

The Lake District proved the most popular region for high quality walks, claiming six spots in the table. The Peak District, Cornwall and Northumberland each boast three of the best walks, while Dorset, Snowdonia, London, Surrey and the North York Moors have two each.

Malham Cove and Gordale Scar achieved a superb 89 per cent walk score in the Which? survey of more than 1,800 people. Visitors were impressed by the cove’s amphitheatre-shaped cliffs which lead up to a limestone pavement, where a scene from Harry Potter and the Deathly Hallows was filmed.

Its second striking geological feature, Gordale Scar, is a narrow ravine enclosed by sheer walls 100 metres high. The 7.5-mile walk scored the full five stars for scenery and places of interest. It was rated four out of five for difficulty – where one is easy and five is suitable for experienced walkers only – meaning it is a route for more regular ramblers.

The joint second best walks were both in Cornwall and scored 88 per cent. The tiny Botallack Mine Walk scored five stars for peace and quiet, and scenery; at one-mile long it is the joint shortest walk among the top 51 alongside Brimham Rocks in North Yorkshire.

The more challenging seven-mile Lizard Peninsula Circuit around the most southerly tip of mainland Britain gained five stars for places of interest, scenery and wildlife, with rare red-billed chough birds as well as basking sharks and seals calling it their home. In the Which? survey results, only two other routes – Solva to St Davids and Blakeney Point – equalled this mark for wildlife.

Rhossili Headland retained its record as the best walk in Wales with an overall score of 86 per cent. The undemanding 3.5-mile trail in the Gower received top marks for scenery and five other four-star scores in the Which? survey, making it an excellent all-rounder. Walkers pass a former Iron Age fort and can see the remains of a shipwreck poking out of the sparkling sea at low tide.

Anstruther to Crail on the Fife Coastal Path was rated Scotland’s best route with an 83 per cent walk score.

The easily navigable four-mile route knits together a string of fishing villages whose stone houses have provided a subject for numerous painters. At 13 miles, Scotland’s second best route, Loch Katrine in the Trossachs National Park, was the longest walk featured, which can all easily be completed in a day. Walkers can keep an eye out for silver birch, oak and rowan woodland as they pass through waterfalls on this gentle lakeside stroll.

The only walks rated five out of five by Which? for difficulty – Helvellyn, Scafell Pike, Ben Nevis and Snowden’s Llanberis Path – involve climbs of at least 950m.

For the very best of the most challenging routes, head to Helvellyn in the Lake District, which finished fourth overall in the survey with a score of 87 per cent.

This 9.5-mile hike with stunning views from the Striding Edge Ridge scored five stars for scenery, but with limited visitor facilities, hikers need to make sure they come prepared.

 Rory Boland, Editor of Which? Travel, said: “The UK has an amazing variety of walks and with its magical connection, the most popular route in our survey was a worthy winner. 

“From breathtaking rolling hills and lake loops to historic hikes, clifftop paths and the shingle beaches below, there is a route for every taste and ability.” 

Energy Price Hike: Take a Meter Reading Today

Households are being encouraged to take a meter reading today (31st March) before an energy price hike comes into effect on 1st April.

It is advised to supply a meter reading to ensure that you get the current, cheaper rates for all the energy you have used prior to this date. You may be charged for energy used prior to the increase at the new higher unit prices if you do not supply a reading.

Ofgem is increasing its price cap from the 1st of April. For those on a default tariff who pay by direct debit, the price cap is going up by almost £700.

However, if you take a meter reading on 31st of March and provide this to your energy supplier, you should be charged correctly (at the lower rate) for energy already used.


How Do I Submit a Meter Reading?

There are various ways you can submit a reading: 

·    Online or via the energy supplier’s app

·    Through online chat with the supplier

·    Sending a text

·    Contacting the supplier via telephone (this is sometimes an automated line).

More information on how to provide a meter reading to your supplier can be found on their website, or on statements or bills you have received from them.

Smart Meters

Smart meters send automatic readings to your energy supplier. Depending on how a smart meter is set up, it may not automatically send a reading on the 31st of March. This is because in many cases the system will be set up to send a reading on a set date once a month.

You may be able to change the settings – some meters can take readings every half hour – or, failing that, log into your account and submit your reading that way.

For example, British Gas have insisted that its smart meters take readings at set times determined by the customer, but there is nothing to stop them logging in and submitting an additional one on the 31st of March.

If, for whatever reason, you have a problem trying to submit your readings, you can take photos on the day that clearly show the reading, and the meter serial numbers.

energyadvice.scot

As the cost of living crisis bites, it’s important to ensure you’re not paying more than you should be for your energy. One of the easiest ways to do this is through taking and submitting meter readings.  

While smart meters are taking the chore out of remembering to read your meter, not every household has them installed. It’s therefore important to know how to take your meter readings and to let your supplier know what they are.

Energy bills are confusing if you don’t understand what the numbers mean. Luckily, Energy Saving Trust have this great blog that breaks down your energy bills.

If you don’t give your energy supplier meter readings, they guess how much you’ve used based on the information about what that property has used in the past. This is known as an estimated reading. Your bill may show ‘estimated’ or ‘E’ on the bill you receive. .

Estimated readings can be over or under what you’re actually using and could lead to problems with your energy bills later down the line. If your energy supplier has underestimated how much energy you’re using, you could end up owing money that you haven’t budgeted for. On the other hand, if your energy supplier has overestimated how much energy you’re using, you could end up paying higher bills than you need to.

To avoid this, take accurate meter readings and provide them to your energy supplier, who should then send you an accurate bill. Look at the reading number on your meter and write it down. Many energy companies allow you to submit these readings online or provide an automated phone service to let you do this.

If you’re not sure how to read your meter, Citizens Advice have a handy guide that tells you how.

Advice you can trust

If you’re struggling to keep warm at home and keep up with your energy costs, we’re here to help you. As well as tips on how to save energy and advice on making your home warmer, we can check if you’re eligible for special discounts from energy suppliers and other funding. We can also help you get a benefits and tax credit check so you’re not missing out on additional income.

Give us a call on 0808 808 2282 or use our contact form to get in touch via email.

Ryanair rock bottom yet again while Jet2 flies high in Which? airline survey

‘Ryanair seems to be proud of being difficult’

Ryanair and British Airways have finished at the bottom of Which?’s annual survey of short-haul airlines, with both companies panned for providing poor customer service to those with disrupted flights during the pandemic.

The consumer champion surveyed more than 1,300 passengers for their experiences of flying with short-haul airlines in areas such as boarding, cabin cleanliness, customer service and value for money since November 2019. 

In a second part of the survey, Which? asked more than 1,100 passengers whose flights were disrupted how satisfied they were with how their airline handled the issue. The actions of some airlines – delaying or denying refunds for flights cancelled, or which passengers could not take, due to Covid – were reflected in these results.

Budget carrier Ryanair received an overall customer score of 55 per cent and a lamentable 47 per cent in the refund satisfaction category, with one in five customers telling Which? it took them more than a month to get a refund. 

One customer said: “Ryanair is the most awkward airline to deal with that I have ever come across. It seems to be proud of being difficult.” 

Themes that have appeared time and again – making Ryanair a fixture in the bottom three of Which?’s airline survey for more than a decade – were also evident, with another passenger adding: “Total lack of transparency about costs, and treating passengers like cattle to be squeezed for the last penny.”

When asked, ‘Is there an airline you would never fly with?’, three-quarters (74%) named Ryanair. Ryanair scored no better than two stars for all the measures in the main customer satisfaction survey – apart from value for money, where it scored three stars.

BA was second from bottom with a customer score of 63 per cent – just behind TUI Airways, but with a much lower refund satisfaction score. 

Passengers reported spending hours on hold only to be hung up on, or passed endlessly between different departments. This disappointing customer service, along with two-star ratings for food and drink, seat comfort and value for money, led one passenger to describe BA as ‘a budget style airline at premium prices’.

However, BA’s cabins ranked as joint cleanest alongside KLM and Jet2. 

Jet2 was top of the table and earned a Which? Recommended Provider endorsement.

Its record on delivering refunds was the best: more than eight in 10 (84%) respondents were satisfied with the outcome when their flight was disrupted because of Covid, and throughout the pandemic, most passengers have received a resolution in two weeks. 

Nine in 10 Jet2 customers told Which? they got a full refund, rather than having a voucher foisted upon them.

Its Covid flexibility policy is one of the best, allowing customers to make fee-free changes for most pandemic-related disruption, including lockdowns, quarantines and changing FCDO advice.

One Which? survey respondent said: “The pandemic has seen Jet2 shine. Its standard of customer care exceeds that of any other low-cost airline.”

Rory Boland, Editor of Which? Travel, said: “Ryanair’s consistently terrible customer service has made it a fixture among the worst performers in our surveys for many years – but the airline plumbed new depths with its handling of Covid refunds.

“BA’s reputation also deservedly took a battering when it took a hard line on refunds for passengers who could not travel because they followed government health guidance. 

“Many passengers will not forget how they were treated by companies during the pandemic. Covid could still cause disruption to international travel, so we would advise travellers to book with operators that have flexible booking policies and a record of treating their customers fairly.”  

Which? calls for stronger safeguards to warn shoppers of Buy Now Pay Later debt risk

Which? is calling for stronger safeguards to stop online shoppers from choosing Buy Now Pay Later to pay for products without knowing the risks, as new research from the consumer champion reveals many people do not think that they are taking on debt when using this payment method.

Buy Now Pay Later (BNPL) has soared in popularity in recent years as a way for consumers to pay for goods and services, with the biggest provider Klarna now boasting 13 million customers in the UK.

But Which?’s research, carrying out in-depth interviews with 30 typical BNPL users, has raised concerns that shoppers do not fully understand the risks of choosing a ‘pay later’ option at the checkout.

Many of the BNPL users interviewed by Which? did not think of BNPL schemes as a form of credit, meaning they could unwittingly be exposing themselves to serious risks of missing repayments, such as late fees, marked credit reports or referral to a debt collector.

Instead, participants described the schemes as a ‘way to pay’ or a ‘money management tool’, rather than a credit provider. One user said: “It allows payments to be spread out for budgeting. It made things possible which in one go would have been extremely difficult and I would have probably had to borrow money from elsewhere.”

Though BNPL schemes are a form of credit, they work differently to more traditional methods of borrowing such as credit cards. Not all BNPL schemes run hard credit checks, for example, and users can normally sign up to a BNPL scheme in a matter of clicks.

Which? research found it was precisely this speed and simplicity when selecting BNPL at the checkout that contributed to users’ misunderstanding. Another user said: “It seems really convenient and no hassle. It just asks a few questions so it doesn’t feel like you’re committing to a credit agreement.”

The research also revealed low engagement with BNPL providers’ terms and conditions. Most BNPL users said they either skimmed the T&Cs or simply ticked a box to say they had read them in full.

As a result, some users had a limited understanding of the consequences of missing payments, and the safeguards and checks carried out by BNPL providers. Some participants were not aware there were late payment fees at all.

Throughout the research, Which? also found that BNPL users do not consider the prospect they might struggle to make repayments. In fact, using BNPL schemes made some consumers feel less concerned about making purchases they would not otherwise view as necessary or affordable.

“It softens the blow psychologically. It almost doesn’t feel like I’m blowing £100 on shoes,” said one participant.

Concerningly, many of the participants wrongly assumed the schemes were regulated. “I am surprised, I am shocked, they should be regulated. If you have a service that is not regulated you have no protection for consumers,” one participant said.

This lack of understanding around BNPL products is particularly concerning given previous Which? research that found people are more likely to be using BNPL at stressful and challenging times in their lives.

Missing a credit repayment or bill or experiencing a major life event – such as getting married, having a baby, moving home or being made redundant – increases the odds of using BNPL by around a third (38% and 35%, respectively).

That is why Which? is calling for stronger safeguards to protect consumers, including steps in the checkout process to ensure people understand they are borrowing money when using BNPL, and warnings about the risks of using the schemes.

Key information, such as payment terms, late fees and the potential consequences of missed payments, should be communicated at the point of transaction to help consumers make informed choices. Given the immediate risk, BNPL providers should proactively make their key terms and conditions more accessible, rather than waiting for regulation.

Affordability assessment should also be carried out for all BNPL transactions ahead of regulation being introduced.

As the government’s consultation into regulation of the BNPL market closes, the consumer champion wants no delay in regulating these schemes to ensure that those who use it are properly informed and protected.

Rocio Concha, Which? Director of Policy and Advocacy, said: “Buy Now, Pay Later (BNPL) schemes can offer speed and convenience at the checkout, but our research shows that many users do not realise they are taking on debt or consider the prospect of missing payments.

“That is why there must be stronger safeguards to protect consumers and warn about the risks of using the schemes. Payment terms, late fees and the potential consequences of missed payments should be communicated at the point of transaction.

“There must also be no further delay to plans for BNPL regulation, which should include much greater marketing transparency, information about the risks of missed payments and credit checks before consumers are cleared to use BNPL providers.”