Financial matters

[SteveH]

84,000,000,000     Yes      84 Billion

Obscene, nothing short of obscene, one story from the BBC on the subject, and a slightly more positive one.........

 British Gas owner Centrica has posted huge profits after oil and gas prices soared last year, sparking renewed calls for energy firms to pay more tax.
Its profits hit ?3.3bn for 2022, more than triple what it made in 2021.

Energy firms have seen record profits since oil and gas prices jumped after Russia invaded Ukraine.

The figures come after British Gas was criticised over its use of debt agents to force-fit prepayment meters in the homes of vulnerable customers.
Read more    https://www.bbc.co.uk/news/business-64652142


Cheaper fixed-term energy deals 'could return this summer'
Soaring bills have virtually put an end to the practice of shopping around

?However, if suppliers? costs decrease and government-supported rates remain relatively high, it is likely we will see a significant revival in reasonably priced energy plans, with millions of households finally able to take advantage of the savings they have been missing out on for years. There are many variables still in play, and it is difficult to know how fast and how far energy bills will fall.?

Read more  https://www.walesonline.co.uk/news/cost-of-living/cheaper-fixed-term-energy-deals-26248323?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[Helig]

This must make the strongest case for renationalising all the public concerns such as energy, water, royal mail and railways.

[mull]

That's it Helig.
 Bring back Hydro Electric here in Scotland and MANWEB in North Wales !

[Hugo]

I was carrying almost 1 K in credit and antisipating the increase in my Winter fuel bills I was not too worried about the increases in my fuel bills.   
That was until I gave a meter reading and found out that the cost of my energy use was   Gas   377..52
                                                                                                                                  Elect    89.40
                                                                                                Total bill for January 2023      466.92
That bill was shocking and there must be many others in the same position

On another theme , here in Wales our water supplier is Dwr Cymru.    A company whose logo is " Your not for profits company" 
Considering our water rate prices are the second highest in the UK    it's a good job that they don't have profits

[Robert2020]

Hugo... I fear that the days of cheap energy have gone

we are on the standard  rate with Octopus, we run our system 21c 0700-0900 18c till 1700 then 21c till 2000 and from then till morning at 12c
From Jan 2023 octopus standard rates are..elec. 66.01p kW less epg 31.4p so paying 34p kW and daily  SC of 44.72p
                                                               gas. 16.28p kW less epg 6.42p so paying 9.86p kw  and daily sc of 25.56p

Our gas and electric for 4wks over Christmas came to ?330 to pay but that was with the energy price guarantee which without would have added another ?117 so the bill would have been ?500 for 4wks

I hope the government can hold the price guarantee after April 2023 to ?2500 otherwise next winter we will all be at the local libraries to stay warm thats if the council can keep it open.

[Helig]

I think it can be concluded that all the privatisations made by Thatcher and co back in the 1980s and 1990s have failed miserably. They undertook these by deception saying the free market would bring competition and lower prices. The reality is that we have a variety of monopolies who can extort money from us with few controls on their greed. The so called regulators are useless, plus a waste of time and money. It is a case of robbing the public to fund dividends for shareholders.

[SteveH]

Why is the UK economy lagging behind the US, Germany and others?

The UK economy is struggling - and people are feeling it in their pockets, as wages fail to keep up with rising prices.

The International Monetary Fund (IMF) predicts the UK economy will shrink this year while every other major economy will grow.

The Bank of England also forecasts a recession in the UK in 2023 - albeit one that is shorter and less severe than previously forecast.

Perhaps it's not surprising the outlook is bleak given the pandemic, the war in Ukraine, and soaring costs of both energy and food.

But why is the UK seemingly faring worse than other rich countries such as the US, Germany and France?

Is the UK really lagging behind?
Forecasts are never perfect. There are so many factors that affect economic growth - from geopolitics to the weather - that, inevitably, predictions often miss the mark. But they can point in the right direction.

And the existing evidence shows other countries have taken less of a hit from the huge challenges of recent years than the UK has.

Figures from the Organisation of Economic Cooperation and Development (OECD), which looks at how rich countries are performing, show the UK economy fell further than others in the first months of the pandemic.

The UK's pace of recovery was fast once the economy reopened - but not fast enough to make up the lost ground.

cont https://www.bbc.co.uk/news/business-64661791

[Helig]

I think Brexit has much to do with it.

[SteveH]

The UK government recorded a surprise surplus in its finances in January despite "substantial spending" to help with energy bills and EU payments.

Higher-than-expected self-assessed income tax receipts boosted the UK's coffers, helping it spend less resulting in a ?5.4bn surplus.

The figures come as the government is set to deliver its Budget next month.
Economists said they showed a "mixed picture" with public finances still weaker than this time last year.

Martin Beck, chief economic advisor to the EY ITEM Club which is a UK economic forecasting group, said the figures gave chancellor Jeremy Hunt"some positives to work on" in his Budget, with the fall in cost of wholesale energy meaning the government's spending on support with bills "will be a fraction" of what was officially forecast.

cont https://www.bbc.co.uk/news/business-64705051


Energy firms should start compensating customers whose homes were wrongfully fitted with a prepayment meter, without waiting for the results of a major review, the regulator has said.

Ofgem chief executive Jonathan Brearley said companies must review their own meter installations immediately.
A six-week pause in forced prepayment fittings lasts until the end of March.

It came after debt agents for British Gas broke into vulnerable people's homes to force-fit meters.
Ofgem is now outlining the terms of its review into the rules, regulations and guidance surrounding prepayment meters.

The investigation - which will be complete by the end of March - will include submissions from the public. Information about how customers can offer details of their experiences will be announced soon.

cont https://www.bbc.co.uk/news/business-64712363

[SteveH]

Councils pay offer: Workers on lowest salaries offered 9% rise

Council workers on the lowest pay have been offered a rise of over 9%.

Around 1.5 million people in a range of roles would get an increase of at least ?1,925 from April under the deal.

Unions representing groups like bin collectors, traffic wardens, social workers and school staff are now considering the offer.

The group representing 360 local authorities in England, Wales and Northern Ireland said the "full and final" offer would cost ?1bn.

The local authorities involved in the talks are represented by the National Employers, a group made up of 11 senior council members authorised to represent them. Scottish councils are not involved in the talks.

The lowest paid staff - on ?20,411 a year - would see the biggest lift, of 9.42%, under the deal. This contributes to an overall increase of 22% since April 2021 when previous rises are taken into account.

Council staff on higher pay would see a smaller rise of 3.88%.

Councillor Sian Goding, who chairs the local government negotiating group, acknowledged councils already dealing with squeezed budgets could struggle to fulfil the offer.

"The National Employers are acutely aware of the additional pressure this year's offer will place on already hard-pressed council finances, as it would need to be paid for from existing budgets," she said.

"However, they believe their offer is fair to employees, given the wider economic backdrop."

cont https://www.bbc.co.uk/news/uk-64752716

[SteveH]

Has it ever been explained why these costs are so high, we expect costs rising, but basic needs should be better controlled?

Ofgem sets new price cap prompting calls for energy bill help

The amount suppliers can charge households for energy has been cut by regulator Ofgem but bills will still rise in April as government help eases.

Ofgem's announcement does not directly affect what customers pay for each unit of gas and electricity but it reduces the costs faced by government.

The typical household bill will rise to ?3,000 a year in April.

Campaigners say ministers should stop the increase because Ofgem's new cap reduces the cost of support.

In effect, the typical annual household bill is set to rise from ?2,100 to ?3,000 in April - because the government's guarantee will become less generous and a ?400 winter discount on all bills ends.

Holly Holder, from the Centre for Ageing Better, said: "No one can doubt the level of financial support the government has given so far during this energy crisis, but it hasn't gone far enough to prevent millions being thrown into financial and physical peril."

cont https://www.bbc.co.uk/news/business-64748135

[SteveH]

What is the energy price cap and what will happen to bills?

What are the energy price cap and the energy price guarantee?
A price cap is set every three months by Ofgem, the energy industry's regulator.

It sets the maximum price suppliers can charge households per unit of energy on a standard - or default - tariff.

However, after energy prices soared following Russia's invasion of Ukraine, the government announced a price guarantee would temporarily replace the cap. That will rise from ?2,500 to ?3,000 a year from April.

So, Ofgem's new price cap for April to June - ?3,280 a year for a typical household - will not affect household bills.
cont https://www.bbc.co.uk/news/business-58090533


Average energy bill to rise by ?500 despite lower price cap
Citizens Advice chief executive Dame Clare Moriarty said the increase will ?spell catastrophe? for millions of households without further support from the Government

The regulator said the reduction of almost ?1,000 reflects recent falls in wholesale energy prices. However, domestic energy bills are still set to rise by an average of ?500 a year despite the reduction as the Westminster Government?s support for households becomes more limited.
cont https://www.dailypost.co.uk/news/north-wales-news/average-energy-bill-rise-500-26339015?IYA-reg=49560bcd-5a9c-47f0-8fc5-ba2e71710589

[SteveH]

Cost of living: How much is my council tax going up?

Thousands of households in Wales face a rise of more than ?100 in council tax as local authorities announce plans to help with the cost of living.

The average hike is set to be 5.5%, with Conwy seeing the highest annual rise of almost 10%. Torfaen and Blaenau Gwent are among the lowest.

Merthyr Tydfil and Monmouthshire councils are yet to agree final plans.

The body representing Welsh councils said that to rely on service cuts alone could have been "dangerous".

cont https://www.bbc.co.uk/news/uk-wales-64799857

[SteveH]

Major DWP pension changes planned which will impact millions of workers
These will affect lower earners and younger workers

There are major changes planned to pensions in the UK. These will affect lower earners and younger workers.

Jonathan Gullis MP?s Private Members Bill, backed by the government, grants two extensions to Automatic Enrolment. These will abolish the Lower Earnings Limit for contributions and reduce the age for being automatically enrolled to 18 years old.

The UK Government says lowering the age at which eligible workers must be automatically enrolled into a pension scheme by their employers from 22 to 18 will make saving the norm for young adults and enable them to begin to save from the start of their working lives.

They added that the removal of the Lower Earnings will support those with low earnings and multiple jobs by ensuring they are saving from the first pound earned.

cont https://www.dailypost.co.uk/news/cost-of-living/major-dwp-pension-changes-planned-26394503

[SteveH]

Six major state pension changes coming into effect next month
The full old state pension will rise from ?141.85 to ?156.20 per week for eligible people

As the cost of living crisis continues to burden our expenditure, making life pretty challenging at the moment, it is important to take advantage of everything you are entitled to. Changes are coming for those in receipt of the state pensions in the next month...........

cont https://www.dailypost.co.uk/news/north-wales-news/six-major-state-pension-changes-26399029