Credit, Collections & Insolvency News
With social security payments now lagging far behind inflation, researchers at IPPR warn that the cost of living crisis will push many vulnerable benefit claimants into hardship and destitution, without a serious boost to benefit payments and an end to inappropriate conditions and excessively punitive sanctions that limit payments. After a pandemic induced drop-off, new…
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The Chancellor’s failure to support families through the cost of living crisis will mean that absolute poverty is expected to rise by 1.3 million people next year according to the Resolution Foundation’s analysis of Spring Statement 2022. Inflation Nation shows that faced with an unprecedented squeeze on family’s household finances and a significant boost to…
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Energy providers could receive up to £2.4 billion for taking on the customers of firms that have collapsed since 2021 according to written evidence given to the Business, Energy and Industrial Strategy Committee by industry regulator Ofgem. The Committee published the figures as part of its inquiry into energy pricing and the future of the…
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People suffering financial hardship should receive better support from phone and broadband providers under proposals published by Ofcom. Ofcom’s recent research, around 1.1 million households (5%) are struggling to afford their broadband. That rises to around one in ten among the lowest-income households. With affordability problems only likely to worsen this year because of the…
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The Institute for Fiscal Studies (IFS) has said decisions taken by the Chancellor in his Spring Statement will reveal whether he believes the Government should be protecting consumers from external events or not. IFS says with the cost of living soaring, Rishi Sunak will have to decide whether to cut spending or borrow more to…
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Ofgem has appointed Yü Energy Retail to take on supplying customers from Whoop Energy and Xcel Power. This follows a competitive process run by Ofgem to get the best deal possible for customers. Funds that current and former domestic customers of the suppliers have paid into their accounts will be protected, where they are in…
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The Money and Pensions Service (MaPS) has announced significant changes to its plans for the commissioning of debt advice services, with funding allocated to vital face to face services being increased by 50% (to £30 million). In December 2021, it announced changes in the timeline for awarding the contracts for the National Services, Business Debt…
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The All-Party Parliamentary Group (APPG) for Financial Resilience, has found a quarter (24%) of working-age adults (18-64 years old) didn’t save any money during the pandemic sparking major concerns about financial insecurity. The revelations have led to Co-Chairs of the APPG, Shaun Bailey MP and Tonia Antoniazzi MP, to issue a call for evidence to…
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Water UK has announced that water bills are set to rise from April, adding to the cost of living crisis due to hit households across the country. As water companies issue customers’ water bills for next year, showing an average increase of 1.7%, or about £7, Ofwat has called on water companies to make providing…
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The Bank of England (BoE) has increased interest rates to 0.5% from 0.25% as it looks to restrain a surge in the cost of living. With inflation soaring, the Bank opted to increase rates at successive policy meetings for the first time since 2004. Forecasts suggest inflation, as measured by the consumer prices index, is…
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Monzo has been reprimanded by the Competition and Markets Authority (CMA) for failing to specify the monthly charge in the correct document when users agreed to overdrafts. The CMA claimed that a breach between October 2018 and November 2021 meant that the app’s customers were not aware of the potential monthly fees, on exceeded agreed…
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Ofgem has appointed British Gas to take on supplying Together Energy’s approximately 176,000 domestic customers and 1 non-domestic customer. This follows a competitive process run by Ofgem to get the best deal possible for customers. Funds that current and former domestic customers of the suppliers have paid into their accounts will be protected, where they…
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The number of County Court Judgments (CCJs) issued against consumers in England and Wales in 2021 rose by more than one third compared to 2020, according to latest figures released by the Registry Trust. The number of consumer judgments registered in 2021 was 848,124, up by 36 percent from 625,901 in 2020. The Registry Trust…
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