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Money Advice Extra December 2008 Page 1

Cheaper gas & electricity for vulnerable customers!

British Gas introduced the UK’s largest social energy tariff, aimed at reducing gas andelectricity bills for 750,000 of our most vulnerable customers. The Essentials Tariff providesadditional help to vulnerable customers, particularly those who use pre-payment meters.

Essentials Tariff offers the lowest standard gas and electricity prices, which have beenotherwise inaccessible to people who don’t have a bank account. British Gas customers

who registered for the British Gas Winter Rebate scheme will automatically be moved ontothe Essentials tariff.

National Energy Action (NEA), the leading fuel poverty charity, has applauded British Gasfor introducing a new social tariff.

William Gillis, NEA chief executive, said: “A new social tariff aimed at cutting gas andelectricity bills for up to 750,000 of British Gas’s most vulnerable customers will see theirenergy bills drop by around £307 per annum.

"NEA has pressed the energy supply industry to introduce social tariffs that actuallyrepresent the best deals available. NEA applauds British Gas for the introduction of a socialtariff which will ensure that its low-income and vulnerable customers are guaranteed thebest deal in terms of the prices they pay for gas and electricity from the company."

British Gas priority service team can be contacted on 0845 955 5404

Other energy providers offering additional services to vulnerable customers include:

EDF Energy (Priority Service Team) 0800 269 450E.ON (Caring Energy) 0800 051 1480Npower (Warm Response) 0808 172 6999Scottish Power (Carefree Team) 0141 272 6042

December December December December

2008200820082008Issue 6Issue 6Issue 6Issue 6

Almost two out of three people who take out a loan to consolidate their debts go on to borrow more while still repaying that loan

ContentsContentsContentsContents

Cheaper gas &electricity !

Energy and postalcomplaints

Court advice desk

Despite the current ‘credit crunch’, UK personal debt is stillincreasing by 1 million pounds every 9 minutes!

FinancialServicesCompensationScheme (FSCS)

• you may getcompensation fromthe FSCS if a bank,building society orcredit union fails

• the amount is

limited to a £50,000maximum (inEngland, Scotlandor Wales) perfinancial institution

Major changes to the way energy and postal complaints are

handled from 1st October 2008 A new organisation - Consumer Focus - has been formed from the merger of theNational Consumer Council, Energywatch and Postwatch. The new body will havestronger powers than the three previous organisations and be able to investigateproblems across a range of areas, including the postal and energy sectors.Customers will still receive information on their gas and electricity bills advisingthem to take up any complaints with their supplier in the first instance, butConsumer Direct will take over Energywatch and Postwatch’s services in providingconsumer advice and help to progress their complaint. In addition, there will benew ombudsman schemes introduced for the energy and postal sectors, which cantake action to help consumers who have problems with their companies.

Consumer Direct can be contacted on: 08454 04 05 06or on the web at: www.consumerdirect.gov.uk

124 propertieswill be

repossessed in

the UK today!

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Money Advice Extra December 2008 Page 2

FREE representation for customers facing possession proceedings

Help is at hand for local people facing the repossession of their home,- the housing possession advice desk at Blackpool County Court.

The court desk is a free service funded by the Legal Services Commission and providedby local housing solicitors and specialist advisers from Citizens Advice Bureau (CAB) andShelter. The service provides advice, information, assistance and representation for

people facing eviction and possession proceedings.

People who are experiencing difficulties paying their rent or mortgage and are facing repossession often ‘bury theirhead’ and fail to seek advice. The arrival of a County Court possession claim is such a frightening prospect manyhomeowners / tenants fail to attend the court hearings, in many cases leaving the presiding judge with no option but togrant an order for possession.

Customers facing possession proceedings should be actively encouraged to seek advice prior to any court dates; evenif this has not been done, attendance at the hearing gives the court the opportunity to assess all relevant informationbefore making a decision – often resulting in the home being saved!

The court duty adviser service is available each Wednesday morning; further details are

available from Blackpool County Court on 754020.

Following the collapse of the Farepak hamper company in 2006, the OFT wasasked by HM Treasury to carry out an awareness programme to help consumersunderstand their options when saving for Christmas - Save Xmas .

What was Farepak?Farepak was a Christmas hamper and voucher company which collapsed in late2006. Over 122,000 people lost their Christmas savings.

How do similar companies work?This type of scheme works by local agents collecting small amounts of money

each week from people in their community or work place. The scheme pays out just before Christmas either invouchers for use in high street stores or Christmas hampers.

Why do people save in this way?People use them because of the social aspect of saving with friends, family or colleagues as well as the fact that itis difficult to get at the funds until the pay out — so making it less likely that they are tempted to spend the moneyon something else. Putting a small amount aside each week gives people peace of mind that they will be able tohave a good spread of food and buy presents. For some people it can also be useful to have Christmas fooddelivered to them.Are there any disadvantages to saving with a hamper scheme?They do not pay interest and can be an expensive way of buying.How safe is money saved with a hamper scheme?Since the collapse of Farepak, the Government has set up the Christmas Prepayments Association. Hampercompanies who are members of this association have arrangements in place to safeguard money if the companygoes bust. However, the level of cover varies and consumers should check the level of cover before joining ascheme.What other options are available for short term savings for Christmas?There are different ways of putting money aside that offer different things:• supermarket and milkman stamp-saving schemes• Christmas clubs with local shops• credit unions• bank/building society accounts, and their Christmas savings accounts.

These have different features – see our briefing attached.

If you would like to comment or contribute to this newsletter, please contact Dean Stockwell (Advice Link Money Advice Team) on 476843 or email

advicelink@blackpool.gov.uk