Category Archives: News

DECC consults on the future of the Energy Company Obligation

Energy-pic Today DECC published the consultation document on the future of the Energy Company Obligation (ECO). The consultation will run from 5th March to the 16th April.

DECC says:

The majority of these proposals were highlighted as part of Government’s announcement on 2 December 2013.  As set out in the December announcement we are proposing these changes to reduce pressures on consumer bills and ensure ECO provides value for money for energy consumers; while continuing to help tackle fuel poverty, support the development of sustainable energy efficiency supply chain and improve the energy efficiency of our housing stock.

While it is clearly right that we look to ensure government policies do not unreasonably impact on consumer bills, we also recognise the impact of these proposals on the energy efficiency market. In particular we recognise that the uncertainty created by the proposed changes has had an effect on delivery on the ground and that consequently the supply chain has seen a contraction in demand.

This consultation is a key opportunity to make sure we implement these changes as effectively as possible, taking into account industry needs and the experience of ECO delivery over the last year.

Consultation closes 16th April 2014.

Read more here.

 

 

FCA publishes review of mortgage arrears handling

FCA_logo.2The review looked at how firms treat customers in arrears or financial difficulty.  This is of particular concern as the possibility of interest rate rises looms.  The review finds that arrears management in firms has improved since the last review. However, mortgage lenders and administrators need to place greater emphasis on delivering consistently fair outcomes for customers based on their individual circumstances.

FCA is working with industry to help them improve their practices. This includes better support and empowerment of front-line staff and greater flexibility to support fair treatment of individual customers, based on their specific personal and financial circumstances.  FCA also wants firms to take proactive steps to identify borrowers who could be susceptible to potential interest rate rises and have strategies to treat these customers fairly.

 

Read more here.

Consumer Rights Bill: written evidence

Parliament-2-editedWritten evidence can be submitted until 13th March.   Members might like to consider responding.  See here for more, and details on how to respond.  According to the guidance “Your submission should address matters contained within the Bill and concentrate on issues where you have a special interest or expertise, and factual information of which you would like the Committee to be aware.  It is helpful if the submission includes a brief introduction about you or your organisation. The submission should not have been previously published or circulated elsewhere.”

Welfare reform: implications for utility companies and creditors

CAB-logo-editedThis paper by Citizens Advice summarises the changes to benefits that have already taken effect and those still to come, and looks at what companies can do to identity customers in difficulty.  It outlines steps companies can take to understand their customers, to proactively work with them, forbear from taking action that may make matters worse, and refer on those who need help.

It is also important that creditors are proactive in looking out for signs of potential financial difficulty and offering support accordingly. Forbearance and breathing space from their creditors will help customers who are having to adapt to a reduced income or a change in the way that their benefits are paid to avoid reaching breaking point.

Consumer Rights Bill

parliament-pic-editedThis bill is aimed at simplifying and clarifying consumer rights, streamlining and bringing together the complex mix of consumer protection legislation which currently exists.  If it is simpler for consumers to understand their rights and responsibilities, they may be more likely to exercise them effectively.

Consumers will be able to:

  • get some money back after 1 failed repair of faulty goods (or 1 faulty replacement)
  • demand that substandard services are redone or failing that get a price reduction
  • a set 30 day time period to return faulty goods and get a full refund
  • challenge terms and conditions which aren’t fair or are hidden in the small-print: for example airlines charging baggage fees will have to make them really clear when consumers are booking to avoid legal challenge

Digital content is included for the first time.

Citizens Advice strongly welcomed the bill, calling for minor adjustments only.  In particular they want collective redress provision to extend to all unfair practices, not just competition cases as currently proposed.  See here for a Parliamentary Briefing from them on the Bill.

Two recent reports on poverty

JRF-logo-edited-2A briefing called Ethnicity and deprivation in England was published in December 2013 by the Centre on Dynamics of Ethnicity (CoDE) and others as part of a series The Dynamics of Diversity: evidence from the 2011 Census. It examines how likely ethnic minorities are to live in deprived neighbourhoods.

The summary is here.

Joseph Rowntree Foundation published Tackling in-work poverty by supporting dual-earning families. The report examines how working families can be helped out of poverty.

The research reviews trends in employment among couple families with children and considers policies and the wider context in four areas likely to affect their employment rate: family leave, childcare, the labour market, and the tax and benefit system. It finds:
◾The risk of poverty is much higher for children in couple families where only one parent works;
◾sole earner families account for a significant minority of poor families with children.
◾Many fathers have to work long hours, making it harder for them to get involved in family life and more difficult for mothers to work. To enable more low-income families to have both partners in work,

The report recommends allowing second earners to keep more of their wages before means-tested benefits are withdrawn; more publically-funded affordable childcare; and phasing in more generous family leave, including longer paternity leave.