Under the government’s £3bn energy-efficiency scheme, forty-two million energy-saving lightbulbs were sent out by utilities companies. Since the scheme began, 224m bulbs have been distributed, amounting to about 10 for each household.

However, according to a survey by the Energy Saving Trust, most people had six unused bulbs lying in drawers.

The government estimated that for this scheme to be most effective, 110m bulbs should be distributed and that 2.9m expensive domestic cavity-wall insulations should be carried out.

The latest reports from Ofgem shows that just under 1m cavity walls have been insulated for households, which is half the annual rate needed.

Companies are finding loopholes where they can so they can meet their obligations in the cheapest way possible, but it takes the more expensive measures, such as cavity-wall insulation to really save energy. The cost of the carbon emissions reduction target scheme are passed onto households through higher utility bills.

After 1 January, Ofgem only distributed bulbs to consumers who requested them and that prompted a deluge of bulbs before Christmas as companies rushed to take advantage before the loophole was closed.

Andrew Warren, chief executive of the Association for the Conservation of Energy, said: “The difficulty is that companies have exploited the loopholes. It’s critical because this scheme is the centrepiece of the government’s drive to improve energy efficiency in the home. It should be about achieving what it’s supposed to do rather than just ticking boxes.”

The Guardian has also learned that before Christmas, a marketing company acting on behalf of an energy supplier broke the scheme’s rules by sending out water-saving “low-flow” shower attachments to households that had not requested them. Ofgem alerted Eaga, the company administering the scheme, and the marketing company was dropped.

Energy experts have criticised the lax regulation of the scheme, particularly in its first year.

©2012 MoneyBlog. All Rights Reserved.

This week, npower has lowered its standard gas prices, but is that going to be enough? They will lower standard customers’ gas bills by 7%, so around two million of their customers will see their bills fall by around £50 a year.

Four of the six biggest energy companies have now lower their prices, but it might not be enough for some of their struggling consumers.

Scott Byrom, moneysupermarket.com’s head of utilities, demanded: “Where’s the price war we were all hoping for? It’s not a ‘price war’; it’s more like a ‘price fisticuffs’.”

Scott said: “npower is the fourth of the big six to offer their customers a tiny price drop – 7% to standard gas prices. While this cut is on a par with the recent cut from rival British Gas, npower unfortunately hasn’t even come close to taking the top spot on price for dual fuel customers; it currently sits fifth in the table for standard dual fuel tariffs.”

He also warned that, apart from British Gas, these cuts are effective from the end of March, which won’t be much help to customers who needed lower costs during the freezing winter weather.

©2012 MoneyBlog. All Rights Reserved.

A survey for the BBC by Globespan has shown that 87 per cent of internet users feel that access to the internet should be a fundamental right for everyone, even though everyone may not want to use it.

The survey covered some 26 countries and involved 27,000 adults. Some countries, such as Mexico, Brazil and Turkey most strongly support people having a right to Internet access.

Dr. Hamadoun Toure, secretary general of the International Telecommunications Union (ITU) said, “The right to communicate cannot be ignored. The internet is the most powerful potential source of enlightenment ever created. … regard the internet as basic infrastructure – just like roads, waste and water. We have entered the knowledge society and everyone must have access to participate.”

Many nations face the problem of meeting the demand for internet access. UK respondents, at least some 55 per cent, believed there was a case for the government to be involved in some regulation. The problem is how much control is right.

One rapidly changing area is the influence that large companies can now have on government policy particularly as the commercial aspects of the internet mature. Through lobbying, there is the danger that a firm may be able to fight and maintain a commercial status quo, but as history shows while a company can fight off change investing in old products, eventually the market will move on and shatter the status quo. The firms that adapt and change are most likely to continue.

©2012 MoneyBlog. All Rights Reserved.

If you were sick and unable to work, or even died, could your dependents survive without you? This is something everyone with a family should think about, no matter how unpleasant it is.

If you are young and single, life insurance is not that important, but everyone with a family needs to think about it. When you buy a house and owe a mortgage and when you start your family, it is time to think about protecting them if something should happen to you.

Some employers promise their staff a death-in-service benefit, often about four times your annual basic salary. Although that is great, it wouldn’t pay off the mortgage or provide an education for your children.

Life insurance is essential if you want to guarantee the financial security of the people you love.

If you’re the main breadwinner in your household, you will want to consider life insurance, but it’s not just the main wage earner that needs to think about cover.

For example, if you have a partner who is caring for your children and that person died, you could face new costs such as having to pay someone for childcare.

The most popular and simple kind of protection is called term insurance, where your family receive a payment in the event of your death. This can be bought singly or jointly and you can specify the term, for example, the length of the mortgage, or the estimated dependency of any children.

This is the least expensive type of insurance and the type of insurance we will focus on in this article.

You again have a number of options. You can buy level cover, which will pay out a fixed lump sum if you die during the policy. But you could also choose increasing or decreasing cover.

Increasing cover protects you against inflation. The payment your family would receive should you die is tied to the retail prices index or average earnings. That means the cover wouldn’t devalue over time.

Decreasing cover is for people whose main concern is the mortgage. As the mortgage is gradually paid off, less cover is needed, so it falls. This can be a useful way of bringing down the price of premiums, but people with other commitments, like children, may want a more substantial policy.

©2012 MoneyBlog. All Rights Reserved.

According to National Savings & Investments, consumer saving dropped to an overall low during the winter. People are not saving an average of 6.25 per cent of their monthly take-home, compared to 6.48 per cent a year ago, which is a mean of £90.12 compared to £81.94 at the present time.
In addition, NS&I reports that the average income has fallen from £1,384 last quarter to £1,310.

Tim Mack, senior savings spokesman at the organisation, said: “With the new financial year approaching, now is a good time for people to take a closer look at their finances and set themselves savings goals for the year ahead.”

Last month, David White, chief executive at the Children’s Mutual, claimed that young parents especially should be aiming to save as much money as possible.

Research conducted by the lender indicated that 93 per cent of firms are now supporting their children into adulthood.

©2012 MoneyBlog. All Rights Reserved.

If you wish to get the most on your 2009-10 Isa allowance, you cannot wait until the last minute.
Clydesdale and Yorkshire Banks have reminded consumers that the deadline – April 5th – falls on Easter Monday this time around.
They estimate that most years, ten per cent of Isa applications are made in the last two days before the tax-year end.

However, because of the bank holiday, they are urging savers to arrange their Isa investments well in advance of the deadline.

Steve Reid, retail director at Clydesdale Bank, said: “With Easter falling so early this year, if you haven’t already done so the opportunity to invest in an Isa this year is that little bit less.

“The Isa allowance isn’t flexible so beat the deadline and pay less tax.”

Consumers over the age of 50 can place £10,200 in their Isa accounts, while all other savers have access to a £7,200 tax-free allowance.

©2012 MoneyBlog. All Rights Reserved.

The Co-operative Financial Services has added a new two-year fixed-rate deal to its mortgage range.

This new mortgage is available through both the Co-operative Bank and Britannia, interest rates of 3.19 per cent are available on up to 75 per cent loan-to-value LTV deals, increasing to 4.49 per cent for 85 per cent LTVs.

With both options, the arrangement fee is £999, leading the lender to boast about cheap mortgage rates.

John Hughes, business leader for retail products at the Co-operative Financial Services, stated that the bank was aiming to give its customers “even more choice”.

He added: “Furthermore, the mortgages are available through all of our channels including both branch networks online and on the telephone – so our customers can also choose the channel which best suits their needs.”

Last month, the Co-operative Financial Services announced that it had reduced its mortgage rates by up to 0.55 per cent.

©2012 MoneyBlog. All Rights Reserved.

Good news in the credit card arena. The Virgin Credit Card Exclusive charges no interest on purchases or balance transfers for 12 months.
They offer a 12-month 0% period on both purchases and balance transfers. Still, there is a 2.98% transfer fee if you want to move a debt over from another card. It will be added to your balance.
Try to clear your balance during the 0% period because when it ends the standard annual rate of interest will apply, which is 18.9% on purchases and 21.9% on a transferred balance.
You will also receive discounts on other Virgin products.
The 0% offer on balance transfers only applies if you transfer a debt over from another card within 60 days of your account being opened.
It’s also important to note that MBNA actually provides Virgin’s credit cards and you can’t make a balance transfer if you are looking to move a debt over from another MBNA card.
Finally, avoid using the card to withdraw money from an ATM. There is no interest-free period on cash withdrawals.
If you are looking for a new credit card, the Virgin Credit Card Exclusive is a winner.

©2012 MoneyBlog. All Rights Reserved.

It has been reported that at least three million UK borrowers do not know the rate of interest at which they are currently repaying their mortgage and Post Office Mortgages reports that 28 per cent are ignorant to the current cost of their deal.

It is reported that 35 per cent of borrowers are currently repaying their mortgage at their lender’s standard variable rate SVR, despite the availability of cheaper mortgages elsewhere.

Post Office personal lending director Marco Hughes said people who stay on their current SVR are “much more vulnerable to interest rate rises”.

“Some providers have increased their SVRs quite significantly even though the Bank of England base rate has not moved and as a result, many borrowers are seeing their monthly mortgage repayments increase more quickly than they thought.”

He stated now is the time to switch mortgage providers before the Bank of England increases its base rate.

The Bank’s Monetary Policy Committee has frozen interest rates at 0.5 per cent since March 2009, in a bid to alleviate the effects of the recession.

©2012 MoneyBlog. All Rights Reserved.

One MP says consumers need to be encouraged to save more following the recession.
Mark Hoban, shadow financial secretary to the Treasury, said the UK economy has become too heavily reliant upon debt over the past couple of years and this must change now.

He claimed that the savings ratio has increased during the recession as people have re-evaluated their finances.

“Let’s make sure that, so people feel more confident in the future, rather than borrowing again, people save more,” Mr Hoban added.

He added that savings are needed both for unexpected occurrences, such as redundancy and retirement.

Consumers have until April 6th to take advantage of their 2009-10 tax-free Isa allowance, which is £10,200 for over-50s and £7,200 for all other savers.

From the next tax year, the higher Isa allowance will become available to all consumers, meaning they will be able to place £5,100 in a cash Isa and the same amount in a stocks and shares account.

©2012 MoneyBlog. All Rights Reserved.