We should be more careful about what we wish for.

Who would have thought that gender discrimination might actually be working in our favour? That the stereotype of men being faster, more reckless drivers than women could be saving us money? Unfortunately though, that’s all about to change.

On 1 March last year the European Court of Justice ruled that insurance premiums can no longer be affected by gender, meaning that insurance companies will no longer be able to charge men and women different premiums based purely on their sex.

The gender insurance directive will come into force on 21 December 2012 and is likely to cause a fair bit of upheaval in the insurance world, both for the industry and for consumers.

What will happen and what does it mean for women?

Currently gender does play a part in the calculation of certain types of insurance – namely car insurance, life insurance and annuities – regular pension incomes.

Women generally pay less for car insurance than men since they are considered less likely to have an accident. They also generally live longer than men, so enjoy cheaper life insurance too. It’s this that the media have picked up on, focusing on women having to pay more and men less after the changes.

However, it’s not all bad news ladies. When it comes to annuities, we should find ourselves better off. Currently women are paid less than men in annuities – also because of their longer life expectancy – but under the new ruling we should receive more.

So how much more can you expect to pay?

Unfortunately we can’t be sure how much more insurance will cost, as insurers are currently calculating exactly how implementing the changes will affect their prices. The next time you renew your insurance you are likely to notice a change however.

The general view on car insurance is that men’s premiums will go down by about 10%, while women’s could go up by as much as 30% – estimated at £400 a year by the AA.

Annuities are predicted to change less, partly because they have already been adjusted in line with the ruling. Men can expect a 2.5% fall, and women a 2.5% increase a spokesman from the Better Retirement Group told the BBC.

Meanwhile the Association of British Insurers (ABI) predicts a 10% fall in life insurance costs for men, and a 30% rise for women.

Do remember though that these figures are just a guide at the moment – more will be known as the deadline draws nearer.

Is there anything you can do to avoid paying more?

During the transition period, your insurance company will contact you to let you know about their new policy documents and premiums. Once you know how much you’ll be charged, the advice is the same as ever – simply to shop around and see if you can find a better deal elsewhere.

Do bear in mind that other risk factors – such as age and health – used to calculate insurance premiums will still affect prices. So, if nothing else, you can downsize your car or quit smoking for instance, to help keep your costs down.

It is also worth saying that when it comes to life insurance, the Association of British Insurers (ABI) has said that ‘most customers who have bought and finalised a policy before 21 December 2012 should not be affected’. So, if you’re a woman considering taking out a life insurance policy, doing so before that date could stand to save you some money.

When?

Ski resorts and airlines start rubbing their hands with glee over the Christmas, New Year, school holiday and Easter breaks and ratchet up their prices. If you can, make your trip outside the holiday season. No choice other than holidaying during the school break? Find out when the school holidays take place at your destination and time your trip to miss them. Sometimes European school holidays and British school holidays don’t coincide.

Being flexible and travelling mid-week can also reduce the cost of your holiday. As I write, an EasyJet single flight from Gatwick to Geneva for Saturday 11^th February would cost me £503.99. Ouch. If I booked the same flight for Wednesday 8^th February, it would cost me just £23.99.

Holidaying midweek to midweek also means you can miss the Saturday changeover day rush and make the most of a quieter day on the slopes.

Where?

If you’re prepared to use a ski bus to get to the slopes, you can get some good deals in lower lying alpine areas. To avoid pricey hotel and chalet prices, opt for a self-catered apartment and remember to stock up on the staples before you jet off from the UK. Resort supermarkets charge a whopping premium.

If you’re looking for a real budget ski experience, head to central and eastern Europe. Some snow snobs are disparaging about European resorts outside the Alps, and sometimes they have a point. While some non-Alpine ski resorts have a bad press, others are on the rise. Zakopane in Poland and Bankso in Bulgaria are tipped as two of the best.

If you’re impartial about where you head this year, take a look at Igluski for excellent resort deals.

Getting there

Cheap flights are still out there, if you search hard (and early) enough and are prepared to travel on a weekday. Search on SkyScanner to track down the best deals. Bear in mind that some airlines will charge you pricey ski carriage charges if you’re taking skis or snowboards on board. For a useful compilation of ski baggage fees by airline, take a look at this article from APH. Remember to pre-book your airport parking online, using a site like Parking4Less.

Check to see if there is a bus or train service from the airport to your resort. Book your transfer online in advance for the cheapest fares.

Until 14 April 2012, you can ride the ski train from St Pancras International or Ashford International to Moûtiers, Aime-la-Plagne or Bourg-St-Maurice, giving easy access to the resorts of Val Thorens, Courchevel, La Plagne, Meribel, Tignes and Les Arcs. Prices start from £149 for a return. If you’re travelling further a-field, read SnowCarbon’s excellent guide to ski resort train travel.

If you’re travelling in a group and you’re bringing your own ski gear, driving to the resort might be your best bet. As I’m writing, ferry prices for a car and up to nine passengers start as low as £39 with P&O.

Lift passes

Book your lift pass online ahead of your trip to make the most of online discounts. As I’m writing, if I booked a seven day lift pass for Alp d’Huez through Ski Holiday Extras, it would cost me €235.71 online, as opposed to €243 in the resort. It’s also worth checking for exclusive offers in your resort of choice. For instance Portes Du Soleil has a whole host of discounts and deals on the go. Check out Igluski Deals for more special offers.

Shave even more money off your lift pass by opting for limited ski area passes or special concessions for young children, beginners and older folks.

Equipment

Book your ski or snowboarding gear online ahead of your trip to get the biggest discounts. SnowRental reckons you could save up to 50% on ski and snowboard hire by booking in advance through their site. Ski Republic is currently offering two for one deals on all ski and snowboard rentals online.

If you’re a regular skier or snow-boarder, it might be worth seeing if you can find quality second hand gear on eBay, Polar Exchange, Extreme Sports Trader or Preloved. You can land some of the best deals towards the end of the ski season, as wealthy types dispense with their ski gear ahead of next year’s upgrade. Over the next few months, keep your eyes peeled for charity shop steals in posher parts of town. Several friends of mine recently scored some incredible ski clothing from charity shops in the suburban El Dorado of Pinner.

Lessons

Lessons vary on price depending on whether you’re opting for group lessons or private tuition. Naturally, private lessons tend to be much pricier, and the Swiss and French resorts demand much higher lesson fees than the central and eastern European resorts.

Book online in advance for discounts on group lessons. For instance as I write, five morning lessons at Alp d’Huez will cost me €147.44 if I book through Ifyouski.com, or €152 at the resort.

For a slightly different approach, take a look at Ski4Cheap. Ski4Cheap is an online social networking site, which connects holiday makers directly with instructors, by-passing the traditional ski and snowboard schools. In cutting out the middle man, Ski4Cheap claims that you can save as much as 50% on the traditional school fees.

Extras

Become a member of the Snowboard Club UK or the Ski Club UK, and you’ll get exclusive member discounts on transport, accommodation, lift passes, equipment and lessons. Membership for the Ski Club starts from £58/year and £15/year for the Snowboard Club. If it looks like you’ll save more in members’ discounts than you paid in membership fees, signing up will (literally) pay off.

Whatever you do, make sure you’re properly covered by a good travel insurance policy. Medical costs can run into thousands and accidents do happen. Shop around for winter insurance policies and make sure you’re fully covered for the types of activities you’re planning on doing. Most winter insurance policies won’t cover off-piste skiing, for example.

Once you’re out on the slopes, remember to bring a packed lunch with you. Restaurant prices can be phenomenally expensive and will soon eat away any savings you made on the rest of your trip.

As with all holidays, make sure you convert your currency before you get to the airport. Airport exchange rates are often much higher than elsewhere.

Are you going on a cheap winter holiday this year? Let us know!

{Image: Frozenchipmunk, David Martyn Hunt, Tore Urnes, Espen Sundve}

And now, the saving. This needn’t be complicated either. Aside from a current account to use for day-to-day spending, there are only two other places you absolutely must have some money saved up.

1. An emergency fund

With the number of unemployed in the UK at 2.64 million – the highest it’s been since 1994 – redundancy is still a big worry for plenty of us. But if you did lose you job, how long would you be able to support yourself and your family?

That’s why if you save for anything this year, it should be an emergency fund. Yes, you could get some form of insurance, but ASU – accident, sickness and unemployment insurance –  is often expensive and has a lot of exclusions, meaning you could end up with much less cover than you thought.

By creating your own emergency fund, you are effectively insuring yourself. You don’t have to rely on hoping a policy pays out if you find yourself in trouble, you know you have the money. Plus, putting what you would pay for an insurance policy into a savings account means that even if you don’t face unemployment, the money is still yours.

You should make sure you set up your emergency fund in an easy-access account so that you can get at it straight away if you need it. But you’ll need some willpower too – needing some cash for a new TV does not count as an emergency, so be very wary of dipping into it!

Ideally you should aim to save the equivalent of six months of your salary. That sounds like a heck of a lot I know, but it gives you a good buffer to find more work if you do lose your job. Start of by aiming to save the equivalent of three months wages as soon as you can, then gradually work towards building it up to six months.

It might all sound a bit depressing, but its so much better to be prepared for the worst just in case, and as I mentioned; if you find you never the need the money then you’ll have a nice tidy sum to enjoy in your retirement.

2. A tax-free savings account

There are so many different savings options out there that it can be a bit of minefield trying to decide which to choose. But (aside from your emergency fund) if you don’t put money anywhere else, you should put some in a tax-free savings account – an ISA.

You get an allowance each year of how much money you can save without paying tax on it – up until 5 April 2012 it’s £ 5,340 and from 6 April 2012 it’s £5,640 each tax year. But from each new tax year it starts again, so if you don’t use that year’s allowance at all, you’ve lost it forever.

Don’t let the taxman get his hands on any more of your hard-earned cash than is absolutely necessary. Even if you can’t possibly save that much each year, it’s still worth putting as much as you can into an ISA, and keeping every penny of your interest. Plus once you’ve got money in an ISA, if you keep it there, it can stay tax-free forever.

{Image: jay d}

It’s horrible. There’s nothing very good about January once you’ve got past new year’s day and Sherlock has finished. Then everyone is dieting (why would you do that to yourself?), it’s cold and rainy and even if you could find someone to go to the pub with, you can’t afford more than one pint anyway. December payday was forever ago and you spent most of your money at Christmas. The rest has gone on stuff in the sales.

Payday is still two weeks away.

So how do you cope until payday? Here are three tips to make life a little easier this month.

1. Realise that you’ve actually got more money than you think

This is key. We have a comfort threshold. The figure that we get uneasy about if our bank balance dips under. Whether that’s £200 or £400, we need to take a look at that figure and be a little more honest with ourselves. We’ve actually got money. Quite a lot of it, in fact. Hopefully enough for and emergencies, enough for a fairly cheap night out or two and enough to feed yourself for the rest of the month. You’re fine. We might not be able to get a cab home from our night out, and maybe we don’t need to order the fancy starter, but we’re probably not totally skint right now.

2. Bulk cooking

Aaaah, the freelancer’s favourite. Leftovers in the freezer make work at home types very happy indeed. It’s likely that you’re going to be very skint three days before payday, but instead of beans on toast, you can look in your freezer and whip out an amazing beef curry that you made earlier in the month. Yep, you’re allowed to have a smug grin on your face while you eat it.

3. Look for freebies

I don’t want the ‘save money’ advice to be about staying in. Yes, that’s one option (and a very appealing one when it’s raining and blowing a gale), but it’s not very fun after a few nights of Eastenders. You can find fun and free stuff to do. Get 2-4-1 deals, go to a gallery, stay local rather than spending on travel, go to that museum you’ve been meaning to go to. There are so many things that we never get around to doing and they’re often free. January is the perfect time to do them.

The long payday in January isn’t the only time we have to deal with this (if you’re freelance, this is pretty normal). Five week months creep up on us and we’re not prepared. So make sure you are this time. We’ve got long months in March, June August and November. If we’re ready for them, we won’t even notice that they’re happening. Scrimp a little, save a little here and there and wait a month before the big purchases. Pop a little reminder in your diary that they’re long months and save a bit of your previous month’s wages. You’ll be so glad you did.

How are you holding out until January payday?

As I’m writing this, if I wanted to get to Edinburgh from my home town of Southampton, it would cost me less to fly than it would to catch the train. It’s a sad state of affairs when the environmentally-friendly train is trumped on price by a fuel-guzzling short haul flight. It’s also pretty odd that a flight which would take me 90 minutes works out cheaper than a train journey that would take me 441.

If you buy on the day, train ticket prices can be prohibitively expensive. However with a little bit of planning and a few simple tricks, you can take to the rails for a fraction of the price.

1. Get a rail card

An obvious tip, but a useful one nonetheless. Are you eligible for these cards?

2. Check your travel operator’s promotions

Rail operators occasionally run special offers and discounts. National Rail Enquiries have helpfully made a list of links to all of the train operators’ promotion pages, so be sure to check them out. It’s also worth looking for one off deals and discounts on the major voucher sites, such as MyVoucherCodes and VoucherCodes.com.

3. Book up early

And by early I mean 12 weeks early. Train timetables get confirmed 12 weeks in advance. Once the timetables have been confirmed, the advanced train tickets go on sale. As I’m writing, Virgin Trains are currently offering advanced fares on its Birmingham to London route from just £7.50.

Advanced tickets are sold in limited supplies, so if you know when you’ll be travelling it’s best to book up early. Usefully TheTrainLine.com has a ticket alert system to let you know when advanced tickets for your route go on sale. Cross Country trains and East Coast Rail also run similar services.

If you didn’t get in there early, not to worry. Some advanced fares are still available up to 6pm the night before you travel, so it’s still worth checking for cheaper deals.

4. And for mega savings…

If you can be flexible with your travel times, take a look at Mega Train. Mega Train take advantage of extra capacity on trains travelling at unpopular times of the day. Tickets start as low as £1.50, and their range of destinations is pretty extensive.

5. Split your tickets

For some journeys, it is cheaper to buy two singles than it is to buy a return ticket. At the bare minimum, check to see if this is the case with your journey.

But splitting tickets can be even sneakier and more cost effective than that. Imagine I’m getting a train from London Paddington to Swansea. If I buy it on the day, an anytime single ticket for this journey will cost £121.

London Paddington – Swansea (anytime single ticket) = £121

However, if I split my journey into two stages and buy two tickets (rather than just one) to cover that journey…

London Paddington – Cardiff Central (anytime single ticket) = £99.50

Cardiff Central – Swansea (anytime single ticket) = £9.30

Total = £108.80 (saving £12.20)

Just because I’m making the trip with two tickets rather than one, doesn’t mean that I need to get off at my ‘middle station’ (in this case Cardiff Central). To stay on the right side of the law, I’ll just need make sure that my train stops at Cardiff Central, and doesn’t simply pass through through. Ticket splitting can work out cheaper because different train operators fix different prices for their part of the rail network. If your train is travelling through different rail operators’ territories, the lead operator will often fix a higher fee than that of the individual regional operators combined.

Splitting tickets to make the most of off-peak train fares

Here’s the clever part. On-peak fares run before 10am in the morning and then from 5pm-7pm in the evening. On-peak or anytime travel tickets cost more than off-peak, but if you split your tickets cleverly, you can make the most of off-peak fares even if your journey starts during on-peak hours.

I’m back on my way from London Paddington to Swansea again. Normally this would cost me £121.

London Paddington – Swansea (anytime single ticket) = £121

I’m leaving on the 6.45pm train, so I am travelling during on-peak hours. This means I’ll need a pricier ticket to travel. It takes 24 minutes to get from London Paddington to the first stop on the journey- Reading. This means it is 7.09pm by the time I get to Reading, so for the rest of the journey, I’ll be travelling during off-peak hours.

London Paddington – Reading (anytime single ticket) = £20.60

Reading – Swansea (off peak single ticket) = £36

Total = £56.60 (saving £64.40)

Split Your Tickets is a site which aims to make splitting your tickets much easier. However I have to say that it’s pretty poor at returning any useful results. I’d recommend identifying the station stops on your journey, then spending a few minutes of trial and error on East Coast rail to find the cheapest combination of tickets.

How do you save on your train fares?

{Image: Train Chartering & Private Rail Cars}

The charity released the results of new research carried out to coincide with the launch of Big Energy Week which runs from today until January 21. The study found that 43% of homeowners are concerned about covering their next gas and electricity bill and that half of all respondents expect the price of fuel to put pressure on their finances over the coming year.

CA helped more than 96,000 people who got into difficulty with fuel debt last year, but found that as many as one in three bill payers was unaware that help such as insulation grants was available from power providers.

Gillian Guy, chief executive of Citizens Advice, said: “We know hikes in prices have put extra pressure on people’s budgets at a time when money is already tight. Day in day out our Bureaux helping people who can’t afford their fuel bills.

“We’re worried that some people are struggling unnecessarily because they’re not on the best deal; live in homes that haemorrhage heat or are not getting all of the financial help available to them.”

The Big Energy Week survey also found that 53% of people were heating their homes less in an effort to cut fuel costs and that 71% of those who said their energy bills would put a strain on their finances this year also said they were worried they would not be able to pay their next fuel bill.

The figures were released days after four of the “big six” energy suppliers announced cuts to their prices. EDF Energy and npower announced 5% falls in their gas tariffs, while SSE said it would cut its gas prices by 4.5%. British Gas cut 5% from its standard electricity tariff with immediate effect last Wednesday. The reductions do little to compensate for the double-digit price hikes of 2011 and have left some analysts suggesting they may be a precursor to more rises later in the year, despite falling wholesale prices.

Energy and Climate Change Secretary Chris Huhne said: “We know that a lot of households are struggling to cope with rising energy costs. Many people could cut their gas and electricity bills by moving to a better deal with their existing supplier, switching to another supplier altogether, or by taking up home insulation offers. But we need to make sure consumers are aware of this and make it easier for them to take action to save money. That is why I am backing Big Energy Week. We want to get the advice and information out to as many consumers across the country as possible.”

Big Energy Week is supported by Consumer Focus, Which?, Energy UK, energy companies, charities, accredited switching sites, Ofgem and the government. It aims to promote ways consumers can save money on their fuel costs.

The Transport Select Committee said insurers should be forced to demand more proof that claimants has suffered a whiplash injury in a car accident and not be allowed to sell on customer details to solicitors and claims management firms.

Whiplash claims currently cost the insurance industry some £2 billion a year, according to the Association of British Insurers (ABI). This equates to an extra £90 being added to every driver’s annual insurance premium. The number of car passengers claiming for whiplash injuries has risen by 32% over the last three years to 570,000 annually.

There has been a 70% rise in car insurance claims in the past six years, despite a 23% fall in the number of casualties in road accidents. A great deal of this rise is a direct result of the increased number of whiplash claims, according to the committee.

The committee recommended the threshold for claiming compensation for whiplash injuries should be set much higher and that insurance firms should be banned from selling on their customers’ details to opportunistic personal injury lawyers.

Louise Ellman, chair of the committee, said: “Insurers, solicitors and claims management companies have themselves driven up the cost of motor premiums by encouraging people caught up in road accidents they did not cause to claim for personal injury, car hire, and other legal costs.

“Although we strongly support access to justice, drivers should not be railroaded by cold callers into launching legal action. The insurance industry must abandon sharp practices that push up premiums such as passing drivers’ personal data to other parties or taking secretive referral fees from solicitors, garages and car hire firms.”

The ABI has previously stated that referral fees should be abolished and agreed with MPs that the criteria for claiming compensation for whiplash injuries should be tightened.

Nick Starling, the ABI’s director of general insurance, said: “It is absolutely critical that Britain’s whiplash epidemic is tackled once and for all and the select committee’s acknowledgment that the bar to receiving compensation for whiplash is too low is a step in the right direction,

“There is one whiplash claim every minute of every day in this country – the problem is that if someone presents themselves with a medical certificate saying they have got whiplash, the insurance company would have to prove that they don’t have whiplash, and that’s an extremely difficult thing to do.”

The committee warned that a number of other factors combine to affect the cost of motor insurance and that all should be addressed to instigate effective change in the industry and lower prices for drivers. The committee called on the government to:

• Review how well the ‘pre-action protocol’ and ‘online portal’ established to handle low value insurance claims have operated since their introduction in 2010. Results should be published within six months.
• Establish a cross-departmental ministerial committee on reducing the cost of motor insurance and publish a plan to address each aspect of the problem.
• Send a clear message to the insurance industry that it expects 2008 data protection legislation to be fully respected and impose stricter penalties for any breach.
• Initiate an investigation of cold calling undertaken to generate personal injury claims and then examine the legal and regulatory options for curtailing this activity.

The founder of Money Saving Expert joined BBC Radio 5 Live’s Shelagh Fogarty last Wednesday, as they reviewed the best money saving tips for 2012. Martin tipped the Capital One Classic card as a good means of building up your credit rating whilst avoiding pricey interest rates. Martin Lewis admitted that he had ‘not seen an offer like this before,’ and suggested the card could, ‘save you hundreds or thousands of pounds in bank charges and enable you to get back on your feet.’

The card, which is only available at TotallyMoney, offers 0% on purchases until June for low credit scorers. This exclusive deal cannot be found anywhere else and it is the only 0% card in the UK that caters for lower credit profiles.

But hurry! This unique offer is only available until midnight on January 11^th! 

For all the latest on the exclusive Capital One Classic card deal, see our information pages.

34.9% APR Representative (Variable)

Representative Example:

Assuming a credit limit of £1,200 and an interest rate on purchases of 34.94% p.a. variable, you will receive a 34.9% APR representative variable.

All but the savviest of consumers are likely to have overspent to some degree over the holidays, whether in the lead up to the big day or in the frenzied sales which followed – rather tastefully – online on Christmas morning. Struggling retailers enjoyed a bumper week before the beginning of the New Year as cash-strapped consumers threw caution to the wind and spent billions in the sales. Although this was good news for gloomy traders, shoppers who took advantage of the savage discounts on offer may find themselves paying for their purchases for months or even years to come if they got carried away with their credit cards.

Debt management companies are braced for a surge in enquires from people who spent beyond their means over the holiday period and fear many could have pushed themselves into an unmanageable position to pay for their Christmas celebrations.

A poll carried out by YouGov for the banking technology firm Intelligent Environments in December found that 31% of Britons planned to take out additional credit to pay for their spending over the holidays this year. Concerns were raised by charities and campaign groups that the most vulnerable in society who don’t have access to traditional forms of credit could be among the worst affected. These groups are often forced to resort to expensive doorstep lenders and payday loan firms at Christmas.

Gillian Guy, chief executive of Citizens Advice, said: “After Christmas, Citizens Advice bureaux see more and more people coming to us in debt and having problems making ends meet to cover even essential household bills.”

Despite the repeated warnings, past experience, and surveys telling us we face a mountain of debt in the New Year if we overspend, many of us still adopt a pre-crash banker’s-style laissez-faire approach to our own finances during the season of goodwill. It’s too late to cry over spent money now though.

Economists and politicians are unanimous in their opinion that 2012 is going to be a lot worse than 2011, so it’s wise to take steps to limit the impact of your festive splurge and make sure you’re in the best possible financial shape for the year ahead:

• Refinance your debt

  If you have taken on additional debt to help pay for Christmas, make sure you’re paying as little interest as possible. Compare the market to find a cheap balance transfer credit card or an unsecured loan. Market leaders Barclaycard are currently offering a 24-month balance transfer for a fee of 3.2%.  Halifax are offering 22 months at a fee of 3.5%. These cards are only available to those with good credit scores, so check your file with the three major bureaus (Callcredit, Equifax and Experian) to make sure your record is free from errors before applying. If you don’t qualify for these, look for a card with less stringent acceptance criteria.

• Switch utilities, insurance and communications providers

  Make sure you’re paying as little as possible for your gas and electricity and telephone and broadband services. If you’ve never switched provider before, it’s likely you can make a big annual saving by doing so now. You can increase the savings you can make by signing up for new services through cashback sites, but should never choose a service based solely on the amount of cashback paid alone. Always look for the cheapest possible deal over the length of the contract on offer. If your home or car insurance is coming up for renewal, shop around to see if you can find cheaper cover elsewhere.

• Buy cheaper brands

  Visit cheaper stores or buy ‘value’ or ‘budget’ products when doing your grocery shopping. Doing your weekly shop at Aldi or Lidl can dramatically cut your grocery bill if you usually use more expensive supermarkets. Both Aldi and Lidl scored well in a Which? shopper satisfaction survey carried out last month.

  Which? executive director Richard Lloyd said: “The tough economy and rising food prices have seen cash-strapped consumers heading to the discounters for their low prices and special offers. Aldi and Lidl have climbed to second and third place this year, overtaking Marks & Spencer. And this doesn’t mean compromising on taste, as our tests show they sell a range of products that compete with the premium brands.”

  If you can’t bring yourself to forgo your regular supermarket, swap your regular purchases for cheaper or own-brand alternatives. While this may not always be the most palatable option with fresh food, does it really matter what brand of bleach or tin foil you use?

• Assess your expenditure

  Take a close look at your income and expenditure. Make a list of everything you have coming into your household and everything you have going out. Go through your spending with a fine-tooth comb and look for ways you can trim your budget. Cancel expensive cable or satellite television packages you rarely use and work out how much you’re spending on miscellaneous items like coffee and sandwiches. Little changes such as taking a packed lunch to work or forgoing your morning latte on the way to the station in the morning can result in big savings over the course of a year.

• Dry January

  Although the British Liver Trust did its best to spoil the good intentions of thousands of drinkers earlier in the week by announcing that taking a month off from alcohol after Christmas would do little to improve your health, steering clear of booze (and fags if you smoke) over January will have a positive effect on your bank balance. Extending your dry spell over the rest of the year could save you hundreds – if not thousands – of pounds, depending on how much you put away. Cutting down your drinking over the long-term will save you money and improve your health.

• Seek help

  If feel your debts have become unmanageable, seek help from organisations such as Citizens Advice or the Consumer Credit Counselling Service as soon as possible.

This year make a promise to make a few financial resolutions that you need to keep.

1. Never leave a bill, statement or invoice unopened

Even if it is a regular charge like your wifi provider. I have a sad example – a friend of mine had his wifi hacked into, he ignored the unopened envelopes since the charge was always the same then found out he owed over £32,000 (glup!!!)  and is probably being sued.  This is an extreme example but stuff like this does happen.

2. Rejig your budget

Every January our cost of basic travel in the UK goes up.  This year there will be a 7% fare rise on London Underground and buses.  If you live on a tight budget and don’t factor this in you will definitely be in the red by the end of January.

3. Start saving

Even if you are on a super tight budget, you can probably spare £5 per month.  Put a direct debit in place with a savings bank to take the money out on the same day that your pay goes in and you mostly likely won’t miss it.  If you can afford to save more please do so but NOT at the sacrifice of paying off your debts- that should definitely come first.

4. Plan your meals

When you don’t have a plan, is when the takeaway or meal in a box beckons. It  is an easy but expensive way to eat.  I shop at my local market every weekend and from that I make a plan of what we are going to eat.

Planning your food for the week makes life so much easier as you know what you are going to make and what you have on hand. You can adjust what you are going to make by how much time you will have and what activities you doing.  When I have sewing class, I make soup in the slow cooker so there will be food when I get in.

Getting the hang of knowing how much to cook will also save you money and reduce food waste. The website and app Love Food, Hate Waste is a brilliant tool for planning how much food you need to prepare for the number of diners. It also has a meal planning tool and shopping list. When you plan to cook, you eat better, more seasonally and most of all you save a lot of money.

Hopefully these resolutions will be relatively painless to stick to.  I promise once you start meal planning you will wonder why you haven’t done it all along and to have a bit of money saved is very satisfying.  Happy 2012!

What are your financial resolutions for 2012?

When the market peaked in 2007, just about anyone could walk into a high street mortgage lender’s branch and apply for a 125% loan-to-value mortgage from banks like Northern Rock. All but the most uncreditworthy could expect to have their application approved without any real checks on their ability to repay the loan.

Since then, mortgage lending has all but completely dried up. The average deposit required to buy a home has risen to nearly 30% of a property’s value and loans are routinely declined to those with the merest blemish on their credit records.

Although the mortgage market seems to have almost corrected itself, the Financial Services Authority (FSA) this week published its long-awaited recommendations for its reform. The Mortgage Market Review (MMR) aims to make sure lenders can never return to the type of irresponsible lending that bought the world economy to virtual collapse.

Commenting on the report’s recommendations, Lord Turner, chairman of the FSA, said: “We believe that these are common sense proposals which serve the interests of both lenders and borrowers.  While the excesses of the pre-crisis period have largely disappeared from the current market, it is important to ensure that better practice endures in future when memories of the crisis recede and the dangers of poor practice return.

“The three key proposals are, we believe, the most effective way to tackle the problem of risky lending.  But it is essential that we understand what their impact would be – how many consumers would be protected from the distress of arrears and repossessions, and, how many consumers who could have afforded a mortgage might have to take out a smaller mortgage or to delay their purchase.”

The FSA calculates its plans will slow house price growth by around 2% a year for four years after its recommendations have been introduced, but mortgage applications are expected to remain broadly unaffected. In fact, the FSA said the changes would only hit around 2.5% of current new borrowers.

While the FSA may claim the number of new mortgage applicants will be unaffected by its plans, the recommendations will have significant ramifications for specific groups of buyers:

• Self-certification

Self-certification mortgages – known in the lending industry as liars’ loans – will be banned when the FSA’s recommendations come into effect in 2013. These products were supposedly aimed at the self-employed, contractors, freelancers and other workers who found it hard to prove their income.

In reality, they allowed mortgage applicants to take on loans they could ill afford by exaggerating their income during the application process. Lenders keen to write new mortgages made little effort to substantiate income information provided. This led to many borrowers taking on debts they could not afford.

• Interest only

The FSA wants to greatly reduce the number of interest-only loans advanced to homeowners. New applicants for interest-only deals will have to prove to lenders they have a strategy for repaying their loan “out of capital resources that does not rely on the assumption that house prices will rise”. In other words, borrowers will have to show lenders how they intend to pay down the capital of their loan at the end of their mortgage term to qualify for an interest-only product.

Many older interest-only borrowers with no repayment vehicle in place are forced to sell their homes when their mortgage ends. At this point many are too old to qualify for a new loan. This measure will spell problems for interest-only borrowers who want to renew their current mortgage deal.

• Income stress test

Mortgage applicants’ incomes will be examined in minute detail under the new FSA rules. Lenders will request access to would-be borrowers’ income and expenditure – including details on childcare, fuel bills and leisure activities – to establish whether or not they will be able to repay the money they borrow. Applicants will need to produce proof of their after-tax income and supply bank statements as evidence of the health of their finances.

Lenders will also assess whether or not potential homeowners would be able to withstand a rise in interest rates of up to 1%. If it’s found an increase in interest rates would get a borrower into difficulty, a loan application will be denied. One of the core principles of the FSA’s proposals is that “mortgages and loans should only be advanced where there is a reasonable expectation that the customer can repay without relying on uncertain future house price rises.”

• Over-50s

Mortgage lenders will take a more ‘robust’ approach to borrowers who are approaching retirement when the new rules come into effect. They will look to stop older people taking on home loans they will not be able to afford in retirement.

Citizens Advice Bureau has said it has seen a number of cases where older borrowers have been left facing repossession after taking on mortgages they could not pay back when they retired. In one case, a 60-year old woman was sold a 40-year home loan by a high street lender. The FSA said lenders should place mortgage applicants under a higher degree of scrutiny the nearer they are to retirement age.

• Remortgaging

Those who would not qualify for a loan under the new rules but already hold a mortgage will not be dumped by their current lender or find themselves unable to refinance. Existing mortgage holders who wouldn’t make the grade under the new system will have the rules effectively waived if they’ve maintained a good repayment record and apply for a loan equal to or less than their current mortgage.

The study, called the World Giving Index 2011, ranked the charitable behaviour of people from 153 countries in three areas – ‘giving money’, ‘volunteering time’ and ‘helping a stranger’. The UK moved up from eight position overall and was named the second most generous nation globally in monetary terms.

The USA was found to be the most charitable country overall, with Ireland in second place and Australia third.

The World Giving Index, which was compiled by the CAF and polling experts Gallup, found a 2% increase in the number of people globally who said they had helped a stranger and a 1% increase in people volunteering their time.

While people appear to have been more generous with their time, the perilous state of the world economy helped contribute to a 1% fall in the amount of money donated to good causes.

Seventy-nine percent of the UK population donate money to charity every month, making Britain second only to Thailand in terms of ‘giving money’. Some 85% of Thais donate money to charity each month. Ireland and the Netherlands were found to be jointly third with 75%.

Cash-strapped Ireland, which was ranked third internationally last year, moved up to second place in the global giving league and maintained its position as Europe’s most charitable nation. This year’s report showed that 75% of the Irish population gave money to charity a month in 2011. At the same time, 38% of the Irish volunteered time and 65% helped strangers.

Over a quarter of UK population gives some of their time to a charitable cause each month, according to the survey, while 63% said they had helped a stranger or someone they didn’t know.

The report highlighted slight differences in the charitable behaviour of men and women. Globally, 30%of females gave money to charity each month compared with 29% of males. Meanwhile, 48% of males ‘helped a stranger’ each month compared to 46% of females, while 22% of males ‘volunteered time’ every month compared with just 19% of females.

CAF Chief Executive John Low said: “The finding that the UK is the fifth most generous nation in the world, and second in terms of giving money, is excellent news for those who are less fortunate, and shows just how deep-seated the idea of charity and charitable giving is in our society.

“It is amazing that even during these tough economic times an overwhelming majority of the UK population gives to charity each month.

“However, there is always more that can be done. Creating an even stronger culture of giving in the UK will require ongoing commitment and effort by government, business and charities.

“Those in positions of influence can show strong leadership, setting an example through their own giving. Ministers across government should actively look to encourage, rather than stifle social action and giving.

“Tax relief for charitable donations must be simple, up to date and work effectively with the way people give in an increasingly digital and interconnected world.”

Demand for privately rented properties from first-time buyers and record low interest rates have helped to make renting an average of 15% more expensive than owning a home, up from 10% this time last year.

It is now more expensive to rent a home in 47 of Britain’s biggest towns. This time last year the figure stood at 40 out of 50.

Private tenants in Swansea, Plymouth and Bournemouth are the only renters in the country who are paying less than their property-owning neighbours for their housing costs.

Landlords have enjoyed soaring rents over the last few years after mortgage lenders tightened their lending criteria and raised the average deposit required to secure a home loan. A study published last month by the international estate agent Savills predicted that rents will rise by a further 20.5% by the end of 2016.

Average rents across the country reached a new high of £720 in October, 0.2% up from the previous month and 4.1% up year-on-year, according to LSL Property Services. Rents in the south-east and the east of England rose by 1.5% and 0.8% respectively compared to September.

In the mean time, homeowners have been enjoying the effects of the record low interest rates. The Bank of England’s base rate has been at 0.5% since March 2009, meaning that existing homeowners with tracker or variable rate mortgages have seen their monthly payments reduce significantly.

Buying a home was found to be most cost-effective in Milton Keynes, where renting is typically 36% more expensive than owning. In London, renting is 31% more expensive than home ownership, leaving tenants an average of £6,888 worse off annually compared with owners.

Nicholas Leeming, business development director at Zoopla, said: “Although buying may be more cost-effective than ever compared to renting, many potential buyers aren’t able to take advantage because they can’t access mortgage finance.

“The shortage of financing especially to first-time buyers has pushed demand for rental property through the roof. But for those lucky enough to be in a position to get a mortgage there may never have been a better time to buy.”

In fact, some commentators are forecasting that 2012 could provide a new low point in western capitalism’s lost decade. The respected Organisation for Economic Cooperation and Development (OECD) said earlier in the week that economic activity in all of its member countries is now at its lowest level since November 2009.

The thinktank said all major economies are losing momentum and that Britain will return to recession next year. The UK economy is forecast to contract by 1.3% in 2012. This is based on the assumption that the eurozone doesn’t disintegrate. If the euro does collapse, as some economists predict it will, things will be a lot worse for Britain. 40% of the UK’s exports are sold to countries in the EU.

The eurozone is currently expected to contract by 1.5% next year. Recession could be considerably deeper in Europe if countries like Greece and Italy fail to deal with their massive debts and end up defaulting, as is looking increasingly likely.

Responding to the OECD’s forecast of a return to recession for the UK back in November, a treasury spokesman said: ‘The UK economy is not immune to the turbulence in the eurozone and its impact on British businesses, but the difficult decisions taken by the government has made the UK a relative safe haven in the sovereign debt storm and helped to keep interest rates at record low levels for businesses and households.

“The government is using all levers to protect the UK economy.’

In stark contrast to the continued economic misery in the west, growth is expected to remain buoyant in Asia, with China and India growing by 8.1% and 7.4% respectively next year, according to the Standard Chartered Bank.

Gerard Lyons, chief economist at Standard Chartered, said: “This points to the continuation of a two-speed world where a fragile west contrasts with a resilient east – it is a divided and disconnected world economy facing major policy dilemmas.

“If ever one needed to illustrate the shift in the balance of power, this is it.”

As it seems plans to formulate a new fiscal union in Europe have had little effect on world stock markets – which fell dramatically after the European summit in Brussels last week – and a double-dip recession seems all but guaranteed, UK consumers should prepare themselves for a gloomy and austere New Year. Unless you’re planning to move east.

So, what to expect?

• Living standards

  The Institute for Fiscal Studies (IFS) has forecast that UK households will be worse off in 2015 than they were in 2002. Real incomes will continue to fall next year – as they did in 2011 – as a result of stagnant wage growth and high inflation. Although the Consumer Prices Index (CPI) measure of inflation is expected to fall back dramatically from its current level of 4.8%, the gap between rising prices and wage growth will continue to slash household’s disposable income well into 2012. A recent study by Skipton Financial Services found the average British family with two children needs a pre-tax income of £32,702 just to break even. This is likely to rise in 2012.

• Unemployment

  The private sector has completely failed to plug the gap left by the coalition government’s public sector job cuts. Unemployment rose to 2.638 million in the three months to the end of October, according to the Office for National Statistics, and is expected to rise further in the coming year. Weak growth means that private companies can’t create new jobs or pay their existing staff more. This in turn means people have less money to spend in the wider economy – holding growth back further.

  The OECD has forecast that an extra 400,000 Britons will lose their jobs by 2013, meaning 9.1% of the workforce will be unemployed by the end of next year. This will exacerbate social problems such as crime and homelessness, according to the OECD. The new downturn is expected to hit jobs harder than the recession of 2008 as companies have less scope to cut wages and hours.

• A lost generation

  More than 1 million young people are currently unemployed, the highest level since records began in 1992. Nearly 22% of 16 to 24-year-olds are without work, a figure that is expected rise over the course of 2012. And now that many young people find themselves priced out of higher education thanks to the government’s decision to raise university tuition fees to up to £9,000 a year, youth workers fear the economic downturn is creating a “lost generation” of younger people with no access to work, education or training.

  UCAS figures released last month revealed that university applications were down 12.9% year-on-year after the introduction of tuition fees.

• Stagnant house prices

  The Halifax building society has forecast that house prices will remain “subdued and stable” throughout next year. The lender predicts a range of plus or minus 2% over the course of 2012. But even if the market performs at the higher end of expectations, prices will still lag considerably behind inflation over the course of the year – even if price growth does slow. This means your house is highly likely to worth less in real terms at the end of 2012 than it is today.

  If you’re thinking of buying a new home, it’s probable you’ll have to pay more for a mortgage in 2012 than you would have this year. Banks that took big hits on the eurozone debt crisis are expected to raise their interest rates in an effort to recoup some of the money they lost on ropey investments, even if the Bank of England base rate remains at its record low of 0.5%.

• Savings rates

  Unfortunately, the banks won’t be raising the interest they pay on your savings. If you’re living off the income from a nest egg or hoping to make a profit by putting your money in a relatively safe savings product, the real value of your investment is likely to fall over the course of next year even if inflation does fall back to near the Bank of England’s 2% target.

How are you preparing for 2012?

Every company except Scottish Power recorded a rise in the number of complaints received, with French-owned EDF Energy posting a 91% year-on-year increase in the number of disgruntled customers it dealt with.

EDF’s poor service performance saw it become the first energy supplier to receive a zero star rating in the league table of energy firms – a dubious honour reserved for companies that receive 150 complaints or more per 100,000 customers.

The number of complaints received by EDF rose by 74% from the previous quarter.

The rise in the number of complaints received by energy firms coincided with inflation-busting double-digit price rises over the summer months.

SSE, formerly Scottish & Southern Energy, retained its five-star rating at the top of the league, while British Gas came in second place with four stars. E.ON and Scottish Power came third and fourth respectively with three stars each, followed by npower with two.

Consumer Focus raised concerns that Scottish Power and EDF Energy did not display the Consumer Direct contact number on letters to their customers, which could have impacted the number of complaints they received.

Adam Scorer, Director of External Affairs at Consumer Focus, said: “It is disappointing, but perhaps not surprising, that complaints on energy issues have risen at a time when energy bills are increasing. Energy companies have repeatedly said they want to rebuild consumer trust. Good customer service and complaints handling are key ingredients to building consumer trust but suppliers still have a long way to go.

“Complaints about EDF Energy over the summer have had a catastrophic impact on its rating. While system changes inevitably cause disruption to customers, this must be minimised. Its current complaints performance is unacceptable and the company must take further steps to tackle this.”

EDF said many of its problems resulted from the introduction of a new billing system at the beginning of the year which led to numerous billing and communication problems.

In a statement, the energy firm said: “Despite careful planning and the recruitment of over 700 additional customer service staff to protect our service levels to customers through the transition, our customer services operated to a lower standard between May and September. In particular, answering calls to our customer service agents took longer than expected.”
“As soon as delays occurred we recruited an additional 400 service staff, which naturally took time to become effective, and we slowed down our plan to move customers on to the new system to ensure service levels were stabilised and restored. The actions taken and investments made are paying off and the service to our customers is improving.”

Both the ONS and a number of relationship and marriage experts suggested the country’s perilous economic situation could have been a major contributor to the number of break-ups, as couples face unprecedented financial pressures.

Divorces in England and Wales rose from 113,949 in 2009 to 119,589 in 2010, an increase of 4.9%. Divorce rates last rose in 2003 when 153,065 couples broke up, a rise from 147,735 in the previous year.

The equivalent of 11.1 people per thousand of the married population got divorced in 2010, up from 10.5 in 2009. The increase follows several years of decline in the number of divorces in the UK. Last year’s figures were the lowest on record since 1974.

The report said: “The figures show that divorce rates continued their downward trend during 2008 and 2009 but increased in 2010.

“This could be consistent with the theory that recession is associated with an increased risk of divorce, but with a delayed impact, perhaps reflecting a couple’s wait for an economic recovery to lift the value of their assets or the time lag between separation and obtaining a decree absolute.
“A similar trend can be seen during the previous recession in 1990-92, where divorce rates increased more markedly in 1993 than during the recession itself.”
John Loughton, head of public policy at Relate, said: “It’s no surprise that the divorce rate is rising given the pressures that couples and families are under. In fact we are seeing more people than ever coming to Relate because of money worries.

“Combine rising unemployment and rising inflation, and you create a pressure cooker for relationships. But given that 60% of separated couples would have liked to save their relationships, we need the government to do more to ensure that everyone has access to relationship support at a much earlier stage, especially those on low incomes.”

“We know that couples wait over two years before coming to Relate, today’s statistics are a stark reminder of the cost of ignoring relationship difficulties. We’d urge all couples to seek help as soon as they start having problems.”

The number of people divorcing last year was the equivalent of one couple parting for every two that got married. “Unreasonable behaviour” was the most common grounds for separation, while more divorces were granted to women than men – 79,124 compared to 40,301.
Divorces were most common among men and women aged between 40 and 44 last year, according to the ONS data.

Reporter Sophie Raworth skulked around branches of the big four’s stores near to her home with a hidden camera and uncovered a range of bogus deals, pricing mistakes and misleading claims that could leave customers out of pocket.

The country’s biggest supermarkets – Tesco, Asda, Sainsbury’s and Morrisons – are in the middle a price war to tempt cash-strapped consumers into their stores over the Christmas period. They all claim to be slashing their prices in an effort to make life a little easier for their hard-pressed customers as seven years of austerity looms the other side of the holiday season.

Richard Perks, a retail analyst, told Panorama these cost cutting exercises are nothing more than a cynical marketing ploy to boost the supermarkets profits: “If there was a price war going on at the moment we would have seen profits falling, or we would have severe warnings and that is just not happening. The name of the game is to be as clever as possible in how you promote and how you use your discounts and how you attract your customers.”

A day after the program was broadcast, figures from Kantar Worldpanel revealed Tesco’s market share had slipped from 30.7% to 30.5% year-on-year despite the store increasing the number of customers it pulled through its doors. The research firm suggested Tesco’s falling market share was a direct result of its aggressive price cuts.

The Kantar data also showed Tesco’s sales grew more slowly than any of its main rivals in the 12 weeks to the end of November. Tesco announced it would be cutting £500 million from the price of 1,000 items at the beginning of last month.

While this may sound like bad news for the retail behemoth, it does suggest that Tesco is genuinely cutting prices to the detriment of its bottom line.

Edward Garner, communications director at Kantar Worldpanel, said: “This may at first seem disappointing for Tesco given the ‘Big Price Drop’ initiative; however, it is not wholly unexpected. With more products available for less, the amount of cash taken at the tills has understandably dropped.

“Despite this, Tesco has successfully attracted more shoppers to its stores through the promotion. This strategy, coined ‘self imposed deflation’ by Tesco, is something we have seen in the past and it’s clear that Tesco is using this method again to help shoppers save their pennies.”

The supermarkets claim the seemingly dodgy deals and ropey pricing revealed in the Panorama program were the result of innocent mistakes and computer glitches and not a sign they’re trying to dupe their customers. Whether this is true or not is beside the point.

Raworth’s report showed the big four supermarkets to be either dishonest or incompetent – perhaps even both. They’re pricing products in a way that can make it difficult – if not impossible – for you to know if you’re getting the best deal. Unfortunately, this means you’ll have to do a little more work when doing your weekly shop:

• Unit pricing

  Always check the unit prices of goods to make sure you’re getting the best deal. This can be more difficult than it sounds. Supermarkets are required by law to display the unit prices of goods on shelving labels. They have to provide a price per kilogram, 100g, 10g, per litre, 100ml or the cost of individual items, as well as the full price of a pack.

  An investigation by the consumer group Which? found many supermarkets fail to display unit prices for some multipack products and use different unit prices for similar products. In one example, Which? researchers found red peppers in 500g packs on sale for £2.09 or £4.18 per kg next to packs of three mixed peppers priced at £1.65 or 56p each. If prices of similar products are displayed in kilos, 100g or 10g, you’ll need to do a little maths. If you find pre-packed products with no unit pricing on them, try using supermarkets’ weighing scales to work out the cheaper option.

• Beware the “better value” pack

  The Panorama report featured a number of instances where larger packs of certain items emblazoned with a claim along the lines of “bigger pack, better value” actually worked out dearer than buying multiple smaller packs. Raworth found a large 1kg tub of Clover spread on sale at Asda for £3.20 when 500g tubs were available on the same shelf for £1.50. In fairness to the supermarkets, these claims are often added by manufacturers and can be made redundant by special offers on smaller products.

• Inspect offers

  While it may be possible to give supermarkets the benefit of the doubt on “bigger pack, better value” claims, all charity must end when confronted by ludicrous multibuy offers that just don’t add up. Both the Guardian and the BBC’s Watchdog program have documented comical “buy two for £X” offers when individual items bought alone actually work out cheaper. In some cases, multibuy offers are advertised as being more expensive than two single items bought separately. The supermarkets claim these mistakes are the result of computer errors and that any price discrepancies are not passed on at the till. Check your receipt after each trip to the supermarket and complain if you’ve been overcharged.

• Price establishment

  If you’ve ever suspected you’ve seen a supposedly discounted product on sale for exactly the same price not too long ago, you were probably right. Sneaky supermarkets have been jacking up the price of goods only to cut them again a few weeks later for years. Once they’ve done so, they can boast about their smoke and mirrors price cuts. The practice is called price establishment and surprisingly, is completely legal. As long as a product has been on sale at a higher price for 28 days, a supermarket can cut the price and take credit for the discount.

• Be on your guard

  Supermarkets use discounting and special offers as psychological tools to part you with your money. The big four now control 68% of the UK grocery market and take £65 billion between them each year – partly due to their use of questionable sales and marketing practices. As it appears unlikely they’ll be prosecuted or forced to put their houses in order by the OFT, it’s down to you to make sure you’re not being duped.

A survey by the financial services firm found 27% of middle-aged people said finances were the most common cause of arguments in their household, despite the fact that one in five admitted they felt uncomfortable discussing money with their partners.

More than half of those questioned had no idea what income they will need in retirement, which raises concerns that British couples are sleepwalking into retirement without properly discussing their financial arrangements, according to the Prudential.

The most common cause of arguments was found to be family and relationships – which 28% of respondents admitted to rowing about – followed by money. Household chores (29%) and socialising (9%) came third and fourth respectively.

Twenty-five percent of the 2,000 respondents to the survey said they had not discussed their financial situation with their partner in the past 12 months, while 16% admitted to never talking about how to improve their income.

When couples were asked if they knew what level of income they would need to lead a comfortable retirement, more than half (56%) admitted to having no idea.

Vince Smith-Hughes, head of business development at Prudential, said: “There is no hiding from the fact that sometimes our finances are a tough topic to talk about. It is all too tempting to put off conversations about the money we’ll need in the future.

“There can be tangible financial benefits, however, for couples who bite the bullet and have a frank and open conversation about their plans for the future. Agreeing on a joint approach to pension provision could boost their overall incomes when the time comes to retire. There are also potential savings to be made from using personal tax allowances after retirement – a retired couple have a joint allowance of almost £20,000 of tax free income available to them.

“A conversation with a professional financial adviser should help couples to make better decisions about pension savings during their working lives, ensuring that their income continues to support their lifestyle in retirement and that they benefit from all available allowances.”

The online consumer behaviour intelligence service, which has dubbed today ‘Cyber Monday’, predicts consumers will make 85 million visits to retail websites throughout the course of the day, 15% higher than this time last year.

Some 350 million hours will be spent shopping online throughout the month of December, equating to 8 hours and 45 minutes per person, according to the study.

Over 2 billion visits will be made to online retailers throughout December, with record peaks in traffic both in the lead up to Christmas and in the sales. Experian Hitwise forecast that searches for post-Christmas sales items will start earlier than ever this year, with shoppers starting to do their research online as early as Christmas Eve.

James Murray, marketing research analyst at Experian Hitwise, said: “Christmas 2011 looks set to be another record-breaker for many of the online sectors and particularly for retail. Cyber Monday is going to be crucial in the online retail sector and we are predicting 85 million visits on the 5th December, 15% up on last year’s figures.

“Boxing Day could be another big day for retailers as more people go online to check out which stores have the best deals on offer.  This year we will are expecting to see a massive multi-channel marketing push as brands look to win online to drive web purchases and in-store footfall.”

A separate report from moneysupermarket.com found that 41% of all Christmas shopping will be done online this year. Britons will spend £21 billion with online retailers over the Christmas period in 2011, the equivalent of £437 per person.

High street retailers have less reason to be cheerful, with analysts predicting the toughest Christmas since the credit crunch in 2008. The accountants BDO said sales at mid-tier retailers dipped 1.7% in November compared with last year, despite a flurry of promotions.

Don Williams, from BDO, said: “The level of promotions is on a par with the ‘panic sales’ of 2008 and while this year’s promotions are largely more structured and considered, this is likely to have an impact on margins.

“The effects of a combination of reduced margins and low sales will come as retailers approach Christmas more in hope than expectation.

“Trends get magnified at Christmas. Typically strong retailers get stronger and weak retailers get weaker. This year the economic backdrop means even in the best case scenario overall sales will only probably grow by 2%.”

The Trading Standards Institute (TSI) has urged consumers to be on the lookout for bogus telephone cold callers trying to offload plug-in devices they claim can reduce electricity costs by as much as 40%.

The TUI issued the warning after receiving more than 200 complaints about phone calls from the scammers. Fraudsters call up and claim to be from people’s energy supplier or working in partnership with them. They then offer the plug-in device, which they claim can substantially cut energy bills, for £99.

Ron Gainsford, TSI chief executive, said: “Consumers are warned not to use the product as they pose a risk of fire and electrocution and a safety recall has been issued for the items traced so far.

“Unscrupulous criminals are using the rising energy prices as an opportunity to lure in cash strapped consumers – elderly people seem to have been deliberately targeted.

“The number of complaints we are currently dealing with is bound to be only the tip of the iceberg.”

When trading standards had a number of the plug-in devices tested, it found they failed to satisfy electrical safety standards and did not deliver any tangible energy savings.

Sue Jones from Westminster trading standards said: “The address they give is that of a virtual office provider, the companies involved in these scams are not actually situated there - we believe the call centre they use is based abroad and the appliances appear to be distributed by a number of individuals in the UK.

“We know that these fraudsters have been duping consumers across the country into paying £99 for the energy saving device and have been told the caller always appears to be very credible by already knowing the consumers’ details, their energy supplier and sometimes some or all of the digits of their credit/  debit  card.

“Often consumers do not realise that they have been defrauded until they receive the dodgy looking device with instructions in broken English and the accompanying invoice which names an unknown supplier and often gives an American address.”

TSI advise anybody targeted by the fraudsters to contact Action Fraud on 0300 123 2040 or Consumer Direct on 08454040506.  They should also contact their bank to stop their debit/credit card being charged. If a device has been received they should not use it and dispose of it carefully.