Instances of crooked bank staff stealing money through theft or deception rose by more than 40% last year, according to CIFAS.

The anti-fraud organisation said that dishonest actions by finance workers were the main driver of a 14.5% overall increase in the number of insider frauds recorded in 2011 when compared to the previous year.

Worryingly, one of the more popular methods of stealing was found to be cashiers creaming money off of customer accounts. Many of the frauds recorded involved the theft of money from older people. CIFAS said the perpetrators of such thefts are no better than muggers in the street.

A third of all theft committed by bank employees involved the stealing of cash as opposed to electronically-based crime. The overall number of dishonest actions by staff to obtain a benefit through theft or deception rose from 156 in 2010 cases to 220 last year – an increase of 41%.

CIFAS said that many organisations remained reluctant to recognise the risk of fraud being committed by its staff.

Instances of bank staff unlawfully obtaining and disclosing personal data fell by 25% last year, after a dramatic rise in data theft the previous year. CIFAS said the fall demonstrated an increasing awareness of the danger posed by data theft in the banking industry, and was evidence that steps were being taken within organisations to counter the threat.

Richard Hurley , CIFAS communications manager, , said: “The damage done by fraudsters who sit within an organisation is not just upon a balance sheet but also on staff and customer morale, reputation and can even result in regulatory and legal sanctions.”

“While the 14.5% increase witnessed in 2011 demonstrates that some organisations are increasingly aware of, and looking out for, fraud committed by insiders, the surge must also underline how prevalent the danger actually is. To assume that staff committing fraud will not affect your organisation is pure folly.”

Michelle Mitchell, charity director general of Age UK said: “Any case of bank staff stealing from customers is unacceptable and this increase is very concerning – particularly at a time when banks are talking about regaining the public’s trust and confidence.”

“Common sense measures such as asking for and then keeping a receipt for any deposit or withdrawal, can help in preventing fraud. However it’s important that people remember that banks are still the safest place to keep their money. “

The Office of Fair Trading (OFT) has announced an investigation into unfair gym contract terms that could be in breach of consumer protection regulations. The OFT probe will also look into whether some gym owners are engaging in unfair business practices.

Although the trade watchdog would not say which companies were involved in the investigation, national chains such as Virgin Active and LA Fitness are thought to be included. A spokesperson for Virgin Active said the firm had already received a request for information earlier in the week.

The investigation was launched after the OFT received a number of complaints from consumers about the length of some gym membership contracts and unfair cancellation polices. Some gym membership plans can see consumers locked into contracts for up to 24 months. Most have no option but to carry on paying regardless of whether they use a gym’s facilities or not.

Concerns were also raised about people being unable to extricate themselves from gym contracts when their circumstances change. LA Fitness received a barrage of criticism from Twitter users last week after it tried to force a pregnant woman and her jobless husband to pay £780 to clear 15 months of a contract debt, despite them being in danger of losing their home.

A spokesperson for the OFT said: “This investigation is at an early stage and it should not be assumed that the parties involved have breached any consumer protection legislation.

“The OFT will not reach a view on whether the law may have been infringed by any company until it has completed its investigation.”

The launch of the probe follows a high court ruling last August that contacts written by Ashbourne Management Services Limited (AMS), a gym management firm, were unfair and that a number of debt collection practices amounted to unfair commercial practices. The OFT said it expected any company employing similar contract terms and practices to change them in line with the ruling.

At the time of the ruling, Cavendish Elithorn, senior director of the OFT Goods and Consumer Group, said: “Gym companies should also be aware that trying to enforce illegal contract terms is a breach of the law and in certain circumstances they may have a duty to notify customers where their contract terms have been found to be illegal.

“This case sends a clear signal to traders that the OFT and local trading standards services will not hesitate to take action to protect consumers.”

In defence of the industry, David Stalker, CEO of the Fitness Industry Association (FIA), said: “At the FIA we strongly believe in following the rulings drawn up by the OFT and are happy to play an advisory role in this investigation process. They (the OFT) have made it clear that it should not be assumed that the parties involved have breached any consumer protection legislation and we must await its findings to draw any conclusions.

“The FIA’s vision, to get more people, more active, more often, is shared by our members who offer a wide variety of membership options to suit individual budgets and training needs; placing consumers at the heart of their offering and motivating people to lead an active lifestyle.”

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.

Average house prices fell by 0.2% last month after an identical drop was recorded in December. The fall leaves the average UK house valued at £162,228. Year-on-year, property prices were up a very modest 0.6% in January.

On a quarterly basis, a measure many analyst consider to be a more accurate barometer of market direction, prices were up by 0.3% last month.

Nationwide said it expected prices to “move sideways or only modestly lower in the months ahead”. It cited concerns about the labour market and the general state of the economy as two factors that are likely to hold prices back over the next 12 months. It also said that affordability and access to mortgage funding is still a major problem for first-time buyers.

Despite the fact that mortgages are cheaper now than they have been for almost 10 years, potential borrowers need to raise a substantial deposit before they can secure the loan they need to buy a home. The average median deposit required by a first-time rocketed from 10% before the beginning of the credit crunch to 25% afterwards. Although the average deposit required has fallen back to around 20%, this still means a first-time buyer would need to raise more than £30,000 to buy a typical British home.

Finding a deposit is unlikely to become any easier in the year ahead if household budgets come under increasing pressure and unemployment continues to rise.

Robert Gardner, Nationwide’s chief economist, said: “Given the challenging conditions prevailing in late 2011, with the UK economy contracting in the final three months of the year, it’s not surprising that house price growth softened at the start of 2012. The price of a typical house fell by 0.2% in January, taking the annual rate of house inflation down to 0.6% from 1% in December.

“The demand/supply balance may move further in favour of buyers in the months ahead. The economy is not expected to gather much momentum until the second half of 2012 at the earliest, which suggests that labour market conditions and buyer sentiment may be slow to improve.”

A separate report from the Land Registry showed that prices actually dropped by 1.3% in 2011. Prices fell in every region except for London where the average property rose in value by 2.8% to £345,000. Prices in the north-east plummeted by 7.1% to £99,464, the lowest level in eight years, making it the only region in the UK where average prices are now below the £100,000 mark. In contrast, the average price of a property in Kensington and Chelsea rose by 7.2% to £967,951 last year.

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}

The above inflation increase will bring the typical water bill to £376 per household, up by an average of £20. The 0.5% above inflation increase was considerably below the 10% rise in prices the water companies were pushing for, according to the regulator. The hike is part of a five-year program of annual prise rises to help fund £22 billion worth of investment in the country’s water and sewerage infrastructure.

Ofwat said the price was made up of November’s Retail Prices Index (RPI) measure of inflation of 5.2% plus 0.5%.

Stark variations were notable in different regions around the country, with homeowners in the Southern district seeing their water and sewerage costs rising by 8%, while those served by Dwr Cymru will have an extra 3.8% added to their bill. The increases will take the annual cost of water and sewerage in the South West area to £543 a year – the highest in the country. Households in the Severn Trent region will only have to pay £325 on an annual basis when the price rises take effect, while London residents served by Thames Water will pay £339.

Regina Finn, Ofwat Chief Executive Officer said: “When we set limits on prices, we listened to customers. They told us they wanted bills kept down, while maintaining safe, reliable water supplies. We challenged companies hard to deliver this. Our decision meant that, before inflation, average bills would remain broadly stable between 2010 -15.”

“We understand that any bill rise is unwelcome, particularly in tough economic times. Inflation feeds through into water bills, and this is driving these rises.”

“We will make sure customers get value for money. Companies are investing £22 billion by 2015 – more than £935 for every property in England and Wales. This will deliver benefits to us all – from continuing to improve reliability of supplies to cleaner rivers and beaches.”

“If companies don’t deliver on their investment promises, we will take action.”

Dame Yve Buckland, Chair of the Consumer Council for Water, said the price rises could push more households into water debt: “Companies need to tell their customers very clearly what they are getting for their money and to help customers who are having difficulty paying their bill.”

“We will be working with companies and the regulator throughout the next price review to ensure that future water prices are acceptable and affordable. We will also applaud those companies who are currently exploring different ways of mitigating the impact of inflation on their customers.”

“Anyone struggling to pay their water bill should contact their company immediately. They can usually offer more flexible payment options, such as weekly or monthly payment plans. In some cases they may also be able to help through special assistance funds, or schemes to help eligible customers reduce their water bills.”

Research from the building society found homeownership was more than £100 a month cheaper than being a tenant in December 2011. The average cost of buying a three-bedroom house in the UK cost £600 last month; some £116 (or 16%) lower than the average monthly rent of £716 paid on the same property type, according to the Halifax report. Three years ago, the average cost of buying was 29% higher than renting.

In December 2008, a three-bedroom property would have cost the average homeowner £928 a month in mortgage payments, while a tenant would have needed to find just £721 to cover rent on a property of a similar size.

The remarkable turnaround has been driven by a sharp fall in the cost of mortgage payments and soaring rents in the private sector. The monthly cost of buying a home has fallen by more than a quarter since 2008. New mortgage borrowers were paying an average rate of interest of 5.75% in 2008, compared to 3.63% last year. At the same time, banks have tightened their lending criteria and asked for larger deposits from first-time buyers, locking many tenants out of homeownership.

The cost of renting has meanwhile risen by 9% since 2009, according to the Halifax. Private rents rose by 4% last year alone, according to data from LSL Property Services, as tenants struggled to secure the funding necessary to get a foot on the housing ladder.

Buying was found to be cheaper than renting in every region of the UK except for Wales, where being a tenant would have saved you £5 a month over owning your own home last month. Buying was found to be most cost effective compared to renting in London. The average homeowner in the capital spent £1,089 a month in December, compared to the £1,212 spent on a property of the same size by private tenants.

Martin Ellis, housing economist at Halifax, commented: “The affordability gains for buyers relative to renters in the last three years have been significant. The average mortgage payment has fallen dramatically over recent years as a result of falling house prices and mortgage rates. At the same time, rents have risen due to strong demand for rented accommodation.”

“Nonetheless, despite the improvement in the relative affordability of buying a home, the number of purchasers has continued to fall due to the ongoing challenges in raising a deposit and the considerable uncertainty over the prospects for the UK economy, which have severely constrained housing demand.”

A separate study published last week by  Santander Mortgages found that 53% of those planning to buy a home were more positive about their prospects of being able to do so than a year ago, compared to only 15% who were more negative. Twenty-two percent of those who said they would be unlikely to be able to buy a home in the coming 12 months blamed being unable to raise enough money for a deposit.

Phil Cliff, director of Santander Mortgages, said: “Given the tough economic climate people are becoming more upbeat about their prospects of purchasing a new home this year.

“It’s been a tough few years for the property market overall, but prices have made a steady recovery so there’s every reason to feel cautiously optimistic.”

“There are however still a number of obstacles out there facing potential buyers, including securing the required funds, which is why the need to look around for the best deals and get some sound advice in terms of properties and mortgages is now greater than ever.”

The insurer’s annual Cost a Child report found cash-strapped British parents now have to fork out £10,382 a year, £865 a month or £28.44 a day on each of their children. The study also found that 76% of parents said they had been forced to make cutbacks to their budgets due to financial pressures over the past 12 months.

Although the rise in the cost or raising a child is considerably above the increase in average incomes over the last 12 months, it is below the Consumer Prices Index (CPI) of inflation, which fell last month to 4.2%. This year’s total is up from the £211,113 annual cost of child-rearing recorded in last year’s study.

The overall cost of bringing up a child has risen by 55% from £140,000 in 2003 when the insurance firm first published the report.

Education is the biggest drain on parents’ back accounts before their offspring reach 21. The amount mothers and fathers spend on putting a child through school, college and university rose by 5.1% to £71,780 this year. This figure is expected to rise sharply over the next 12 months after university tuition fees rise to up to £9,000 a year. The overall cost of educating a child has risen by 120% since 2003.

Childcare and babysitting accounted for the second largest proportion of spending, up 2.7% to £62,099, while feeding the average child to the age of 21 will now cost parents £18,667, up 4% from last year.

Clothing and holidays cost mums and dads £10,781 and £15,532 respectively. Over the course of his or her first 21 years, the average child can expect to receive more than £4,000 in pocket money, a rise of 23% since LV=’s first study.

The report found that 43% of parents have reduced the amount they regularly save in an effort make up for falling incomes and that only a third have life insurance in place.

The overall cost of raising a child breaks down as follows:

• 1st year – £10,261 – up 2.8%
• Years 1 to 4 – £56,562 (£14,140 a year) – up 2.5%
• Years 5 to 10 – £46,073 (£7,679 a year) – up 3.1%
• Years 11 to 17 – £52,753 (£7,536 a year) – up 2.7%
• Years 18 to 21 – £52,376 (£17,459 a year) – up 5%

Mark Jones, LV= head of protection, said: “Despite an uncertain UK economy forcing more pressure on the family budget, it’s clear that parents don’t begrudge the money they spend on their children, and would rather do without themselves than radically cut back on what they can provide for their children. From studying parent’s spending habits we’ve seen the cost of raising a child steadily increase since our first report in 2003, and this trend shows no sign of stopping.”

Aviva’s Family Finances report found the average British family currently owes some £7,944 in unsecured borrowing, compared with just £5,360 in January 2011. The increase in debt levels is in spite of the fact that the typical monthly net income of families in the UK rose by 7% to £2,066 over the last year, up from £1,937 in January, 2011.

The Aviva report said rising incomes had failed to keep pace with soaring prices for essential items such as food and fuel, even though the increase in average incomes it reported outstripped the rise in the Consumer Prices Index (CPI) measure of inflation over the past year.

Worryingly, the number of families saving nothing each month rose to a record high of 42% over the past year, according to Aviva’s research. The average amount saved by households that do manage to put something by each month fell slightly from £22 in January 2011 to £21 this year. Despite this, the number of families with absolutely no savings at all fell from 33% last year to 30% this month.

The report found average spending in households ‘remained steady’ over the last 12 months, despite rising inflation. Housing remained the biggest monthly outlay for the average UK family, accounting for 20% of typical monthly household incomes. This was followed by food and debt repayment on 10% and 9% respectively. Spending on food has remained unchanged over the past year despite food prices rising considerably, suggesting that families are shopping around to make their budgets go further.

62% of respondents to the study said they were worried about the rising cost of living over the next six months, while 46% said they were concerned about being made redundant. One in ten people were found to be worried by the prospect of continued unemployment, suggesting that those who have been out of work for some time are becoming less confident about their prospects of re-entering the workplace, according to the report.

Louise Colley, Head of Protection Sales and Marketing, Aviva, said, ‘Families in the UK are still very concerned by the rising cost of living and levels of unemployment. While average incomes have increased over the past year, the prices of essential goods and services have also increased, meaning that families are struggling to keep up. Many appear to have acclimatised to this economic environment by shopping around and seeking to minimise their spending in certain areas. However, at the same time there are still a worrying number of families with insufficient savings or large debts.’

Just 869,000 homes changed hands in 2011, 11,000 fewer than the previous year and one of the lowest numbers since modern records began in 1978. Some 1,669,000 homes were sold in 2006.

Analysts blamed strict rationing of mortgage lending, rising unemployment and falling real incomes for the drop in the number of completions. Many first-time buyers are finding themselves locked out of the housing market by nervous lenders demanding deposits of at least 20% and an impeccable credit history.

Last year’s house sales were only just above the 848,000 properties sold in 2009, the fewest exchanged in a 12 month period on record. House sales had started to recover in 2010 when transactions rallied slightly to 880,000.

Geoff Meen, professor of economics at the University of Reading, said, ‘If you have very poor levels of credit availability, for first-time buyers and people moving home, you are going to get low levels of sales taking place,’ he said.

‘You would expect low levels of transactions taking place in any recession as well. Given we have very low levels of new construction activity, new transactions reflect sales of new dwellings, so if you have got low starts and completions you are going to get low transactions as well.’

The Council of Mortgage Lenders (CML) predicts that although total mortgage lending rose last year, the perilous state of the economy and the eurozone crisis could cause it fall back this year. Estimated lending totalled £140 billion in 2011, up 3% from the £136 billion advanced in 2010.

CML chief economist Bob Pannell said, ‘The closing months of 2011 saw stronger mortgage lending activity and housing transactions, despite the fact that short term economic prospects are challenging.

‘There is a glimmer of light ahead for households in that real incomes could stabilise and perhaps even start rising by the end of the year. But, continuing eurozone problems mean that mortgage funding prospects are uncertain, so overall UK mortgage market conditions for the year ahead remain difficult to call.’

The Bank of England has said it expects mortgage lenders to tighten their lending criteria further this year, making it even harder for people to get a mortgage. New regulations designed to stop lenders reverting to the type of behaviour that caused the banking crisis will be introduced by the Financial Services Authority in 2013, which is also likely to have a negative effect on gross mortgage lending.

Adrian Coles, of the Building Society Association, said the fall in the number of house sales could be permanent, ‘This is not just a cyclical downturn where we will see a recovery in a year or two – there are some fundamental changes that have occurred.’

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}

An ICM survey conducted on behalf of the charity found that nearly half of the 1,000 pensioners polled said they turned their heating down when not warm enough in an effort to save money.

The study also revealed that 2 million pensioners around the country are regularly going to bed when they are not tired just to keep warm.

Mervyn Kohler from Age UK was quoted in the Guardian as saying, ‘The figures are stark and show that people have been shaken rigid by the enormous rise in prices we saw in the second half of last year, and for individuals living on fairly straitened incomes, that hike in one of the two essential areas – the other being food – has really put the frighteners on our older population,’

She continued, ‘People who are cutting back on the amount of fuel they are using are jeopardising their health. They are going to end up exacerbating respiratory illnesses; they are going to end up isolating themselves in their own homes, feeling miserable sitting in a cold house without anyone coming round to see them. Because the house is too cold they get depressed.

‘In the end they are actually stoking up costs for one or another bit of our National Health Service as a result of starving themselves of fuel.’

The Age UK study found that 90% of the over-60s questioned were worried about the impact of higher energy bills, while 43% admitted to having turned their heating down when they were not warm enough.

Domestic fuel costs have risen by more than 100% since the beginning of the century, leaving many low-income households to choose between heating their homes and putting food on the table. A recent round of price cuts of around 5% to electricity tariffs by the big six power firms did little to stem the rise of fuel poverty in the UK. A household is deemed to be in fuel poverty if it spends 10% or more of its income on energy bills.

Consumer Focus estimated that up to a quarter of all households in England and Wales had fallen into fuel poverty by the end of last year after a round of double-digit price increases in the run up to autumn.

The coalition has a legal duty to end fuel poverty by 2016.

The study, which was conducted by the polling organisation Ipsos MORI, found that a third of all adults plan to reduce their spending over the next 12 months, as worries grow that 2012 could be as bad as or worse than 2011.

The number of people saying they planned to reign in their spending is up from 19% when the same survey question was last asked in October. Although people are typically more pessimistic about their financial situation in January, the results indicate a growing lack of confidence, despite the fact that a quarter of all survey respondents said they expected to get a pay rise this year.

Some 23% of adults expect their financial situation to deteriorate over the course of the next year, with those on low to middle incomes the most pessimistic, according to the study. The poorest households and those in full-time work were found to be even more likely to say they will cut back, with both groups polling 38%.

Just under a third of respondents said they spent less on Christmas last year than in 2010, while one in five said they would not be able to afford a holiday this year.

Gavin Kelly, chief executive of the Resolution Foundation, said, ‘Families that are already hard-pressed are preparing for yet another very tough year ahead, with a big rise in the numbers planning to cut back spending as well as trying to save and reduce their debts,’

‘Given this gloomy backdrop it’s a real worry that a new round of cuts to tax credits planned for April will further dampen the spending power of low to middle-income families.

‘The longer households cut back on spending, the longer it will be before we see real economic recovery.’

A report published today by the Resolution Foundation said that millions of ordinary Britons are unlikely to see their incomes return to pre-recession levels until at least 2020.

The ‘Squeezed Britain’ report said that low to middle income (LMI) households, which include couples without children living on a gross annual household income of between £12,000 and £29,000 and couples with two children on between £17,000 and £41,000, will continue to suffer over the next eight years while the wealthy prosper. The study also found that Briton’s 5.8 million households earning £22,000-a-year would have to save for a total of 22 years to scrape together a deposit large enough to buy their first home.

The property expert’s monthly survey of the rental market showed that average rents fell for the second consecutive month in December. The fall in prices in November was the first time average rents went down in nearly a year.

Across the country, average rents fell by 0.8% last month to £711 a month. Despite the decline, average inflation in the private rental market stood at 4% year-on-year to the end of December. Total returns for landlords increased to 3.78% last month as property prices started to stabilise, according to LSL.

The firm warned that prices are unlikely to continue their fall as tight mortgage lending and high tenant demand begin to return upward pressure to prices after the Christmas lull. The rental market traditionally dips in the final month of the year, although the decline in 2011 was not as steep as the previous year.

Month-on-month, the largest declines were recorded in the south-east and the north-east, where average local rents fell by 1.9% and 1.4% respectively. Rents in London slipped back for the first time since December 2010. The average rental property in the capital was 0.9% cheaper last month than in November. Over the year, prices rose in London by 5.6%. On an annual basis, rents fell in the north-east and south-west by 1.3% and 1.2% respectively.

David Newnes, director of LSL Property Services, which owns Your Move and Reeds Rains, said, ‘The seasonal relief continued for tenants as rents dipped again in December, but the drop-off was much smaller than a year ago. The rental market was sheltered from the full impact of the seasonal lull by the strength of underlying tenant demand as many prospective renters took the opportunity to move in the run-up to Christmas at a time when the market is traditionally less competitive.

‘With the mortgage market facing challenges from the eurozone crisis and the sluggish wider economy, credit conditions are unlikely to ease significantly in the coming year. As a result, the number of first-time buyers able to secure finance isn’t about to rocket up, and demand for the limited supply of rental accommodation will continue to rise. It won’t be long before rents will resume their upward march.’

In spite of falling rents, arrears owed to landlords rose in December as festive spending put pressure on already stretched incomes. Some 10.7% of all rent was late or unpaid last month, compared with 9.3% in November. Unpaid rent totalled £300m last month, a 12% increase from the £263 million unpaid or late in November.

Newnes commented, ‘The festive season tends to crank up the pressure on tenants’ finances, with spending over the holiday season often exacerbating existing financial difficulties. Despite this, overall rental arrears in December were at a lower level than a year ago. While there are indications that a small minority of tenants are facing increasing arrears, the overall tenant population has coped reasonably well with the impact of higher rents and soaring inflation.

The influx of financially sound, frustrated buyers has helped prevent higher general arrears so far, but as the labour market weakens and wage growth remains lethargic, we expect a steady rise in arrears as the year progresses.’

The fines relate to failings at the insurance firms Direct Line and Churchill – both owned by RBS – where the FSA discovered evidence that staff had altered complaints received from customers. Although the changes to paperwork were described as “minor”, the FSA imposed the fine because the two firms had failed to act with “due skill, care and diligence”.

The files were altered in March 2010 in an effort to ensure that Direct Line and Churchill met strict complaint-handling rules set by the FSA. The regulator requested the files so it could review how they had been processed. Out of a total of 50 complaints sent to the FSA for review, 27 were altered improperly before they were submitted.

Direct Line and Churchill sent a sample of complaints to an external auditor before submitting the files the FSA had requested. They were told that 28% of these were likely to fail the regulator’s assessment.

Tracey McDermott, the FSA’s acting director of enforcement and financial crime, said: “This is a serious breach. The firms’ attempt to ensure that complete files were provided to the FSA backfired. The firms failed to give clear instructions resulting in staff making inappropriate alterations with one individual even forging the signatures of colleagues. The firms’ management did not know what changes had been made or when.

“In this case, the alterations did not impact on the FSA’s ability to do our job. The significant penalty is however intended to underscore to firms that it is of critical importance that material provided to the FSA must reflect the picture as it is – not as they might like it to be.”

RBS itself is still 83% owned by the taxpayer after being bailed out in the wake of Sir Fred Goodwin’s disastrous acquisition of ABN Amro in 2007. The bank was fined £2.8 million last year for failing to deal adequately with complaints from its customers.

The FSA warned Direct Line and Churchill’s customer relations management that:

• A similar failure during the FSA’s review, which was beginning soon, could lead to enforcement action for the firm
• Staff should consider what they might do to ensure that files were in a state that would pass FSA inspection and if that required staff to review their closed complaint files, they were encouraged to do so
• If staff took immediate action and changed things now, this would be an extremely positive result
• Staff found not to be operating to the required standard would face disciplinary investigation
• Staff were reminded that the most important thing was to get the right outcome for customers.

Paul Geddes, the chief executive of RBS Insurance said: “We very much regret the findings of the FSA investigation. Although no customers were disadvantaged, we are very disappointed that we did not meet the standards we expect of ourselves and which the FSA expects of us. We acknowledge the shortcomings identified in the findings and since becoming aware of this issue have taken action to addresses [them] to ensure we avoid such breaches in the future.”

The news came as David Cameron came under increasing pressure to strip Sir Fred Goodwin of his knighthood. The prime minister said he was “sympathetic” to idea of doing so after the disgraced banker was severely criticised by the FSA.

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}

While complaints about mis-sold PPI policies rose to 30,301 in the last three months of 2011, an increase of 57%, just seven out of ten cases were settled in favour of the consumer over the same period. The FOS ruled in favour of complainants in more than nine out of ten cases in the previous three months.

The FOS said the spike in complaints being resolved in bank customers’ favour in the three months to the end of September last year was partly down to the withdrawal of a legal challenge on PPI being dropped the British Bankers’ Association. Many cases that had already been submitted to the ombudsman were then settled by banks before proceedings could begin.

Although the number cases being settled in favour of bank customers fell in the final quarter of last year, it was higher than the 66% success rate recorded throughout the 2010-11 financial year as a whole.

While the amount paid to consumers who the ombudsman finds in favour of can vary considerably, average payouts are around £2,750. In some cases a complainant’s compensation can run to tens of thousands of pounds, according to the FOS.

PPI complaints currently account for 54% of the ombudsman’s workload and considerably outnumber all other types of complaints it receives. Credit cards, current accounts and mortgages between them only accounted 18% of all complaints received by the FOS in the last three months of 2011.

Responding to a question about the number of PPI claims the FOS receives, Natalie Ceeney, chief ombudsman, wrote in the latest Financial Ombudsman Service newsletter:  “The challenges of our PPI workload are unprecedented. The number of new complaints about mis-sold PPI that we are assuming we will receive in 2012/2013 – 165,000 – will account for around 60% of our new cases next year. But we could receive a significantly higher or lower number than this – and there is considerable uncertainty about the volume of these cases in future years.

“Initial feedback from stakeholders suggests that most believe we will continue to receive substantial volumes of PPI complaints for another two or three years. This seems a sensible basis on which to plan, given the size of the PPI market (with up to 6.5 million policies bought annually), the number of PPI complaints (1 million) made direct to banks and other financial businesses last year alone, and the potential extent of detriment to consumers.”

The consumer champion conducted a study in which it asked a group of its members, including a PhD maths student, to undertake a test on how banks calculate the cost of their overdraft charges. None of the participants were able to get all of the questions right. In fact, they only managed to answer seven out of the 48 questions they were asked correctly.

One volunteer commented: “Details on rates and charges should be accessible, be in plain English and in a standard format, so that banks can be easily compared. At the moment you need to be both a detective and have a PhD in maths to work out what you may owe.”

Which? found the amount consumers pay for going overdrawn on their current accounts can vary widely depending on the bank they use. A “small overdraft” lasting two days costs £50 at Nationwide, but just £10 with Halifax. A “large overdraft” lasting 21 days would set you back £150 a month at HSBC, but just £66 at Barclays.

The Which? study looked at the unauthorised overdraft charges of RBS/NatWest, HSBC/FirstDirect, Lloyds, Barclays, Halifax, Nationwide, and Santander.

The charity called on the government to make sure the new financial regulator, the Financial Conduct Authority (FCA), has the powers necessary to tackle excessive and complicated fees as part of its “Watchdog not Lapdog” campaign. The FCA is due to replace the Financial Services Authority by the end of the year.

Which? Chief Executive, Peter Vicary-Smith, said: “While the government has previously announced reforms to tackle unfair overdraft charges, they simply don’t go far enough. It’s extremely disappointing to find that bank charges are still too high, too complex and impossible to compare.

“It’s essential that the government gives the new financial regulator the power to limit these charges and to challenge their complexity. We want to see the new regulator put consumer protection at the heart of everything it does. The regulator must be a strong, open and proactive watchdog that stands up to the banks, not a lapdog.”

Brian Capon, a spokesperson for the British Bankers’ Association, which represents the UK’s major banks, was quoted in the Daily Mail as saying: “The major banks all provide six common charging scenarios on their websites to allow customers to see what charges they may incur.

“They recently announced a package of initiatives designed to introduce more transparency. These include text alerts if the account is getting close to an agreed limit and ‘‘wiggle’’ room so that the customer won’t be charged if they accidentally slip into the red by a small amount.

“Customers will also be able to opt out of overdraft facilities completely so that the account can’t go overdrawn at all.”

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.