Paul Lewis: February money news
The energy price cap has changed, house movers could be automatically disconnected and there's a new official way to check whether a financial firm is regulated.
The energy price cap has changed, house movers could be automatically disconnected and there's a new official way to check whether a financial firm is regulated.
The cost of boiling the kettle rose by more than 5% on 1 January. In contrast, the price of each unit of gas you use to heat your home fell by 5.6% on average. Standing charges – the sum you pay just to be connected – also rose by 2% or 3%. The exact changes depend on where you live.
Overall, a typical household might see fuel bills barely change. But those who rely on electricity for heating will feel the difference. The figures relate to the maximum which energy firms can charge under the price cap in England, Scotland, and Wales.
If you are on a fixed rate that won’t change until it ends. The price cap does not apply in Northern Ireland.
Former prince Andrew Mountbatten Windsor turns 66 on 19 February. He was in the Royal Navy from 1989 to 2001 and that has earned him the right to a state pension, albeit a reduced one.
The calculations are complex but my spreadsheet shows he would get just over £135 a week. But he could boost that to more than £174 if he bought extra National Insurance contributions.
Buckingham Palace said "it is up to him" whether he claims, but confirmed that his 77-year-old brother King Charles III does claim his pension and gives it to Age UK.
Electricity and gas suppliers will get the right later this year to disconnect people who move house but do not sign up to a new provider within a week or so.
They will be switched to a prepayment service with probably about £30 in credit and when that runs out the power stops until they find a provider. The new arrangements only apply if the house has a smart meter.
The regulator Ofgem says that more than £1 billion of bad debt is due to people moving but then not finding a new provider.
Checking if a financial firm is regulated has been made easier by the Financial Conduct Authority. Just enter a firm’s name in its new Firm Checker and it will show if it is regulated and what it is allowed to do.
However, it does not reveal whether it is independent (big tick) or restricted (not so good).
Never use a firm that is not regulated, as your money will not just be at risk, it may actually disappear.
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