Paul Lewis: October money news
Electricity bill VAT to be scrapped, plus updates on heating oil and LISAs, and how to create an unhackable password.
Electricity bill VAT to be scrapped, plus updates on heating oil and LISAs, and how to create an unhackable password.
From 1 October, the VAT on your energy bill will be less. On day two of his premiership, Andy Burnham announced he would scrap the 5% VAT on household electricity bills, saving £45 a year for a typical household.
It amounts to a cut of around £2.50 a quarter in the standing charge and a 1.25p cut in each unit of electricity. The change does not apply to gas.
How do we keep the passwords that protect our money memorable but unhackable? Despite repeated warnings, ‘123456’ was found more than 200 million times in a recent list of breached passwords analysed by insurance brokers the Alan Boswell group.
Even ‘password’ was found 50 million times with ‘qwerty’ and ‘admin’ not far behind. Football teams, music stars, and superheroes were also common and easily hackable.
Experts say putting two five-letter words together, using a capital letter or two, adding a number, and replacing a letter with / or ! creates a memorable password which Hive Systems says would take 645,000 years to crack.
More than 1.5 million people use oil to heat their homes. But they are not protected by Ofgem, which regulates electricity and gas. A study by the competition watchdog (CMA) says a new regulator is needed to ensure that prices are quoted fairly, cancellations are handled better, and vulnerable customers are given support. The study was launched after the Middle East wars led to a near doubling of the price of heating oil.
The CMA says it is taking action against suppliers who cancelled contracts and then sold them back to customers at a higher price. Some suppliers have agreed to compensate customers and the CMA says it will take court action to force others to do so.
A Lifetime ISA (LISA) is a subsidised savings plan that should be used towards buying a first home. But new figures reveal that more people paid a penalty for misusing the LISA than put it towards a first home.
The government boosts savings by 25% up to a maximum of £1,000 a year. But if the money is used for any other purpose, a penalty is applied that takes back not just the subsidy but some of the original savings as well. The figures show 129,000 paid that penalty, far more than the 87,000 who used it correctly.
The government is consulting on a simpler and less punitive alternative.
Why settle for less? Switch up your savings with true easy access and a great rate:
In partnership with NatWest, designed for people over 50. Interest paid monthly.
New customers only. UK residents only.
This year, Saga is celebrating an incredible 75 years – and we’d love you to be part of the celebrations. For a limited time only, you can subscribe to Saga Magazine for just 75p an issue.
Receive the next 6 print editions delivered direct to your door, plus 6 months’ unlimited access to the Saga Magazine app – perfect for reading on the go.
Try these simple tips and fixes for Saga’s crossword, sudoku and codeword puzzles.
With the start of the new financial year on 6 April, our money expert explains the changes to your pension, benefits and taxes.
