Large Insurance Firm Moves To Enforce Wearing A Helmet On The Slopes

Essential Travel, an arm of the travel company Thomas Cook has made steps to make it the first insurer to insist on skiers wearing helmets if they want to be covered against head injuries.

A spokesman for the company said that the company was aiming for a “no helmet, no head injury cover”.
The move has provoked controversy as many skiers insist that wearing a helmet is over-cautious, the reserve of slalom skiers.

In Italy it is against the law for children to ski without a helmet.

Critics of Essential Travel’s proposal have pointed out that a skiers helmet would need to be seven inches thick and twenty inches wide in order to prevent injury in a head on collision at 30pmph. It would seem that insurers are not looking out for skiers’ best interests but are exploiting regulations to defend themselves against claims.

The Queue For The iPad 2 Begins Thirty Three Hours Before Its Release

The first iPad 2 will go on sale at 5PM tomorrow but one man has already begun his vigil outside the Regent Street Apple Store so that he will be the first iPad 2 owner in the country. Jewels Lewis began queuing at 7.30AM.

The iPad 2 is in fact cheaper to purchase than the original iPad. The iPad 2 starts as £399 for the basic model. As these expensive gadgets become more common, more and more people are considering purchasing gadget insurance.

The average commuter on the train in London may be carrying a phone, tablet computer and maybe even a laptop too. All this gadgetry is fantastic but is also susceptible to knocks and bumps as well as malfunction. We have all seen someone spill their coffee down someone else on the tube.

In preparation for life’s accidents it is sensible to purchase a gadget insurance policy.

Barclaycard Offer Credit Card With 20 Months 0% Deal

Barclaycard had made an offer on their new credit card that outstrips their competitors: The zero interest period on its balance transfer have been extended from 18 months to 20 months. Rival companies had been racing to catch up with Barclaycard’s previous offers, but when they release a similar deal, Barclaycard ups the stakes.

This competition between credit card companies is welcome as it benefits the consumer. However these credit cards are not handed over on request, you must have a good credit rating in order to be granted a card.

If this trend continues the conditions attached to credit cards may become even more favourable to the consumer. One commentator said that credit card companies may begin to offer two year interest free periods in the not so far future. Offers may not stop there as companies compete for business.

Number Of Jobless People In The UK Reaches A Seventeen Year High

Unemployment has reached a seventeen year high according to a recent study. More than 2.5 million people are without jobs at present. Youth unemployment levels have also reached a record high. The number of 16-24 year olds who are out of work rose from 30,000 to 974,000 over the past five months.

Between November 2010 and January 2011, 27,000 more people registered as unemployed: The last time unemployment levels were this high was in 1994.

There are now real worries that more and more families will fall into debt as there simply are not enough jobs being generated to support the population.

The Employment Minister Chris Grayling made the following statement: “There’s been a welcome drop in the number of people on benefits and an increase in full time private sector jobs but the rise in overall unemployment is a real concern”.

It Is Getting Harder And Harder To Get A Mortgage

The number of mortgages that are being granted to house buyers has tumbled by 29.0%, according to a recent survey. Figures produced by the Council of Mortgage Lenders have shown that the slip of 29.0% occurred between December 2010 and January 2011.

This is a gloomy time for the housing market as prices appear to be dropping. The tougher the conditions attached to the grant of a mortgage only knock the market further.

The Council of Mortgage Lenders release the following statement: "With the effects of last year's government spending cuts beginning to bite, and rising inflation and tax measures putting pressure on household budgets, potential house-buyers are likely to have been discouraged".

Some commentators have said that the feelings of uncertainty that surround the UK economy create an atmosphere that flattens both the housing and mortgage markets alike.

Rug Pulled From Under House Prices This Month

House prices have fallen at the fastest rate since 2009. In this month alone prices have dropped by 0.9%. It appears that demand for properties has fallen as fewer and fewer people wish to move, therefore prices have started to head south.


A further problem is that many people cannot obtain mortgages. Banks are reluctant to lend to families with children under the current economic conditions.

Perhaps falling prices will provide an opportunity for young earners to get their foot on the property ladder.

One market commentator has drawn attention to the volatility of the markets saying that observers should not watch sudden changes in the market but should consider the overall market trend. 'We expect this trend to continue for some time to come. It is best to try and draw an overall impression on all the data available relating to both house prices and activity”.

UK Consumers Should Brace Themselves For Price Rises

UK consumers have been warned that they will receive a double hit this year from rising oil and food prices. Vince Cable made a statement that said that these price rises had the potential to put the UK’s economic recovery at risk.


Price rises will also put pressure on families who are already struggling perhaps even pushing them into debt.

There is some good news; the UK fuel duty which was due to be levied by a penny next month will probably be scrapped. The fuel duty has been voted as the government’s most unpopular tax in one recent survey.

Global food shortages have been created by adverse weather conditions especially in the Canadian Corn Belt. The demand for food is growing rapidly yet there is simply not enough to go around therefore prices continue to rise. Corn prices have risen by 70.0% this year alone.

Will Your Insurer Cover The Damage Done By Household Pets?

According to a recent survey, pets have caused around £690 of damage to average UK household over the past year. It is unlikely that many of these people would be able to claim for damages on their insurance as very few insurers cover damage caused by pets.

Out of insurers surveyed twenty nine (incuding some of the market leaders) did not cover pet damage. The explanation for the lack of insurance for pet damage is that the behaviour of pets depends on whether they are trained or not and if they are trained, to what extent, and are thus impossible to underwrite.

Obviously some pets are more likely to cause damage than others: Dogs and cats are not only the most commonly owned pets, they are also prime candidates for causing domestic damage whereas birds and fish and smaller animals do little damage.

When purchasing insurance check the terms and conditions of your policy to see if it covers pet related damage.

London Stock Exchange Shuts Down For Four Hours Due To Computer Glitch

Trading on the London stock Exchange was suspended this morning after a new computer system broke down. The London Stock exchange blamed market data technology for the problems and said that an investigation would be launched to look into the matter.

Traders will not be best pleased by the stoppages, the current volatility of the markets requires traders to be on their toes, not hanging around twiddling their thumbs.

It would be difficult for the timing of these problems to be any worse; the London Stock Exchange has been negotiating a merger with the TMX (the Canadian stock exchange). No doubt the Canadians were not impressed.

This is not the first mishap the London Stock Exchange has had to face recently, trading was suspended in November for three hours and there are rumours that prices were incorrectly displayed on their system last week.

The Co-operative Becomes The Pioneer Of ‘Ethical’ Insurance

The Co-operative has implemented a policy of vetting their investments to make sure that they meet the criteria of their ethical code. The Co-operative Insurance now screens the assets that underpin their business.

The Co-operative will not invest in any businesses that are felt to be unethical; Arms manufacturers, tobacco manufacturers, fossil fuel companies and furriers are not approved by the current regulations. This policy not only governs future investments, it is also retroactive. Eighty million pounds of assets that were considered unethical by the Co-operative have been sold off, and the money has been reinvested.

This ‘operating plan’ is the first of its kind implemented by an insurance company although other organizations with large investment portfolios have drafted similar investment codes. Oxford University has pledged to remove some of its assets from arms manufacturers, although these kinds of investment achieve the greatest returns.

Current Levels of Inflation Result In Savers Losing Money

Official data can be misleading. It is true that the Consumer Price Index has risen to 4.0% this January, and this does not sound disastrous. Take for example, someone paying the basic tax rate with £10,000 deposited in an instant access savings account paying 0.67% interest. He or she earns £53.60 a year: So far so good. However, the saver in fact loses around £400 a year due to inflation.

It is possible to find higher rates of interest than 0.67% but these rates are not increasing at nearly the same rate as inflation. Savers may be relieved by the fact that growing inflation will force the Bank of England to raise interest rates but question is always, when?

Current economic trends hit the elderly hardest. Most pensioners live off a combination of fixed incomes supplemented by savings which are undermined by high inflation and low interest rates.

Which? Appeals To The Office Of Fair Trading Over Extortionate Card Charges

Which? has accused many well known companies from hoteliers to cinemas of charging inflated processing fees on transactions carried out by debit and credit card. Banks charge around ten pence to businesses for facilitating a debit card transaction; however the low budget airline Ryanair charges a five pound each way surcharge on a ticket purchased by debit card. These rip-off charges have been banned in other European countries such as France and Germany while customers in the UK are still being robbed blind.

Previously, the banks have been blamed for these fees but Which? insists that they are not to blame. The fact is the charges do not reflect the real cost incurred by businesses. Which? has submitted an appeal to the Office of Fair Trading, now they must wait for a decision from the OFT to decide whether regulations or even the law need to be changed.

Parents Hit By ‘Child Penalty’ When Applying For Mortgages

Mortgage lenders are giving less generous lending terms to parents with young children than to childless couples. Childless couples can borrow up to 50% more than families with children, even if both families take home the same wages. Mortgage companies argue that the cost of raising children can result in parents not paying off their debts whereas childless couples have fewer outgoings and therefore are more likely to pay back their mortgage.

This kind of client analysis carried out by mortgage companies is a far cry from the practice of fifteen years ago when mortgage companies simply lent a couple a multiple of their combined income – usually three times their salary. These ‘affordability checks’ are all part of mortgage companies’ policy, devised to ensure that mortgages are paid back. A further symptom of this intense client scrutiny is that fewer mortgages are handed out: In the UK around 1500 mortgages are agreed per day as opposed to 4000 fifteen years ago.

House Prices Rise By 0.8% From December

The Halifax House Price Index released this week found that the price of the average home in Britain rose to £164,173 last month. Although this is positive news, Halifax have warned that the 2011 house market is likely to be characterized by consumer caution as the double edged sword of government spending cuts and increasing tax rates will undoubtedly wound consumer confidence.

The prospects of the housing market are inevitably going to reflect the state of the economy at large. The difficult Christmas period is now behind us and there may be a little sunshine just around the corner. Martin Ellis, a Halifax housing economist made a statement that advised that ‘the recent downward trend in prices is causing homeowners to be more reluctant to put their properties on the market. This development should help to relieve downward pressures on prices as long as it is sustained’.

Tough Times Ahead As Food Prices Are Predicted To Soar

The UN Food and Agriculture Organisation has made a statement predicting that food prices will rise to an all time high as supplies of key crops become stretched. In the UK the average shopping bill has increased by 6.1% but this is just a taste of what is to come. One of the underlying problems is the increasing price of corn which is used in animal feed: As the price of feeding livestock goes up so does the cost of meat.

So far British pig farmers have had to bear the brunt of price increases but they are now demanding higher payments from the supermarkets. The National Pig Association warned: ‘Currently there is a shortage of British pork, bacon and sausages. Farmers cannot afford to keep producing it.

It would seem that supermarket prices are unsustainable and they simply have to rise.

Fears Of Double-Dip Recession as UK’s Economy Declines

Data released today has revealed a shocking 0.5 percent decline in UK’s economic growth in the last quarter of 2010, sparking fears of a double-dip recession.

Following four straight quarters of economic growth, today’s figures have come as a huge surprise to economists who had forecast a growth rate of up to 0.6 percent.

The government has highlighted the severe weather during October and December as the reason for the contraction, citing extensive weather related losses in the retail, transport and construction industries.

However, experts have stated that whilst the weather can be considered a factor, the coalition’s spending cuts may also have proved too much for the UK’s increasingly fragile economy.

The UK has seen a 0.5 percent drop in the key services sector as a result of spending cuts, which contributes to more than 75 percent for the economy.

Howard Archer, European and UK economist for IHS Global Insight branded the data as, “a performance far worse than even the most pessimistic of forecasts.”

“This weakness cannot be put down only to the weather,” he claimed,  “It reinforces already serious concern over the economy's ability to grow significantly in the face of the spending cuts and tax hikes that will increasingly bite as 2011 progresses.'

The poor growth rate will now prevent an imminent rate rise, according to analysts, despite the need to offset rising levels of inflation.

Fears of ‘Jobless Generation’ As Youth Unemployment Reaches Record High

The latest employment figures released on Wednesday reveal that the number of young people suffering from the UK’s dwindling job market has reached a record high.

The official figures reveal that almost a million young people between the ages of 16 and 24 are now unemployed, sparking fears of a ‘jobless generation’.

Since 1992 when records began, the youth unemployment rate has risen 20.3 percent, with a particularly sharp rise in the number of 16 and 17 year olds classified as out of work rather than in education or employment.

The slowing economy has been blamed for the lack in job opportunities as well as reluctance by employers to recruit younger workers.  In addition, recent changes to retirement laws are enabling older people to work for longer, leaving fewer vacancies for the younger generation.

Graduates are also finding it increasingly difficult to find work and are being encouraged to undertake voluntary internships alongside their studies.  However, the rising cost of student fees mean than most students cannot afford to work unpaid.

This is compelling evidence of the way in which the last Labour government completely failed a generation of young people,” says Employment minister Chris Grayling.

Ministers claim that the figures have been skewed by the numbers of youth in full-time education seeking part time work.

Interest Rate Hikes Could Cost Households £1800 Per Year

UK Households could find themselves having to pay an extra 1800 per year interest on their debts if interest rates are hiked as predicted.
A study published on Monday by Pricewaterhouse Coopers forecast that the current central bank base rate of 0.5 percent will rise to 5 percent over the next four years, possibly starting as early as June this year.

The news is worrying for UK households who are already struggling from the recent VAT rise, wage cuts and rising costs of petrol, food, clothing and energy.

However, many City analysts believe that a rate rise is necessary in order to curb the escalating levels of inflation as retailers will be forced to lower prices if consumers have less to spend.

Philip Shaw, economist at Investec said that the Bank of England is under pressure to address the inflation issue with both the Consumer Price Index and Retail Price Index way over the government target of 2 percent.

'We were originally forecasting that interest rates wouldn't rise until the back end of 2011 but there is a real risk the Bank of England's monetary policy committee will have to raise rates sooner rather than later to protect its credibility,' Mr Shaw said.

Yet some members of the Coalition and other in the City believe that a sudden hike in interest rates could be extremely damaging to the UK’s economic recovery and put the country as risk of a double-dip recession.

They believe that inflation will automatically drop over the next two years without the Bank of England having to take action.

End To Enforced Retirement As Government Scraps DRA

The end of the UK’s Default Retirement Age will be announced in the House of Commons today, preventing employers from forcing their employers to retire at the age of 65.

The phasing out of the DRA, which currently forces people to stop working at 65, will be revealed in a ministerial statement by Business Minister Ed Davey and will not require legislation.

From the 6 April this year, employers will no longer be able issue compulsory retirement and only those due to retire before 1 October will be forced do so under the DRA.

The new rules mean that by October there should be an additional one million employees aged 65 or over in the nation’s work force.

Whilst the Department of Business claims that the changes will benefit both individuals and the economy, employers fear a greater risk of legal issues such as unfair dismissal claims.

John Cridland, the deputy director general of The Confederation of British Industry told the BBC last month that the scrapping of the DRA could open up a ‘legislative void’.

"In certain jobs, especially physically demanding ones, working beyond 65 is not going to be possible for everyone," Mr Cridland said.

There are also fears that an ageing workforce will result in less job opportunities for the young.

The government will also be outlining a new Pensions Bill today which will see the state pension age raise to 66 by 2020 for both men and women.

Cameron under pressure to curb fuel prices as protest fears mount

David Cameron came under increasing pressure over the weekend to curb the UK’s mounting fuel prices ahead of threats of protests around the country.

Following a double rise from last week’s VAT increase and hikes in fuel duty, the cost of petrol has soared to almost £1.30 per litre angering motorists across and sparking fears of protests at the pumps.

Petrol station bosses also fear that the increase of 3.5 pence per litre will result in more criminal behaviour as motorists fail to pay after filling up their tanks.

Shortly before the General Election last year, Mr Cameron promised to introduce a ‘fair fuel price stabiliser’ which would see fuel duty drop in response to a rise in oil prices. At this time petrol prices were at a record £1.20 a litre.

Over the weekend Mr Cameron spoke about his pledged stabiliser policy stating, ‘We’re looking at that. It’s not an easy thing to put in place, but I would like to try and find some way of sharing the risk of higher fuel prices with the consumer.’

However, he later seemed to back track on his promise when he told the BBC, ‘I don’t want to raise people’s hopes too far because it is a difficult issue.’

John Redwood, former Tory Cabinet minister has publically implored the Prime Minister to introduce the policy immediately and to cut the price of duty to help struggling households and businesses.

It is thought that the Treasury will commission an independent assessment of the stabiliser proposal before any decision is made.