Scottish Power Raises Prices.

Me too, fruity. Let's have a gin and revisit this tomorrow!

Lol Fruits, erm... Feline, you were on here at 2 AM this morning? or is that a site error? :P

Still stunned, Feline, pass the gin... ;-)

I think that is a definite example of good & maybe very lucky timing ace, make the most of it... maybe do the lottery this weekend - you never know lol!

I heard that there were smaller gas and electricity companies starting to pop up. Maybe these are worth a look at too?

The co-op have entered the market, but I think they are restricted as to where in the UK they can offer their service. They work on a single tariff basis where you pay a fixed amount for every unit you use.

The more units you use the more you pay, none of this your first so many units cost this much and if you go over that amount the price goes up to so much...

much clearer billing but might not be cost saving for everybody.

Good post Snoops, I find it interesting to note how many people out there are actually prioritising their monthly outgoings. I have spoken to too many people who get their pay packet each month and the first thing they pay is their credit cards, then their food shop, then their mortgage, and then the utilities.

This is completely wrong in so many ways. Consumer's don't seem to realise that the mortgage should be the priority due to the fact that it is a secured debt and arrears risk the loss of the property. Second priority has to be the utilities, although it is difficult for firms to cut off your supplies, it is still possible. Which make utilities a debt that is secured against your future supply, plus the risk of prison for severe arrears on council tax. Food is a given and people may argue it should go before utilities. But what is so worrying is the unsecured debts. People pay their cards so that they can use them to live off again for the month. When realistically it should be a case of cut the cards up and pay what you can afford to at the end of the month after all other expenses. I have spoken to a few people who have a £50k+ unsecured debt level being fully serviced every month, and yet they are happy with £10k arrears on their mortgage and wonder why they are being threatend with a repossession?

Because the consumer's mind set is wrong, the provider's are losing out on these 'arrears' and are increasing prices to compensate for their increase in costs as well as arrears.

TDX is a company that collects money from debt collection agents for the providers. You'd think the banks would be their biggest contracts, turns out E-on and British Gas are... just shows how screwed this country is...

Snoopy, do you find that the people that come to you with big utility debts are doing things to cut their usage or is it more that they are uninformed or burying their head in the sand? Those seem like extortionately high bills that's all.

Thank you Hetley. The "statements of means" that I complete daily, which mirrors what the courts use, states 'Essentials and priority outgoings' should be, in order of importance ... (1) Rent/Mortgage/Lodgings, i.e. simply keeping your property/home

(2) Council Tax through the threat of imprisonment due to culpable neglect or willfull refusal to pay

(3) Food. As you said, 'taken'.

(4) Clothing

(5) Insurances

(6) Child Mainenance

I have lost count of the number of people who have stated if it's a question of feeding the family rather than paying my council tax, I will feed the family. And to be honest, who can argue with that? We are human beings first, consumers second. Alas, bureaucracy and legislation takes no account of this. But energy companies must be heavily advised by the powers that can that they are not omnipotent business magnates but service providers who must provide a service at affordable and sustainable price points. If the government can make the public sector jump and obey this regime, surely they can do the same with energy companies? Agreed, it's not a public money debate but the money comes from the public none the same ( same pockets, different inference! ).

Lol, Somebody else in the finance / debt industry then I take it Snoops?

I too would choose to feed the family over my council tax every time. But people who are in that situation often won't claim the Ctax credit that they should be entitled to. Alot of it comes down to budgeting don't get wrong, and the cuts in place with wages and increase in pricing and inflation is crippling for just too many families. But I tend to see that the reason it is now so crippling is because the family has become dependant on credit, and everything going through credit cards etc.. they then feel this need to pay the card first because it gets used more? When were we ever brought up to buy things we can't afford and then pay interest on the amount we can't afford, as well as prioritising these luxuries over the roof above our heads.

If people think that having credit cards up to date and arrears on mortgage / utilities is the way they need to prioritise, well it won't be long before they are taking out payday loans. People are paying their mortgages and utilities with credit cards, this is where it all stems from in my eyes.

There does need to be legislation put in place for too many of our markets, which appears to be the issue, the banking industry has taken alot of heat since the recession and rightly so. but others, such as utiity companies have been able to sneak by and not suffer any consequences for their pricing structure being so ridiculous. Nothing was being monitored or restricted during the good years to prepare for a possible recession, a lack of proactive planning leaves us where we are now... I'll deal with it when it happens is a common ruling for this country and too many of its households, unfortunately!

LP ... the people I deal with are, and generally without exception, burying their heads in the sand. Very much like pulling the duvet back over and going back to sleep. The problem with debts at these levels is that the realism of it all can blur into insignificance as say £500 can be targetted but £10,000? Where do I start?

I would never ever prejudice someone's ability to pay rent or mortgage, that will always firmly be number one ougoing. Council tax next ( and the law recognises this ). Utilities have always been a 'middling' liability when it comes to priority and as such you can see where the debt comes from. Most people I see have no conception of how to budget and often have little idea of what they owe and to who. At this point, and as part of the best practice that I have to follow, I will always offer structured advice and help from my colleagues at the CAB. The problem with that is many of them fail to turn up or respond to the advice and budgetting regimes offered. There is charitable help available for utility debts via the CAB but again every case on its merits. And in many cases, there is no answer to dealing with utility debts when the budget only stretches to essentials. That is why i think the planned gas and electric rises do reflect the recession rather than increased production costs.

You go through the exact same process as we do Snoops, we have clients in debt - unsecured loans / Credit cards / mortgage arrears / utility arrears referred to us by the CAB's and are given the task with setting up a plan to help them prioritise their debts and repay them at rates that they can afford. We use the Common Financial Statement guidelines for budgetting and alot of clients are suprised and how much they are throwing away when they see a realistic budget they can live off. They know the debts are there but they don't have the drive to deal with them or the knowledge.

I did some research, and Barclays on average pay out £250-300 million a year in days off due to stress. Tesco pay out about £300-400million. Yet, even barclays don't offer their employees financial guidance at all. And what is more stressful then having a huge amount of debt hanging over you with up to 4 phone calls a day from each creditor?

Fair point I guess Snoopy. That must get really frustrating for you though.

Hetley that sounds like such a sensible idea. I wonder whether it would help as, like you both say, not everyone is willing to listen.

I'll hopefully be heading a big campaign that we will be looking at to promote this idea, so hopefully they will listen lol! We want employers, particualarly those larger corporations with large employee bases (barclays - 147,500. Tesco - 360,000) to actively refer their employees to us through notes on payslips / intranets / employee information so that they are aware they can come to us.

What is annoying with the banks is that they already refer tens of thousands of consumers to us every year, and yet they don't offer that same service to their staff who might/do need the same help.

Probably a very good move, there is no harm in looking into it anyway =]

One to add to the to do list.

I cannot believe Hetley that in this day and age someone would take that on as a 'reasonable' business deal. And effective selling of any contract has to be underpinned by a 'need' or 'want factor'. In this case, it's nothing short of greed on behalf of the house vendor. This is the sort of thing that went on in the eighties and I would have thought that society would have learnt its lesson from that. Even the Mafia have more heart!

I was shocked to say the least Snoopy. Just to clarify, this business venture wasn't anything I have an involvement in, nor where I work. It goes against both my ethics and those of who I work. It was a lawyer who brought it up as they are doing the paperwork for the deal and funding.

I have nothing to do with this sort of thing!

That is appalling, Hetley! Sounds like fraud to me!

I don't think it can be ruled out as fraud, due to the fact that the client who is borrowing still has the choice to try and keep up with the payments, and if the sale of the house does go through then they shouldn't have any real issues apart from the high interest.

I think the lenders are just focussing on the percentage of properties that fall through at exhange of contracts stage and those clients would really have no choice but to default on the payment. Really its a win win for the lender either way - but I know which one makes them more money lol!

I read an article early today on that exact point Parchester, There was a study on those who live off state pensions, and when their gas & electric went up by £7 a month, they also spent just over £7 less on their food shopping. Highlighting that the elderly don't have any free cash at all to be able to deal with a minimal £7 increase to a gas bill without having to cut back on other essentials!

I agree totally, Sabre, perhaps get Age Concern or similar to help organise you. Write to whatsername...Joan Bakewell! Pensioners are going to be the worst affected by this...be revolting! (I mean the revolting in the nicest possible way, you understand!) :-)

Given the increases in all aspects of the cost of living, the government will have to rethink the winter fuel payment and at a time of major cutbacks give serious consideration to increasing this one off payment.

And what about the millions on benefit? How will they cope in the main? Even their weekly cold weather payment needs the temperature to be recorded or forecast at around zero degrees for seven consecutive days ... the government should have been a bookie at those odds!

True, Snoops!