Weekly Money: the news stories that we noticed 29 February to 4 March

4 March

Taxpayers are being sent new tax codes this month ahead of the 2016-17 tax year but it’s essential for all to check them closely. “Many coding notices can be wrong and individuals need to be sure they know what the notice says and why it says it,” advises Chas Roy-Chowdhury, head of taxation at the Association of Chartered Certified Accountants.

He warns that the number of payments that are dependent on your tax band has increased since 2010 - for example child benefit and dividend payments for company directors.

The personal allowance for the new tax year is £11,000 and if your notice gives you a code for more or less than that amount you should contact HM Revenue & Customs at once.

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The energy market is failing as the majority of us are still missing out on savings of up to £400 a year on heating and lighting our homes. That’s according to consumer group Which?

Richard Lloyd, Which? executive director said: “Millions of people are still paying way over the odds for their energy and levels of switching, while increasing, are still woefully low. We would urge all consumers, especially those on a standard tariff with the Big Six, to switch to a cheaper deal today.”

The Competition and Markets Authority will publish the provisional decision of its energy market investigation on Thursday 10 March.

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Pension funds costs and charges should be made clearer, the Financial Services Consumer Panel has demanded.

“Mllions of pension savers are still losing out year after year by paying too much in unseen costs and charges,” said Sue Lewis, chair of the FSCP. It’s calling for underlying asset management and other provider costs to be made more transparent.

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New research confirms what most of us already know, that women are savvier than men when it comes to everyday finances.

BlackRock’s Investor Pulse survey shows 47 per cent of women treat saving money as a financial priority compared with just 42 per cent of men. Women are also noticeably more concerned with day to day financial risks, such as the high cost of living and price rises or inflation.

Significantly, almost a third of women put paying off credit cards or other debts high up on their financial to do list, compared with just a quarter of men.

3 March

Do you rent your home? Is it affordable? The average renter has spent more than £40,000 in the last five years, reckons Shelter. That’s almost the same as the cost of an average 20 per cent deposit needed by first time buyers.

In London, of course, the figure is much higher with the average person renting a two-bedroomed property having splashed out more than £89,000 since 2011.

“It’s no wonder England’s renters feel like they’re getting a raw deal, paying through the nose for something they can never call their own,” said Campbell Robb, Shelter’s chief executive.

“Our drastic shortage of affordable homes is leaving millions of people stuck in their childhood bedrooms in a bid to save money, or in expensive and unstable private renting with little hope of ever saving for a home to put down roots in,” he said.

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Wedding list warning! Some couples are now using their nuptials as an excuse to upgrade their gadgets, according to John Lewis.

Smart TVs, fitness, health products and kitchen gadgets are at the top of the contemporary couple’s list which in some cases top £20,000-worth of goods. TVs costing up to £3,000 are the most extravagant items on lists.

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Ecology has become the first building society in the UK to be awarded the Fair Tax Mark by the campaign for businesses to adopt a more responsible attitude to tax.

The ethical finance pioneer offers a range of simple and transparent savings accounts. The money you deposit is then used to provide finance for projects that adopt environmental building practices, improve the energy efficiency of the UK’s housing stock or promote a sustainable economy.

2 March

Try these pension phrases out for size: “flexi-access drawdown”; “open market option”; “safeguarded benefits”. The three are some of the pension terms most confusing for consumers, according to Citizens Advice.

The charity’s chief executive Gillian Guy points out that pensions can feel like a foreign language for many people. “A small misunderstanding about your pension can lead to a lot of confusion, and mean some consumers don’t get the best option for them,” she warns.

Many have no idea what an annuity is, for instance. But it’s effectively just the name of an insurance policy that gives you a guaranteed regular income for the rest of your life.

The charity is today calling on the pensions industry to clean up its act and make things plainer for consumers. “If the industry got rid of complex language, it would help people get on the right track towards a more financially secure retirement,” says Ms Guy.

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The government’s pension reforms have left millions of pensioners exposed to risks that they do not understand and should not be expected to manage themselves.

That’s the conclusion of a two year study by the Independent Review of Retirement Income which says people need help to ensure that they receive a lifelong income from their pension pot, as well as enjoy the benefits of ‘freedom and choice’.

The report warns “There are now far too many poorly designed and expensive choices of product available at retirement.” It recommends the introduction of a ‘safe harbour retirement income plan’.

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The Government should focus on helping the most vulnerable people get advice at the point of retirement, says insurer LV. It warns of a mis-buying crisis where people are making important financial decisions without adequate support.

“Drastic Government intervention is needed to encourage more people to use advice and ensure everyone is able to access it, not just those who happen to be able to afford it,” said LV.

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Investment funds saw the biggest net outflows from retail investors since the financial crisis, the latest figures from the Investment Association have revealed. Funds saw £463m of retail outflows in total in January, the worst monthly outflow since October 2008 when £493m was withdrawn.

“We’ll have to wait and see if this is a trend or simply a seasonal blip,” said Laith Khalaf, of Hargreaves Lansdown.

1 March

Fed up by being tricked by the small print? So is Business Secretary Sajid Javid. “It seems like everything we buy these days comes with the line ‘Terms and Conditions apply’, whether it’s a train ticket, car insurance or downloading an app,” he says.

He’s had enough and is today launching a review of baffling T&Cs after a Which? report into car and travel insurance found that some small print had more than 38,000 words, longer than Hamlet.

Richard Lloyd of Which? said: “Consumers shouldn’t have to read endless pages of baffling jargon just to ensure there are no nasty surprises in the terms and conditions.”

The Department for Business, Innovation and Skills wants to hear from you if you’ve had a bad experience with small print. Go online to gov.uk and click on ‘Consultations’ to find the call for evidence.

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This month marks five years since the first British cars were fitted with a little black box to monitor how well - or badly - someone drives. The Co-operative’s Young Driver policy was launched in 2011 to reward safer driving. It required drivers to fit a black box into their car which analysed speed, cornering, braking, acceleration and the time of day the car is driven. Those that demonstrated good habits were given money back.

Since then the Co-op has given back more than £7.4m to drivers in their first year of driving. “Keeping communities safe is a priority,” said Steve Kerrigan, head of telematics at Co-op Insurance.

“Offering a policy which aims to improve road safety by incentivising good driving behaviours, and giving driving tips to people who need driving improvement is a positive step to achieve this.”

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There’s a massive pensions gender gap leaving women with half the retirement savings of men.

That’s according to the Pensions Policy Institute which warns that women have an average £7,500 in savings in defined contribution schemes, compared to men’s £14,500.Meanwhile women in defined benefit schemes have £32,000 in pension savings, while men have £62,900.

“This is a sobering reminder of Britain’s stark pension divide,” said TUC General Secretary Frances O’Grady. “Everyone should have the chance of a decent retirement income, not just men in full-time work.”

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With hundreds of pounds of savings on offer, why aren’t more of us switching bank account? Because of inertia and complexity, reckons Bacs Payment Schemes. It says current accounts are confusing because of add-on services and products.

29 February

Resorting to costly credit to cover everyday living expenses can be a dangerous step onto a downward spiral of debt. As interest charges mount, it’s easy to end up needing to borrow more and more until your debt is totally out of control.

So it’s alarming that some four million people are using credit as a safety net, according to new research from StepChange. The debt charity warns that vulnerable people can quickly become trapped by debt because of complex and costly default fees, irresponsible lending and low ‘minimum repayments’.

“People need affordable and sustainable options they can turn to in times of difficulty said Mike O’Connor of the charity. “We must find alternatives to credit, not just different forms of credit, and provide more support for people to save, especially those on lower incomes.”

One solution could be for the government to work with banks and community lenders to develop a microloan scheme for Britain.

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Travelling families will get a boost from tomorrow when the cost of foreign holidays are cut as children under 16 will join under 12s in being exempt from paying Air Passenger Duty in economy class.

The change will offer a family with two children under 16 a saving of £142 to long-haul destinations and £26 off a holiday in Europe.

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There’s a new car registration coming in from tomorrow, As the new ‘16’ plate cars arrive, more than a quarter of motorists say they will be going car shopping in the next 12 months and plan to spend an average of £12,000 on their next motor, according to the AA. Using savings remains the most popular way to buy a car with a third turning to nest eggs.