Car insurance premiums for millions of motorists could fall by £40 a year following a government crackdown on fraudulent whiplash claims.
Under Ministry of Justice proposals, whiplash injury payouts would be much more difficult to obtain, The Guardian reports. Insurers say the measures will end the UK’s status as the whiplash capital of the world.
The proposals are intended to stamp out a ‘toxic’ compensation culture that has pushed up motor premiums, led to consumers being bombarded with nuisance text messages and calls, and put additional pressure on the NHS.
Michael Lloyd, the AA’s director of insurance, said: ‘AA members are rightly concerned about the upward pressure on the cost of running a car, not least the rising cost of insurance. That there over 800,000 small injury claims registered through the Ministry of Justice small claims track last year, of which 750,000 are estimated to be whiplash injury claims is, frankly, shocking. It’s little wonder that the UK is shamefully regarded as the whiplash capital of the world.’
LISAs
The new Lifetime Individual Savings Accounts should carry a series of warnings to consumers, according to the Financial Conduct Authority.
LISAs are due to launch in April 2017, with the promise of big bonuses for those who use the money to save for a home or retirement. The BBC reports that financial regulator believes there is a danger that some people will not fully understand them.
Buy-to-let
Investors in property face strict new mortgage affordability tests from next year which will spark the ‘beginning of the end of the middle-class buy-to-let dream’, The Telegraph reports.
The Chancellor has announced additional rules on buy-to-let which will result in ordinary investors being able to borrow far less towards their purchase. Philip Hammond indicated he was concerned about ‘financial stability’ following a boom in residential property investment as savers attempt to find profitable places to put their money.
Energy bills
One in three working families have trouble paying their energy bills, The Guardian reports.
As pressure mounts on energy providers to do more to help poorer households move on to the cheapest deals, nearly a third of families say they do not put on the heating even when the house is cold. Comparison website uSwitch said that two-thirds fear cutting their energy use to save money will affect their family’s health.
‘It’s appalling that even families in work are struggling to pay their energy bills,’ said uSwitch’s energy expert, Claire Osborne. ‘Suppliers must play their part by doing all they can to help their customers move to their best deal.’
Broadband
UK broadband companies will be made to change the way they advertise their internet speeds, according to the BBC.
The Advertising Standards Authority says current descriptions of speeds ‘up to’ a certain amount are confusing and will be changed in 2017. However, the UK watchdog has yet to decide how they will be replaced.
Debt
Families with children are more than twice as likely to have been trapped in problem debt as childless households, research by The Children’s Society has revealed.
A survey commissioned by the charity found that one in five families with children in England and Wales have struggled with problem debt in the last year. By comparison, the proportion of households without children who have fallen into arrears with one or more creditors is just under 8 per cent.
The families who have been behind on their debts – a total of 1.4 million – are home to 2.4 million children, and The Children’s Society is deeply concerned about the damaging impact of debt on their lives. In some cases children are going without basics such as food, clothing or heating, as well as suffering worry, anxiety and bullying.
Santander
Thisismoney reports that the amount of cashback on offer for Santander customers with a 123 credit card will fall from February 1 next year.
A new cap is being introduced and customers with the popular credit card, which was scrapped last month and replaced with three new cards, will only be able to earn a maximum of £9 per month. The bank is also raising the rate of interest for purchases to 15.9 per cent from 12.7 per cent for those out of the 0 per cent period on the 123 card.
Property
Gross mortgage lending was an estimated £20.6 billion in October, compared with £20.5 billion in September, the Council of Mortgage Lenders said this morning.
CML senior economist Mohammad Jamei said: ‘Housing market sentiment is holding up well, with demand still strong. This has led to a pick up in approvals, as expected. The more pressing issue is on the supply side, where the lack of private sellers continues to be an obstacle for would-be borrowers. For this reason, we expect lending in the months ahead to be driven more by remortgaging activity and less by house purchases. Remortgaging will be helped by competitively priced mortgage deals, which are encouraging borrowers to refinance.’
In other property news, the Isle of Skye has been named the most desirable place to live by Rightmove. According to The Times, the property website said that the Scottish island, where the average asking price of homes is just under £231,000, came top in a survey of 24,000 people of where they would most like to live in Britain.
The top ten most desirable places were islands, seaside towns and places of outstanding beauty across the UK. Six of the top ten places were in Devon and Cornwall, with all ten in the northwest, southwest, Wales and Scotland.
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