Quids in! 32 Digital Edition

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Quids in!

INSIDE!

Advice on: ✔ Spending ✔ Saving ✔ Borrowing ✔ Earning

The UK’s Number 1 Money Magazine | ISSUE 32 Autumn 2016 www.quidsinmagazine.com

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SAYS ‘NO’

Are the banks turning their backs on us?

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WIN! 18

£50 cash with our super prize crossword

UNIVERSAL

CREDIT

DOPure & Simple

Superstar Dolly talks to us about her humble background

YOUR MONEY

TAKE CONTROL

BE INFORMED

Delays leading to evictions

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They say life’s what you make it, but for those of us who started out without much, that can seem easy to say.

So when Quids in! features celebs with humble beginnings like Dolly Parton, I hope those with talent will be inspired. Break out and put them to use, whatever they may be.

When reading about how banks give us the cold shoulder sometimes because we don’t have much to save with them, we start to see why things are so much harder without wealth behind us.

It’s good to know the government is trying to right this wrong but it’ll be down to a change of mindset by the banks. But let’s face it, they have to go some way to win back our trust.

I’m sick of people making assumptions. Politicians do it a lot, then wonder why the masses vote against them. They take people for granted. But they also meddle with things they don’t understand, changing benefits so we need to apply online, use a bank account and manage rent payments. We’ve introduced our new Universal Credit Watch section to help readers navigate the system but did anyone ask if we wanted UC in the first place?

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Jeff Editor

‘DIGITAL DAWDLERS’ DENIED Millions miss out as world goes online

In this issue…

“I love where I’m from”

Dolly Parton page 8

like Scarborough, and in remote parts of Scotland are worst affected, it says.

According to Senior Consultant, Richard Jenkings, “the ‘Digital Divide’ is a reality”.

He reveals that how people use digital tech has a major impact on how well they manage their finances, shop, pay bills, or interact with organisations and friends and family.

He calls on businesses and the public sector to think more carefully about how they engage people, saying, “a one size fits all approach simply doesn’t work anymore”.

Fancy proving you’re not a dawdler?

Internet beginners can learn to find their way around online by visiting www. learnmyway.com and discovering how to contact family, pay bills, shop around for bargains or find advice on a range of everyday issues.

7.5 million Britons have been branded as ‘digiatal dawdlers’ by credit checkers Experian @quidsinmagazine

Are you a ‘digital dawdler’? If you have yet to embrace the internet then data processing firm Experian might have you down as one of 7.5 million Brits who are.

Research has found about a third of the UK’s residents are ‘digital devotees’, just over half are ‘day-to-day doers’ and the rest are ‘dawdlers’.

It claims those getting left behind do so “either because of old age and a lack of know-how or interest in new technology, or by limited broadband where they live”.

Those in rural locations, seaside towns

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editor@quidsinmagazine.com

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Welcome

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Banking matters 9

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Why the banks are turning their backs on us page 4

Win £50 Our cash prize crossword page 7

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Quids in! magazine

❍ Address 3 Monmouth Place, Bath BA1 2AT. Tel 08456 8049 06 ❍ Editor Jeff Mitchell Email editor@quidsinmagazine.com ❍ Publisher Steve Faragher Email steve@socialpublishingproject.com ❍ Comms Officer Dan Fineman Email dan@ socialpublishingproject.com ❍ Advertising Opportunities Lisa Woodman Email lisa@ socialpublishingproject.com ❍ Copy Sales Lisa Woodman , Rhiannon McNamara, Deborah Colvill Email lisa@ socialpublishingproject.com, rhiannon@socialpublishingproject.com, debbie@ socialpublishingproject.com ❍ Cartoon by Rachel Wotton www.harmfulraes.com Quids in! makes every effort to ensure content is correct at the time of going to print. Readers should take specialist advice where necessary. Quids in! has no political allegiances, and opinions expressed are not necessarily those of the publisher or editor. Any relationship with advertisers or sponsors is always on the understanding that we retain our editorial independence.

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Quids in! magazine is designed to help people understand and manage their money better. It is published quarterly by the Social Publishing Project, a social enterprise.

Quids in! magazine is supported by Aon and Aviva. Aon arranges home contents insurance with Aviva for tenants of social and council housing. Ask your landlord if they have a scheme in place.

BUZZ

The latest news affecting you and your finances

NUMBER CRUNCHED SAVINGS

£1,000

Amount of savings Money Advice Service wants us to have for emergencies

CAPS RISK TO KIDS

New caps will hit 90,000 households As the new benefit caps start to bite, thousands will find themselves in trouble @quidsinmagazine

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Icon made by Freepik from www.flaticon.com

A charity has claimed new, lower benefit caps due from 7th November threaten larger families’ housing and the quality of life of their children.

As many as 90,000 working and nonworking households on benefits or tax credits could be forced to slash spending and consider moving home to balance their budgets, although most on disability benefits (and carers) will be spared.

Alison Garnham, Chief Exec of the Child Poverty Action Group (CPAG) told Quids in! the caps will make it “harder for families to maintain housing security and cover

UC WATCH Universal Credit is coming

One of the largest landlords in the South of England has issued a stark warning to the rest of the UK, claiming at least one in 20 Universal Credit (UC) claimants is at risk of eviction because of delays.

“After two months of non-payment we can apply for an ‘Alternative Payment Arrangement’… but the Job Centre can take

the basic costs of children”.

For households in London, the cap will reduce from £500 a week to £442.31 for couples or households with children and £296.35 for single people Outside London, it will drop to £384.62 for couples or parents with children and £257.69 for singles.

Anything over these amounts will be lopped off benefit payments. If you currently receive more, ask your local authority or landlord if you will be affected. ≠ If you think you’ll lose out, CPAG would like to hear from you. Email testcases@ cpag.org.uk.

JOIN THE CONVERSATION… I get really annoyed by 0870 numbers that charge you money to call them, when all you’re trying to do is talk to a company.

Thankfully, there’ an easy way to get around it, and that’s to use the website saynoto0870.com which lists alternative numbers you can call at ordinary rates.

You just type in your number and up pops the alternative. It’s easy to use and saves you pounds.

Tam Anderson, Glasgow

5%

12-month interest rate you can get if you switch

£50

How much extra money you’d get in a year

Switching bank account has never been easier. The current account switching service guarantees that a move will take place within seven days; millions have made use of it since it its introduction in 2013

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months sorting this out, by which time there are huge arrears and we have to evict,” says DWP Housing Partnership in Dorset.

Tenants are advised to notify their landlord when they move to UC, especially if struggling to cover rent. ≠ Universal Credit will affect the majority of working age Quids in! readers over the next five years. We’ll bring you the latest developments to help you prepare.

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SAY NO TO 0870

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Interest paid by many banks on current account balances

WIN £50

SPOTTED OUR QIMAG.UK LINKS? You can follow up what you read in Quids in! on the net. Simply type the qimag.uk/link into the web address bar on your browser and press 'enter'.

Check out our Dolly Parton playlist at http://qimag.uk/autumn2016playlist

Video of the issue

POST The Editor, Quids In! 3 Monmouth Place, Bath BA1 2AT EMAIL editor@quidsinmagazine.com TWEET @quidsinmagazine.com

Have you got something you want to tell us, or a money-saving hint or tip to share?

Each issue we’ll send £50 to our best letter writer, emailer or tweeter! Don’t forget to include your name and address.

CASHPOINT CRIMES

Warning video from Barclays on how criminals target cashpoint users http://qimag.uk/autumn16vid

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PUT YOUR INTO IT E L P M SA

BANK

Just under half of Quids in! readers don't use a bank account but MPs and landlords are starting to insist we do to receive benefits and make essential payments, like rent. But did anyone tell the banks?

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BY JEFF MITCHELL

furious jobseeker was forced to stomp round five high street banks before finding one that would take his money.

Quids in! reader Del said: “I felt insulted.

It meant so much to me as I was trying to improve my life. Then I had to deal with the fact that I didn’t exist, credit-wise.

“I was told the best thing I could do was to sign on so I could get proof of who I am.

I did and then approached all the banks armed with ID, only to be turned down.”

Lloyds, Natwest, Barclays, Halifax, and

HSBC all said ‘no’. Desperate, Del posed as a customer wanting to get into debt. Then a manager agreed to see him.

“Finally I asked for an appointment on the pretence of wanting to secure a mortgage with Santander. I explained my situation and told him I deserved to be given a chance. It worked. They gave me a basic bank account.”

The government says banks should no longer turn anyone away for a Basic Bank Account. In 2015, it announced it had agreed a policy with all the major banks that no-one would be denied access.

Del’s story, one of millions around the UK, is bad news for politicians as the new benefit system, Universal Credit, depends on claimants having an account to pay into.

“To deny people access to a bank account... is to shut them out of modern society.”

Although the government and the FCA have a role to play in making sure they do, banks could already do more. Better training for staff would mean customers like Del are not instantly told the computer says ‘no’. Research found staff often do not understand the rules set up to prevent fraud and money laundering.

The government is changing the way benefits are claimed and paid and over the next five years millions of people will be moved to Universal Credit (UC). The best option for most people will be to have a bank account to receive it.

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COMPUTER SAYS 'NO' Consumer champion Martin Lewis condemned banks’ refusal to open accounts for everyone. He said insisting claimants open an account to receive benefits when finance firms can still turn them away was “a civil rights issue”.

The Money Saving Expert was speaking in May at the launch of a research report by the Financial Conduct Authority (FCA), the body that regulates the industry, on how finance services keep people out. One of the report’s authors agrees with him: “Martin is right,” Jonquil Lowe told Quids in!. “To deny people access to a bank account, insurance, savings and credit when you need it, is to shut them out of modern society. A civil society does not treat its citizens in that way.”

PAYMENTS IN, PAYMENTS OUT Under UC, claimants of Housing Benefit will also no longer have their rent paid for them direct to the landlord. It will be paid into their bank account and tenants will have to make sure it is paid on time, best done by setting up a direct debit straight out of a bank account. Some credit unions offer services like ‘jam jar accounts’, transferring rent and bills money out when benefits or wages are paid in, keeping cash safe and paid out on a set date.

The majority of working age Quids in!

REAL LIFE STORY

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S readers will be on UC by 2021, yet this year our research found almost half of the worst off (44%) do not use a regular bank account. Banks turned away more than one in 20 of them (6%) for ID reasons like Del.

Halifax say even Top Cat could ge from them but banks turned downt a mortgage Quids in! readers wanting a simple one in twenty bank account

NO FEES, NO OVERDRAFT The Money Advice Service (MAS) guides people on finding a bank account. One option they recommend for people struggling to open a regular account is a fee-free Basic Bank Account. Michael Royce from MAS explained: “If you have a poor credit history, you may not meet the requirements for a regular account. If so, it might be worth

t Account)

ren ∞ Santander (Basic Cur t Account) ∞ Barclays (Basic Curren ount) ∞ HSBC (Basic Bank Acc oup, incl. Bank Gr g in nk ∞ Lloyds Ba and Lloyds of Scotland, Halifax (Basic Account)

enough money in your account to pay Direct Debits, you won’t be charged. But you will still need to find money to pay the people you owe and you may face a charge from them for missing the payment.”

For Del, having a bank account was about more than having somewhere to stash his hard-earned cash.

“Spending three months trying to open an account prompted me to learn about money, saving, investments – how to make money work for you. I now save regularly and never live beyond my means.”

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BANKS SIGNED UP TO OFFER FEE-FREE BASIC BANK ACCOUNTS

thinking about a fee-free basic bank account. Nine major banks and building societies offer these.” (The panel below left lists the banks involved.)

“To open one, you shouldn’t have to pass a credit check but you must be able to prove who you are with an official form of ID, such as a driving licence or a letter from a government department.

“Basic bank accounts have most of the features a regular account has, except for an overdraft.

“Fee-free means that if you don’t have

“I felt insulted.

It meant so much to me as I was trying to improve my life" Quids in! reader Del

tWest, Royal ∞ RBS Group incl. Na Ulster d Bank of Scotland an England/Wales, Bank (Basic Account in rthern nd/No

Scotla Foundation Account in Ireland)

Bank Group, ∞ National Australia d Yorkshire an le da es incl. Clyd ount) Acc Banks (Readycash sic) ∞ Nationwide (FlexBa Bank (Cashminder) ∞ The Co-operative ∞ TSB (Cash Account)

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HOW EASY IS IT TO LOSE £180? VERY. JUST DO NOTHING.

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Ahhhh, lie-ins. What’s cosier than an extra 20 minutes in the morning? Or a lovely hot bath?

But what if that time was worth money?

Giving up that me time just once could save enough to heat the water for a bath a day for a year. Not so relaxing now, is it?

Once you have the details to hand, it takes five minutes to see how much you could save.

Quids in! switch does not ask for your contact details before showing you results.

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All you need: ✔ Name of your current supplie r(s) ✔ Name of the type of tariff(s) you have (eg, Standard) ✔ How much you use (kWh) per year or how much you pay per month or year

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Visit www.qimag.uk/qiswitch or call Freephone 0808 1788 170 See www.qimag.uk/EnergySwitch for advice on switching

Quids in! switch Switch your gas and electricity

Odds & Ends

WIN!

The page that has all the bits that don’t fit anywhere else!

PRIZE CROSSWORD

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Win £50 cash

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Enter online at qimag.uk/crossword or simply complete HOW TO ENTER the crossword and pop it in the post to us. Don’t forget to include your name and address. Send your completed crossword to £50 cash, Quids in!, 3 Monmouth Place, Bath BA1 2AT. Or you can enter by taking a pic of your completed crossword and sending it to editor@ quidsinmagazine.com. Closing Date 30th November 2016. See www. quidsinmagazine.com for terms and conditions.

ACROSS 1 Natives of Australia (10) 6 Holds your foot on (5) 7 Foe (5) 9 Give someone a job (6) 11 German wife (4) 13 Ancient south-american

civilization (4) 14 Important person (3-3) 16 Raw fish and rice, Japanese style (5) 17 Fool (5) 19 Someone who prays in church (10)

✆ QUIDS IN! USEFUL NUMBERS LOAN SHARKS The National Illegal Money Lending Team tackles loan sharks. To report a loan shark anonymously you can call them 365 days a year on ✆ 0300 555 2222, text LOAN SHARK and your details to 60003 or email them at reportaloanshark@ stoploansharks.gov.uk.

In Wales call ✆ 0300 123 3311or send an email to imlu@cardiff.gov.uk

Disabilit y Benefits Centre (✆ 0345 605 6055) and for Child Benefit and tax credits call Inland Revenue (✆ 0845 300 3900).

• Council Tax and Housing Benefit is dealt with by your local council.

• Pensioners should call the Pensions Service (✆ 0800 99 12340).

• Free benefits calculator www.entitledto.co.uk

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Enter the prize crossword for a chance to win £50 cash

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DOWN 1 Professors, lecturers, researchers (9) 2 Great tree (3) 3 Keeps stuff cool on the go (3-3) 4 Pops into your head (4)

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Hair above your eyes (7) Kid (9) Famous Spanish artist (7) Brief beachwear (6) Rubbish containers (4) Mischievous little devil; witches’ familiar (3)

THE QUIDS IN!

SIMPLE COOKING COURSE

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DEBT ADVICE For free debt advice and help, contact any of the CREDIT UNIONS organisations below. fornotare Credit unions • National Debtline profit organisations that ✆ 0808 808 4000 www. , unts acco bank ide prov nationaldebtline.co.uk They loans and savings.

• StepChange Debt Charity may help people the banks ✆ 0800 138 1111 l loca your nd fi won’t. To www.stepchange.org credit union call ✆ 0161 • Citizens Advice 832 3694 or visit www. www.citizensadvice.org. .uk. n.co unio edit findyourcr uk. In Wales call ✆ 08444 77 20 20 England call S EFIT BEN ✆ 08444 111 444 and t men • For unemploy • Christians Against work-related benefits talk Poverty (CAP) .

Plus e entr to Jobc www.capuk.org. or ies • People with disabilit ✆ 01274 760720 carers should contact the

7. ‘Cheats’ Pesto

Although it sounds a bit posh, the word ‘pesto’ is simply italian for ‘paste’. While the original may feature pine nuts, we’ve replaced them with peanuts to make a much cheaper, but just as tasty, version.

SERVES 4 COSTS £0.98

INGREDIENTS

• 50g of roasted, salted peanuts • Handful of basil leaves • Small clove of garlic • Small cup full of grated cheddar • Olive or vegetable oil METHOD

1. If you’ve got a blender you can just chuck all the ingredients in and whizz them up. If not, smash the peanuts to bits with a rolling pin or bottle while still in their packet, chop the basil and garlic as finely as you can and mix them all together in a bowl with the cheese and oil. You’ll need just enough oil to combine everything.

ALTERNATIVES. You can use any nuts you have to hand – brazil nuts, walnuts, even cobb nuts off the trees all make a lovely pesto. If you think the raw garlic will be too much for you, then cook it first (fry, poach or simply microwave!), or even just leave it out altogether.

Mix into a big bowl of pasta. Also tastes great with tomatoes, boiled eggs, tuna, in sandwiches…

Visit www.quidsinmagazine.com for more recipes and cooking ideas

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IN THE KNOW…

DOLLY

Pure & Simple E L P M SA

“I may not be pure, but I’m as simple as they come.” Dolly’s new album takes her back to her roots

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t was classic Dolly. As she strode to the centre of the stage for the first date of her new Pure & Simple tour the 70-yearold superstar joked with the audience “I need the money, because it costs a lot to look this cheap.”

Dolly has always known the value of money. The daughter of a tobacco farmer, she grew up in a very poor household in the Appalachian mountains, one of 12 children surviving on her father’s small paypacket.

‘I WAS ALWAYS DETERMINED’ “We always made jokes and said we didn’t even know we were poor till some smart aleck up and told us,” Dolly told Quids in!. “We didn’t have any money, but we were rich in things that money don’t buy. You know, like love and kindness and understanding.”

And Dolly credits that tough start to life with making her the person she is today: ”I think my childhood made me everything I am.

No matter how poor and dirty we might have been I’ve always loved being where I’m from.”

Dolly was only 12 when she

started performing, and before long she was on her meteoric rise to superstardom. Her mother wasn’t surprised. “Momma saw it in me. She thought, ‘Well, if anybody is gonna do what they say, it’s gonna be her.’ Because I was always very determined.”

BACK TO HER ROOTS Dolly has made the story of her young life into a film, The Coat of Many Colours – also the title of one of her best-known songs. The song is about wearing a dress her mother made her out of scraps of clothes and how Dolly was teased at school. “Momma was handy with a needle and thread. Useful with a bunch of scraps or whatever. She remade and sewed everything. We were always wearing hand-medown dresses.”

And now Dolly is off again, with a new album called Pure & Simple that goes back to her songwriting roots, and a Greatest Hits collection to go with it. “I have to be careful how I say that last one,” quips Dolly. Classic Dolly again.

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DOLLY’S IMAGINATION LIBRARY

inspired by him to create Dolly’s dad couldn’t read, and she has been er of children a free book her imagination library which sends a numb Dolly’s every month for them to read. To find out if not you or library operates in your area and whether ary.com qualify please visit http://uk.imaginationlibr

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“We didn’t have any money, but we were rich in things that money don’t buy”