Quids in! 38 - Spring 2018

YOUR

FREE

GUIDE TO SMARTER MONEY SAVING

Quids in!

ISSUE 38 SPRING 2018 / WWW.QUIDSINMAGAZINE.COM

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ASK PENNY OUR NEW AGONY AUNT GETS PERSONAL

CHEAT ON ME?

Staying faithful when we’re being ripping off

WIN! WIN! W E I N !

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H OPRA SA WINFREY A force to be reckoned with…

For Creme Egg s, Crosswords an d Questionnaires

The richest African American on earth talks humble beginnings

EXPERT ADVICE ON: ✔SPENDING ✔SAVING ✔BORROWING ✔INCOME

D THE N I H E B S WHAT’

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KNOWING YOU, KNOWING WE

Quids in! poll on the state of the nation’s money

Welcome

● Hundreds of Quids

Many of us are too happy to suffer in silence. It must be the British way but I’m convinced the way to a happier life is to ask for help when we need it.

In my work with jobseekers, I say asking for help is a sign that we're ready for a new role. Employers know things can come up for anyone but they want to know we won’t let anything get in the way of being a good employee. Not seeking out help is only going to end in strife.

And so it is with money.

We launch our new Ask Penny column with a full-sized feature this issue and welcome another money expert to the team. When she’s not answering letters and emails, Penny’s out in the real world helping people to keep on top of their budgets, debts and benefits. So listen to Penny, she knows her stuff.

Talking of knowing their stuff, Oprah has great words of wisdom on money. People who start out with less so often keep their feet on the ground. She sets an example for those who forget the value of what they have.

E L P M AT in! readers responded to our latest reader survey to shine a spotlight on money issues

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Jeff, Editor

he full 2018 survey report will not be completed until early Summer but initial findings warn of shocking hardship faced by lower income households.

More than half (52%) said money worries caused them to feel frightened, anxious or depressed, up from 47 per cent in 2016, and a quarter (24%) felt physically ill, up from 21 per cent. A third (34%) skipped meals and 43 per cent turned

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editor@quidsinmagazine.com

off heating despite being cold.

Readers have poor access to the services they will need to cope, for example with changes to how benefits are paid. The number of people using a regular bank account was down from 60 per cent to 50 per cent. Just a third (36%) saved for setbacks and one in five (22%) had no access to the internet.

“Yet again, our readers have news for the government if they think everyone has what they need to cope with the reforms they’re bringing in,” said Quids in! editor Jeff Mitchell.

The survey has been extended to allow more people to respond. (See page 7.)

In this issue…

ned off heating despite being cold

Ask Penny:

Loyalty Costs:

Oprah Winfrey:

Quids in! agony aunt lends an ear Page 4

Ripped off for being faithful Page 6

“I don’t live to serve money” Page 8

Quids in! magazine

◆ Address 3 Monmouth Place, Bath BA1 2AT. Tel 08456 8049 06 ◆ Editor Jeff Mitchell Email editor@quidsinmagazine.com ◆ Comms Officer Dan Fineman Email dan@ socialpublishingproject.com ◆ Advertising Opportunities Lisa Woodman Email lisa@ socialpublishingproject.com ◆ Copy Sales Lisa Woodman , Rhiannon McNamara, Email lisa@ socialpublishingproject.com, rhiannon@socialpublishingproject.com ◆ Design Joe Burt ◆ Cartoon by Rachel Wotton www.harmfulraes.com © This magazine may not be reproduced in part or full without prior written permission of the publisher 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.

NEWS

LIFTING THE LID ON… PENSION CREDIT single people and £14.99 a week for couples.

Claiming Pension Credit can mean no Council Tax charges, free health benefits, and automatic Cold Weather Payments. For full details from AgeUK, visit qimag.uk/qi38pencred

From April, Pension Credit will go up for pensioners on low incomes. The Guarantee Credit part will boost weekly incomes to £163 for single people and £248.80 for couples. Savings Credit, for people with savings or incomes above State pension levels, will be £13.40 for

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CAMPAIGNERS CRY ON MAN U

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● Demands for Manchester United to play fair on pay

United turning a blind eye to the harsh realities faced by the undervalued low-paid staff it employs, the club seemingly has a bottomless pit to pay players,” said Citizens UK director Neil Jameson.

Sanchez does not even need s Manchester United to play a whole game to earn an signs Alexis Sanchez entire year’s salary earned by for a record £400,000 caterers, cleaners and security a week, campaigners have staff working for the club and called on the club to its suppliers. In 82 minutes, he’ll end minimum wage pay reportedly chalk up £14,625. levels for other workers “As the winter transfer window at the so-called Theatre closes many workers at Old Trafford of Dreams. will be choosing between Citizens UK is on the Alexis Sanchez putting the heating on offensive, supported by the is now getting or a hot meal,” said Rev local MP for Old Trafford, Kate Green. Their goal is for £400,000 a week Ian Rutherford, the Chair of Greater Manchester the world’s richest club to match Citizens. “We’ve heard many stories commitments made by Chelsea, about the real cost of life on low pay for Everton and West Ham to pay all workers at Old Trafford, many of whom staff no less than the Living Wage of are employed directly and struggling to £8.75 per hour. live with dignity.”

“Not only is Manchester

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INSIDE THE

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niversal Credit claimant Garreth Forrest had benefits slashed by two thirds after missing a Job Centre meeting to attend a funeral, the BBC has reported. But behind the headlines is a system that exposes all claimants to similar sanctions.

Universal Credit (UC) claimants must sign a Claimant Commitment, a binding agreement about how they will find a job or better paid work. Signing and not following through runs the risk of a DWP 'sanction' where payments are withheld.

An estimated 350,000 people a year are being sanctioned but campaigners fear this could rocket under UC. Advice agencies say claimants should fully disclose any barriers to finding work and keep a record when asking DWP to change a meeting.

Many appeals are upheld when claimants ask for a 'reconsideration' within a month of the decision. See qimag.uk/ sanctions

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JOIN THE CONVERSATION… “DO YOU IMPULSE BUY? I did quite often til I decided to take all but one card (the one with the least money on it) out of my wallet and leave at home the others. Knowing that I’d have to go back to the shop another day, the urge will be gone, therefore saving money on items I really don’t need. A Jones, Carmarthen

WIN £50

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

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.

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ASK PENNY

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Penny is an award-winning agony aunt and a qualified money adviser, she has been helping people with their money worries for over 25 years. She is founding director at Pennysmart CIC set up in 2009 specifically to provide advice services to social housing tenants.

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Our readers make Quids in! the thing it is, so this issue we welcome Penny to our team to respond to some of your questions direct. If you have a problem, and if no-one else can help, maybe you should just: Ask Penny…

ALL AT SEA WITH THE NET

BANKING ON SAVINGS I signed up for your Readers Club emails and one of the articles said it’s cheaper to pay gas and electric by direct debit. Is that true? It seems unfair. I mainly handle my bills in cash so I know where I am with my money. Sally D, Nottingham

After a tough couple of years I came into a little money so decided to take myself off on a mini-cruise round the Med. I haven’t been abroad for 20 years so need to get my passport renewed but it seems it all has to be done online. I’m 53. Why would I want to start using computers at my time of life? Is there another way? Riccardo B, Cardigan Dear Riccardo, So sorry to hear you have had a tough couple of years. Sounds like just the thing to treat yourself to some R & R! But come on, Riccardo, 50 is the new 40! Try the digital side of life, it might even save you money.

The Office for National Statistics says households who use the internet for shopping and paying bills can be up to £560 a year better off* But if the thought of

applying for your passport online brings you out in hives, the good news is you can still apply for passports at a main Post Office.

The bad news is it will cost a bit more, £9.75 (plus the £72.50 renewal fee), and you might have to allow more time.

Passports are one of a number of services that the government want to provide online. Others include driving licences and benefits. Over time, you will find it harder to get help if you’re not online.

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Dear Sally, That’s right. Often paying by direct debit means you can access the cheapest tariffs. It does seem unfair but having a bank account can give you access to cheaper deals like paying by direct debits or buying online.

Direct debits work well if you plan the dates so you are sure when it comes out and how much money will be in the account. Otherwise, you might get charged for an unplanned overdraft that might cancel out those savings on your energy bill.

If you are worried about bank charges, you could try a ‘fee-free basic account’ to reduce the risk of unplanned charges.

There are other ways to save. If you buy gas and electric from the same supplier, you might qualify for a dual fuel discount. Those receiving pension credit or disability benefits might qualify for the Warm Home Discount Rebate (ask your electricity supplier for details). From April, a ‘safeguarding tariff’ will be extended to any credit meter customers in receipt of this Rebate.

See Money Advice Service info on basic bank accounts: qimag.uk/masbba

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* Source: ONS 2015, National Housing Federation, The Tinder Foundation

ASK PENNY

CAN’T SHIFT THE FEELING Before Christmas I took on extra shifts each week to bring in extra for me and the kids. I just don’t seem to have any more left over than I did before. I hate working harder and feeling like I don’t have any extra.

Thomas M, Musselburgh.

Budgeting: List everything coming in and going out

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Dear Thomas, It can be so frustrating when you work hard and feel it has been for nothing.

When people come to see me, I get them to write two lists. One of all their money coming in and the other all, (and I mean ALL), their outgoings. The ‘Reality Check’ comes when they deduct their spends from their income. Most are shocked when they see how little is left,

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if anything.

There are lots of budget templates online that you can use, have a go. (Try our online budget planner at qimag.uk/ qibudget.)

To get this ‘money left over’ to grow bigger, firstly look for ways to increase your income. Check and claim all the benefits you are entitled to, that you are

WHERE’S THE CREDIT?

What is up with Universal Credit?

After all the delays getting it started, I’m getting loads less than I expected each month and I’m struggling to pay my rent after everything they are taking out. My landlord is on my case and I’m desperate. Simi C, Camberwell

Dear Simi, This Universal Credit (UC) certainly is difficult to get your head around!

There are a number of reasons why you might be getting less and you certainly are not alone.

Request to see your statement of benefits letter on your UC journal or ask your work coach at your local jobcentre. If something doesn’t look right, maybe you can challenge it.

Common deductions from UC include for an advance payment, arrears on rent, or if you have been sanctioned. You can challenge these but if you don’t feel confident, seek help from a welfare benefits adviser, (many sanctions are overturned when challenged but consult an advice agency first).

Your full rent won’t be covered if

not paying too much tax, and consider getting better paid work, if it’s an option.

Now, see if you can get what you spend out on any cheaper, like insurance or energy bills.

Maybe change how you pay for things to get discounts. Or shop smarter, buying in bulk or using cashback websites. The savings quickly add up.

If you’re still making less than you’re spending, or if debt payments are a big part of your outgoings, go GOT A find some QUESTION ABOUT YOUR expert advice.

FINANCES? Ask Penny and maybe you’ll feature in the ne xt issue of Quids in!. Emai l editor@ quidsinmagazin e or write to us at Quids in !, 3 Monmouth Pl ace, Bath, BA1 2AT.

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you have more bedrooms than the government thinks you need, when the Bedroom Tax applies, or if you are affected by the benefit cap. You may be eligible for ‘Discretionary Housing Payments’ so contact your local council.

Check you have claimed all the benefits you are entitled to. Many of my clients don’t realise you have to claim council tax support at local council offices, for example.

Quids in! says Check if there is support you can claim from the government at turn2us.org. They have an online calculator that takes where you live and all your details into account.

Benefits are there to help when we’re struggling, don’t ignore them.

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Y T L A Y O L N E H W . ..

R A E D S U S T COS know but a new report It feels safe to stick with what we r loyalty to energy and ou ls ea rev e vic Ad s en tiz Ci m fro a whacking £1,000 a year broadband suppliers can cost us

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here’s a school of thought that once we’ve found a brand we like, it saves us the effort of trying to find another. We know where we are. Like with a cosy pub, a shop whose clothes fit well or our favourite supermarket.

You’d think this applies to who we choose to supply gas or electricity.

And that our loyalty counts. But that’s just what the big corporates want us to believe.

“I was staggered to see that Scottish Gas (British Gas) demanded £629 to renew my HomeCare 4 agreement which covers my boiler, central heating and plumbing,” one disgruntled customer wrote in to the Guardian newspaper. He dug around and found that as a new customer, the same cover would cost £384.

It doesn’t only apply to the insurance our suppliers sell us but the energy itself too. So many of us are caught in these legal scams that Citizens Advice has launched a campaign to end the ‘loyalty premium’ after finding the cost of staying put can be as much as £987 a year.

Experts generally agree this is a myth.

Prices rise across the marketplace, (partly because big firms follow each other), and if a new supplier increases prices, chances are the old one did as well. Usually, we’re still better off if we switch.

RESPECT OUR LOYALTY Then we asked about using a switching service.

“I won’t use a switching service,” said Rob. “All that happens is you end up on a list and get nuisance calls.”

This suspicion is easy to understand.

Gathering our personal details is big business for firms who sell them on to marketing companies but this should be about to change under a strict new law called the General Data Protection Regulation.

It seems that the fear of being ripped off by switching only

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Corporate companies love us to be scared and just wanting a quiet life

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TAKING ADVANTAGE “Regulators need to take action to reduce the number of loyal customers who pay over the odds,” Gillian Guy, Chief Executive of Citizens Advice, said. “Companies routinely use tactics that take advantage of human behaviour.”

So, what’s wrong with how we behave as consumers?

We asked Quids in! reader Rob why he does not shop around for better deals.

“It’s all a con,” Rob said, a little angrily.

“You change companies and the prices go up anyway. You’re better off staying put.”

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leads to us being ripped off by the suppliers we already use.

Corporate companies love us to be scared and just wanting a quiet life. Ever wondered why they often offer a discount for direct debits?

Back to the Guardian reader’s story: “I had been paying [for my cover] by direct debit which made me a bit lax in checking the renewal quotes and as a result it must have slowly crept up.”

Sometimes the government steps in to protect us. When Centrica, owners of British Gas, recently announced 4,000 job losses, they blamed rules stopping them over-charging loyal customers. While it’s devastating for the workers affected, British Gas are kind of saying the caps will save consumers over 100 million pounds, (assuming each employee earnt the UK average salary).

It’s time to take matters into our own hands when it comes to these legal scams.

As consumers, we should demand more respect for our loyalty and take control if we’re taken for granted. If the best deals are only on offer to new customers, let’s be new customers elsewhere.

Quids in! says

Set a diary reminder to check you’re still on the best deals on each anniversary of starting with a supplier. This is especially important if paying by direct debit, which is best if there’s a discount.

Compare your current prices to what new customers get or do one or two quick checks with other companies and ask your current supplier to match the best prices.

Try a comparison website but talk to Citizens Advice if you’re concerned about scams or not online.

Cake Off winning entry

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Santa had barely finished his rounds when Creme Eggs were back in the shops. It got us thinking… What could our inventive bunch of readers do to jazz them up and make them look too good to eat? Anything goes…

Tell the kids to play with their food and let’s see what the little creative geniuses come up with. Just remember to share the spoils when you win this fabulous food processor, whipping up something even more fabulous (and maybe healthier) for dinner.

The Quids in! Money Survey 2018 WIN £300

Following the shock findings of the reader survey published last issue, (see page 2), we have launched a rolling questionnaire so if you missed the deadline it’s not too late to share your thoughts and put yourself in the running to win a cool 300 quid. It’s online and only takes a few minutes to fill out, sharing your feedback at the touch of a button. Just head to qimag.uk/qitellus Not online but know someone who is?

Ask them to visit the web page above and download and print a paper copy. Then just fill it in and post it back to us Quids in!, 3 Monmouth Place, Bath, BA1 2AT. Your feedback will help us improve this magazine. You’ll be entered into a prize draw and, if you want, you may be asked to take part in further research (often paid).

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COMPETITION GO TO WORK ON AN EGG…

© A Mummy Too

Odds & Ends

HOW TO ENTER:

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Either email a picture of your eggsellent creations to editor@quidsinmagazine. com or post your pic to Quids in!, 3 Monmouth Place, Bath, BA1 2AT. Or upload your picture entry to the Quids in! Facebook page at facebook.com/quidsinmagazine. Don’t forget to like the page to start following us, so you can see the other entries as they appear.

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Entry closes on 4th May 2018.

Full terms and conditions are at quidsinmagazine.com Winner of last issue’s Cake Off competition: Clare Barbary, Hadlow

Sponsored by

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Readers Club CROSSWORD

Missing the crossword? There’s a new one waiting for you online at qimag.uk/qicrossword

✆ QUIDS IN! USEFUL NUMBERS

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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 CREDIT UNIONS Credit unions are not-for-profit organisations that provide bank accounts, loans and savings. They may help people the banks won’t. To find your local credit union call ✆ 0161 832 3694 or visit www. findyourcreditunion.co.uk .

BENEFITS • For unemployment and work-related benefits talk to Jobcentre Plus.

• People with disabilities or carers should contact the 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

DEBT ADVICE For free debt advice and help, contact any of the organisations below.

• National Debtline ✆ 0808 808 4000 www.nationaldebtline.co.uk • StepChange Debt Charity ✆ 0800 138 1111 www.stepchange.org • Citizens Advice www.citizensadvice.org.uk.

In Wales call ✆ 03444 77 20 20 England call ✆ 03444 111 444 • Christians Against Poverty (CAP) www.capuk.org. ✆ 01274 760720

Quids in!

Readers Club Pleased to receive your free Quids in! every three months? Now you can stay in touch all the time with our new Readers Club. Join the growing crowd of money-saving, savvy-shopping, debt-beating, cash-boosting Club members and receive freebies and top tips throughout the year.

Sign up here: qimag.uk/QIClubReg

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IN THE KNOW…

D L U O W T WHA ?

O D H A R OP E L P M SA O e of All Media’ and is th en ue ‘Q e th d lle ca en frey She has be world but Oprah Win e th in an ic er m -A an richest Afric it comes to money… en h w d n ou gr e th has her feet on hoping to earn a little extra for it. When ne minute she was waist she didn’t, she looked for something else high in mud, filming the flash and started work in a store. A few jobs floods flattening her back later – some that paid better, some she yard. The next, she won a enjoyed more – and she was on the road standing ovation for her to what we know her for now.

Golden Globes speech on the treatment “By the time I was 17, I was working in of women. No wonder there are whispers radio, making $100 a week. I would have Oprah Winfrey might run for president. done it for free. And that’s when I made She is a global name, famed as a chat my peace with money.” She aimed to find show host, as an actor and for her work work she would like so much she for charity, but she has her feet would turn up even if they firmly on the ground when it didn’t pay her. “If you comes to money.

Quids in! says can get paid for doing “I’ve always had a what you love, every great relationship with Thinking of finding a paycheck is a bonus.” money,” she explains on new job? See our top her website oprah.com, tips for jobseekers at CHAMPION “even when I barely had qimag.uk/jobsearch It may sound like any to relate to. I never pie in the sky for feared not having it and anyone not in work right never obsessed about what now but as a goal at least, I had.”

Oprah is right. There is no harm in thinking about a job that appeals ROAD TO RICHES to what we like doing. That could be We could shrug our shoulders and talking to people, being outdoors grumble: “Easy for her to say, with her or inputting data into a computer. millions in the bank,” but she remembers Wherever we’re at on the jobs ladder, clearly what it took to come from being if the next step up is a role that born in poverty to a single, teenage matches our personality, it’s more mother to becoming the richest Africanthan the pay packet that will get us up American woman in the world. in the morning.

Aged 15, she was babysitting for “Mrs Oprah says she has ruled out Ashberry’s rowdy kids” and was asked to running for president. Maybe she could tidy the house at the same time. She did, get more things done without the politics.

She already champions causes for less fortunate people and for animals. By S EN AK AW A FORCE 2012, she had donated over $400 million.

Spot the Hollywood stars and “I still know I am not my income,” see the speech that won Oprah a Oprah says, refusing to be defined by her standing ovation at the Golden fortune. “I let money serve its purpose.

Globes at qimag.uk/qioprah But I don’t live to serve money.”

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“I never feared not having mon ey and never obsessed ab o what I had.”ut