Credit Action News Round-up (26 August 2011)

Millions missing out on mobile phone savings: Almost 20 million people have never switched their mobile phone provider and are consequently missing out on significant savings, according to Which? Mobile. In a survey the organisation conducted, it was also shown that 5.3 million people spent less on their mobile phone tariff as a result of switching provider. This follows research by the comparison website Billmonitor.com, which found that only 30% of people are using their full minutes and texts, meaning that eight out of ten people are on the wrong mobile phone tariff. Tom McLennan from Which? Mobile noted the vast amount of tariffs on offer, and encouraged people to “shop around, either through a comparison site or by checking out what different networks have to offer”.

Money-off vouchers save consumers £51bn a year: On average, vouchers and websites offering discounts help save the consumer £1,200 a year. According to a survey by Halifax Home Insurance, the amount of Britons using such money-saving methods has increased by 42% as the financial situation has deteriorated, with 90% of the population now looking around for ways to save. A bargain-hunting mentality seems to have swept the nation, with 44% of us sharing discounts with friends, 12% admitting to haggle for a lower price, and 20% refusing to buy things not on offer. It seems that perceptions are also changing, with only 1% of people embarrassed to use discounts, and 0.5% who would look down on those who bargain-hunt.

Rising rent forces 100,000 more renters to flatshare over the past year: The latest research from easyroommate.co.uk, a flatsharing website, has shown the impact of rising rent inflation which over the past year has forced more than 100,000 more renters into the flatshare market. A survey conducted by the website showed that despite 80% of renters aiming to be a future homeowner, 70% said they did not earn enough money for a mortgage, with just 27% of respondents in a position to buy a home in the next three years. Jonathan Moore, a director of the easyroommate website, said that the low level of mortgage lending to first-time buyers had acted as a bottleneck for buyer demand. This has “driven up rents in the wider rental market – driving down affordability for many renters”.

‘Back-to-school’ 2011 will cost parents £27m more than 2010: Per child, parents in the UK will spend an average of £77 on ‘back-to-school’ supplies in the run up to the new academic year. A survey carried out by insurer LV= of 2,000 adults, showed that parents are set to spend £27m more on school supplies this year compared with last, with an expected total expenditure of £736m. LV= has calculated the cost of raising a child until their 21st birthday at more than £210,000; education being the second biggest expenditure after childcare, which totals around £55,560 per child. With the school terms approaching, head of protection at LV=, Mark Jones, advises that parents ‘”try and look beyond the short term and ensure they have suitable budgets and long-term financial plans in place”.

ONS figures show that graduates’ pay premium has fallen: The Office for National Statistics (ONS) has produced figures which show that one in five graduates at the end of 2010 earned less than the average for those educated to A-level standard. Last year, employees with a degree earned around 85% more than those educated to GCSE level, but the statistics show that this gap is narrowing. Those employees with a higher education award earned 45% more than their less qualified counterparts in 2010, compared with 54% in 1993. TUC general secretary Brendan Barbar commented on the figures, saying “the recession has hit graduate opportunities badly, the misuse of unpaid graduate interns has become widespread...It would be a mistake to conclude that the UK is producing too many graduates”.

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