Category Archives: Money & work

The UK Economy Has Flatlined. So What Does That Mean For Your Finances?

Posted on by
Reply

The UK just managed to avoid falling into recession towards the end of last year.

After shrinking for one quarter, it (ever so slightly) jumped back between October and December by just…not growing at all.

Chancellor Jeremy Hunt said this was a sign “our economy is more resilient than many feared” – but warned that we’re still not “out of the woods yet”.

It’s also worth noting that Friday’s data – which has helped experts decide if we’re in recession – is only the first estimate. These numbers are often revised later.

But what does all this mean?

What has just happened to our economy?

Data from the Office for National Statistics (ONS) said the economy recorded zero growth between October and December.

According to the ONS’s director of economic statistics Darren Morgan, it comes down to a few different factors – including strikes.

“Public services were hit by fewer operations and GP visits, partly due to the impact of strikes, as well as notably lower school attendance,” he said.

“The break in Premier League football for the World Cup and postal strikes also caused a slowdown.

“However, these falls were partially offset by a strong month for lawyers, growth in car sales and the cold snap increasing energy generation.”

Across the whole of 2022, the economy did grow by 4%, despite the cost of living crisis squeezing household incomes.

UK quarterly economic growth (GDP)

PA Graphics via PA Graphics/Press Association Images

UK quarterly economic growth (GDP)

What is a recession?

A recession is defined as two consecutive quarters (so six months in total) where the economy shrinks. This is also known as a decrease in the value of goods and services we produce, Gross Domestic Product, or GDP.

If GDP declines in value people’s income tend to fall.

In the third quarter of 2022, July to September, the economy did shrink by 0.2%. But because it didn’t shrink again the next quarter, we’ve just missed out on meeting the criteria for a recession.

The last recession was in 2020 at the height on the pandemic, but it only lasted for six months, although it did see a 20.4% reduction in the UK economy between April and June in 2020 though – the largest on record.

Before that, the 2008 global financial crash went on for five quarters.

Why is 2023 still expected to feel like we’re in recession?

Even if we don’t meet the technical definition for being in a recession right now, experts believe that it will very much feel like the country is in a period of negative growth already.

After all, the UK is still the only G7 country which now has a smaller economy than it did prior to the pandemic.

And experts at the International Monetary Fund (IMF) still expect the UK to be the only G7 country to fall into recession this year, and set to perform even worse than Russia.

And 2023 is still set to feel like a recession for many, according to an economist at National Institute of Economic and Social Research (NEISR).

“A focus on the economic crisis faced by most of the British population, rather than technicalities, offers a more insightful perspective,” NEISR’s Paula Bejarano Carbo told POLITICO.

One in four UK households (potentially seven million families) will not be able to fully pay off their food and energy bills in 2023 – that’s an increase from one in five last year, according to NEISR.

So how would a recession affect you?

The job market

Recessions usually trigger companies to let more people go, as consumers spend less and businesses have to adjust their margins.

This pushes unemployment levels up.

Employers may also reduce workers’ hours, cut wages, pull back on bonuses and financial incentives or introduce a hiring freeze to an effort to reduce their outgoings.

The stock market will probably struggle too. As people tend to send less, companies report lower earnings, investors consider liquidating their stocks.

Consumer buying habits

Everything becomes more expensive in a recession – and inflation is already at a 40-year-high of 10.5%.

The Bank of England has been increasing interest rates in recent months in an effort to decrease the double-digit inflation. That means the price of borrowing increases.

So your credit card balance will also come with higher payments, and anyone looking to secure a mortgage will likely only be offered more expensive deals.

Only if you have a fixed rate mortgage will your monthly payback stay the same.

So lenders may want to think twice before letting people take out loans, which could affect people’s ability to go after large purchases.

Government spending

More economic growth means the government usually gets more money in taxes.

It can then spend more on benefits, public services, government workers wages or reduce taxes – but this can equally all be negatively affected if the economy shrinks too.

How can you prepare for a possible recession?

The Office for Budget Responsibility (OBR) still expects the economy to shrink by 1.4% in 2023, with the recession causing an overall drop of 2% in GDP.

Although it is expected to grow again by 2025, it’s still best to prepare now.

  • Pay off your debt sooner rather than later – interest rates are expected to continue rising this yer
  • Save, if you can, in the event of sudden redundancy
  • Try to secure multiple sources of income
  • Look for a recession-proof career, if possible.
Share Button

January Is Notorious For Job Layoffs. Here’s To Manage The Anxiety

Posted on by
Reply

January marks the start of a new year and many fresh beginnings – but it also kickstarts a grim month of layoffs.

In the first week of January alone, Amazon, Vimeo and Salesforce disclosed plans for mass layoffs. In a letter to employees, Salesforce CEO Marc Benioff said the company is cutting 10% of its workforce, explaining it had “hired too many people leading into this economic downturn we’re now facing.”

Over the last 10 years, January has been on average one of the most common months for layoffs, according to the US Bureau of Labor Statistics data. The reason is largely calendar-driven, experts say.

“We often see quite a bit of layoffs in January,” says Sarah Rodehorst, co-founder of Onwards HR, a company that helps businesses conduct layoffs.

“As they analyse their data from the last year, what budgets they have going forward, they really are planning strategies for the year, so there’s often a lot of restructures, reorganisations.”

Rodehorst says she is seeing an uptick in layoffs for the tech, retail, banking and insurance industries in the new year. If a company in those fields hasn’t made an announcement, she says, “chances are there is some planning happening.”

Another reason could be that many bonuses are typically awarded in January, too. “That’s a time when you also give bonuses, and so if you are trying to be mindful and not particularly ethical about who gets those and how much they get, some companies may try to take advantage of this” and lay off eligible employees instead of giving them their bonus, says Sandra Sucher, a professor of management at Harvard Business School who has researched layoffs.

If you’re worried about losing your job this month, that can send you into a spiral of panic and deep anxiety. Take a deep breath and plan accordingly. Here’s how to deal if you know or suspect a layoff is coming.

Recognise first that these intense feelings are totally normal

Losing a job is among the most psychologically stressful things we ever go through. One study asked 112 professionals to do a retrospective checklist of their most stressful life events, and losing a job as head of the household ranked above divorce, hospitalisation due to illness or injury and the death of a close friend.

Something that can help alleviate the anxiety? Focusing on what you can control instead of worrying about whether you will be laid off on some uncertain date. The decision to lay you off may have already been made weeks ago, so Gregory Tall, a workshop facilitator who coaches managers, does not recommend “working your tail off” in an attempt to be spared.

If you have heard rumours about layoffs coming, Tall instead advises assuming that you will be laid off and planning for that future. “It’s easier to cease all preparations than to begin all preparations if you don’t,” he points out.

Calculate your finances and document what you want to save now. This is the time to calculate and save for your emergency fund. Tall says to ask yourself, “Am I immediately in trouble? Because if so, I need to think right now about how to generate income.”

And while you have a job, save client testimonials and past performance evaluations that will aid you in a future job hunt. If you believe you may lose your job for discriminatory reasons, legal experts advise documenting everything now so that if you are suddenly let go, you can be prepared to take your evidence to a lawyer.

Reflect on what you’re good at and what you want to be good at. Losing a job can also be a time to reset and do a career pivot. If you do not know what you want to do next, Sucher recommends take a week or two to note which company stories interest you, what industries they are in, and what it is about them that interested you.

And if you have trusted colleagues, try asking them about your strengths. When she was contemplating a career move from Fidelity Investments to the faculty at Harvard Business School, Sucher says she asked trusted co-workers, “What was I good at?” to get insights that were helpful and sometimes surprising.

This exercise can also be a much-needed boost to your confidence.

“If you do get laid off, that is an assault to your ego,” Sucher says, noting that questions of “Why was I chosen when they weren’t?” are painful, regardless of how quickly you find your next job. “The people who do best at recovering from layoffs are people – and this is demonstrated from research – who have a positive mindset and they don’t blame themselves for the fact that they got laid off.“

See it as an opportunity to job-hunt. Although January is a month with heavy layoffs, it’s also a month where you are more likely to get a new job, too. Rodehorst says it’s the month where companies make the most new hires.

“A company that may be having layoffs may also be hiring in other areas,” she says, adding later that, “It’s the month with the highest level of change. The hiring and firing side, just as companies look to restructure their organisation and plan for the future.”

Share Button

How To Pull Off A Therapy Session In The Middle Of Your Workday

Posted on by
Reply

Just as you take care of your physical health, therapy is an important aspect of taking care of your mental health. Making a therapy appointment can be a tricky task, especially if your therapist’s schedule overlaps with your workday.

It’s normal to experience a range of intense emotions following your therapy session. Understand that it may seem tough to transition back to work if you’re feeling emotionally and mentally drained. There are also a few ways to make going about your to-do list a little easier post-session.

If you plan to schedule your appointment during work hours, aim for a day when your workload may be lighter and you can work from home, if possible. Moreover, try to block some additional “transition time” in your schedule for after the visit, says Katie Duke, a nurse practitioner on the health care advisory board of the Figs clothing company in Santa Monica, California.

If you have the appointment on a busier workday, it is also helpful to inform your therapist if there are any important meetings that are happening after the session so that the therapist can also be mindful about tailoring what is talked about in the visit, says Alyssa Mancao, a therapist and founder of Alyssa Marie Wellness in Los Angeles.

Mancao also recommends being aware of time so you can spend the last 10 minutes of the visit on coping techniques to transition back to “work mode.”

And if you need a little extra help beyond that, here are a few expert-approved tips on how to pull yourself together after therapy if your appointment is during work:

Go for a walk

Mancao recommends going for a 15-minute walk after your therapy session to help calm your nervous system and transition your mind from being in “therapy mode.”

Take some time to get some fresh air and go for a walk outside or make a few rounds in your office building, if possible.

Try a quick breathing exercise

Deep breathing is a practice that helps cultivate mindfulness, aka. the ability to be present. Mindfulness can help calm your busy mind, improve your mood and reduce any stress you may be experiencing.

“Taking slow, controlled breaths that engage the diaphragm sends signals to our brain to evoke calmness and relaxation,” says Andrea Elkon, a psychologist with Best Within You Therapy & Wellness, based in Atlanta.

She recommends trying the following diaphragmatic breathing practice:

  • Aim to count to at least four as you inhale, imagining your diaphragm as a balloon filling with air
  • Exhale for at least another four counts, releasing all of the air
Taking a moment to unwind after your workday therapy session will help you better jump back into your tasks.

Westend61 via Getty Images

Taking a moment to unwind after your workday therapy session will help you better jump back into your tasks.

Give yourself a little pep talk

If you’re feeling especially overwhelmed or drained after your therapy session, understand that it is completely OK to feel this way. Don’t be too hard on yourself. Don’t let your inner voice criticise you.

“Instead, remind yourself that seeing a therapist is one of the best investments you can make for your mental health and well-being. Shift your focus on how seeking therapy has made a positive difference in your life,” Duke says.

Engage your senses with a distraction

When you focus on your senses in the present, it will shift your attention away from the painful memories and emotions that therapy might trigger, Elkon says.

To engage your senses, try activities like colouring, rubbing lotion on your hands, playing with a fidget toy or drinking a cup of hot tea or a very cold drink.

Nourish yourself with a snack

If you scheduled a therapy appointment during your workday, make sure to have a snack and water on hand after the session.

“Your body will likely have a stress response to the therapy session, leaving you feeling depleted, and having a healthy snack with some water is a way to nourish yourself,” says Kristin Meekhof, a therapist and author of A Widow’s Guide to Healing.

Jump into your to-do list or plan an event

It may be comforting to feel in control by tackling some items you’ve been putting off.

“Engaging in some sort of task that involves your thinking or planning brain will quiet the emotion centres and help you feel centred in the moment,” says Neha Chaudhary, a psychiatrist and chief medical officer of BeMe Health, a mobile mental health platform.

Chaudhary recommends drafting an email to someone at work (but not sending it!), writing down a grocery list or meal plan for the week, or thinking about the next place you want to travel and what activities you would do there.

Take it slow when going back to work

It’s normal to feel like you need to occupy your mind with work-related things immediately after your therapy appointment. However, be sure to not ignore any emotions you may be feeling.

Take slow steps as you start completing your work duties, and keep a journal handy to write down any of your thoughts and feelings as they come, says Regine Muradian, a psychologist based in California.

“Give yourself some grace, and remind yourself that you don’t need to finish everything today,” she says.

Share Button

Christmas Pay Dates Are Screwing Us More Than Usual This Year

Posted on by
Reply

With both Christmas and New Year’s Day falling on a Sunday this year, the following Monday and Tuesday become bank holidays – which means the day you get paid will be moving.

The majority of companies opt to move their December pay date forward in this situation, which can feel like a real festive treat for employees at the time.

But come January, when you’ve potentially had 40 days or more between pay cheques, the disruption to your usual budget can really hit hard.

Every year when this happens, you’ll see tweets on social media with people joking about January pay day feeling a million years away.

But with the cost of living so high this year and people’s finances already at breaking point, for many households this will be no laughing matter.

All this means that preparing for the inevitable Christmas pay gap is even more essential than usual.

If you’ve already been paid this month, try to avoid using those early funds to pay for last-minute Christmas gifts and extras that aren’t essential.

To help with budgeting, Mat Megens, CEO of money-saving app HyperJar, recommends dividing your December salary into five as soon as it hits your account.

“If you’re used to a monthly salary lasting four weeks you can come unstuck when you’re paid earlier than usual in December,” he tells HuffPost UK.

“So make sure you divide what you have by five (depending when you’re paid) – not four – to get you through to that next pay cheque at the end of January.”

If you receive Universal Credit alongside your salary, a shift in pay date can also change the benefits you receive – something to factor into any budgeting.

Anna Stevenson, senior benefits specialist at the charity Turn2us, explains: “Unfortunately, if you’re on Universal Credit, this can cause problems, because it might look to Universal Credit that you got twice as much pay in the month as you actually did.

“Your employer is supposed to report pay on the usual pay date, even when they pay early but it might be a good idea to remind them of this and point them to the HMRC guidance.”

If you think your Universal Credit payment has been cut in January, Stevenson advises contacting the Department for Work and Pensions (DWP) to explain what has happened.

“If it has been cut, be sure to ask for an RTI (real time information) dispute,” she says.

“This means that the DWP can investigate and re-assign your missing payment to your next month’s payment. It is worth noting this can take over a month to rectify, so it is best to talk to your employer before you are paid to prevent this happening.”

Others have shared their own tips on social media, such as setting some money aside and ‘paying yourself’ on your usual pay date.

Megens provides us with these further tips for staying on top of your budget when your pay date has moved:

Swap brands for supermarket own-label
Food is one of our biggest monthly expenses. You can save around £40 in January by swapping big brands for supermarket own-label equivalents.

Forget regifting… resell instead
If you don’t have gift receipts, head to auction sites like eBay, or try Depop and Vinted for clothes and accessories, to get some cash back in your pocket in January.

Have a strategy for the sales
Set yourself a limit if you’re spending in the Boxing Day and New Year sales and don’t get carried away. Only buy what you’ve planned for, and double check the price now so you’re sure you’re getting a genuine bargain.

Take control: plan for pressure points
Use any downtime between Christmas and New Year to take your first budgeting steps into 2023. Plan for the year’s financial pinch points – those big expenses that come up every year, like house insurance, holidays and Christmas. Note when they’re due and how much you need to start putting aside to pay for them and avoid getting into debt.

And if you’re doing all that and you’re still worried about money, Stevenson says it’s worth checking whether you’re eligible for state support.

“Millions of people miss out on thousands of pounds each year because they’re not sure what they’re entitled to,” she says – urging people use the free Turn2us Benefits Calculator to find out what extra help may be available to you and your family at this time.

Share Button

How To Maximise Your Annual Leave In 2023 For The Most Time Off Work

Posted on by
Reply

Just like that, the last bank holiday of the season (until Christmas) has passed. Love Island has finished, we experienced two heatwaves, danced at Notting Hill Carnival and caught a tan at the beach. It looks like it’s time to slowly start putting your summer clothes away and get out your jumpers.

I know you don’t want to to think about winter just yet, so why don’t you use this time to start planning your holidays for next year?

It might feel too early, but if you start plotting your time now, you can get bag the best days and get 47 days off work by using only 19 days of annual leave. Imagine how you’d spend that time living your best life!

Want to find out how you can maximise your holidays next year? Keep reading.

Easter weekend 🐣

Easter Sunday falls on Sunday 9 April in 2023. If your employer closes on the weekends and bank holidays you can get a 10-day break using four days of annual leave.

Book off: April 3, 4, 5, 6

Get off: March 31 to April 10

May bank holiday 🌸

Ah, May how we love you for your multiple bank holidays. If you didn’t manage to get those days off in April then you’re in luck, because the May bank holiday is shortly after the Easter break. The first bank holiday is on May 1.

Book off: May 2, 3, 4, 5

Get off: April 31st to May 8th

The fun doesn’t stop there in May as we also have the late May bank holiday which falls on May 29.

Book off: May 30, 31, June 1, 2

Get off: May 29 to Sunday June 4

August bank holiday 🏖️

The August bank holiday is everyone’s favourite. It signifies the end of summer so we all want to make the most out of that weekend. And it’s the perfect time to book a little trip away. The 2023 August bank holiday falls on Monday 28.

Book off: August 29, 30, 31, September 1

Get off: August 26 to September 3

Christmas 🎄

Tis’ the season to be jolly by taking timing off to eat a dozen mince pies. Even those who don’t enjoy Christmas don’t want to work during that time. We’d all rather drink hot chocolate and snuggle up in bed. Christmas day falls on Monday 25 in 2023. You’ll also get a bank holiday on Boxing day (December 26) and New Year’s Day (January 1 2024)

Book off: December 27, 28, 29

Get off: December 23 to Tuesday January 2 2024

Share Button

Can Energy Companies Switch Off Your Supply If You Can’t Or Don’t Pay?

Posted on by
Reply

Energy bills are set to climb again this autumn – but what happens if you actually can’t pay?

The energy regulator Ofgem will announce another substantial increase in the energy price cap on Friday, with industry experts expecting the annual average cost to jump from the current £1,971 to £3,553.

Fuel poverty and blackouts are becoming a pressing worry for millions across the country, so the grassroots movement, Don’t Pay UK, is calling for people to boycott energy payments from October 1.

What would happen?

If you don’t pay your bill for 28 days, your supplier may get in touch to explain how they could disconnect your gas or electricity.

If they decide to cut you off, suppliers must offer you a chance to pay your debt through a payment plan.

What if you can’t pay off your debt?

Suppliers can apply for a warrant to enter your home and disconnect your supply if you do not reach a settlement about paying off your debt.

They should send you a notice of this, to let you know that they’re applying to court.

Citizens Advice recommends you try to come to an agreement with your supplier prior to the hearing.

It also suggests attending the court hearing even if you haven’t spoken to your supplier, as it’s still possible to come to an arrangement.

If the court grants the warrant, suppliers have to provide a week’s notice in writing before coming to your property and disconnecting the supply.

If your meter is outside your home, your supplier won’t need a warrant to cut you off.

Similarly, if you have a smart meter, suppliers could cut you off remotely – although they must contact you about repaying your debt first, and visit your home to check in with your personal circumstances.

However, Citizens Advice claims suppliers are more likely to fit a prepayment meter in your home than apply for a warrant.

Who can’t be disconnected?

If you are of State Pension age, your supplier cannot cut you off between October 1 and March 31 if you live alone, or you only live with other people of State Pension age (or children under 18).

Your supplier also has to offer support if someone you live with has reached State Pension age, is disabled, or has a long-term physical or mental health condition.

This, again, applies between October 1 and March 31.

Your supplier could set you up with a payment plan during this time.

What is the ‘vulnerability commitment’?

Most UK suppliers are also part of the Energy UK Vulnerability Commitment, which means they will not disconnect you during this six-month period if you live with a child under 16.

Any supplier who is part of this promise also won’t disconnect a household at any time of the year if you are disabled, have long-term health issues, severe financial problems or children under the age of six living with you.

But, for those who have not signed the agreement, they are not obliged to take your personal circumstances into consideration.

Citizens Advice explains that you can make a complaint against your supplier if you think they’ve disconnected you when they should not have done so.

How do you get access to energy supplies again?

You would need to contact your supplier, pay your debt, the reconnection fee and administrative costs.

Some suppliers may request a security deposit too, although only if you do not have a prepayment meter installed.

Once these payments have gone through, you should be reconnected within 24 hours (or within 24 hours of the next working day if they money goes through out of hours).

If this does not happen, you may be entitled to £30 compensation within 10 working days, either as credit to your account, cheque or bank transfer. Further delays will mean more £30 payments.

So, how would Don’t Pay UK work?

As rising energy bills are one of the primary reasons the UK is stuck in a cost of living crisis (while gas and oil giants are reaping huge profits), Don’t Pay UK is calling for immediate action.

It wants at least one million people to pledge not to pay their energy bills if the government does increase the energy price cap on October 1.

However, the campaign is discouraging anyone not on prepayment meters who could face self-disconnect if their credit runs out from getting involved.

This includes households where the energy bills are part of the rent, and for those who risk eviction if bills go unpaid.

If you are struggling to afford your energy bills, you should follow the advice set up by Citizen’s Advice.

Share Button

Ofgem Has Changed Its Energy Cap Policy Again. Here’s Why It Matters

Posted on by
Reply

Energy regulator Ofgem has confirmed a major policy change today which could impact your bills, yet again.

Now the price cap will be updated quarterly (every three months) instead of every six months, in a bid to prevent large-scale disruption.

The cap was set out in law in 2018, and reflects the maximum suppliers can charge consumers per unit of energy.

It means suppliers can only take 1.9% as profit, but it’s not a cap on the maximum bill a household can be charged, as this is based on their usage.

While it may seem like an insignificant change in policy, it will have a substantial impact on your bills. Here’s what you need to know.

How important is the price cap?

Ofgem made headlines when it raised the price cap in April, meaning every household had to pay more for their annual energy bills.

The average household had to then start paying £700 more for their yearly annual bills, raising them to a record £1,971 (it was previously £1,227).

For many, this is seen as the start of the cost of living crisis.

While the cap stops prices rising and falling dramatically for consumers as wholesale prices go up, it does mean the cost of living is likely to only get harder in the short-term.

However, when wholesale prices fall, the reductions will be passed on the customers as Ofgem should lower the price cap. This will happen more quickly with the quarterly price cap.

The cap was set to rise again come October (to a staggering £3,358 a year according to analysts Cornwall Insight) but this policy change from Ofgem means the next price cap level will be published at the end of August.

Why has this changed?

Ofgem say this change prevents the cost of both gas and electricity lagging behind changes in the market, but admits the market is currently “volatile” so the price cap methodology is to be kept under review.

Ofgem CEO Jonathan Brearley acknowledged that “this situation is deeply worrying for many people”.

He then blamed Moscow’s decision to squeeze its gas supply to mainland Europe, which has a knock-on effect for the UK.

“As a result of Russia’s actions, the volatility in the energy markets we experienced last winter has lasted much longer, with much higher prices than ever before,” he said.

“And that means the cost of supplying electricity and gas to homes has increased considerably.

“The trade-offs we need to make on behalf of consumers are extremely difficult and there are simply no easy answers right now.”

He said this change means consumers will pay the “real cost of the energy”, but added: “We will keep working closely with the government, consumer groups and with energy companies on what further support can be provided to help with these higher prices.”

Why has the change been heavily criticised?

Back in May, MoneySavingExpert Martin Lewis laid into Ofgem’s early proposals to review the price cap every three months, rather than every six.

Explaining how he had lashed out at the regulator over the suggestions in a Twitter thread, he said the changes were “a fucking disgrace that sells consumers down the river”.

He apologised for his outburst, explaining: “I should’ve behaved better. My ire’s institutional not individual, it was inappropriate.”

However, Lewis claimed the changes would bring “dire consequences for consumers”.

Cornwall Insight also predicts that the energy price cap will go up to £3,615 in January. For comparison, it was £1,400 a year in October 2021.

MPs already called on the government at the end of July to take urgent action to help households amid warnings that prices will soar this autumn.

“Once again, the energy crisis is racing ahead of the government,” said Darren Jones, the chair of the business, energy and industrial strategy committee.

“To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.”

With this new policy change confirmed and the new price cap looming at the end of August, this threat of “unmanageable debt” is likely to only creep closer.

Share Button

Don’t Pay: The Campaign Group Calling On Brits To Stop Paying Energy Bills

Posted on by
Reply

A campaign group is calling for people to stop paying their energy bills – and it comes as BP reported its biggest quarterly profit for 14 years.

The UK is in the midst of a cost of living crisis, with prices for petrol and gas soaring for British households. Typical household energy bills are expected to be more than £3,600 this winter, with bills set to rise again in October.

Suppliers have blamed the war in Ukraine and surging wholesale prices for the hikes, but on social media, some have dubbed the current situation “the cost of greed crisis”.

BP recorded a profit of $8.45bn (£6.9bn) between April and June, more than triple the amount it made in the same period last year. And it is not the only energy firm to report a staggering profit – both British Gas owner Centrica and rival Shell have recorded huge earnings recently, too.

Rising energy bills are one of the main reasons for the cost of living crisis. The government did introduce a one-off windfall tax on oil and gas companies in July, but it does not apply to profits announced by BP and other energy firms between April and June.

And as more households continue to struggle to pay bills, people aren’t happy – which is why the ‘Don’t Pay’ campaign is demanding action.

The campaign group is trying to get at least one million people to pledge not to pay their energy bills if the government continues with its goal to increase the price cap on October 1.

“We started this campaign because we were worried about how we will pay our energy bills. Everyone around us is struggling and we know it will only get worse with no end in sight,” the campaign group says.

“So far around 1,300 people have expressed an interest to become an organiser in their town, village and city. From there we will fan out the campaign with a local presence.”

Speaking on ITV’s programme Peston, money saving expert Martin Lewis previously warned a bill payment strike could be on the horizon.

“The big movement that I am seeing is an increase of growth in people calling for a non-payment of energy bills, mass non-payment. Effectively a consumer strike on energy bills and getting rid of the legitimacy of paying that,” he said. “It’s small at the moment, there’s a Twitter handle with about 5,000 followers.

“We are getting close to a Poll Tax moment on energy bills coming into October and we need the Government to get a handle on that, because once it starts becoming socially acceptable not to pay energy bills people will stop paying energy bills and you’re not going to cut everyone off.”

‘Don’t Pay UK’ began trending on Twitter following the BP profit release, but there are some things you need to consider before taking part in the protest.

What are the risks of taking part?

Of course, not paying your bills will have some consequences and you’ll need to look at the terms and conditions for your individual energy supplier to see what these may be.

SSE Energy, for example, says it will try to contact customers first regarding unpaid bills, but adds: “In some cases we might also try to visit you at home to work out the best way to pay, but we’ll add the cost of this visit to your account.

“We may take a case to court to obtain a warrant to enter your home. We don’t want to, but sometimes we’re left with no choice.”

Similarly, British Gas says it may do the following when met with unpaid bills:

  • Pass your details to a debt collection agency

  • Apply for a warrant to install a Pay As You Go meter to make it easier to pay back the money you owe

  • If possible, switch your smart meter to a smart Pay As You Go meter remotely.

Utility Bidder says if you haven’t paid a bill for 28 days, you cannot come to a repayment agreement and you refuse to have a prepayment meter installed without good reason, “your provider can disconnect your power supply”.

It’s worth noting that the Don’t Pay campaign is discouraging anyone on prepayment meters who face self-disconnection if their credit runs out to get involved. This also goes for those whose energy bills are included in rent and risk eviction if bills go unpaid. Instead, they want those people to support them online.

If you are struggling to afford your energy bills, you should follow the advice set up by Citizen’s Advice.

Share Button

This Is How Much Debt Maternity Leave Is Putting Women In

Posted on by
Reply

Babies can come at the most surprising moments in life. And for many people, they arrive at a point where your personal finances aren’t at their strongest.

In fact, some women entering maternity leave are doing so without any savings at all.

Reduced pay during this time coupled with the costs of a newborn means many mums have to borrow money to get by. And some are being left in debt.

A study of parents by finance company Credit Karma found that a quarter of parents get into maternity leave without any money saved, while 26% of women get into debt while on their maternity leave.

The amount in borrowing has increased by £560 since 2018, the company says, taking the average borrowed per parent up to £2,800.

Those with student loans face the harshest outcomes as the interest rate on those loans remains seriously high while they are on leave and unable to pay it off.

Credit Karma said women with interest loans accrue an average of £1,770 loan interest in just six months of leave.

Given the cost of living crisis, which is seeing bills go up as never before, this paints a dire picture for new parents.

Akansha Nath, head of partnerships at Credit Karma UK said: “Women are often disadvantaged financially throughout their life, and the responsibility to give birth plays a huge role in this gender disparity.

“At a time when the cost of living is affecting most people, and every penny counts, it’s more important than ever that women take advantage of any support available to them.”

These debts, even if eventually paid off, can then follow women into life, affecting their credit score and therefore their ability to buy homes and other goods.

Credit Karma said maternity-affected credit scores can set women back an average £17,000 in interest over the course of their lifetimes.

If you are struggling with maternity debt, there are resources that can help.

Step Change has a benefit checker, as well as list of grants available to expectant parents. The website also offers free money management tools designed to help people with their finances, without judgement.

Share Button

What To Do When You Forget Someone’s Name

Posted on by
Reply

We’ve all been there: upon walking into the office, an acquaintance cheerfully greets you by name and you pause, frantically searching your brain for theirs.

You don’t want to disrespect them by saying the wrong name, but just saying “hey” seems so generic. Do you come clean about your memory lapse?

Here’s how experts say you can address the conundrum strategically and still keep your relationships intact.

You may consider a subtle approach first

If you are at an event and you see someone you know but you can’t remember their name, introduce yourself first, because it often prompts that person to say their name too. That’s what Mary Abbajay, president of the leadership development consultancy Careerstone Group, recommends.

“That is a signal for you to say your name back,” Abbajay says. But don’t think you are being sly about your strategy. Many people will recognise that it means you don’t know their name, she says.

One other indirect approach is to discreetly ask someone else to tell you the other person’s name, Abbajay adds.

If you are in a conversation that will continue later, consider asking the person to put their contact information in your phone. Or if the conversation needs to move to email, try asking, “Can you tell me how to spell your name to get the email right?” suggests Perpetua Neo, a psychologist and executive coach.

Better yet, ask them directly and apologise.

Avoiding saying someone’s name every time you see them will only get you so far.

“I think people fake it too long, and then they meet that person three or four times, and then they are too embarrassed to ask their name,” Abbajay says. “The best thing is to nip that in the bud right away. The second time you meet them, say, ‘Remind me of your name again. Thank you so much.’”

Don’t minimise your actions and say, “Oh I do this all the time.” If this is your third or fourth time asking their name, that deserves a bigger mea culpa, Abbajay says. People’s names are important to them, and you want your apology to come across as sincere.

Don’t make it too big a deal, though, either.

“We feel an internal pressure to remember people’s names after they tell us once, but that’s not fair, and truly, most people understand that,” says Lawrese Brown, the founder of C-Track Training, a workplace education company. “Even if it’s a close colleague, some of us are better with names than others and some of us forget things easily in general.”

“The biggest mistake is to be overly apologetic like there is something wrong with you,” Neo says. “Being gracious and pleasant about it can be useful.”

Don’t get discouraged if it happens more than once. Learning names takes time, Brown says, but what pushes her to ask for name reminders is to remember there are worse alternatives: You can make the wrong guess and call that person by an incorrect name, or you can be impersonal and never say their name.

“In the short term, asking may feel embarrassing, but that’s a temporary feeling,” Brown says. “The feeling of letting someone know that you care enough to call them by their name is what they’ll remember.”

Write down names whenever possible and try saying a person’s name when you first meet them.

Brown says that writing down someone’s name is what works best for her as far as remembering them.

Research has shown that writing things down helps our brains really retain what is being said. A 2014 study in Psychological Science, for example, found that students who wrote notes down on paper had better comprehension and retention of what was being taught than students typing on their laptops.

If you don’t have access to a pen or paper, try using your voice. Here’s a pro tip: Use someone’s name within the first minutes of meeting someone.

Abbajay says that in meetings she facilitates, she will ask people to introduce themselves even if some people already know each other as a way to help her remember names. When people introduce themselves, she diagrams where they are sitting and what their names are.

That way, “When I’m in the meeting, I can start using people’s names. If you use somebody’s name quickly when you meet them, chances are you are going to remember their name,” she says.

Share Button