Are discount supermarkets any good?

Posted by Money: Consumer affairs | guardian.co.uk on June 24, 2011 Comments Off

A reader wonders if supermarkets like Lidl and Aldi are OK for a big family shop

Every week a Guardian Money reader submits a question, and it's up to you to help him or her out – a selection of the best answers will appear in next Saturday's paper.

This week's question

Fed up with paying a fortune for food each week for our family of four, I am thinking of trying the discount supermarket chains Aldi and Lidl for the first time. Do readers recommend them? Is one better than the other? Which products have others found to be their best, and are there any to avoid?

What are your thoughts?

Family financesConsumer affairsSupermarketsAldiguardian.co.uk

Tesco petrol price cut prompts rivals to follow suit

Posted by Money: Consumer affairs | guardian.co.uk on June 24, 2011 Comments Off

Tesco cuts 3p from a litre of petrol and diesel after move to open up emergency reserves by the International Energy Agency

Tesco has cut its fuel prices following a big fall in the cost of oil internationally.

The supermarket slashed 3p off a litre of petrol and diesel following the opening of emergency reserves by the International Energy Agency (IEA).

Tesco UK chief executive Richard Brasher said: "We know our customers are feeling the pinch at the moment, so we want to pass on the benefit of a fall in oil prices straight away."

The Tesco move will offer some respite to motorists who have seen average prices at the pumps soar to around 136p a litre for petrol and almost 140p a litre for diesel.

AA president Edmund King said: "We welcome this rapid 3p reduction in fuel prices. Earlier this week the AA revealed that high fuel prices are now affecting a record three-quarters of drivers who are having to cut back on journeys, cut back on other expenditure, or cut back on both.

"Reduced fuel prices will help the general economy to recover as lower prices at the pumps means more spending elsewhere."

Crude prices slumped by $6 a barrel after the IEA, whose 28 members include Britain and America, unveiled plans to release 2m barrels a day for a month from its emergency reserves to counter shortages created by the conflict in Libya.

Sainsbury's said it would be cutting fuel prices by up to 3p a litre from midnight on Friday. A spokesman for the company said: "Sainsbury's continues to be one of the most competitive retailers on price and that includes fuel. We know that consumer budgets are stretched, so from tomorrow our fuel prices will be dropping. This is to ensure that we continue to be one of the cheapest places for motorists to fill up their tank."

Asda is also cutting its prices. From tomorrow morning the company will knock up to 3p a litre from the price of fuel, meaning drivers will not pay more than 130.7p a litre for petrol and not more than 134.7p a litre for diesel.

Asda's petrol director Andy Peake said: "Once again, Asda leads the way in saving drivers money. And unlike others our price cuts are across the board. That's why no one will pay a premium for their petrol to fund lower prices in another town round the corner."

Petrol pricesMotoringFamily financesConsumer affairsOilOil and gas companiesEnergy industryguardian.co.uk

Glastonbury braced for U2 tax protests

Posted by Money: Consumer affairs | guardian.co.uk on June 24, 2011 Comments Off

U2 'tax dodge' is not pro bono … neither are the Glastonbury protesters

Tesco beer price glitch leads to mayhem in the aisles

Posted by Rebecca Smithers on June 23, 2011 Comments Off

Security guards called in to control lager-loving shoppers as computer error cuts cost of top-brand drinks to £4 for 24 bottles

Tesco customers have been taking the store's "Every little helps" slogan literally after discovering a computer pricing glitch in a drinks promotion.

Shoppers on Wednesday morning were surprised to be charged only £4 for 24 cans or bottles of leading brands of lager such as Budweiser, Carling and Fosters, which were discounted for a special promotion.

The discount was intended to offer a saving of £4 on two cases of alcohol, which normally retail for £20. But when they got to the tills shoppers found they were charged £4 instead of the discounted £16 price as a result of a programming error.

Details of the pricing loophole spread quickly across internet shopping and money talkboards. The cheaper price was only activated if shoppers bought two cases in a transaction. There were reports that in some stores security guards were summoned to control shoppers desperate to take advantage of the glitch.

Tesco confirmed the error but said it had been corrected by 1pm and had only surfaced in some parts of the UK. A spokesman said: "There was a temporary systems glitch which was resolved shortly after it was discovered. The offer was two packs of beer for £16, saving customers £4. However, the system briefly put the items through at the discount of £4."

In April Tesco was forced to make another humiliating change to Price Check, a promotional campaign designed to emphasise that its prices were cheaper than those of Asda, after shoppers hijacked the deal to make money. Again, savvy shoppers had been boasting on internet forums that they had claimed back hundreds of pounds under the scheme.

The latest Tesco loophole may be embarrassing – but it is not on a par with that of Hoover, which lost millions of pounds over its "free flights" offer 18 years ago.

Consumer affairsTescoSupermarketsRetail industryBeerFood & drinkRebecca Smithersguardian.co.uk

World’s richest show growing appetite for life’s luxuries

Posted by Jill Treanor on June 23, 2011 Comments Off

'Investments of passion' are all the rage among the wealthy

As the world's richest people got even richer, so did their appetite for the playthings needed to satisfy their lifestyles. Growing wealth from the emerging economies, largely in Asia Pacific, helped spur the demand for these so-called "investments of passion".

Sales of luxury cars jumped, with Mercedes-Benz reporting a rise in sales in China and Hong Kong of 112%, outpacing the total rise in its sales of 5%. Ferrari had its best ever year in China.

Chinese buyers are also pushing up the price of art. Last year, Bright Road, by contemporary Chinese artist Liu Ye, sold for three times the estimated price at auction. Chinese collectors are also passionate about European art. Two world records were set last year: $104.3m (£65m) for a Giacometti sculpture was later surpassed by a Picasso painting which fetched $106.5m.

In 2010, Sotheby's set a 40-year record for the amount raised at wine auctions, with sales from its Hong Kong branch rising 268%. And Russian and Middle Eastern buyers are thought to have helped push up the price of diamonds to record levels.

Those from the Middle East are also interested in investing in football clubs such as Abu Dhabi-owned Manchester City, though the report by Merrill Lynch and Capgemini cited the most notable sports investment for 2010 as the sale of the St Louis Rams to entrepreneur Stan Kroenke. US basketball star Michael Jordan also bought a controlling interest in the Charlotte Bobcats basketball team.

Some of the indulgence in "passionate" investments can also make good business sense, especially if the wealthy are trying to diversify away from financial markets. Art falls into this category, as 42% of advisers to the rich reckon they buy it in the hope their investment will gain value.

Consumer spendingConsumer affairsJill Treanorguardian.co.uk

Ofgem pledges to get tough with ‘big six’ energy companies

Posted by Miles Brignall on June 22, 2011 Comments Off

Energy regulator promises 'radical overhaul' of market as ScottishPower faces investigation over controversial new tariff

Ofgem has reiterated its determination to "radically overhaul" the retail energy market and has told the "big six" power companies that their complex tariffs are going to come under further scrutiny over the coming months.

After years of criticism that it was too soft on suppliers for raising prices, Ofgem appears to be responding to veiled threats from the coalition government that it could be disbanded. Ofgem's chief executive, Alistair Buchanan, said: "Energy suppliers have to transform the way they deal with consumers. We are also seeing signs that the penny has dropped with the big six and they are ready to take part constructively in the debate."

The warning came as Ofgem announced it is to investigate whether a recent ScottishPower tariff had misled customers.

Last month ScottishPower launched its "Direct October 2012" tariff, claiming it would save customers £459. It also said prices would remain a minimum of 1% a year below its standard monthly direct debit prices until 30 September 2012. The power company announced the offer as it reported it was raising its gas prices by 19% from August. However, Ofgem said the claims made could potentially have been misleading, and as a result it was investigating. The move is the latest blow to ScottishPower's reputation as the regulator is now conducting three inquiries into its business practices.

In March, Ofgem announced a series of reforms of the energy market that it wants to see in place next year. It has been consulting the industry and in 2012 it will publish final plans. The big six can then decide whether to accept Ofgem's proposals or face a possible Competition Commission inquiry.

Richard Lloyd at the consumer group Which? said he supported Ofgem's efforts to scrutinise the industry. "Only then will we know if customers are really getting a fair deal. We think that all energy tariffs should be standardised so that people can compare them at a glance."

Mike O'Connor, chief executive of watchdog Consumer Focus, said: "Ofgem has a major job on its hands. Suppliers may be coming around to the need for reform but still seem to be in denial about the scale of change needed."

A spokesman for ScottishPower said it would fully co-operate with Ofgem. "The tariff in question was a very limited offer with considerably discounted prices, which is now fully subscribed. However, there are a number of similar products still available on the market from competitors. We believe that all figures that have been quoted by us are accurate."

RegulatorsEnergy billsEnergy industryConsumer affairsHousehold billsMiles Brignallguardian.co.uk

Olympic ticket hopefuls await second chance

Posted by Jill Insley on June 22, 2011 Comments Off

Applications for the remaining 2.3m Olympic tickets open on Friday morning – 500,000 of which will cost £20 or less

For the past few weeks I have been wondering how to persuade my daughter to go to the Olympic weightlifting with me next summer.

I applied for about 10 lots of equestrian tickets and one each for the hockey, gymnastics, beach volleyball and weightlifting, going for child age related discounts where possible as Imogen will be 15 next year. Weightlifting was a bit of a wild card, but a previous Olympic attendee recommended it, saying the atmosphere in the hall was amazing and something you just can't appreciate on TV.

When the payment went from my account, the amount seemed to add up to the cost of the weightlifting and hockey tickets plus the £6 postage (they are very heavy tickets obviously). Imo went into a flat spin; weightlifting is not her idea of entertainment, leaving me with the prospect of finding another 15-year-old who would enjoy it. Spoilt brat she might be, but she is not alone in her prejudice: teenagers, I have since discovered, do not consider weightlifting cool.

So there was much joy this morning when the Olympic ticket allocation update came through, revealing that instead of watching musclebound eastern Europeans attempt a clean and jerk, we will be viewing fine-legged thoroughbreds doing pirouettes and half passes – we have tickets to the first day of the team dressage in Greenwich Park. Imo can now stop trying illicitly to swap tickets with a friend at school who happens to be a distant cousin of top three day eventer Tina Cook.

But what about those who only got their wild card tickets rather than the ones they really wanted. As I tried to explain to my daughter, it's the Olympics – the most incredible, dramatic and emotional sporting event on earth. Who cares what you get to see, as long as you are part of it. As a friend posting on my Facebook wall this morning said: "We got tennis which wasn't what I really wanted but hey ho … it's the Olympics!"

Those who have missed out in the first round will get a chance to apply for the remaining tickets on Friday. Although 1.7m of the 2.3m leftovers are for football, there are still tickets available in 310 sessions, including 44 medal events, and the full list includes archery, athletics, basketball, beach volleyball, boxing, mountain biking, dressage, fencing, handball, hockey, judo, rowing, synchronised swimming, table tennis, wrestling and weightlifting.

And contrary to popular belief, the leftovers are not necessarily the most expensive tickets. One-and-a-half million will be priced at £50 or less, and more than 500,000 of those will cost £20 or less. Sixty sessions with special children's tickets are available, including (inevitably) 33 for the football.

Tickets go on sale on a first come, first served basis at 6am on Friday 24 June until midnight on 3 July, but are likely to sell very quickly. Choosing the sports staged in the biggest stadiums – football, volleyball and hockey – should improve your chances of securing tickets, but as even those are likely to sell quickly you are best advised to be on the London 2012 website at 6am, ready to press the apply button.

People will be able to apply for a maximum of three sessions and six tickets per session for most sports (football, volleyball and the race walk will have larger limits).

This time around applicants will only have to wait 24-48 hours to discover if they have been successful, and payments will be taken over a four-day period after applications have closed. A Visa credit, debit or pre-paid card is necessary to pay for tickets.

Any left overs after this second round will go on general sale from 8-17 July. And don't forget tickets for the 2012 Paralympics will go on sale from 9-30 September.

Alternatively, you can apply right now for tickets to London Prepares, a series of events designed to test the venues, fields of play, scoring and timing systems. This summer, for example, you can see beach volleyball at Horse Guards Parade, BMXing in the Olympic Park and mountain biking at Hadleigh Farm in Essex.

Have you got the tickets you thought you had? Will you be selling any of your allocation through the official resale site next year? And will you try applying a second time?

Consumer affairsOlympic ticketsOlympic Games 2012Jill Insleyguardian.co.uk

Scottish Power promotion investigated by Ofgem

Posted by Money: Consumer affairs | guardian.co.uk on June 22, 2011 Comments Off

Ofgem, which is pressing ahead with a proposed shakeup of the industry, says it will look at Scottish Power's £459 savings claim from its 'Direct October 2012' offer

The energy watchdog has launched an investigation into a "potentially misleading" offer by Scottish Power promoted during its last price increase.

Ofgem, which is pressing ahead with a proposed shakeup of the industry, said it would look at Scottish Power's £459 savings claim from its "Direct October 2012" offer.

The energy supplier unveiled the offer earlier this month when it said gas tariffs would rise by an average of 19% from 1 August and electricity would go up by 10%.

Earlier this year, the regulator threatened the "big six" with a referral to the Competition Commission if they did not simplify prices and sell off between 10% and 20% of their electricity output to allow smaller firms to enter the market.

Under the Scottish Power Direct October 2012 offer, the company guaranteed prices would remain a minimum of 1% per year below its standard monthly direct-debit gas and electricity prices until 30 September 2012.

But discussing the product, Alistair Buchanan, chief executive of Ofgem, told the BBC that "when you look at the small print it looks very different from that".

He said: "We have been looking at their marketing material in particular, and under our consumer protection powers we are very concerned about some of the claims they have made and so we will be having a look at that very carefully."

Ofgem stressed that an investigation being launched did not mean Scottish Power had breached its obligations.

Scottish Power is also under investigation of its pricing plans and, along with three other providers, of potential mis-selling of energy to customers.

Buchanan said during its review of the energy market it struggled to see where up to £700m of the £2.9bn in profits generated by the industry came from.

He said the "big six" – British Gas, Npower, E.ON Energy, EDF Energy, Scottish Power and Scottish and Southern Energy – were engaging in the reform process.

The watchdog said it had received support for its proposed reforms for the wider industry from Consumer Focus, Which? and the Citizen's Advice Bureau.

Ofgem wants to "sweep away" complex tariffs so consumers can understand prices more easily and wants to "break the stranglehold" the big six energy firms have on the market.

The regulator hopes to publish full proposals for its reforms next year after consultation with interested parties, including suppliers.

Energy industryUtilitiesEnergy billsConsumer affairsHousehold billsguardian.co.uk

Don’t blame renters for neighbour-related problems

Posted by Mark King on June 22, 2011 Comments Off

A survey claims that with more of us renting we are becoming a nation of 'street strangers', perhaps explaining a lack of good neighbourly behaviour. But Mark King puts the blame elsewhere

We have a rogue landlord above us who recently pulled up the carpets and put down cheap wood flooring, which served to amplify any noise made by the new tenants. I'm sure the students above us are affable, but the only contact we have had has been to ask them not to sunbath on the roof of our plastic conservatory.

Any time we have tried to complain about excessive noise such as guitar-playing, drums, screaming, wailing and partying they have refused to answer the door. Maybe they couldn't hear us.

Our landlady has tried to help and we have contacted the management company to see if the lack of carpeting is a breach of the lease agreement, but I don't hold out much hope – the landlord has form when failing to take neighbouring properties into account: our baby's nursery was flooded after he repeatedly failed to fix a leak.

Last week's Which? research, which found that at least 5 million people are annoyed with their neighbour, and more than 10 million have had a neighbour-related problem in the past year, made me realise I am not alone – the flood of comments from readers in similarly nightmarish scenarios is testament to the lack of social cohesion in streets and estates across Britain.

But research from HSBC seeks to explain why problems with neighbours might be escalating. It says we are becoming a nation of "street strangers" because more of us are peripatetic renters, which risks Britain becoming less neighbourly.

HSBC's survey of 2,000 adults, carried out to coincide with Neighbourhood Watch week, found homeowners are far more likely to be friendly with their neighbours, with 28% of people in rented accommodation admitting they have never introduced themselves to their neighbours compared with just 12% of homeowners.

Almost two thirds (64%) of homeowners know their neighbours' names, but the same applies to just 39% of renters. Moreover, almost half (49%) of homeowners have been inside their neighbours' home compared to just 28% of renters, while almost a third (32%) of homeowners have lent something to their neighbours versus 19% of renters.

Almost one in five (19%) homeowners offer to help their neighbours while they are away by feeding pets, watering plants or clearing post – more than twice the proportion of renters (8%).

While this is an obvious bit of puff, possibly designed to encourage people to get on the property ladder, Stuart Beattie of HSBC makes an important point when he says: "Just because you do not own your own home does not mean that you cannot get to know those living around you."

I have lived in rented accommodation all over London and in Brighton and I don't believe people renting are any less considerate than those who own their homes – people behave how they want regardless of whether the largest chunk of their monthly income goes to a landlord or a bank – but the transient nature of renting does make it difficult to bond with neighbours.

If I knew my current neighbours better I might feel more comfortable knocking on their door and politely asking if they are the ones constantly throwing cigarette butts on to our path and into our small front garden. It would also be easier to let them know how the recycling works, so I don't have to remove rubbish from the recycling bins and reorder it so the council's recycling team will actually empty them.

But to blame everything on them would be unfair. I think HSBC's research comes to the right conclusion but has got the reasons wrong. I don't believe tenancy is the overwhelming reason why Britain is becoming less neighbourly; I think it is landlords who neglect their properties and housing developers who build sub-standard homes with inadequate sound-proofing that are to blame.

If I couldn't hear my neighbours every time they cough, cheer, shoot some aliens on their Xbox or strum an REM song I wouldn't have a problem with them (though I'd still get annoyed about the recycling and the fag butts). So step forward negligent landlords and rubbish housing developers – congratulations for making so many lives a misery across Britain.

Renting propertyPropertyConsumer affairsHousingMark Kingguardian.co.uk

Numeracy skills a challenge for universities

Posted by Money: Consumer affairs | guardian.co.uk on June 22, 2011 Comments Off

Only the numerate among us go to university … or is that the other way round?

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