Energy Debt and Annuities
Summary
Moneybox investigates the alarming rise in energy debt, with two million households owing double what they did last year, and explores how suppliers and Ofgem are addressing this crisis. The episode also delves into the Financial Conduct Authority's probe into ongoing financial advice fees, questioning their value and transparency for consumers. Finally, it explains the recent surge in annuity sales, offering insights into how these guaranteed retirement income products work and the importance of shopping around.Episode description
As many as two million of the poorest households have seen the amount they owe their energy suppliers double over the past year. This new analysis of debt figures has been given to Money Box by the consultancy firm Baringa. It says people who've fallen behind on their payments are now £1,100 in the red, an amount that has doubled in a year. Energy UK, which represents suppliers, say they're doing all they can - and we'll hear more about Ofgem's plans to help tackle debt in the industry.
Twenty financial advice firms have been told that they must provide the regulator with details of the services they provide customers when they charge them for what is called “ongoing advice”. The Financial Conduct Authority has written to the companies as part of its enforcement of the new Consumer Duty. What will this mean for consumers?
And, an annuity is a contract with an insurance provider which converts your savings or pension pot into a guaranteed income for your retirement. As annuity sales rise, we'll discuss what they are and how they work.
Presenter: Paul Lewis Reporter: Sarah Rogers Researchers: Sandra Hardial and Jo Krasner Editor: Jess Quayle
(First broadcast 12pm Saturday 24th Feb 2024)