The average cost of motor insurance rose by 9% last year — about £40 — to hit a record high of £481, according to the Association of British Insurers.
That is the highest figure since the industry body’s records began in 2012, and the eighth successive quarter in which premiums have risen.
The increase is blamed on high compensation payouts for personal injury claims, a growing number of claims for whiplash, and a rise in insurance premium tax.
Banks tighten up on mortgages
Mortgage approvals by banks fell 21.2% in December compared with the same month the year before, according to UK Finance, an industry representative.
Santander scraps overdraft charge
Santander is to scrap its £6 a day charge for unarranged overdrafts. Customers using its 123, 123 Lite, Select and Private current accounts will benefit from July 10.
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Lights go out at energy supplier
Future Energy, which supplied about 10,000 households, has ceased trading. Customers of the company, who are mainly in northeast England and Yorkshire, will continue to receive electricity and gas as normal and their credit balances will be protected.
Ofgem, the industry regulator, will choose a replacement for Newcastle-based Future. The new supplier will contact customers. For more details of Ofgem’s energy safety net, go to bit.ly/Future-help.
“ There are plenty of inheritance tax traps to fall foul of, as many families appear to be finding out “
Sean McCann of the insurer NFU Mutual, on data showing £5.3bn was paid in inheritance tax last year
Broadband ‘needs own watchdog’
Six out of 10 broadband consumers experienced a slow service or had their connection stop working last year, leaving some unable to work, pay bills or bank online, according to a survey by Citizens Advice.
More than a third of respondents claimed the government has not addressed problems raised by ordinary users of mobile and broadband services.
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Citizens Advice is calling for a telecoms “consumer advocate” to be established to help resolve problems.
How the Footsie has performed
The FTSE 100 fell 65 points to end the week at 7,666, as a surge in the value of the pound weighed down shares in some of Britain’s largest exporters.
+7% over a year (up 10.6% with dividends)
+11.9% over three years (up 24.8% with dividends)
+22% over five years (up 46.1% with dividends)
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+30.6% over 10 years (up 89.5% with dividends)
Inflation: in December, CPI was 3% and RPI was 4.1%
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