The Week Unzipped: Compensation payouts almost halve for customers of collapsed firms

Every homeowner in Britain should have a smart meter fitted by 2020

COMPENSATION paid to consumers after financial collapses fell last year to 535 million from 1.1 billion in 2009/10, as the crisis at the banks eased, according to the annual report from the Financial Services Compensation Scheme.

Yet when you strip out the banks, claims from consumers are still rising, following crashes of high profile firms such as Keydata Investment Services, which cost the safety net 214 million paid to 27,000.

The bill would have been higher had the Norwich & Peterborough Building Society not handed the FSCS 28 billion to cover its exposure to customers following the Keydata debacle.

In total, the safety net received close to 39,500 new claims from consumers, an increase of 25 per cent on the previous year, with a 75 per cent increase in the numbers of enquiries received, totalling 167,600. There was also a rise in the number of Payment Protection Insurance (PPI) claims, which accounted for just over 20 per cent of new claims.

Holiday call rip-off

BRITONS spend 750 million each year phoning home on their holidays, according to research from Tesco.

The cost of calls from abroad is one of the nation's pet hates with one in six people feeling ripped off by phone charges. The Tesco investigation revealed it can cost more than a pound a minute to call a UK landline from a European hotel. Spain topped the list of expensive hotel phone charges with a ten minute call back to the UK coming in at more than 10.60.

The taxman cometh

HM REVENUE & Customs is to contact up to 4.7 million taxpayers who over or underpaid through the PAYE system in 2010-11. It is estimated that between 1.7 and 3.5 million people will be repaid an average of 340, while 1.2 million will owe 500-600.

Smart but not so clever

THE benefits of smart meters are uncertain, according to a report from the National Audit Office, even though every home in Britain will be fitted with one by 2020, saving householders an estimated 23 a year on average.

The meters will provide energy companies with an accurate reading every day, removing the need for estimated bills, but they will also help customers see precisely where they are using energy and how their bills could be cut.

The report warned that lower bills depend on homeowners, who will see an extra 6 a year added to bills by 2015 to finance the 11.3 billion installation project. Consumers will ultimately benefit from lower bills energy only if providers pass on savings.

Online savings

THE Post Office has launched two new internet savings products. The online saver account pays 3.01 per cent, including a fixed bonus of 1.36 for the first year, on balances over 1 with unlimited penalty-free withdrawals.

The online bond pays 3.41 per cent for one year up to 4.21 per cent for a three-year term. Savers can invest between 500 and 2 million with no additional deposits or withdrawals during the fixed term.