The week unzipped: Fuel poverty dubbed a national disgrace as number of victims doubles

THE number of households in fuel poverty more than doubled in five years, according to official statistics.

A household is defined as fuel poor if it must spend 10 per cent or more of its income on heating the home adequately.

In 2003, the number of households in fuel poverty hit a low of two million.

In 2008 this number reached 4.5 million as bills shot up by 45 per cent. One in six homes was fuel poor during 2008.

The Department of Energy & Climate Change believes the figure is likely to have fallen to 4.1 million since 2008 as energy companies trim their bills and people insulate their homes better.

Dave Timms, Friends of the Earth's climate campaigner, said: "It's a national disgrace that over four million people are still living in fuel poverty in the 21st century."

Isa tax-free limit rises

THE tax-free Isa allowance will rise by 480 next year. The rate of inflation in September will determine the Isa threshold from next April. The current annual limit is 10,200 but this is expected to rise to 10,680.

The government announced in the last budget that it would directly link increases in Isa allowances to the Retail Price Index at its level in September. More than 20 million people in the UK have an Isa. However, 42 per cent of the population are still not using their allowance. Savers can invest all of their annual allowance into an equity Isa, or they can split it between a cash account and an equity one, paying a maximum of 5,100 into a cash Isa during the current tax year.

Bupa insurance

RESOLUTION is planning to buy the insurance arm of Bupa for a net 102 million, acquiring its group life, critical illness, income protection and flexible benefits operations. Bupa Health Care will not be affected by the sale.

Platinum promise

LEEDS Building Society has introduced a credit card that earns customers 0.5 per cent cash back on all purchases.

The platinum credit card offers 0.5 per cent cash back on all day-to-day spending, with a maximum annual spend of 15,000. The money earned will be credited to your account each January.

The card charges 17.9 per cent typical APR and comes with an introductory zero per cent on balance transfers for 12 months and on purchases for three months.

Bonds offer 3.5 per cent

M&S Money has issued three new savings bonds paying up to 3.5 per cent fixed for one, two or three-year terms. The bonds can be opened with 100 and require a monthly deposit of 25.

University fees hike

In England and Wales they will be removing the cap on student fees, meaning universities could charge up to 12,000 a year for a degree course. Currently, the cap on tuition fees is 3,290. The changes will also affect Scottish students at universities in England and Wales.

Before the end of the year a green paper is due from the Scottish Executive on its plans for Scottish university funding.