Brits Say Fuel Duty Cut Essential to Save Economy
CHESTER, England, March 19, 2012 /PRNewswire/ --
- Two in five believe cutting fuel duty will help economic growth
- Be your own Chancellor! Save £3,100 over twelve months through savvy shopping around
With oil prices at a record high, over 90 per cent of Brits think the Government should cut fuel duty in the Budget on Wednesday, according to MoneySupermarket[1]research.
The UK's number one comparison site asked whether the Government should cut fuel duty in this week's Budget. Over 40 per cent believe prices are far too high, and one in eight said they already pay enough tax. Another 38 per cent of those polled believe cutting the fuel price would help the economy grow.
Clare Francis, site editor at MoneySupermarket, said: "We're all feeling the pinch but motorists have been hit hardest by the steady rising cost of fuel; many are desperate for prices to start coming down and for the Government to take decisive action on this issue.
"In last year's Budget, the Chancellor cut fuel by one pence per litre but that was met by widespread disappointment with 85 per cent saying it wouldn't make any difference to them at all[2].
"What's more, petrol and diesel costs have climbed again since then as have many other day-to-day living costs. Inflation may have started to fall back over the past few months but most people aren't yet feeling the benefit of that. Household budgets, just like the Government's, remain under pressure so in the same way George Osborne and his colleagues at the Treasury have been reviewing the nation's spending, now is the perfect time for individuals to be their own Chancellor and take control of their own finances..
"UK households need to review all of their financial products to make sure they are benefiting from the most competitive deals on the market. Apathy is rarely rewarded and switching from average deals to the market leading option on a range of financial products could save households £3,100 over twelve months[3]."
Mortgages - Saving £1,234.18
A recent MoneySupermarket poll found one in four (26 per cent) consumers had benefited from lower mortgage repayments due to a record low base rate. Despite indications that base rate will remain low for the foreseeable future, many consumers can take advantage of record low mortgage rates now. For example, someone with a £150,000 mortgage on the market average standard variable rate (SVR) of 4.83 per cent could save themselves £1,234.18 a year switching to a two year fixed rate mortgage from HSBC (£1,999 fee) at 2.54 per cent.
Savings - interest earned £296
With the Bank of England Base Rate sitting at 0.50 per cent for a third year and inflation still above the government target savers continue to struggle to generate returns on their cash. With this in mind savers must ensure that they check their current savings rates in order to make the most of their savings. The current average rate for easy access accounts is just 0.20 per cent, but by switching to the market leading WebSave easy access account from West Bromwich BS which offers 3.16 per cent, £296 in extra interest could be generated on a pot of £10,000.
Credit cards - Saving £243.85
Those unable to pay off their credit card debt quickly and looking to spread the repayment costs over a period of time should ensure they move their outstanding debt to a zero per cent balance transfer card, to save hundreds of pounds in interest. Moving a credit card balance of £2,000 from the current average rate of 17.32 per cent APR*** to the market leading 22 month Barclaycard Platinum card would save £243.85 (taking into account the balance transfer fee). MoneySupermarket has a SmartSearch credit profiling tool which matches applicants against the products they are most likely to be accepted for without leaving a mark on their credit file.
Personal loans - Saving £394
A personal loan allows consumers to make fixed repayments over a set period of time, ideal for anyone looking to budget. Many new loans are only available to existing current account customers but, consumers should take the time to shop around to make sure they are getting a good deal for their circumstances. If someone had a loan for £7,500 over five years with an average rate of 15.74 per cent APR***, swapped to the market leading Marks & Spencer Personal Loan at 6.0 per cent APR, an annual saving of £394 could be made.
Current accounts - Earn £50.25 in interest, or save £206.40 on overdraft charges
There are also substantial savings to be made for current account holders. For example, someone holding £1,500 in an account with an average high street rate of 0.65 per cent could gain an extra £50.25 by switching to the Halifax Reward current account which pays a £5 bonus each month if you pay in £1,000. Consumers who rely on their overdraft will also find they can save £206.40 by switching to Nationwide Building Societies Flex Account which charges 18.90 per cent AER on authorised overdrafts - on an overdraft of £500 this would cost £93.60.
Car and home insurance - Save on average £500 on home and motor
While insurance is essential for financial security and peace of mind, and with car insurance being a legal requirement, it's important people only opt for cover that meets their needs. By following a few simple tips, you could see some significant savings on your home and car insurance. Shopping around for cover is essential, especially at the point of renewal to ensure you're getting the best value policy for your money. Additionally, paying annually for cover instead of monthly could cut the cost of your premium, and for car insurance, by adding a partner, or if you are a younger driver, adding an older driver to your policy could also help cut the cost.
There are some great savings to be made if people ensure their insurance is the most competitive available. On average, consumers who use MoneySupermarket.com to switch their providers can save £373 on car insurance and £127 on home insurance.
Utilities - Save £224
For those looking to save money on their energy bills shopping around to ensure you are on the correct tariff for your usage and region is crucial. Moving online to a 'dual fuel' direct debit deal is the easiest way to make savings; by switching to the best online tariff as opposed to the average standard quarterly cash and cheque (QCC) tariff, customers could save on average £224 over twelve months.
TV, phone and internet - Save £125
Bundling your TV, phone and broadband together rather than taking out standalone products could save you £125 a year, and in addition to this you would also benefit from the ease of dealing with one provider rather than three.
Travel insurance - Save £31
Shopping around for travel insurance and opting for a best priced premium policy could save you money. For example, a couple going to Spain for a two week break could save £31 with OUL Direct. Taking out an annual multi-trip travel policy could be more cost-effective if you intend to travel more than once in a year.
Notes to editors:
Case studies for Budget day available on request
[1] With fuel prices hitting record highs, should the government cut fuel duty in the Budget later this month?
- Yes - it would help the economy grow - 37.8%
- Yes - I pay enough tax already - 12.7%
- Yes - the price of fuel is far too high - 41.1%
- No - it is needed to help the economy - 2.9%
- No - they should leave it as it is - 2.3%
- No - it helps the environment - 3.2%
[2]1p off a litre of fuel - will it make a difference to your personal finances?
Research undertaken on 23rd-24th March 2011
[3]Total Annual Saving = £3,099.61
Please find below saving comparison tables across a range of commonly used products with leading provider versus average:
Mortgage -
Based on Best Rate (2 Year
GBP150,000 Fixed) Average SVR Annual Saving
HSBC 2.54% 4.83% GBP1,234.18
GBP18,221.80 Inc
GBP1,999 fee GBP20,690.16
Loans -
GBP7,500 over 5
years Best Rate Average Rate Annual Saving
6.0% Marks & Spencer
Personal Loan 15.74% GBP394
GBP10,637
GBP8,666 over the term over the term
Credit Card -
GBP2,000 balance
transfer Best Rate Average Rate Annual Saving
22 Months Barclaycard
Platinum 17.32% GBP243.85
GBP301.85
GBP0 interest for the interest for
year, GBP58.00 BT fee the year
Savings -
GBP10,000 (Easy
Access) Best Rate Average Rate Annual Saving
West Brom BS WebSave
3.16% (including bonus
of 1.14% for 12 months) 0.20% GBP296.00
GBP20.00
GBP316 interest for the interest for
year the year
Utilities -
Best Online Tariff Average
bs Average Standard QCC
Standard QCC Best Online Tariff Tariff Annual Saving
first utility iSave V10 GBP1,251.41 GBP224.37
GBP1,027.04
Travel Insurance -
Based on couple
going to Spain for Average
two weeks Best Premium Premium Annual Saving
OUL Direct GBP40.87 GBP31.17
GBP9.70
Current Account - Average Rate
Based on GBP1,500 based on High
balance Best Rate Street Annual Saving
Halifax Reward Current
Account - GBP5 per
month credit 0.65% GBP50.25
GBP75 GBP9.75
Home Insurance -
Based on ms.com
data Average Annual Saving
GBP127.43
Car Insurance -
Based on ms.com
data Average Annual Saving
GBP372.76
TV, Phone & Average Monthly Cost (1 Year) Data
Broadband (Including line rental) Max Speed Allowance Phone
TV Variety
Pack
Sky Broadband Unlimited
Base evening
Sky Talk and
Freetime plus weekend
Line Rental GBP32.25 2Mb 2GB calls
Line Rental GBP13.90 n/a n/a Anytime
Broadband GBP16.30 8Mb 5GB n/a
Basic TV
Package GBP12.50 n/a n/a n/a
Annual Saving GBP125.40
Sourced by http://www.moneysupermarket.com 13.03.2012
***Bank of England average rate
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Paul Lawler
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paul.lawler@moneysupermarket.com
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