The signs are that the UK is heading towards a recession and is facing its worst energy crisis in decades. Obviously, this is bad news for homeowners who are having difficulty in trying to balance their household budgets. For those who are faced with massive increases in gas and electricity bills, now is the time to consider changing energy providers.

It is estimated that there are around 4 million households that have never switched their original supplier.

Consumers should use comparison websites to locate the best online energy tariffs. These website swill show you how much money you can be saving by simply entering your energy consumption rates and your postcode. Once you’ve supplied these details you will be able to see which providers have the best deals that are suited to your personal needs.

It may be prudent to restrict your search for tariffs to the six largest power companies – EDF, British Gas, nPower, E.On, Scottish and Southern Energy,and Scottish Power – because historically some of the smaller firms have been forced to close because of sudden upheavals in the energy markets.

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The Financial Services Authority ( FSA ) continued its campaign of tackling irregular practices throughout the UK’s financial services by imposing a serious financial penalty on a mortgage firm.

GE Money Home Lending, the UK’s 14th largest mortgage firm during 2007, was on the wrong end of a hefty £1.12 million fine for failings in its dealings with nearly 700 customers. It was reported that borrowers had lost a total of £2.3 million.

The FSA said that the mortgage firm had failed to respond adequately to failures which the company itself had identified around two years previously. The fact that customers ,who had lost an average of £3,000 each, were potentially placed in a position where they could also suffer from an adverse credit profile, warranted corrective action.

In the past few months the industry watchdog appears to have ramped up its efforts to ensure that customers are getting a fair deal from finance providers and is sending a clear signal that firms in the sector must clean up their act.

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The British Bankers Association ( BBA )has released data on mortgage approvals that shows that the UK housing sector is continuing in a downwards spiral. According to the BBA only 21,086 mortgages were issued in August. This represents the lowest total since 1997.

Home loans dropped by around 12,000 ,in comparison, to the average number of those approved over the last 6 months.

The BBA commented that the decline in the housing market’s fortunes can be blamed ,in part, on the Government’s delay in addressing the issue of stamp duty. The association added that the credit crunch had placed substantial financial pressures on families and when coupled with the fact that lenders are imposing stricter lending criteria, has resulted in the suppression of the sector.

Previously, the Government had announced that it would suspend the stamp duty on houses ,that are priced at £175,000 or under, for one year . However, market analysts believe that the Government acted too little and far too late to arrest the housing slump.

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In a move that could be replicated across the UK, Derbyshire police have teamed up with the Derbyshire Road Safety Partnership and the local Driving Service to offer speeding motorists an alternative to fines and penalty points. Under a new scheme drivers who have flouted speed laws for, the first time, will be able to enter into a one day driving rehabilitation course which is designed to teach them the error of their ways and heighten their awareness of the finer points of road safety.

To put it simply, first time offenders who attend this driver education course have the potential to retain a clean license. For those motorists who may scoff at the idea, it is important to remember that points on a license equals high car insurance premiums. The current economic situation which has resulted in higher motoring costs means that drivers should do all they can to avoid the double whammy of paying a fine and paying for very expensive insurance cover.

Of course the simplest, safest and cheapest solution to the problem is that every motorist should ensure that they observe UK speed limits

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Over 13 million British motorists who choose to pay for their car insurance by monthly installments are paying more than those who select annual payment plans. It has been estimated that UK motorists who pay on a monthly basis are spending a total of £624 million more than those who choose to make a one off payment that covers a full year.

Currently UK drivers are facing considerable financial pressures which have been brought about by the steep increases in petrol and car insurance prices. Motorists should begin to take a serious look at how they pay for their insurance cover. The use of comparison websites can also assist drivers to find the best insurance prices.

The average cost of an annual car insurance package is approximately £460. However, those who select a monthly payment option will find they will have to fork out around £506 over the course of a year.

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With the energy crisis in full swing the UK Business Minister, John Hutton, has said that it is the intention of the government to restrict the amount of gas that is imported into the UK. The minister stated that there will be a sustained push to build some new nuclear and coal power stations and such action is necessary to preserve and protect the future supply of British energy.

Gas and electricity price hikes are hitting the most vulnerable families the hardest, and the government’s $1 billion energy efficiency package has drawn broad criticism from a variety of charities and campaign groups.

The ability of power companies to raise prices without fear of intervention has also proved to be embarrassing for those elected officials who are charged with ensuring that the UK has sufficient energy reserves to prevent the poorest households from suffering unnecessarily.

Currently, Europe is heavily reliant on Russian gas imports and experts have warned that the UK could be held to political ransom if it does not find an alternative to Russian gas.

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UK payments association Apacs has stated that British DIY enthusiasts are using debit and credit cards to spend billions of pounds in shops to help them complete a wide range of domestic projects. Apacs also revealed that stores received around £12 billion worth of DIY trade from debit and credit card transactions.

The organization estimated that ,on average, individuals were spending around £70.00 on purchases for DIY jobs.

A spokesperson for the association said that the use of plastic card payments has dramatically increased over the last 10 years. British consumers tend to favour this method of purchasing as it is relatively straightforward and convenient.

However, it is expected that the continuing economic downturn ,which may see the UK’s unemployment figures rise to over 2 million in the near future, may result in the curbing of the spending habits of those who wish to use their money on DIY projects.

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A survey by Thebabywebsite.com has found that the impact of the sudden increases in food prices and gas and electricity bills is causing couples to have a rethink on whether they start a family. The survey which sought the views of 3,000 couples found that over 35% of those polled said they would have to place a hold on their family making plans whilst 30% commented that they would not start a family, especially since the credit crunch was continuing to have such a negative impact on household finances.

One fifth of respondents said they would take the drastic measure of terminating a pregnancy if their finances meant they were in a situation where they believed they would not be able to afford the cost of bringing up a child. Many couples stated that the difficulty of obtaining a mortgage and the massive hikes in energy prices would mean that they would not be able to cope with everyday living costs.

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The Newcastle Building Society ( NBS ) has claimed that the use of prepaid cards has increased amongst those people who currently have individual voluntary arrangements ( IVA’s ). The firm predicted that the current rise in this type of card’s popularity will see prepaid card use rise by 10% by 2012. It was also estimated that this alternative to the credit card may see its numbers increase to nearly 10.9 million by 2009.

The NBS stated that prepaid cards are becoming increasingly popular in the UK because they are not tied to bank accounts and can offer protection for those who wish to carry out their financial transactions online or for those who are travelling abroad. The use of these cards can also assist Britons to deal with difficult financial situations and debt management.

Prepaid cards also appear to be particularly appealing to parents who want to offer their teenage children a limited spending option.

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Consumer group Energywatch has reported that the UK’s most vulnerable gas and electricity customers are likely to face the highest price rises. Those households that use prepayment meters can expect to pay an average of around £320 more than those who pay for their energy via direct debit arrangements or internet deals.

This disparity in pricing affects some of the UK’s poorest people who have opted to pay by meter because they do not have access to a bank account or cannot afford to make monthly bill payments. It has been estimated that over 5.8 million British homes have gas and electricity prepayment meters.

The research also revealed that the average energy customer who uses a prepayment meter pays around £1,337 a year whilst those who pay by direct debit pay £1,178.

It was also found that of all the major power providers British Gas was the worst when it came to addressing the difference in prepayment and online tariffs. The company’s customers have to pay an extra £570 if they opt for prepayment meter use.

However, British Gas said that around 360,000 of its poorest customers could sign up to their ‘Essentials Tariff’ which offers the same rates as their direct debit option.

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