Political think-tank Chatham House has released a report which warns that the UK may face economic and political blackmail if it extends its reliance on Russia for its gas and electricity supplies.

The report stated that Britain’s security is vulnerable and under threat because the government has no control over factors that affect the country’s economy. The report also predicted that consumers can expect to face even higher energy bills because North Sea Oil reserves are being depleted.

If Britain fails to plan for the forthcoming energy crisis it will have no other option than to increase its requests for gas from Russia. Worryingly, it has been forecast that by 2020 the UK will have to import 80% of its gas supplies.

Russian Prime Minister, Vladimir Putin, has already stated that Russia will use its gas reserves as a tool to shape foreign policy relationships. Over the last three years countries such as Estonia and the Ukraine have had their supplies interrupted when they were said to have upset Moscow

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Research that was conducted on behalf of American Express Insurance Services suggests that nearly 50% of the UK’s adult population will alter their savings habits in a bid to beat the current credit crunch. The survey showed that British consumers will not hesitate to reduce their savings in order to deal with everyday expenditure on household bills and items. It was also revealed that nearly 25% of respondents will consider defaulting on current debts in order to ensure that they can deal with a poor financial situation.

Around 20% of people said that they would also have to cut contributions to Child Trust Funds and nearly 15% would discontinue payments into their pension funds. Over 10% of those questioned stated that they would not make any further payments to their credit card bills ,whilst around 12% would stop their monthly car repayments.

The ongoing squeeze on household budgets would also see around 30% of people discontinue payment protection and health insurance policies.

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An energy expert has predicted that the UK will suffer from a series of power cuts by 2014 if the government fails to take action. A report compiled by Fells Associates states that the country’s current energy situation will snowball into severe economic problems if the UK’s power supplies are not secured. The report also cast doubts on whether too much time and effort was being spent on pursuing green energy goals.

However, Energy Minister, John Hutton said that the report was too focused on the risks and did not take into account the energy policies that the government has already adopted.

Candida Whitmill, a co-author of the report, said that unless the government adopted serious energy measures to combat the oncoming power shortages the current credit crunch will pale into insignificance.

The government is already facing criticism for the shortcomings of its $1 billion energy efficiency package. Various charities have stated that the proposed energy saving measures will not address the huge gas and electricity bill price increases that have been imposed on British consumers.

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Tesco Car Insurance has warned motorists, who want to make modifications to their vehicles, that they should inform their insurers. Those who choose not to tell their car insurance providers about such modifications are at risk of having their policies becoming void if they have to make a claim.

A company spokesperson said that insurance providers are not against motorists modifying their vehicles. However, it is essential that people inform their insurers about these alterations so that policies can be adjusted accordingly. Those who choose to ignore this advice could find that they are in for a shock if they find they do not have adequate cover simply because they didn’t provide their insurers with the correct information.

Research has found that those drivers who are aged between 16 and 24 are most likely to modify their vehicles. It has also been reported that the current economic downturn appears to have had no effect on the amount of motorists who are seeking to enhance their vehicle’s bodywork.

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The British Insurance Brokers Association has reported that UK drivers who reside in the largest cities are reluctant to purchase car insurance products because of the high costs. The organization pointed out that those motorists who live in Birmingham and London can expect to pay some of the highest insurance rates in the country.

Cities are known to have a higher concentration of accident hotspots and higher crime rates than rural and other areas. Those who wish to find the most affordable deals ,that are best suited to their personal needs, are encouraged to shop around by using comparison websites or insurance brokers.

It has also been estimated that that approximately one fifth of all British motorists do not have adequate insurance for their vehicles. This means that there are over 1.5 million drivers who are travelling without the correct insurance cover. This may prove to be costly if they happen to be involved in an accident.

Those motorists who drive with no insurance cover whatsoever can expect to face a criminal conviction as well as a harsh financial penalty.

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The governments £1 billion rescue package for people who are having difficulty paying for their gas and electricity bills has come under fire from Energywatch. The energy watchdog stated that the package is woefully insufficient and does not go far enough in tackling fuel poverty.

A spokesperson for the organization also said that the governments measures were simply not bold or urgent enough to have an immediate impact on those households that are already suffering from the financial pressures of the current credit crunch. In addition, the government has not attempted to address the issue of extending winter fuel payment programme for those who are most in need.

Meanwhile, Age Concern has also criticized the governments proposed energy saving recommendations and says that the proposed measures, although welcomed, will not help a large proportion of British pensioners.

The charity also commented that the government had not taken the opportunity to review energy pricing structures which would have been far more effective in reducing energy bills

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With the credit crunch still continuing to bite, M&S Money have announced that they will offer a cashback on all personal loan products that are taken out for a 3 year period or more.

The cashback deal allows customers to receive a 25% refund ,on all the interest they have paid, once the loan has been fully repaid. The offer is only available between now and the end of October.

Meanwhile, accountancy firm, Grant Thornton, has reported that the UK’s personal debt levels have exceeded the national income for the second year in a row. The company also found that most consumer debt can be attributed to personal loans, secured loans, mortgages and credit cards. Britons are now said to owe a total of £1,444 billion. A spokesperson for Grant Thornton stated that if the economy and housing sector continued in their current downward spirals there will be an increase in the levels of personal bankruptcy cases.

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The government’s £1 billion package which is designed to help consumers cope with soaring fuel bills has already run into problems as gas and electricity providers said they could not rule out passing on the costs of the government project to their customers. The scheme, which was unveiled yesterday, will require energy firms to finance a large swathe of energy efficiency measures. The government has said that the adoption of these measures can trim around £300 from the cost of annual household energy bills.

A spokesperson for the Association of Electricity Producers ( AEP) commented that whenever costs have been imposed on the industry, the customer has always found that this has been added to their bill. He added that suppliers will attempt keep costs down because of government recommendations but the energy scheme will not pay for itself. The AEP’s members include Centrica EDF, E.ON and Scottish and Southern Energy.

Previously, Prime Minister Gordon Brown had said that power companies should not pass on the costs of the energy project to consumers.

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Barclaycard has revealed that it plans the eventual eradication of credit card products by allowing consumers to purchase products and/or services with eye and fingerprint recognition technology. The finance firm is said to be investing well over £1 million in payment systems that do not require human contact, such as the typing in of passwords. The first example of this technology, which is called OnePlus, will be rolled out across 9000 outlets by the end of 2008.

A company spokesperson stated that it wishes to take the lead in shaping the way in how consumers make payments. He added that biometrics and the use of other mobile applications are the future of all payment systems.

The company has also reported that that it is researching paperless ticketing systems which could revolutionize how people pay for cinemas and train use. The United Arab Emirates has already hosted a new type of cash dispensing machine where customers have to use their fingerprints to withdraw money

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According to research that has been released by the National Housing Federation ( NHF ) nearly 6 million homeowners will be forced to spend around 10% of their total income on energy bills by the end of next year. The unwelcome news adds to the considerable economic woes that are being faced by British consumers.

The report has estimated that by 2010 annual gas bills will rise by approximately £900 and electricity bills will increase by around £500. Unfortunately, those who are on the lowest incomes will suffer most from the price hikes that have taken place in the energy market.

Consumers who pay by prepayment metre will be paying an average of £65 more than those who pay by quarterly billing. The NHF commented that the report has outlined the fact that the UK is facing a major energy crunch and requested that the government be proactive in taking the necessary action to prevent millions of Britons from falling into fuel poverty. Furthermore, the government should compel energy companies to use their huge profits to help to tackle the energy crisis

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