http://money-news.money.aol.co.uk AOL Money provides the latest money and finance news. http://money-news.money.aol.co.uk/article/2012/05/17/fall_in_fuel_poverty_welcomed N0165931337252137238A The number of UK households in fuel poverty has dropped from 5.5 million in 2009 to 4.75 million in 2010. The fall was mainly due to rising incomes, relatively stable energy prices at the time and reduced energy consumption, according to the 2012 Annual Report on Fuel Poverty released by the Department of Energy and Climate Change (DECC). Northern Ireland remains the most fuel poor part of the UK, with estimates suggesting 44% of households spend more than 10% of incomes on energy bills. In Scotland, 28% of the population are fuel poor, Wales is at 26% but England drops to 16%. The rise in energy prices last year is expected to increase the number of households in fuel poverty again, although the figures will not be published until 2013 and 2014, DECC said. Projections for England indicated there were likely to be around 3.5 million fuel-poor households in 2011 and 3.9 million in 2012. Energy and climate change minister Greg Barker said: "I am encouraged by the fall in fuel poverty in the period to April 2011, but there is no room for complacency. Fuel poverty remains a serious national problem and the coalition is absolutely committed to tackling it." Consumer groups warned that recent price increases meant the figures were likely to underestimate the current problem. Consumer Focus director of energy Audrey Gallacher said: "Today's figures show a dip in fuel poverty levels in 2010 reflecting lower energy prices. "But as the average annual bill has risen by over £150 since then, many more people are now affected. Millions of families, older people and disabled people, living on low incomes, will be facing tough daily decisions on what essentials they cut back on to make ends meet. "Current Government plans are not sufficient to tackle the scale of this problem. This is clearly demonstrated by the more than 50% cut in energy efficiency help for the homes of the poorest households in England when fuel poverty levels are on the rise." National Energy Action (NEA) chief executive Jenny Saunders said: "Since this statistical analysis was undertaken we have entered a period of profound economic austerity accompanied by continuing increases in domestic gas and electricity prices. NEA estimates that additional gas and electricity price increases in 2011 mean that more than five million households in England now face unaffordable energy costs." Money News Thu, 17 May 2012 12:27:49 BST The rise in energy prices last year is expected to increase the number of households in fuel poverty, despite a fall in 2010 http://money-news.money.aol.co.uk/article/2012/05/17/home_working_side_effects_revealed N0143411337168319187A Mothers face unexpected side-effects when they work from home, including higher energy bills and having more washing-up to do, according to a new study. A survey of almost 900 members of parenting group Mumsnet also found that many had problems concentrating on their work. Almost a third of those questioned said they struggled to juggle working from home with looking after children, and half worried about keeping their working hours under control. Beverley Maguire of energy firm E.ON, which helped with the research, said: "We know from our research that the transition to working from home is challenging from both a lifestyle perspective and the practical implications it has on your home." Mumsnet and E.ON published a list of suggestions to help women work from home, saying they should take regular breaks, have a strict routine of working hours and create a separate working space to the rest of the house. Money News Thu, 17 May 2012 02:53:29 BST Working from home can have surprising side-effects, a new poll has found http://money-news.money.aol.co.uk/article/2012/05/17/new_twist_in_solar_tariff_cuts_saga N0168321337256950635A The Government is considering "tweaking" the start date for the next reduction in solar tariffs, Energy and Climate Change Secretary Edward Davey has said, insisting there would be no "massive change". Mr Davey's comments came as shadow energy and climate change secretary Caroline Flint claimed any Government backtracking was due to incompetence over its policies on feed-in tariff (FIT) subsidies. Earlier this year, the Government defended plans to further cut the subsidy available to households who install solar panels, confirming they would press ahead with a controversial move to halve the payments for panels installed from March and planned further cuts from July. Ministers have warned the falling costs of solar technology made the subsidies too generous and feed-in tariffs (FITs) risked spiralling over budget. Ms Flint referred to a tweet reportedly sent on Wednesday evening by energy and climate change minister Gregory Barker in which he appeared to suggest a "pushing back" in the next proposed reduction in solar tariffs. Speaking during energy and climate change questions in the Commons, she said: "My question today is about the Government's next round of cuts to solar which is due on July 1. Last night, the minister, the honourable member for Bexhill and Battle tweeted, having listened carefully to industry we're looking at scope for pushing back a little the next proposed reduction in the solar tariffs. "The truth is that the Government has missed the deadline legally required to provide notice to Parliament for the next round of cuts to come into force. Isn't it the Government's incompetence the real reason that they are now backtracking?" Mr Davey replied: "Well she seems to think we shouldn't listen to the industry. "Well I do listen to the industry and we are considering tweaking the start date for the next tariff reduction, but if we do it will be a tweak not a massive change, so I think she needs to understand that the changes that we have consulted on, that we are bringing in, will bring stability and will mean that we do have solar power for the many, not the few." Ms Flint hit back stating: "Well I think they'll be laughs echoing outside this Chamber about the fact the Secretary of State suggested they've been listening to the industry." Money News Thu, 17 May 2012 13:25:45 BST Labour has criticised the Government over its policies on solar power feed-in tariff subsidies http://money-news.money.aol.co.uk/article/2012/05/17/more_growing_own_food_to_save_cash N0149611337177454419A One in six adults have started growing their own food in the last four years, with the majority saying they have done so to save money, according to a poll. Nearly a third (31%) of all British adults now grow their own food while 64% of those interested in growing their own say it would be to save money, the study for the City of London found. Celebrity chef Raymond Blanc and actress Joanna Lumley are launching the City of London's one-off £2 million grants programme to mark the Queen's Diamond Jubilee. The aim is to promote the use of green spaces and encourage young people to grow their own food through community involvement and volunteering. The Growing Localities programme, delivered by the City of London Corporation's City Bridge Trust charity, aims to help reduce social isolation, teach the value of biodiversity and provide horticultural work training for young unemployed people and those with special needs. Lord Mayor David Wootton said: "Our research shows that Britain is getting back to growing food again and this initiative is to help groups that help people do this. "Growing things is a profoundly nourishing experience - in every sense - and the City Corporation and its charity the City Bridge Trust wants to help embed the habit across the nation, helping thousands of people across a range of projects." A message of support from the Queen stated: "The extent of the City of London Corporation's charitable activity is renowned and I am delighted that through this programme, City Bridge Trust is encouraging local neighbourhood projects which will help the environment and offer work training opportunities for young people." Money News Thu, 17 May 2012 00:06:29 BST Almost a third of adults are now growing their own food, according to a poll http://money-news.money.aol.co.uk/article/2012/05/17/short_apprenticeships_no_benefit N0132471337132915156A Apprenticeships of less than six months provide "no real benefit" to trainees or their employers, a parliamentary report has warned. The Commons Public Accounts Committee praised the Business Department's drive to boost the number of apprenticeships, which quadrupled from 79,000 in 2006/07 to 325,500 in 2010/11, with the proportion completed successfully rising from 34% to 78% over six years. But the cross-party committee voiced concern over the amount and quality of training, and welcomed Skills Minister John Hayes' announcement in April that in future the vast majority of apprenticeships will last more than 12 months, with a six-month minimum for over-19s who already have qualifications. Thursday's report said that the £451 million apprenticeship programme, offering work-related training for full-time employees in England, was a proven success, delivering £18 in economic benefits for every £1 spent. But it said England still lagged behind other countries in the size of its programme and the proportion of apprentices taking advanced-level courses. It warned the programme will have to be better promoted after 2013/14, when over-24s will be required to contribute to the cost of advanced apprenticeships. The MPs added that the National Apprenticeship Service was setting rates for courses on the basis of "outdated assumptions" and did not know what profits training providers were making or whether it was paying them too much. Committee chairwoman Margaret Hodge said: "The apprenticeship programme has been a success. The department has done very well in raising the number of adult apprenticeships, which more than quadrupled in the four years to 2010/11. "The proportion of adult apprentices who successfully completed their apprenticeship also rose, to more than three-quarters in 2010/11 compared with just a third six years before. "But the department could do more to maximise the programme's impacts. My committee is concerned about the number of short training programmes classified as apprenticeships. The National Apprenticeship Service expects them to last between one and four years, but around a fifth of apprenticeships lasted for only six months or even less. "We also have concerns about the amount and quality of training some apprentices receive. Many do not receive the off-the-job training they are entitled to and this is something the department must address." Money News Thu, 17 May 2012 00:04:06 BST The Commons Public Accounts Committee has said apprenticeships should last between one and four years http://money-news.money.aol.co.uk/article/2012/05/17/warning_given_over_housing_crisis N0159911337240630836A More new homes must be built to tackle "the country's burgeoning housing crisis", a new report has said. The National Housing Federation, homelessness charity Shelter and the Chartered Institute of Housing have called on the Government to do more after publishing their second Housing Report which finds it is failing in five out of 10 key issues. It urged the coalition to "get Britain building" to provide thousands of much-needed homes, with the benefit of stimulating the economy. The report found that affordability of the rented sector, help with housing costs, homelessness, the housing supply and overcrowding were getting worse. The study found no change in the issues of home ownership, mobility and planning while there were improvements in empty homes and "evictions, repossessions and arrears". After publishing the findings, the authors said "the Government is falling well short in tackling the country's burgeoning housing crisis". David Orr, chief executive of the National Housing Federation, which represents housing associations, said: "Much more needs to be done to tackle this country's dire housing crisis. Unless we build significantly more homes, it will only get worse. "Building new homes will help fix our broken housing market and, with rising unemployment and living costs, spur economic growth by creating jobs and supporting small businesses. It's a win/win for the taxpayer and for the millions stuck on waiting lists." Progress to get Britain building was being made, Housing Minister Grant Shapps said, adding he was "delighted that such an influential range of organisations are now joining me in raising housing as one of the key issues we face in this country today". Mr Shapps said: "With the support of the Prime Minister our housing plans are taking centre stage in the economic recovery, getting people into jobs, helping aspiring homeowners on to the housing ladder and getting Britain building. We have made real progress and I am pleased that this is recognised by a number of 'green' and 'amber' lights in the report, but I am under no illusions that we still have a long way to go." Money News Thu, 17 May 2012 09:27:10 BST A new report urges the Government to 'get Britain building' in a bid to tackle the 'burgeoning housing crisis' http://money-news.money.aol.co.uk/article/2012/05/17/pm_queries_single_currency_survival N0156471337210839100A David Cameron has issued a call for action from eurozone states and institutions to support weaker economies like Greece or see the single European currency break up. The Prime Minister said he would do "whatever it takes to keep Britain safe from the storm", but made clear that the UK could not be immune from the consequences of a collapse of the euro. He insisted he would not ditch the coalition Government's deficit-reduction strategy in the face of demands from Labour - echoed by new French president Francois Hollande - for a shift in focus from austerity to growth. Britain should be "resolute" as it faces the potential storms from the eurozone but also "confident" that it can get through to a brighter future if it stands firm and resists the "dangerous voices calling on us to retreat", he said. In his starkest warning yet of the dangers created by the debt crisis in Greece, the Prime Minister used a high-profile speech on the economy to say that Britain is going through "perilous economic times". Citing Bank of England governor Sir Mervyn King, who on Wednesday warned that the eurozone seemed to be "tearing itself apart", Mr Cameron told an audience of business leaders in Manchester: "Turn on the TV news and you see the return of a crisis that never really went away. Greece on the brink; the survival of the euro in question. "Faced with this, I have a clear task: to keep Britain safe. Not to take the easy course, but the right course. Not to dodge responsibility for dealing with a debt crisis, but to lead our country through this to better times. My message is that it can be done. We are well on the way in this journey." In a message directed at Germany - which on Wednesday registered strong growth while other eurozone countries saw their economies shrink - Mr Cameron said the "remorseless logic" of monetary union meant that successful economies must be prepared to do more to shore up weaker states on the periphery. While high-deficit countries like Greece need to take steps to get their budgets in order, "it is becoming increasingly clear that they are less likely to be able to sustain that necessary adjustment economically or politically unless the core of the eurozone, including through the European Central Bank, does more to support demand and share the burden of adjustment", he said. "The eurozone is at a crossroads," said Mr Cameron. "It either has to make-up or it is looking at a potential break-up. Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalised and regulated banks, a system of fiscal burden sharing, and supportive monetary policy across the eurozone, or we are in uncharted territory which carries huge risks for everybody." Money News Thu, 17 May 2012 01:25:09 BST David Cameron has used a high-profile speech on the economy to say Britain is going through 'perilous economic times' http://money-news.money.aol.co.uk/article/2012/05/17/underwater_turbine_tests_completed N0152031337183527632A An underwater turbine destined to form part of a major green energy project is already using tidal power to produce electricity for homes on a remote Scottish island. The 100ft-long device, which can provide enough energy to meet the electricity needs of 500 homes for a year, has completed its initial testing period. Bosses at ScottishPower Renewables said the results gave them "great confidence" in the turbine which will be installed in the world's first tidal turbine array in the waters off Islay in the west of Scotland. The one-megawatt turbine was installed in the sea off Orkney last December in some of the worst weather experienced for more than decade. It is already providing power for homes and businesses on Eday, one of Orkney's northern isles. ScottishPower Renewables plans to use the device in a 10-megawatt tidal array in the Sound of Islay. The firm received planning permission from the Scottish Government for it last year and it is hoped work can start next year and be completed by 2015. Keith Anderson, chief executive of ScottishPower Renewables, said: "The concept of generating electricity from the natural movement of the tide is still relatively new - and test projects like this are vital to help us understand how we can fully realise the potential of this substantial energy source." The HS1000 tidal turbine has been developed by Andritz Hydro Hammerfest which is based in both Norway and Glasgow. Managing director Stein Atle Andersen said the device is "an important step in our staged strategy for developing reliable and cost-efficient tidal energy converting devices and power plants". Tests had "given comfort, concerning the device's capacity", he said. WWF Scotland director Richard Dixon said: "It's great news that this underwater turbine has not only successfully completed its initial testing phase but also been able to provide electricity for homes and businesses on the island." He added: "Marine energy offers a fantastic opportunity for Scotland. With careful planning, we can harness wave and tidal energy to help cut our climate emissions while safeguarding the nation's tremendous marine environment." Money News Thu, 17 May 2012 07:41:21 BST An underwater turbine, seen here being hoisted into the water, has completed successful trials in the sea off Orkney A computer generated image of an array of HS1000 turbines http://money-news.money.aol.co.uk/article/2012/05/16/first_time_buyer_lending_up_74 N0138381337160324529A Lending to first-time buyers surged 74% during March in a rush to beat a deadline for the end of a stamp duty concession, figures have shown. The Council of Mortgage Lenders (CML) said 24,000 loans worth a combined £3 billion were taken out by borrowers new to the market. In volume terms, this was 57% higher than a year earlier and up 74% on the previous month as the concession, which meant first-time buyers were free from the 1% stamp duty on homes costing under £250,000, ended on March 24. First-time buyers accounted for 42% of total house purchase loans in the month, the highest proportion since 2001, the CML added. While the duty holiday only related to first-time buyers, the impact on other transactions in property chains meant 27,200 loans worth £4.3 billion were also taken out by home movers in March, an increase of 25% on February. CML director general Paul Smee said it remained to be seen whether other Government initiatives such as the NewBuy scheme will compensate for the end of the stamp duty concession. He added: "We expected this significant increase in borrowing for March because of the stamp duty holiday. However, if lending follows the same pattern as after previous stamp duty concessions, we will likely see a drop in activity in the next few months." CML members are banks, building societies and other lenders who together undertake around 95% of residential mortgage lending in the UK. There are 11.3 million mortgages in the UK, with loans worth more than £1.2 trillion. Remortgaging activity was flat in the month, with the £3.6 billion advanced unchanged from February and lower than March last year. Overall there were 51,200 loans for house purchase and remortgage, an increase of 44% on February. Money News Wed, 16 May 2012 10:41:03 BST CML figures show that 24,000 loans were taken out in March http://money-news.money.aol.co.uk/article/2012/05/17/old_films_bring_back_the_memories N0138071337159687955A Archive films are being used to help people with dementia and other memory disorders in a new project. Films housed at the Yorkshire Film Archive (YFA) have been carefully selected for the "Memory Bank" initiative in collaboration with experts from Age UK, the Alzheimer's Society and Methodist Homes for the Aged. The footage is mainly from home movie collections held by the YFA and features familiar subjects such as holidays, sports, school days and working life. It follows an 18-month research project. Organisers of the study said the films promoted conversations with the participants on everything from knitted bathing costumes, free school milk and 1960s fashion mistakes through to favourite fireworks and clocking on at work. YFA director Sue Howard said one Memory Bank user in the study said: "It's like the years peeling back - the memories are all still there, it just needs a trigger." Ms Howard said: "Memory Bank is about opening up our collections to a huge range of older people, many of whom face a number of age-related challenges, and who often have very few opportunities to see and enjoy films such as these. Reminiscence therapy and memory work play an invaluable role in improving a sense of personal identity and wellbeing, and stimulating communication and sociability. "Memory Bank is a unique proposition - it uses films taken largely from our home movie collections, which are a fantastic visual record of everyday life over the decades. It is these films that trigger all of our collective memories." Social gerontologist Professor Dianne Willcocks said: "Memory Bank offers older people a compelling and fun tool to reclaim their lived past - and to share it with family, friends and carers alike. It works both for those living with dementia and for those simply living with rich memories." Memory Bank packs have been developed with a user guide, film notes, discussion ideas, suggestions for activities, guidance on starting a memory box and a "Life and Times" section spanning the changes over the decades from the 1920s to the 1970s. The project has been supported by the Screen Heritage UK Programme, a partnership between the British Film Institute, Screen Yorkshire and English Regional Film Archives, to safeguard the future of the UK's national and regional film collections funded by the Department for Culture, Media and Sport. Money News Thu, 17 May 2012 00:06:27 BST The Memory Bank project uses film screenings to help people with dementia