Dear Listener

Dear Listener,

Another week another record – well probably. Last week it was petrol. Now the price of heating oil is soaring. It is relied on by nearly a million people who are not connected to the gas network to heat their homes. But the average price per litre has risen from around 40p to around 70p since September, and there are reports of customers being charged 99p a litre if they want the oil before Christmas. Unlike people connected to the gas network, who can change their gas supplier, these people in mainly rural areas are stuck with an uncompetitive and unregulated market for one of the basics of life – keeping warm. Someone is making a lot of money.

And goodness me another batch of ideas from the Government. First a consultation on Simpler Financial Products http://www.hm-treasury.gov.uk/consult_simple_financial_products.htm Yes we have been here before. Stakeholder, Sandler, Charges Access Terms (CAT standard) etc. So much so that a separate Treasury document looks at previous simple product initiatives and why they have gone wrong! Some say customers don’t want them. More likely is that sales staff don’t want to sell low cost and low profit (and low commission) products. That is certainly true of stakeholder pensions.

Not even reaching the status of a consultation is a ‘call for evidence’ on early access to pension funds. Should we be able, in some circumstances, to use the 25% tax-free lumpsum earlier than the normally available age of at least 55?

http://www.hm-treasury.gov.uk/consult_early_access_pension_savings.htm

As I said in my twitter (www.twitter.com/paullewismoney) this document has the smell of Sir Humphrey’s long grass all over it – as in ‘kicked into the long grass’ or stamped with the anti-Churchillian phrase ‘no action this day – or any other’. I hope I am wrong. 

And I almost forgot to mention the excellent and interesting debate held near Westminster on Monday evening. The Independent Commission on Banking – set up by the Chancellor in June – is holding a series of public meetings and this one – which I was delighted to chair – was for members of the public to express their views. A small contingent of readers of this newsletter were there together with some users of moneysavingexpert.com and a vociferous group of people which Consumer Focus had assembled. Martin Taylor – the banking commissioner on the panel – had a very useful evening and took away several new ideas to his Commission. Not least that if banks had a big market share they should have a public service obligation along with that – a bit like BT and British Gas do.

**IN MONEY BOX THIS WEEK***

Cash or shares? The old debate has been given new life with RPI inflation at 4.7% and almost no savings account paying that much. And at the same time the FTSE index is rising and rising. So should we put our savings into share-based investments to get a real return?

Should you contract out of the state second pension (S2P) in its final years – it ends for personal pension on 6 April 2012? One company thinks so but is its advice sound? Indeed, does it give advice at all?

If you think you may have problems paying your mortgage tell your lender as soon as you can. But it might ignore you.

The loan company that is accused of saying ‘yes’ when the answer is in fact no, or at best maybe.

And new rules at the Financial Services Compensation Scheme.

Mmmmm. It sounds like a lot longer than 24 minutes to me too. We will get out the apple presses to see what we can squeeze it down to, live on Saturday at 1204. And you can listen at any time on our website www.bbc.co.uk/moneybox. There you can also read web pieces, download transcripts, follow links, send us stories or ideas you want us to look into and Have Your Say on.

For an interesting (and cheap) Xmas present why not send your friends the link to this newsletter at www.bbc.co.uk/moneybox/newsletter and suggest they follow my random thoughts on money 24 hours a day at www.twitter.com/paullewismoney. Bargain!

Best wishes,

Paul

PS don’t forget the programme trail on Breakfast on BBC 1 between 0845 and 0900 on Saturday. And the new Monday spots around 0640 and 0810 with a personal finance story and viewers’ emails.

PPS No newsletter or programme next Saturday, Christmas Day, but back with a New Year look back and forward on 1 January 2011.

e-mail Paul Lewis