Npower Tops Citizens Advice Complaints Table

Energy giant Npower topped a 'big six' complaints list, at the same time it announced inflation-busting price hikes.

The Citizens Advice Bureau (CAB) said that between October and December, it received 10 times as many complaints as the best performing rival, SSE.

Late last year German-owned Npower wrote to 3.4 million customers, after it suffered a sharp rise in customer complaints over billing failures.

This followed an announcement imposing the highest price hikes of the major suppliers, at 10.4%.

CAB said Npower received 306 complaints per 100,000 customers in the period. It has a total of 5.9 million customers.

The figure was three times as many as the second worst for customer complaints, Scottish Power, which received 100 complaints for every 100,000 customers.

In January, Npower retail director Roger Hattam issued a second apology, over complaints it received due to a new billing system, with some customers hit with inaccurate charges.

At the time, Consumer Futures revealed Npower had attracted nearly half of all complaints of 'big six' firms between July and September, at 253 per 100,000 customers.

CAB said complaints against the company jumped by 300% between January 2012 and December 2013.

It slammed the rise as "unacceptable" adding that some customers were financially damaged over Npower's billing failures.

Complaints included direct debits being stopped, late billings and new accounts not being set up correctly.

CAB chief executive Gillian Guy said: "Things are getting worse not better for Npower customers.

"It is unacceptable that Npower has not yet sorted out the serious failings in its billing systems and customer service which are causing so many complaints and serious problems for its customers."

In a statement to Sky News, Npower retail director Roger Hattam said: "We wrote to all our customers during this period last year apologising for the impact on them of issues we have had with the implementation of our new billing system.

"We are making good progress in dealing with the root causes of this, but remain totally committed to resolving any problems this has created for our customers."

In late January, Npower was slammed by both watchdog Ofgem and the Department of Energy and Climate Change over a 14-page report it issued trying to explain cost structures of household bills and green taxes.

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CBI Says Home Loans To Rise In Early 2015

Homeowners will come under more pressure early next year with the prediction that interest rates are to rise.

According to the Confederation of British Industry (CBI), the UK base rate will jump from the current historic low of 0.5% to 0.75% in the first quarter.

The CBI had earlier predicted a rate rise in the third quarter of 2015. It declined to say how many homeowners or businesses might be affected by rising interest rates next year.

The Office for National Statistics said that in 2010 more than 9 million UK households had property debt.

The Council of Mortgage Lenders (CML) said that in February 22,200 first-time buyers received loans, 26,200 home-movers and 14,300 buy-to-let applicants.

In December the CML said the recent period of falling loan arrears may be coming to an end, and forecast a 6.66% rise in defaults, to 160,000, next year.

CBI director-general John Cridland said property values were expected to rise by 8.2% in 2014 and 5.1% next year, prompting more fears of prices overheating.

"We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank of England) Financial Policy Committee is poised to act when necessary," he said.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures.

"While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

London house prices have climbed a quarter above their pre-crash peak, partially prompted by foreign buyers in the prime property segment.

"Outside London, prices remain around 2% below peak figures with an even greater difference when you move outside the South East," Mr Cridland said.

The predictions come amid increased scrutiny of mortgage applications by lenders, in response to a market review by the Financial Conduct Authority.

Mortgage providers are seeking reassurance that applicants will have sufficient income to cover any potential rises in interest rates.

The FCA said new rules were "hardwiring common sense" into the market.

Mortgage broker firm John Charcol said families are the most likely to face scrutiny under the new regime, as their outgoings were potentially greater.

Spokesman Ray Boulger said: "The most common reason to knock people back is childcare costs.

"It's particularly bad if people have more than one child or if they are under school age."

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AstraZeneca Takeover: MPs Question Bosses

Unions have warned MPs any takeover of AstraZeneca by US drugs giant Pfizer would lead to job losses and damage scientific skills in Britain.

Speaking at a hearing of the Business, Innovation and Skills Committee on Pfizer's £63bn approach to the British-based firm, Tony Burke, of the union Unite, said the firm had a terrible track record on job losses.

He told MPs the US-based pharmaceutical company had cut 65,000 jobs globally since 2005 and that when Pfizer had closed down a UK site, in Sandwich, it had been difficult for workers to get agreement on consultations.

Mr Burke said that there had been a meeting at which staff at AstraZeneca had voice significant concern about their jobs. The firm employs 6,700 in the UK.

He said that of particular concern was the research and development area where Pfizer had made significant cuts, while AstraZeneca has shown greater commitment.

Allan Black of the GMB union questioned Pfizer's suggestions of a five or 10-year legally binding guarantee of commitment to research and jobs and said he felt the drugs company would be unlikely to sign such a document.

Pfizer claims the newly created giant will mean improved treatments

Pfizer's chief executive Ian Read, who will be questioned later today, wrote to David Cameron giving a guarantee 20% of research jobs would stay in the UK, two AstraZeneca directors would be able to join the board and that the company would pay tax in the UK.

In a memo to the committee Mr Read said this was a legally binding guarantee for five years. However, MPs were told that under Takeover Panel rules the guarantee would only be binding for a year, any remaining time would be voluntary.

Mr Black said their was significant concern over AstraZeneca's manufacturing plant in Macclesfield because a drug made there was not widely marketed in the US and there were fears Pfizer would, therefore, not wish to invest in it.

The unions said Pfizer had not responded to requests for a meeting.

MPs are seeking cast iron guarantees on British jobs from drugs giant Pfizer if its attempted takeover of AstraZeneca is successful.

Mr Read's assurances have been dismissed as "vague" and "insufficient" by the Nobel Prize winner and President of the Royal Society Sir Paul Nurse.

He has written a letter to the committee ahead of two days of parliamentary hearings on Tuesday and Wednesday, which will see the chief executives of both firms quizzed.

Sir Paul said greater assurances were needed on the future of the British pharmaceutical industry and the jobs of scientists, and that there should be a 10-year legally binding agreement on what Pfizer would do.

The offer has revived bitter memories of when American food giant Kraft abandoned jobs pledges after buying Cadbury in 2010.

The committee's Labour chairman Adrian Bailey said Pfizer's track record of buying foreign firms and closing them down "gives no confidence that they will deliver on the assurances that we have made".

Mr Read said the new £150bn firm would be able to bring better products to patients with improved treatments for conditions such as cancer, heart disease and diabetes.

If it goes ahead then it would be the biggest ever foreign takeover of a British company.

AstraZeneca has refused to engage with the Viagra makers on the takeover and dismissed the offer as "inadequate".

Under takeover rules, having indicated its interest to shareholder, Pfizer now has until May 26 to make a formal offer, although one is widely expected later this week.

David Cameron has come under pressure from Labour to subject the takeover to a public interest test.

A public interest test is usually reserved for matters of national security or financial stability and it would be difficult to argue as these rules were not applied for takeovers of British car manufacturers.

More follows ...

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Moulton Fund Eyes Better Future For Kiddicare

By Mark Kleinman, City Editor

The investment fund headed by Jon Moulton, the City financier, is among a pack of bidders vying to win control of Kiddicare, one of the UK's biggest maternitywear retailers.

Sky News understands that Better Capital is one of the bidders through to the second round of an auction of the business, which is owned by the supermarket chain Wm Morrison.

The sale has attracted the interest of a number of so-called turnaround specialists, understood to include Hilco, the owner of HMV, R Capital and Endless, whose investments include Crown paints.

Amazon and Tesco are also said to have requested access to information about Kiddicare, although analysts have said that it is unlikely that either will make a formal offer.

Morrison's, which has been hit by a prolonged slump in trading, is expected to have to pay a multimillion dowry to the acquirer of Kiddicare.

In March, Morrison's said that Kiddicare was "a business whose performance has been disappointing and which is no longer strategic", adding that it had taken a £163m charge on the maternitywear specialist.

A sale could include all ten of the stores operating under the Kiddicare name, or could involve the closure of some of the sites prior to a deal being completed, insiders said.

Morrison's bought Kiddicare for £70m in 2011, arguing that the online business would aid its own transition to becoming a multi-channel retailer.

It then acquired ten failed former Best Buy electrical goods stores set up as part of a joint venture with Carphone Warehouse.

The supermarket chain received a £40m payment from Carphone because of the stores' onerous rent obligations, but the shops have struggled, while Morrisons' subsequent technology agreement with Ocado has rendered the use of Kiddicare's systems redundant.

The Kiddicare auction, which is being handled by Rothschild, the investment bank, comes weeks after Dalton Philips, Morrison's chief executive, waived his annual bonus for last year following the announcement of a £176m loss.

The company also warned that profits in 2014 would be about half the level they reached in 2012.

Last week, it said that trading had deteriorated further, although it is fighting back against fierce competition from the likes of Aldi and Lidl with a price-cutting campaign across 1200 products.

In addition to its slump into the red, Morrison's has recently been forced to deal with the theft of personal data from 100,000 of its employees.

A Morrisons spokesman declined to comment, while none of the turnaround funds could be reached for comment on Monday.

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CBI Says Home Loans To Rise In Early 2015

Homeowners will come under more pressure early next year with the prediction that interest rates are to rise.

According to the Confederation of British Industry (CBI), the UK base rate will jump from the current historic low of 0.5% to 0.75% in the first quarter.

The CBI had earlier predicted a rate rise in the third quarter of 2015.

The Office for National Statistics said that in 2010 more than 9 million UK households had property debt.

The Council of Mortgage Lenders said that in February 22,200 first-time buyers received loans, 26,200 home-movers and 14,300 buy-to-let applicants.

CBI director-general John Cridland said property values were expected to rise by 8.2% in 2014 and 5.1% next year, prompting more fears of prices overheating.

"We have to remain alert to the risks posed by unsustainable house price inflation, and the (Bank of England) Financial Policy Committee is poised to act when necessary," he said.

"Housing has come back under the spotlight as annual house price inflation figures have reached double digits on some measures.

"While housing transactions are still running almost 30% below their last peak in 2006, they are picking up steadily."

London house prices have climbed a quarter above their pre-crash peak, partially prompted by foreign buyers in the prime property segment.

"Outside London, prices remain around 2% below peak figures with an even greater difference when you move outside the South East," Mr Cridland said.

The predictions come amid increased scrutiny of mortgage applications by lenders, in response to a market review by the Financial Conduct Authority.

Mortgage providers are seeking reassurance that applicants will have sufficient income to cover any potential rises in interest rates.

The FCA said new rules were "hardwiring common sense" into the market.

Mortgage broker firm John Charcol said families are the most likely to face scrutiny under the new regime, as their outgoings were potentially greater.

Spokesman Ray Boulger said: "The most common reason to knock people back is childcare costs.

"It's particularly bad if people have more than one child or if they are under school age."

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Insider Trading 'Scam' Uncovered On LinkedIn

An alleged insider trading scam was busted when a LinkedIn connection was spotted between a senior bank boss and a government statistics employee.

National Australia Bank (NAB) director Lukas Kamay is accused of making bets on the Australian dollar just seconds before announcements of economic news, the Sydney Morning Herald reported.

Foreign exchange broker Owen Kerr spotted that Kamay was LinkedIn friends with an employee at Australia's Bureau of Statistics called Chris Hill, and was making money from inside information.

Mr Kerr said: "That was when it suddenly clicked that this guy was only trading ABS data and had a man on the inside.

"(The trades) were really an all-or-nothing bet and not something someone would normally rationally make."

He tipped off police and a nine-month surveillance operation was launched, which ended with the arrests of Kamay and Hill on Friday.

Hill is alleged to have provided confidential information - including housing and building approval figures - before it was released at 11.30am on selected days.

It has been reported that up to $7m AUS (£3.9m) was made by Kamay, who allegedly offered Hill a bribe of $50,000 AUS (£27,750) to disclose the inside information.

Kamay now faces seven criminal charges.

The assets of both men have been frozen, including Kamay's luxury apartment.

NAB has pointed out that "no NAB money, no NAB customer money or NAB systems" was used in the alleged scam.

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Amazon Paid £10m Tax On £4.3bn UK Sales

Online retailer Amazon paid a UK corporation tax bill of £10m last year, despite sales in Britain reaching £4.3bn, it has been revealed.

Amazon.co.uk saw a 56% rise in profit to £17m during 2013, along with a 13% rise in UK revenue.

The company reports most of its European profit through a tax-exempt Luxembourg partnership.

Amazon has faced previous criticism for its complex tax structures, through which sales are logged in the European location despite goods being sourced, stored and sold within Britain.

In a statement to Sky News, the company insisted it paid all applicable taxes in jurisdictions that it operates within.

It said: "Amazon EU serves tens of millions of customers and sellers throughout Europe from multiple consumer websites in a number of languages dispatching products to all 28 countries in the EU.

"We have a single European headquarters in Luxembourg with hundreds of employees to manage this complex operation."

Other large multinationals, including Google and Starbucks, have been grilled alongside Amazon by MPs on the Public Accounts Committee.

Amazon.co.uk is funded by its Luxembourg-based affiliates.

Executies from Amazon, Google and Starbucks were grilled by MPs in 2012

The rates of such inter-company remuneration are usually agreed with the UK tax authority, but HM Revenue and Customs (HMRC) declined to comment on the tax paid by Amazon.

In 2013, intercompany fees paid to Amazon.co.uk Ltd rose 40% to £449m.

This led to Amazon's current tax bill for 2013 being its biggest ever.

"It's possible Amazon may have come under pressure from HMRC to adjust their inter-company agreements," Prem Sikka, Professor of Accounting at Essex University, told Reuters.

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'Zombie Bank Accounts Cost Savers £4bn A Year'

Savers are losing more than £4bn pounds a year by having their money in poor-paying accounts, according to consumer group Which?

The group found more than a third of accounts closed to new customers, dubbed 'zombie accounts', paid 0.5% interest or less.

This compares with the best-paying Isa savings accounts which offer up to 2.75%.

Three-quarters of people surveyed thought banks did not do enough to help savers get a good deal.

Which? also found more than a third of people had not switched their main savings account because they did not think it would make a difference.

The group's analysis suggested there was a difference of £4.3bn a year between the amount savers would have received if they were all paid the average interest rate and the amount they would have received if they all had money in a top-paying account.

According to Which?, 82% of the 1,999 easy access savings accounts and cash Isas on the market in March were zombie accounts.

Nearly four in 10 (39%) of those accounts paid 0.5% interest or less and 16% paid 0.1% or less.

Which? said the savings market could be "confusing", with some accounts paying very different rates of interest despite having similar names.

It wants banks to move people's money into one default easy access or Isa account at the end of fixed terms.

Which? executive director Richard Lloyd said: "With many savers never switching because they don't think it will make a difference, savings providers should do more to help their customers get the best deal.

"They need to be clear about interest rates, let people know when bonus rates come to an end and make it easier for people to switch Isas."

Andrea Leadsom, the economic secretary to the Treasury, said: "The Chancellor announced a number of measures to help and support savers, notably increasing the cash Isa limit to £15,000, at this year's Budget.

"These changes will give savers more flexibility and choice."

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Billionaire Britain: New Nation Of Super-Rich

Top 25 Billionaires In Britain

Updated: 12:54am UK, Sunday 11 May 2014

The top 25 names on the 2014 Sunday Times Rich List, including their total fortune and the change from last year.

1. Sri and Gopi Hinduja, £11.9bn, up £1.3bn

2. Alisher Usmanov, £10.65bn, down £2.65bn

3. Lakshmi Mittal and family, £10.25bn, up £250m

4. Len Blavatnik, £10bn, down £1bn

5. Ernesto and Kirsty Bertarelli, £9.75bn, up £2.35bn

6. John Fredriksen and family, £9.25bn, up £450m

7. David and Simon Reuben, £9bn, up £719m

8. Kirsten and Jorn Rausing, £8.8bn, up £3.691bn

9. Roman Abramovich, £8.52bn, down £780m

10. The Duke of Westminster, £8.5bn, up £700m

11. Galen, Hilary and George Weston and family, £7.3bn, up £650m

12. Charlene de Carvalho-Heineken and Michel de Carvalho, £6.365bn, down £635m

13. Mohamed Bin Issa Al Jaber and family, £6.16bn, up £1.645bn

14. Carrie and Francois Perrodo and family, £6.14bn, new

15. German Khan, £6.08bn, new

16. Sir David and Sir Frederick Barclay, £6bn, up £3.65bn

17. Hans Rausing and family, £5.9bn, up £1.18bn

18. Nicky Oppenheimer and family, £4.57bn, up £785m

19. Earl Cadogan and family, £4.2bn, up £525m

20. Joseph Lau and family, £4.03bn, down £570m

21. Sir Philip and Lady Green £3.88bn, no change

22. Denis O'Brien, £3.854bn, up £486m

23. Mike Ashley, £3.75bn, up £1.45bn

24. Sir Richard Branson and family, £3.6bn, up £86m

25. Idan Ofer, £3.43bn, new

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Co-op Group Stake In Its Bank 'Falls To 20%'

Charting The Crisis At The Co-op

Updated: 11:05am UK, Tuesday 11 March 2014

The Co-operative grew from a small shop in Lancashire in the 19th century to a worldwide movement but the future of the modern day Group began to be threatened by a crisis in its banking arm.

:: April 24 2013 - The planned sale by Lloyds of more than 600 branches to the Co-op falls through.

:: May 10 - Co-op Bank rules out Government support after a warning from ratings agency Moody's that it might need taxpayers' money to plug a capital shortfall, which prompts its chief executive Peter Marks to resign. The bank's troubles mainly relate to bad commercial property loans, many acquired through takeover of Britannia Building Society in 2009.

:: June 5 - Co-op Bank appoints veteran banker Richard Pym as chairman to lead the lender's restructuring, replacing the Reverend Paul Flowers.

:: June 17 - Co-op Group unveils plan to force bondholders to help plug a £1.5bn capital hole at Co-op Bank, under which the group will retain a majority stake in the bank while bondholders will end up with at least a quarter of the bank's shares.

:: Oct 21 - Co-op bows to bondholder demands and agrees to hand them control of the bank in order to seal a rescue. The Group is left with a 30% stake.

:: Nov 6 - Reverend Flowers is questioned by Treasury Select Committee on the Lloyds deal and makes mistakes about Co-op Bank's finances. At one point he says it held £3bn of assets when the true figure was £47bn.

:: Nov 17 - Mail on Sunday says Reverend Flowers filmed allegedly arranging to buy cocaine.

:: Nov 20 - Prime Minister David Cameron promises inquiry into how Co-op Bank had been "driven into the wall" and asks why alarm bells had not rung earlier over alleged behaviour of Reverend Flowers.

:: Nov 22 - Police arrest Paul Flowers amid investigation into alleged supply of illegal drugs.

:: Dec 12 - Co-op Group appoints ex-Treasury minister Lord Paul Myners to review its operations for a token £1 salary.

:: Jan 6 2014 - UK financial regulators launch investigation into problems at Co-op Bank, which could lead to fines for the bank and its former directors.

:: Jan 7 - The Financial Conduct Authority (FCA) says it has no regrets about approving the Flowers appointment.

:: Feb 17 - Group chief executive Euan Sutherland launches a public poll on the Co-op's future direction.

:: Feb 26 - Co-op announces plan to sell 15 farms and its pharmacy business.

:: Mar 09 - Observer newspaper publishes leaked details of higher pay awards for Co-op bosses.

:: Mar 11 - Euan Sutherland tenders his resignation.

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