Consumer skills to meet consumer challenges

Thursday 25 March 2010

Antoinette McKeown

Chief Executive

The Consumer Council for Northern Ireland

Faulty goods ‘costing consumers’

Faulty goods cost UK consumers an average of £78 a year – or nearly £5,000 in a lifetime – because people are too worried or too confused about returning items.

A poll of 3,000 people found that men were losing an average of £89 each year because they felt intimidated about returning goods.

Women lost less (an average of £71 per year) because they felt embarrassed about taking items back.

Source: BBC UK Your Money online news,

5 March 2010

GSCE Home. Economics specification

Explain the rights and responsibilities associated

with being an effective consumer

Disadvantaged consumers

• Young consumers;

• Older consumers;

• Consumers with a disability;

• Consumers from an ethnic or minority background;

• Consumers on a low income.

Source: Well, what do you know now? A Consumer Council Progress Report on Consumer Proficiency 2003 – 2007, March 2008

www.consumercouncil.org.uk

2002 “Effective consumer education…is essential in helping to create the

adult consumers who can make informed purchasing decisions.”

A Consumer Strategy for Northern Ireland, DETI.

schools and colleges

youth groups

adult learners

voluntary and community

businesses

www.consumercouncil.org.uk

Building Consumer Confidence in Northern Ireland

54 per cent increase (6 in 10) consumers now consider themselves to be informed about their rights.

The number of consumers who feel confident in expressing their rights has doubled since 2003.

However, disappointingly the numbers satisfied with the way their complaint was handled fell from 66 per cent in 2003 to 59 per cent in 2007.

Young people were the least likely to be satisfied with the way their complaint was handled.

Source: Well, what do you know now? A Consumer Council Progress Report on Consumer Proficiency 2003 - 2007

Money Matters

• Only half of NI consumers save money on a regular basis1

• A third of people believe they are only one month away from financial hardship should they face an unexpected expense or a sudden drop in income2

• In 2008 – 2009, 18,076 new cases were presented as homeless to the NIHE3

GSCE Home. Economics specification

Evaluate strategies to enable different individuals and families to manage their finances effectively.

1. Consumer financial products research, Consumer Council, Oct 2009

2. Managing Money: How Does Northern Ireland Add Up? Consumer Council, 2007

3. Department for Social Development, Housing Statistics, 2008-09

Money Matters

To help consumers manage their money and make it work best for them the Consumer Council heads up the NI Financial Capability Partnership, which brings together:

• government

• banks

• building societies

• credit unions; and

• education and community sectors.

We work together to look at ways in which individuals and families can become more financially savvy and avoid falling into financial hardship and seek to improve the help available for people that are already in difficulties.

Money Matters

• More than a quarter of NI consumers did not use any form of information at all to choose a financial product such as a loan or mortgage1

• Fewer consumers in NI pay off the full balance on their credit card now (34 per cent) compared to 2004 (48 per cent)2

• More NI consumers make only the minimum payment on their credit cards now (17 per cent) compared to 2004 (11 per cent) 3

GSCE Home. Economics specification

Outline the consequences of poor financial management for different individuals and families.

1. Managing Money: How Does Northern Ireland Add Up? Consumer Council, 2007

2. Consumer Financial Products Research, Consumer Council Oct 2009 and Taking the Credit: Consumer credit and debt in Northern Ireland Consumer Council 2004

3. Consumer Financial Products Research, Consumer Council Oct 2009 and Taking the Credit: Consumer credit and debt in Northern Ireland Consumer Council 2004

Money Matters

• Consumers pay 84 per cent, or £282, more on average for car insurance in Northern Ireland

• Almost a third (30 per cent) of consumers here do not have home contents insurance and 36 per cent do not have buildings insurance

• By shopping around, consumers can save as much as £267 with car insurance, £70 with contents insurance and £52 with buildings insurance.

Source: Quote Unquote: The cost of insurance in Northern Ireland, Consumer Council, 2009

GSCE Home. Economics specification

What are the benefits of being an informed, discerning consumer?

Tackling low levels of financial capability

Julie McCurley, Head of Money Affairs, CC with Frank Britton, Vice Chair of Fermanagh District Council

This year’s Money Week was held on 6-12 March and hosted by Fermanagh District Council.

Events included a ‘Money Market’ involving the NI Financial Capability Partnership members who ‘set out their stall’.

The initiative is aimed at helping consumers budget effectively, save for a rainy day and discover where to get help with money worries.

Fuel Poverty

• NI households spend 43 per cent more on fuel than in the rest of the UK1

• One-in-two households in Northern Ireland are in Fuel Poverty (in 2006 it was already grim, with one-in-three households)2

• Every 1 per cent increase in energy costs pushes a further 2,600 NI households into Fuel Poverty3.

GSCE Home. Economics specification

How will this impact on a person’s choice and management of resources?

1. Family Spending Survey 2009 (refers to 2008 expenditure)

2. Department of Social Development

3. Policy Briefing for Save the Children: ‘The impact of fuel poverty on children' by Christine Lidell in December 2008

Fuel Poverty

• 50 per cent of people in fuel poverty are aged over 60.  However this is not just an older person’s issue  

• Families also are at risk. In Northern Ireland, 42 per cent of households in fuel poverty have children.

• 27 per cent of fuel poor households are working and earning between £10k and £15k per year.

• And things are set to get worse…an Ofgem report indicates that energy prices could rise by between 14 – 60 per cent.

This is the situation that young people now will be facing when they’re adults. How much of their earnings will be spent simply trying to stay warm?

Taking on the fuel industry

In the meantime, consumers can click on our website to check pricing in their area at www.consumercouncil.org.ukwww.consumercouncil.org.uk

Oil suppliers get a drilling

The Consumer Council is calling for the oil industry to become regulated so that there’s more transparency for consumers regarding pricing.

Pumping for clearer pricing

We also want petrol and diesel suppliers to be upfront about their costs and explain to consumers how costs are incurred at each stage of production and supply affecting the price paid at the pumps.

Taking on the banks

Ulster’s ‘BigFour’ banks set to facethe music Monday 14th May 2007

Banks will be forced to comeclean on feesWednesday 16th May 2007

Smoke and

mirrors hide

true

cost of bank

charges –

Consumer

CouncilThursday 19th April 2007

Over 10,000 consumers downloaded our “Stop Unfair Charges” pack and people who challenged their bank got an average of £1,000 back.

We’re still fighting for a fair deal…Following the disappointing Supreme Court ruling, we’re supporting the Government’s stated commitment to take action if banks do not voluntarily make their charges fairer and more transparent.

Engaging with consumers

We organise regular consumer panels to

investigate current issues and we’ve recently

been out on the road…

Consumer Council roadshows recently travelled to:

• Strabane Public Library, Tuesday 16 February 2010;

• Meadowlane Shopping Centre, Friday 19 February 2010; and

• Ards Shopping Centre, Newtwonards, Thursday 25 February 2010.

Challenges for the Future?

High street v Online

Local produce v Globalisation

Technological advances v Sustainable consumption