Latest news with #vulnerablecustomers
The Sun
a day ago
- Business
- The Sun
Major bank to close 23 more branches this month in huge blow to UK high streets
A MAJOR bank is set to close 23 branches this month, as British high streets struggle to survive. The first round of Santander's closures is underway, after the bank announced in March of this year that they would be shutting at least 95 sites nationwide. 2 They cited the reason for the closures as customers moving increasingly online, reducing the need for in-person services. A statement on its website reads: "We last did a major review of our branches in 2021. "Since then, many of our customers are choosing to use Mobile, Online and Telephone Banking more, and branches less." However, there are concerns about the impact these closures could have on vulnerable people with limited access to online facilities. Charities like Age UK are campaigning to maintain some in-person banking options, with 4 million older Britons unable to manage their finances online. Caroline Abrahams, charity director at Age UK, said: 'Physical spaces – whether a bank or building society branch, Banking Hub, or alternative suitable provision – must continue to exist so people can still carry out face-to-face tasks. "The disappearance of face-to-face banking risks cutting a significant minority of the older population out of an essential service, making it difficult if not impossible for them to manage their money and maintain their independence.' The only alternative is 'Banking Hubs' which have been launched to give customers access to cash and services, regardless of which bank they are with. In addition to the 95 closures countrywide, Santander will also be making changes to surviving branches. This includes reduced opening hours, converting some to 'counter-free' businesses, and opening work cafes. These 'work cafes' provide free co-working spaces, bookable meeting rooms and banking facilities, available to anyone, even if you aren't a Santander customer. Santander's £130 Million Recovery: What You Need to Know The closures are part of a wider financial shift in which banks are prioritising online services. According to consumer group Which?, more than 6,300 bank and building societies have closed since January 2015. This averages out to 53 store closures per month. 2 Other major banks have also made the decision to close a number of branches, with 102 set to close across different banks this month. This includes major providers like Lloyds, Natwest and Halifax, in addition to Santander's closures. Meanwhile Nationwide has promised to keep its nearly 700 branches open until the start of 2028 as they claim more customers are visiting their stores. Santander is set to close even more stores over the coming months, with the dates of 18 branches still yet to be announced. Reduced hours will come into effect on June 30, with 36 stores affected. Here is the full list of June closures: Aberdare - 24 June Arbroath - 17 June Blackwood - 23 June Brecon - 25 June Clacton - 16 June Cleveleys - 23 June Croydon 128 NE - 16 June Dungannon - 23 June Eltham - 23 June Fleet - 30 June Gateshead Metro - 16 June Glasgow LDHQ - 24 June Glasgow MX - 23 June Greenford - 24 June Kidderminster - 18 June Kilburn - 17 June Launceston - 16 June Louth - 17 June Magherafelt - 24 June Musselburgh - 30 June Peterhead - 16 June Portadown - 30 June Swandlincote - 30 June Torquay - 17 June
The Independent
28-05-2025
- Business
- The Independent
Thousands of energy customers to receive compensation over prepayment meter force-fitting
Thousands of energy customers who were forced to have prepayment meters installed in their homes are set to receive compensation or have their debts written off, Ofgem has said. Following a review into energy companies forcing vulnerable customers onto prepayment meters, the regulator announced that eight suppliers will provide compensation and support. Scottish Power, EDF, Utility Warehouse, Good Energy, TruEnergy, and Ecotricity have all agreed to the scheme. Ofgem stated that the suppliers have committed to paying additional compensation where it is due, and in some cases, will write off some of the energy debts of customers who had a prepayment meter installed involuntarily between 1 January 2022, and 31 January 2023. The suppliers will pay £5.6 million in compensation to 40,000 customers who had a prepayment meter installed involuntarily during the assessment period, using guidelines set out by Ofgem. This would mean around £140 for each customer. Additionally, the suppliers will write off a further £13 million of debt from customers who had a prepayment meter installed involuntarily during the same period. This action is in addition to the £55 million in financial support already provided directly to affected consumers by suppliers before the review's completion, which included hardship payments and debt write-offs, the regulator added. Customers identified as having had a PPM wrongly installed or where processes were not followed adequately between January 1 2022 and January 31 2023 will be contacted by their suppliers, and do not need to take action. OVO has also confirmed it will pay compensation to customers in line with the guidelines developed by Ofgem. Tim Jarvis, director-general of markets for Ofgem, said: 'This has been one of the most detailed reviews of supplier practices in Ofgem's history, looking at tens of thousands of cases. It has taken time, but our priority has been to put things right for those who weren't treated properly, and ensure we don't see bad practice repeated. 'While the number of cases where a prepayment meter was wrongfully installed is relatively low compared to the total number of PPM customers, one case is one too many. 'Our review also found wider issues with the processes suppliers had in place, which is why we've put in place clearer, tougher rules to protect customers in vulnerable situations, and I'm pleased that from today suppliers will be applying our compensation framework for those customers affected and have also committed to further support such as debt write-off. 'We have made our expectations clear to suppliers on how those customers who were treated poorly should be compensated. They have, and continue to, work closely and collaboratively with us to make sure their processes are robust and that their customers are properly supported. 'We know that PPMs can be an effective tool in helping customers manage their costs and debt. However, customers must always be treated fairly and compassionately, and we are confident that the changes we have made are a significant step to ensure that happens.' Dhara Vyas, chief executive of Energy UK, which represents energy firms, said: 'Suppliers have worked hard to co-operate with this comprehensive review and taken further action to put things right in the cases where a prepayment meter (PPM) shouldn't have been installed – or where there was insufficient support for the customers concerned. 'Suppliers have been working closely with Ofgem to meet the requirements of its review and have signed up to the Code of Practice before they have been able to restart involuntary installations of PPMs and have carried out thorough testing of the new processes. 'Involuntary installations have been a last – but necessary – resort for cases where repeated attempts to address debt with the customer through other means have been unsuccessful. It's bad for customers to fall further and further into arrears, and bad debt ultimately drives up the prices that are paid by all customers. 'Since the pause on installations, customer debt has risen to a record £4 billion, and the industry remains keen to work with Ofgem on the proposed relief scheme to tackle this problem.' The scandal first made headlines two years ago, at the peak of the cost-of-living crisis, when it came to light that energy companies were switching people on to prepayment methods. This was done by entering properties to install a smart meter or remotely changing a smart meter to prepayment mode. The energy regulator subsequently suspended all forced installations and launched a review of the process. It comes weeks after Good Energy was made to pay £150,000 in compensation and redress after it failed to give final bills and refund credit to more than 2,000 prepayment meter customers. Ofgem said 2,284 customers on prepayment meters were affected by an error with Good Energy's billing system between 2014 and October 2023. It meant that prepayment customers who switched to another supplier or ended their contract with Good Energy did not get a final bill within six weeks, as required by the watchdog. Good Energy paid out £150,067 as a result, with the average sum per customer standing at £66. Energy Secretary Ed Miliband said: 'Justice is finally being delivered to many of the families, lots of them vulnerable, who were affected by the scandal of energy suppliers wrongly forcibly installing pre-payment meters. The government has campaigned tirelessly on this issue and are pleased to see the level of compensation increase to £18.6 million, up from £420,000 under the previous government. 'Consumers must come first, which is why we are reforming the energy market to stamp out bad practice and make it easier to access proper redress when things go wrong, through our comprehensive review of Ofgem. This increased compensation package is a good start, and we will be announcing further reforms in the weeks ahead as we deliver our Plan for Change.'
The Independent
12-05-2025
- Business
- The Independent
Energy firms paying out £25 million a year to customers for ‘breaking rules'
Energy companies in the UK have paid out £152 million over the past six years for failing to meet licence conditions, industry regulator Ofgem has revealed. Averaging £25 million a year since 2018, this money has been used to support vulnerable customers and fund initiatives promoting energy efficiency and net-zero policies. These funds come from payments and fines levied against companies for various infractions, which are then channeled through the Energy Redress Scheme. These infractions include issues such as inaccurate billing, subpar customer service, and manipulation of wholesale energy markets. Since 2018, the scheme has supported 647 projects aimed at assisting vulnerable consumers, offering energy-saving advice, and furthering the development of net-zero strategies. Recent examples of companies contributing to the scheme include Ovo Energy, which paid £2 million for mishandling customer complaints, and Beatrice Offshore Windfarm Limited, which paid £33.14 million for breaching energy market regulations. This substantial sum highlights the potential financial consequences for companies that fail to comply with Ofgem's rules. The redress scheme ensures that these funds are used to benefit consumers and promote positive change within the energy sector. Ofgem said more than £55 million had been allocated to fuel voucher projects, providing help to vulnerable customers at risk of disconnection from their energy supply. Cathryn Scott, director for market oversight and enforcement at Ofgem, said: "Protecting customers and ensuring they're treated fairly is at the heart of Ofgem's mission. "That's why we make sure that when energy companies break the rules, they make amends by contributing to projects that make our energy system fairer and support those in need. "£152 million is a huge sum of money and has helped thousands of people all over the country struggling with bills, as well as contributing to projects that help people decarbonise and learn more about their energy consumption. "Ofgem's enforcement function is a powerful weapon in our regulatory arsenal, evidenced by the more than £92 million in compensation to customers, redress payments and fines successfully handed out in 2024 alone. "The latest milestone of securing £150 million in redress payments for good causes could not have happened without the thorough investigative work of our compliance and enforcement teams or the Energy Saving Trust who ensure the money is targeted to reach those in need." The Citizens Advice Energyworks project in Brighton and Hove was recently awarded almost £528,000 by the scheme to help all city residents in fuel poverty with free and impartial energy advice. At the end of last year, research showed that more than 16,000 households in Brighton and Hove were living in fuel poverty, Ofgem said.
