Money blog: Spain hands huge fines to easyJet and Ryanair for hand luggage and seat reservation charges (2024)

News
  • Spain hands huge fines to easyJet and Ryanair for hand luggage and seat reservation charges
  • The most and least affordable towns to buy a home
  • 'Deeply irresponsible' UK pension scheme invests in Bitcoin
  • Halifax goes rogue with new mortgage term
Black Friday
  • Three big airlines praised for Black Friday offerings by Which?
  • Major retailers named over questionable deals
  • Read this guide before buying in this week's sales
'Ripped or ripped off?' series
  • Is protein powder really necessary?
  • Do you really need magnesium to help you sleep?
  • Three fitness supplements experts suggest are a waste of time

11:24:21

Drivers still being charged too much for fuel, says watchdog

ByJames Sillars, business and economics reporter

A debate has been raging for years over whether drivers pay far more than they should for fuel.

In its latest update on the industry's charges, the Competition and Markets Authority says it remains concerned about a lack of competition after accusing the industry of overcharging motorists to the tune of many hundreds of millions of pounds since the COVID pandemic.

The regulator said today that fuel margins of retailers – the difference between what a retailer pays for its fuel and what it sells at – increased between May to August.

The figure for supermarkets rose from 7% in April to 8.1% in August, its study stated.

Non-supermarket fuel margins also increased from 7.8% to 10.2%.

Whether petrol and diesel prices are a rip-off is a question that is hotly contested.

The fuel sector insists its own cost increases, such as for electricity and wages, have to be taken into account.

The government is set to force retailers to divulge their prices under a pump watch scheme that will allow drivers to compare costs locally before filling up.

The sustained increase in the level of fuel margins is concerning and suggests that overall levels of competition in the road fuel retail market remain weakened.

10:44:01

Manchester United increase ticket prices and withdraw concessions for children and pensioners

Manchester United have faced strong criticism after increasing ticket prices mid-season.

The club told fans in an email that all remaining tickets for home games this season will be £66 each, whatever the age of the person buying them.

The move effectively removes concessions for children and pensioners, a development which also prompted condemnation.

United argued price increase for seats yet to be sold this season would help improve "operational efficiencies" and "stabilise revenues".

But the Manchester United Supporters Trust (MUST) labelled the move by England's second most successful football club "offensive".

"This means that for an adult member to take their kid to a game in the remainder of this season will cost £132.

"Well over double the minimum price they could pay to do it today. And this change is happening overnight, immediately.

"The club has provided zero consultation on the matter, neither with the Forum nor the Fan Advisory Board nor MUST.

"Suffice it to say, the idea that the fans must pay their 'fair share' for the club's excesses and/or mismanagement - and above all, the Glazers' lack of investment over two decades - is offensive.

"We fans have done everything we have been asked. We have cheered the players on even in the face of substandard performance. We have gone to matches and abided by the new usage rules for tickets. We have taken on a price increase this year.

"There is a risk that this is only the opening salvo of what will surely be massive pressure to implement a significant price rise for next season. Once they have got used to charging £132 for a parent and child to come to Old Trafford, will they really go back to the old pricing levels for next season?

"If the club has a need for short term capital they should issue new shares, as they did when INEOS first arrived, and bring in funding from existing or new shareholders."

United and Everton fans will display a banner protesting ticket increases before the sides face each other on Sunday, in action organised through the Football Supporters' Association's Stop Exploiting Loyalty campaign.

"The club needs to ensure it remains financially sustainable," Manchester United told Sky News in a statement.

"It was a difficult decision following recent changes at the club but ultimately the increased revenue will also support investment in the team and contribute to football success."

10:00:01

Labour could ban landlords from requesting more than month's rent in advance

Landlords could be banned from asking renters for more than one month's rent in advance.

Housing minister Matthew Pennycook told parliament that "demands for extortionate rent in advance place a considerable financial strain on tenants".

He said the government was "very clear that the practice of landlords demanding large amounts of rent in advance must be prohibited".

The policy could form part of Labour's Renters' Rights Bill, Mr Pennycook said.

A recent poll by community union ACORN found that just over half of people who moved to a private rented home in the last three years were asked for more than a month's rent in advance, while around 23% were asked for more than six months' up front.

09:13:01

The savings accounts offering some of the best interest rates - but often with a catch

With banks starting to cut savings rates after the Bank of England lowered the base rate earlier this month,Savings Championco-founder Anna Bowes tells us how we could be making the most of our money with regular saver accounts...

For many people, getting into the savings habit is the trickiest part of saving, she writes.

After all, there are often many other things that might seem more important. But the sooner you start, the easier it is to build up a significant nest egg for your future.

If you deposit the amount you can afford the day after you are paid, it becomes like another bill – but one that you can benefit from in the future.

If you were to save £100 a month, and earned 7% AER, after a year you would have £1,245.50. But after 10 years you could have over £17,200!

Regular savings accounts pay some of the top rates available, but you are normally restricted by the amount you can deposit, and you may not be able to dip into the cash very often, if at all over a given term.

There are usually several terms and conditions to keep an eye on to make sure you earn the interest you are expecting, and some of the top accounts are only accessible if you hold a current account with the provider. But normally you won't need to transfer your primary current account.

The top regular saver rates on offer have been largely unaffected by the last couple of base rate cuts. Principality is still offering its 6 Month Regular Saver, paying 8% AER, but it has also launched a 12-month so-called Christmas 2025 Regular Saver paying 7% AER on deposits of up to £125 a month.

The requirement for a current account is pretty common for the top regular savings accounts, but not all accounts have this requirement – and the Principality six-month and 12-month accounts fit into this category. Anyone can open them, as long as you are over 16 and a UK citizen.

Bottom line is that it's important to check the terms and conditions to make sure you'll earn what you are expecting.

And opening a new current account just to have access to the regular saver might not be the best idea. Don't let the savings account tail wag the current account dog!

08:33:08

Europe, in particular France, has much to fret over

By James Sillars, business and economics reporter

The fact that Americans all have the day off to tuck into turkey and count their blessings means there's not a great deal of global activity, but Europe (and France in particular) still has much to fret over.

The CAC 40 in France has been led lower in recent days due to an assault on its banking stocks.

Investors globally have taken fright at the prospect of a vote of no confidence in the country's shaky new government over budget proposals that aim to slash spending and boost taxes.

The cost of borrowing for the French government hit its highest level since the eurozone debt crisis of 2012 on Wednesday.

The CAC was 0.2% up in early dealing. It is 5% down over the year to date. The struggling FTSE 100 is up by over 7% in comparison.

The FTSE was also 0.2% up at the open.

Insurer Direct Line was the stand-out performer more widely.

Its shares leapt by 36% after the company rejected a takeover proposal, on value grounds, by larger rival Aviva shortly after the market close on Wednesday.

Another stock getting a leg-up was Dr Martens.

The iconic British maker of boots saw its shares rise more than 12% despite reporting a deeper financial loss for the first half of its trading year.

That was likely down to guidance in its report that trading had picked up ahead of the crucial Christmas season and it had made solid progress in cutting costs.

08:31:01

Government confirms new gambling rules for 2025 - including £5 spin limit

The amount of money people can stake on online slot machines will be restricted for the first time, the government has announced.

The Department for Culture, Media and Sport (DCMS) says a £5 per spin limit will apply to all adults aged 25 and over, with a £2 per spin limit for those aged 18-24.

It's part of a wider government overhaul to tackle gambling addiction.

A new legally mandated levy is also being introduced that will be used for "supporting research, raising awareness and reducing the stigma around gambling-related harm", according to gambling minister Baroness Twyross.

What is the new mandated levy?

Currently, gambling firms can decide how much they contribute to gambling harm services.

While most companies commit significant sums, the government says some have paid as little as £1 a year, entitling them to appear on a list of donors.

The new mandatory levy will be set at a range between 0.1% and 1.1% of a firm's gross gambling yield.

Half of the money raised will go on NHS care, 30% will be spent on public health campaigns and other prevention measures, and the remaining 20% will go to research.

It is due to take effect next year, with firms given a grace period to implement the new stake cap.

07:57:01

Spain hands huge fines to easyJet and Ryanair for hand luggage and seat reservation charges

EasyJet boss Johan Lundgren has hit out at what he calls "illegal" fines imposed on the airline and other carriers over extra charges for hand luggage and seat reservations.

Spain has fined five airlines - easyJet, Ryanair, Vueling, Volotea and Norwegian - a total of €179m (£149m) for "abusive practices" that target customers.

The consumer rights ministry said such practices include charging passengers for carrying hand luggage on the plane, making seat reservations, and other hidden fees.

EasyJet was handed a penalty of €29m (£24.2m).

Mr Lundgren told Sky News' Business Live programme that the decision was "illegal" in relation to European consumer law and "anti-consumer" - and confirmed the company would appeal.

"We completely disagree with this decision," he said, adding: "We don't expect this to go anywhere."

He said one third of easyJet customers don't choose to pay for extra add-ons.

"So why should they then take on the burden and the cost [of services] that other people want?" he said.

06:56:34

The most and least affordable towns to buy a home

You might be sceptical given interest rates are still sky high compared with the last decade, but buying a house has started to become more affordable, Halifax has found.

Modest house price inflation, along with strong wage growth, means people are now spending a lower percentage of their salary on a home.

House prices have risen by 3.8% in the last year, reaching an average of £292,508.

At the same time, annual earnings for full-time workers climbed 5% to an average of £44,667, putting the house price to income ratio at 6.55, the bank found.

That's down from 6.62 last year.

Many of the most affordable places actually saw their ratios rise - for instance, Northern Ireland, where house prices have risen 10%.

But there, along with Scotland, the North East, and Yorkshire and the Humber remain the most affordable regions.

In the least affordable region, the South East, the house price to wage ratio sits at 8.96.

At a local level, Kingston upon Hull in East Yorkshire was crowned the most affordable area of the UK, followed by Burnley and Blackpool in the North West.

Elmbridge in Surrey was the least affordable local area by some distance, with a house price to earnings ratio of 17.54.

St Albans in Hertfordshire is in second place with a ratio of 13.96, followed by Kensington and Chelsea in London at 13.93.

"Housing affordability has improved over the past year, thanks to stabilising property prices, strong wage growth, and easing interest rates," Amanda Bryden, head of Halifax Mortgages, said.

"However, while homes are becoming more affordable, the progress has been gradual. Buying a property remains a significant challenge for many, with prices still near record highs and interest rates likely to stay higher than we've been used to over the past decade."

06:36:34

Three big airlines praised for Black Friday offerings by Which?

Genuine holiday deals can be found online on Black Friday, a consumer group has said.

Which? has been consistently sceptical when it comes to Black Friday, suggesting that some of the deals advertised are not all they seem...

The group's research previously found a staggering nine in 10 (92%) Black Friday deals were duds - with most home and tech products available at the same price or even cheaper during other periods of the year.

But when it comes to holidays, you could have some joy, according to experts this year.

Which? recorded the prices of 140 holidays and flights on Black Friday last year from 14 different companies, before checking the prices again two weeks later and once more in early January to see if the discounts held up over time.

It found 73% of the deals were indeed "slightly" cheaper than the previous year.

"While consumers should exercise caution – past performance offers no guarantee of finding genuine deals this year – the results are encouraging to those hoping to snap up a bargain on Black Friday," Which? said.

It found that the Tui and Jet2 packages it tracked were the most likely to be cheaper on Black Friday, and that it was the best day of the year to buy tickets with British Airways.

20:46:01

Aston Martin issues second profit warning as it looks to raise cash

British carmaker Aston Martin has issued its second profit warning in two months as it announced it is looking to raise cash.

The luxury brand has warned that its earnings for the year will be lower than previously forecasted, coming in at between £270m and £280m.

It blamed a "minor delay" in deliveries of its Valiant models for causing the shortfall.

The company has already successfully raised around £211m through a share placing, with another £100m secured through debt raising from bond holders, to help fund future growth.

Shares in the firm fell as much as 9% at one stage today before settling around 5% down after the latest gloomy update.

Several European car firms have been knocked by sliding sales, overseas competition and new electric vehicle targets in recent months.

Earlier this week, Vauxhall owner Stellantis revealed plans to shut the carmaker's Luton factory, partly blaming the "stringent" UK zero-emission vehicle mandate.

Money blog: Spain hands huge fines to easyJet and Ryanair for hand luggage and seat reservation charges (2024)
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