How was 2014 for you financially? On a national level, there was certainly less doom and gloom. We had the first recovery budget after the recession and a monthly decrease of 2,900 people on the live register. (Water charges aside, there was certainly more positivity). But how did you as a family do? Was it still tight? Did you make the switch?
Yes, changing providers is time-consuming and tedious. Yes, life is busy, but it is really worth it. If you didn’t quite get round to it, you are not alone.
One big switch
A report recently published by One Big Switch found that in some counties, such as Wexford, Westmeath and Longford, over 30% of people have never switched electricity providers. Most people say they are simply too busy to be shopping around, while others say it is just too hard. Seeing as nearly 23,000 got involved in the survey, they can’t all be wrong.
However, the savings can really be worth it. Take home insurance for example. A family living in a three-bedroom bungalow on the outskirts of Cork could be looking at a difference of €403 by switching providers. Research by the National Consumer Agency found that the cheapest home insurance quote was €279, while another provider quoted €700. Similarly, if you were living in a three-bedroom semi-detached house in Newbridge, you could be paying home insurance of €622. By switching providers, this bill could go right down to €237, a difference of €385.
Household bills
It doesn’t just stop at home insurance. Switching electricity and gas providers doesn’t take too much hassle or upheaval. And this is something that should be done every year or two. For example, if you were to switch to Bord Gais in the morning – opting to pay by direct debit and get your bills online – you would get an 8% discount off standard unit rates of gas over 12 months. So, for example, if you had a gas bill of €1,200 a year, this would mean a saving of €96. Up until last week, the company was also offering a boiler service to new customers.
If you’re already a Bord Gais customer, you can get even better deals by switching to another provider. If you opt to go with Airtricity for your electricity, new customers get a 20% discount. As the national average electricity bill for families is €1,436, that is a massive saving of €287.
Alternatively, if you switch to Energia, you’ll get the offer of 15% off your gas and electricity bill combined. If that bill is as much as €2,600 (€1,400 on electricity and €1,200 on gas) in your home, that is a saving of €390.
As long as you have no arrears on your account, you can switch between providers year on year, because remember, you might sign up to a great deal now, but after 12 months you are usually switched back to the standard rate. Remember that they want your business and you have the control to keep that money in your pocket.
Power in the masses
It can be a headache finding the best deal though. That we are very aware of, especially if you want to switch your health insurance policy. With over 200 different policies across four different providers, it can be difficult to know where to start.
If the last few weeks have taught us anything though, it is that there is power in the masses. When people hit the streets to object to water charges, suddenly the Government was making changes. And having the bargaining power of the masses is the objective behind One Big Switch. Sarah Ryan, director of campaigns, says: “We have had over 50,000 people signed up to One Big Switch now and what we are trying to do is get providers to create bulk discount deals especially for this group. By having all these customers behind us, we have the bargaining power. The more people on board, the more clout we have to negotiate deals.”
Sarah points out that of course there are benefits for your pocket by switching between providers yourself, but this does nothing to drive down prices overall.
Earlier this year, One Big Switch negotiated a price cut from Energia with a €50 off offer. Also, it negotiated a 10% discount on electricity prices from Bord Gáis with an €80 cash-back offer if you stay with them for a year. The focus now is on health insurance and you have until 25 November to sign up so you can avail of the deal that One Big Switch will negotiate for you.
“We won’t just stop there,” says Sarah. “We’ll be looking at petrol prices, grocery shopping, the sky is the limit really on what we as a group can achieve.”
Did you know?
• The average electricity bill for a household of five people is €1,564.• Those in the 41 to 50 age bracket are most likely to switch electricity providers, followed closely by those in the 31 to 40 age bracket.• Those under 30 are least likely to switch electricity providers.• The majority of people who don’t switch electricity providers say they are too busy to do it. • The next most popular reason is that it’s simply too hard.• 66% of people get their electricity and gas from the same provider.• 75% of people are on the retailer’s standard plan, meaning most are probably paying too much. • 47% of people blame electricity retailers for high prices, while 37% of people blame the Government.To sign up, log onto www.onebigswitch.ie
Watch out for retailer tricks
Shopping season is upon us, but before you hit the shops, be sure to wise up a little to the tricks that retailers use to make you spend more money. The British magazine Which? highlighted tactics that supermarkets and manufacturers use to tempt you into buying their products. Which? asked its 7,855 members to report on concerns they found while shopping around.
One thing that you as a consumer need to watch out for is what is inside in gift packs. Are you really getting a good deal? For example, it was found that a Lynx gift set containing deodorant and a shower gel cost £6.50.
However, if you were to buy the products separately, the deodorant would normally cost £3 and the shower gel would be £2. The difference of £1.50 is pretty steep for a little cardboard box.
Also watch out for own-brand labels. Many of the big retailers are producing own-brand products that look suspiciously like branded ones.
For example, during the investigation, brand names were removed from McVitie’s and Lidl ginger biscuits and members were then asked to identify which was which. In fact, 39% of people got it wrong, naming the Lidl version as McVitie’s. Time to pay closer attention in the supermarket.
Christmas shop
til you drop
How much are you planning to spend this Christmas? Budgets are certainly stretching, as a recent survey of 1,500 people found that us Irish will be spending as much as €1.55bn between us all. Conducted by e-commerce company Webloyalty, it found that we’ll be forking out an average of €578 each.
Think you’ll be spending a bit more? Well, one in eight of us will splurge up to €1,000 (up 3.5% on last year). Gifts are going to account for half of that spending and expect to be hunting around the shops for an average of 12 hours to find something special for your loved one.
However, we won’t all be going OTT. A quarter of consumers still want to cut back on what they spent last year.
How was 2014 for you financially? On a national level, there was certainly less doom and gloom. We had the first recovery budget after the recession and a monthly decrease of 2,900 people on the live register. (Water charges aside, there was certainly more positivity). But how did you as a family do? Was it still tight? Did you make the switch?
Yes, changing providers is time-consuming and tedious. Yes, life is busy, but it is really worth it. If you didn’t quite get round to it, you are not alone.
One big switch
A report recently published by One Big Switch found that in some counties, such as Wexford, Westmeath and Longford, over 30% of people have never switched electricity providers. Most people say they are simply too busy to be shopping around, while others say it is just too hard. Seeing as nearly 23,000 got involved in the survey, they can’t all be wrong.
However, the savings can really be worth it. Take home insurance for example. A family living in a three-bedroom bungalow on the outskirts of Cork could be looking at a difference of €403 by switching providers. Research by the National Consumer Agency found that the cheapest home insurance quote was €279, while another provider quoted €700. Similarly, if you were living in a three-bedroom semi-detached house in Newbridge, you could be paying home insurance of €622. By switching providers, this bill could go right down to €237, a difference of €385.
Household bills
It doesn’t just stop at home insurance. Switching electricity and gas providers doesn’t take too much hassle or upheaval. And this is something that should be done every year or two. For example, if you were to switch to Bord Gais in the morning – opting to pay by direct debit and get your bills online – you would get an 8% discount off standard unit rates of gas over 12 months. So, for example, if you had a gas bill of €1,200 a year, this would mean a saving of €96. Up until last week, the company was also offering a boiler service to new customers.
If you’re already a Bord Gais customer, you can get even better deals by switching to another provider. If you opt to go with Airtricity for your electricity, new customers get a 20% discount. As the national average electricity bill for families is €1,436, that is a massive saving of €287.
Alternatively, if you switch to Energia, you’ll get the offer of 15% off your gas and electricity bill combined. If that bill is as much as €2,600 (€1,400 on electricity and €1,200 on gas) in your home, that is a saving of €390.
As long as you have no arrears on your account, you can switch between providers year on year, because remember, you might sign up to a great deal now, but after 12 months you are usually switched back to the standard rate. Remember that they want your business and you have the control to keep that money in your pocket.
Power in the masses
It can be a headache finding the best deal though. That we are very aware of, especially if you want to switch your health insurance policy. With over 200 different policies across four different providers, it can be difficult to know where to start.
If the last few weeks have taught us anything though, it is that there is power in the masses. When people hit the streets to object to water charges, suddenly the Government was making changes. And having the bargaining power of the masses is the objective behind One Big Switch. Sarah Ryan, director of campaigns, says: “We have had over 50,000 people signed up to One Big Switch now and what we are trying to do is get providers to create bulk discount deals especially for this group. By having all these customers behind us, we have the bargaining power. The more people on board, the more clout we have to negotiate deals.”
Sarah points out that of course there are benefits for your pocket by switching between providers yourself, but this does nothing to drive down prices overall.
Earlier this year, One Big Switch negotiated a price cut from Energia with a €50 off offer. Also, it negotiated a 10% discount on electricity prices from Bord Gáis with an €80 cash-back offer if you stay with them for a year. The focus now is on health insurance and you have until 25 November to sign up so you can avail of the deal that One Big Switch will negotiate for you.
“We won’t just stop there,” says Sarah. “We’ll be looking at petrol prices, grocery shopping, the sky is the limit really on what we as a group can achieve.”
Did you know?
• The average electricity bill for a household of five people is €1,564.• Those in the 41 to 50 age bracket are most likely to switch electricity providers, followed closely by those in the 31 to 40 age bracket.• Those under 30 are least likely to switch electricity providers.• The majority of people who don’t switch electricity providers say they are too busy to do it. • The next most popular reason is that it’s simply too hard.• 66% of people get their electricity and gas from the same provider.• 75% of people are on the retailer’s standard plan, meaning most are probably paying too much. • 47% of people blame electricity retailers for high prices, while 37% of people blame the Government.To sign up, log onto www.onebigswitch.ie
Watch out for retailer tricks
Shopping season is upon us, but before you hit the shops, be sure to wise up a little to the tricks that retailers use to make you spend more money. The British magazine Which? highlighted tactics that supermarkets and manufacturers use to tempt you into buying their products. Which? asked its 7,855 members to report on concerns they found while shopping around.
One thing that you as a consumer need to watch out for is what is inside in gift packs. Are you really getting a good deal? For example, it was found that a Lynx gift set containing deodorant and a shower gel cost £6.50.
However, if you were to buy the products separately, the deodorant would normally cost £3 and the shower gel would be £2. The difference of £1.50 is pretty steep for a little cardboard box.
Also watch out for own-brand labels. Many of the big retailers are producing own-brand products that look suspiciously like branded ones.
For example, during the investigation, brand names were removed from McVitie’s and Lidl ginger biscuits and members were then asked to identify which was which. In fact, 39% of people got it wrong, naming the Lidl version as McVitie’s. Time to pay closer attention in the supermarket.
Christmas shop
til you drop
How much are you planning to spend this Christmas? Budgets are certainly stretching, as a recent survey of 1,500 people found that us Irish will be spending as much as €1.55bn between us all. Conducted by e-commerce company Webloyalty, it found that we’ll be forking out an average of €578 each.
Think you’ll be spending a bit more? Well, one in eight of us will splurge up to €1,000 (up 3.5% on last year). Gifts are going to account for half of that spending and expect to be hunting around the shops for an average of 12 hours to find something special for your loved one.
However, we won’t all be going OTT. A quarter of consumers still want to cut back on what they spent last year.
SHARING OPTIONS