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
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
www.consumercouncil.org.uk
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.
GSCE Home. Economics specification
What are the benefits of being an
informed, discerning consumer?
Source: Quote Unquote: The cost of insurance in Northern Ireland, Consumer Council, 2009
Tackling low levels of financial capability
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.
Julie McCurley, Head of Money Affairs, CC
with Frank Britton, Vice Chair of
Fermanagh District Council
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
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.
In the meantime, consumers can click on our website to check
pricing in their area at www.consumercouncil.org.uk
Taking on the banks
Over 10,000 consumers
downloaded our “Stop Unfair
Charges” pack and people who
challenged their bank got an
average of £1,000 back.
Banks will be
forced to come
clean on fees
Wednesday 16th May 2007
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