Fuel costs, Tesco, pensions and credit cards

British motorists last month faced the highest road fuel costs this year as global oil prices continue to creep higher from historic lows, The Telegraph reports. The cost of unleaded petrol and diesel rose for a second consecutive month to drive the average price of diesel the highest level for the year so far, while petrol ended the month only slightly shy of 2016 highs. Fresh data from motor group RAC found that the average price of diesel at the pumps rose 0.42p during September to reach 113.34p a litre, its highest price this year.

Pensions

More than 300,000 pension savers a year are being left to fend for themselves when they retire, says the TUC.

It claims that over 80 per cent of people using their pension pot to buy a retirement income get no proper advice about it. The TUC is basing its figures on what happened in the year following the ‘pension freedoms’, first introduced in April 2015. However the Government said free help was available from the Pensions Advisory Service, and Pension Wise. In other pensions news, more than one in five company pension scheme members – the equivalent of 2.3 million workers – are disappointed with the performance of their retirement savings, new research from employee benefits consultancy Portus shows.

Its nationwide study shows 21 per cent of employees are concerned about the performance of their company pension scheme over the past two years and that worries about how funds perform are deterring workers from retirement saving.

Portus’s study shows around one in 20 employees have not joined schemes because of worries about how their money is invested.

Tesco Tesco has reported its third consecutive quarter of like-for-like sales and a rise in operating profits but its pension deficit has nearly doubled to £5.9 billion, according to The Times. Britain’s biggest grocer said that its UK like-for-like sales growth — a key indicator for supermarkets — rose by 0.6 per cent in the first half while its overall group comparable sales increased by 1 per cent. Tesco’s operating profit was also up by 60.2 per cent at £596 million in a clear sign that it is in recovery mode after a torrid few years. Santander

Santander has scrapped its popular 123 credit card for new customers and replaced it with three other deals, the Daily Mail reports.

The 123 credit card gave customers up to 3 per cent cashback on purchases, earning up to £9 a month. You earned 3 per cent on travel spending, 2 per cent at department stores and 1 per cent at supermarkets, up to £3 each month.

Existing customers can still use the card as normal. New borrowers will be offered the All In One Credit Card. It pays just 0.5 per cent cashback each month.

Credit cards

New research from Gocompare.com Credit Cards has revealed that 13.8 per cent of UK adults (6.7 million) have had a credit card debt for the last three years or longer, with nearly one in 10 admitting to a persistent debt of five years or more on their plastic.

The research also looked at people’s expectations of debt and credit card spending throughout the next 12 months and found that 14 per cent expect to have a credit card debt throughout the next year; 7 per cent will need to ask friends and family for financial help; 6 per cent will need to take out a 0 per cent balance transfer credit card; and 5 per cent said they will need to take out a loan.

Brexit

As many as 70,000 jobs in financial services could be at risk if the UK opts for a so-called ‘hard Brexit’, says former City regulator Sir Hector Sants. Sir Hector, who is now vice-chairman at management consultants Oliver Wyman, told the Today programme that the ‘worst case scenario’ could also result in tax receipts falling by £10 billion. In other news, Sterling fell below the psychologically important $1.27 level, down 0.3 per cent to $1.2695 in early trading this morning.