Money blog: Amazon joins elite club - as well-known UK firm struggles (2024)

PrettyLittleThing is facing more criticism after announcing it would issue refunds on delivery subscriptions for accounts it has banned for returning too many items.

The online fashion giant says it will refund outstanding gift cards and store credit, as well as £9.99 to closed accounts which had already purchased its royalty service entitling them to unlimited next day delivery for a year.

The company said: "We have noticed an extremely high returns rate from a small pool of customers who have demonstrated behaviours that were inconsistent with what we experience with the rest of our customer base.

"The actions taken are not designed to limit our customers who do need to return or deter them from returning, it was taken to address a small proportion of customers who have a high returns rate."

PrettyLittleThing added it does not plan to close any further accounts.

Some customers were not happy with the response, with one posting on X: "This is bullsh*t my last return was December 2023... and of course you turned off the comments."

Another wrote: "PrettyLittleThing expects us to order our clothes twice because their sizing is off and is closing people's accounts because of frequent returns. What a way to ruin your own business."

More than half of councils are not confident their area is prepared to roll out the next phase of free childcare, a report has found.

From September, 15 hours of free childcare a week will be available to working parents of all children aged over nine months old - expanding the policy from working parents of two-year-olds.

But 59% of local authorities say they are unsure if they will have enough places, citing significant challenges in recruiting and retaining staff, according to research by Coram Family and Childcare.

"For this policy to be a success, it is essential that all families can take up their entitlements, and the next few months will be a crucial time in making sure they can," said Ellen Broome, managing director of Coram.

The childcare changes coming in September are the penultimate phase of a policy introduced by the chancellor at the budget last year.

In September 2025, all working parents of children aged over nine months olds will be eligible for 30 hours free childcare per week.

Coram found only 11% of councils were confident there will be enough places to meet demand - a figure almost unchanged since January.

At present, 52% of councils say all or almost all eligible parents seeking 15 hours of free childcare have been able to.

But Ms Broome added: "We are concerned there may be further issues not only this September, but further down the line for families in getting the childcare they need."

Beyond workforce challenges, 36% of councils identified local buildings and space as barriers to delivering the service.

Martin Lewis has hit out at the Conservatives for using him in an attack ad.

The Tories posted a clip of the Money Saving Expert founder on X describing how a senior Labour member had told him they wanted to introduce a policy that was not in its manifesto.

Mr Lewis said the discussion he had been referring to was not about tax rises, but the Conservatives featured the video alongside the words: "They're not telling you the full truth. Labour have said they wouldn't put up your taxes. But it's now becoming clear that they have every intention to put them up."

Criticising the ad, Mr Lewis wrote: "NOWHERE in this comment do I talk about taxes.

"And the policy that I discussed (I will keep private as it was private) was NOT about taxes, or tax rises, it was about something that would be a positive change."

The Tories' original post was later tagged with a community note – a feature on X allowing readers to add context to a claim.

"Martin Lewis has confirmed that the policy he refers to in the video was not about taxes, and so is unrelated to the text it is presented alongside," the note read.

Labour, like the Tories, have promised not to increase income tax, national insurance or VAT during the next parliament.

Every ThursdaySavings Champion founder Anna Bowesgives an insight into the savings market and how to make the most of your money...

With more than £253bn sitting in accounts earning nothing, savers are missing out on billions of pounds in interest. Although we are expecting to see a base rate cut in the next few weeks or months, as this keeps getting pushed back it's good to see that some of the best easy access accounts that you can open are still paying more than 5% AER (the Annual Equivalent Rate).

Some existing savers may have seen the rate on their accounts dropping however, as some providers have already started to cut rates in anticipation of a lower base rate this year. So, if you are one of these savers, it could pay to switch if you feel you are getting a rough deal.

That said, as easy access accounts are variable rate accounts, the rate of any could be cut at any time – so keep a close eye on what's happening.

Another thing to watch out for is bonus rates, which some of the top paying accounts include in the rate they are advertising. The most common type of bonus is one that will apply for the first 12 months of the account being opened, so you need to make sure you move your money at that stage, if the rate without the bonus is uncompetitive.

But sometimes the bonus applies until a specific date, which could be less than 12 months. For example, Chase Bank's Chase Saver is paying a headline rate of 5.10% but this includes a bonus of 1% which will be removed on 16 January 2025. Therefore, the rate that you will earn over 12 months (the AER) is lower than the headline rate. As of 16 June 2024, the AER on this account was nearer 4.68% - although as long as you make a note to review and move your cash when the bonus is removed, you can still earn 5.10% in the meantime.

Of course, as mentioned above, as with all variable rate accounts the interest rate you are earning can be cut at any time anyway, so you need to keep your eyes peeled.

It's important to read all the terms and conditions when opening a savings account so that you earn the interest you are expecting.

The chief executive of Lloyds Banking Group – the UK's biggest lender – has offered a bleak outlook for anyone hoping for a return of low interest rates.

Charlie Nunn told Sky News interest rate cuts from the Bank of England expected later this year would be "beneficial" – but warned homeowners not to expect a return to the ultra-low interest rates seen for most of the last 16 years.

He added: "Of course, the short-term impact of interest rates is going to impact, first of all, the government on the cost of government debt. That will be important. And secondly, it'll make the cost of borrowing for businesses short term more attractive… that'll be important.

"In terms of the impact on the broader consumer in the UK, it'll take longer to feed through. Around mortgages specifically, we've just come off a decade where mortgages have been in the 1.5-2.5% range.

"The expectations the market have is that interest rates probably won't get below 3.5%.

"And that means mortgages, or the new normal for mortgages, will be in that 3.5-4.5% range, not 1.5-2.5%.

"So there is going to be a higher cost of borrowing in the economy, probably based on what we can see happening at the moment."

Read Ian King's full interview with Charlie Nunn...

Shoppers could save up to 50% by buying them at the right time,a consumer magazine has found.

Which? found the prices of popular health products - such as Colgate toothpaste and Gillette razors - were fluctuating wildly throughout the year, as this table shows...

The researchers looked at like-for-like products from top-selling brands across 15 health and personal care product areas that were available for at least 42 weeks of the year between March 2023 and February 2024 - although multi-buy offers and loyalty prices were excluded.

"This suggests that the products are regularly on a promotion cycle and consumers could get good deals if they shop around for health products," Which? said.

One such example saw a packet of 30 Piriteze Hayfever and Allergy Relief Tablets at Waitrose reduced from £11.50 to £8 between May and July 2023 - and afterwards it cost £11.55.

What can consumers do?

Ele Clark, Which?'s retail editor, said: "Retailers constantly change products' prices based on demand, seasonality, agreements with manufacturers and what their competitors are doing.

"Which?'s advice in this fast-changing market is to keep an eye on the prices of products you buy regularly and stock up when the price is low - or ask yourself if it's really essential to have your preferred brand and consider switching to a cheaper product that can do just as good a job."

Drivers are being warned this week's heatwave brings risks of an unexpected £180 bill.

Car mechanics from Prestone said the hot weather could cause significant damage to windscreens - meaning you'll have to shell out for a replacement.

"Slightly counterintuitively, it isn't the heat directly that causes damage, it is the fluctuation in temperature that could cause damage," they said.

"When this happens to brittle materials such as glass, it can cause them to explode or crack; this is called thermal shock. To stop your windscreen from accumulating a lot of heat, avoid parking in direct sunlight. Consider parking under a tree, in a garage or other forms of shade."

Deliveroo shares have risen following reports US rival Doordash held takeover talks with the business.

Doordash flagged an interest in taking over the UK's Deliveroo last month, but talks ended as the two sides couldn't agree on the value of the deal, according to Reuters news agency.

The London-listed company's share price jumped by 6% to 136p this morning, although later eased to 3.7% higher.

Deliveroo has seen its value fall by more than 50% since debuting on the stock market in March 2021.

New details have been unveiled for Universal's first UK theme park - including plans for the attraction to be open 365 days a year.

Universal Destinations & Experiences - which is owned by Sky's parent company Comcast - has bought land near Bedford as itplans to buildEurope's largesttheme parkwith millions of visitors per year, as well as a 500-room hotel and dining area.

Read the full story here...

The building society is the latest to slash rates, after HSBC yesterday and Barclays on Monday.

It will be lowering two, three and five-year rates by up to 0.21% tomorrow.

It follows a reduction in swap rates - which dictate how much it costs lenders to lend.

So what does this mean for the market more broadly?

Here's what the experts told Newspage...

Emma Jones, managing director at Whenthebanksaysno.co.uk:

"They're falling like dominoes now. Things are suddenly looking considerably brighter for the property market as we enter the second half of the year. Enquiries are up sharply this week, which suggests the improved weather may also have lifted spirits and confidence."

David Stirling, independent financial advisor at Mint Mortgages and Protection:

"We've not exactly hit the bargain basem*nt for borrowers just yet but the competition for new business from the banks has definitely heated up this week. For some the Bank of England decision in August is very hotly anticipated and could hopefully lead to an incredibly busy autumn."

Dariusz Karpowicz, director at Albion Financial Advice:

"While these minor decreases are certainly a step in the right direction, the average rate for a two or five-year fix remains high. It's good to see rates moving down, but let's not get carried away. There are still too many unknowns on the horizon. The upcoming election, fluctuating house prices and geopolitical uncertainties all add layers of complexity to the market."

The supermarket has announced plans to open about 400 more of its Morrisons Daily convenience shops.

It is part of plans to take on discount retailers Aldi and Lidl, according to Retail Gazette.

Morrisons said it wanted to increase its total number of smaller shops to 2,000 in 2025, although it has not yet given a list of locations.

The supermarket has seen its like-for-like sales, excluding fuel and VAT, rise by 4.1% over the three months to 28 April.

Chief executive Rami Baitieh said he was "pleased with the overall performance" of the business in the second quarter.