Over 500 staff took part in the action in Bristol and Darwen which brought TV Licensing call centres to a standstill throughout the day. Staff are seeking an improved pay offer after no pay increase for nearly two years.

CWU assistant secretary Andy Furey said: “Our members at Capita TV Licensing are facing a pay cut in real terms from a company which makes millions in profit every year. We’re asking for a simple improvement in their pay offer which at 2.6 per cent is almost half the rate of inflation.

“The last thing our members want is strikes, but the employer has left people with no choice. They are facing increased food, energy and transport bills and work for a company which can afford to reward its staff with fair wages.

“Even at this late stage, I call on Capita to drop its intransigence, come back to negotiations and resolve this dispute.

“But make no mistake, our members are determined to win a fair deal and if we strike – we strike solid and we strike to win.”

Staff have become increasingly frustrated after the company refused to raise pay last year. The current offer of £550 and £600 for 2010 and 2011 respectively – worth 2.6 to 2.7 per cent for higher grades – falls far short of retail price index levels, which have averaged 5 per cent since April 2010.

Workers across the UK, working on the BBC TV licensing contract, including two main sites at Darwen (Lancashire) and Bristol, are planning strike action which will see TV licensing brought to a nationwide halt.

Even though the Office for National Statistics says the “special factors” such as the unusually warm weather, the Royal Wedding and the Japanese tsunami reduced the overall figure; commentators are bound to point out that the Royal wedding was almost universally acclaimed as a fillip for the sagging economy. The truth is, consumer confidence is ebbing away as purse strings tighten and employers are starting to feel the pinch of an economy that is not yet dead, but rapidly getting there. The growth of just 0.2% over the last nine months is parlous and compares very unfavourably with the figures Gordon Brown’s strategy posted of 2.1% in the previous nine months.

Once again, the OBR will have to downgrade its forecast – the fourth time since it was established just over a year ago.

Osborne’s supporters are casting around for objects of blame, but the real comparison is with Germany and France, both of whom have enjoyed good growth in the same period as a result of their economic policies and in reality it is the polices of the government of starving the economy and imposing higher tax on purchases that are causing the steady slide to another recession.

When Alistair Darling reduced VAT to 15 per cent during the financial crisis, consumers spent £9bn more than they otherwise would have done. A similar reduction would enhance consumer confidence and get the economy going again. Osborne is getting it wrong – the figures don’t lie.

Osborne remains bullish however, saying “The positive news is that the British economy is continuing to grow and is creating jobs. And it is positive news too at a time of real international instability we are a safe haven in the storm. Our economy is stable at this time because this Government has taken the difficult decisions to get to grips with Britain’s debts. Abandoning that now, as some argue we should, would only risk British jobs and growth.”

Meanwhile, the government is following Gordon Brown’s lead by introducing more Quantitative Easing into the economy, something that has largely gone uncommented on, except from the increasingly isolated Vince Cable.

Credit card firms to be forced to end rip offs

Ripoffs to end as the Labour Government acts against rogure credit card companies

The Government has announced we will take tough action to end unfair lending terms by credit card companies. Labour’s action will mean:

Banning the practice of increasing credit limits without prior consent

Banning unasked for credit card cheques

Placing restrictions on increasing the interest rate on existing debt

Raising the minimum monthly repayments levels to encourage people to pay off their debt faster

Changing the rules so that the most expensive debt on your credit card is paid off first. (Currently most credit card companies make you pay off the cheapest debt first.)

Consumers using their cards responsibly and making payments on time should not pay the price for excessive risk-taking by financial institutions: Kerry McCarthy

Supporting the move, Kerry McCarthy has called on credit and store card companies to give people a fairer deal and prevent spiralling debts. Kerry said:

“Particularly during this difficult economic time, I want to do what I can to help local people manage their finances and cope with repaying their debts.

“Constituents regularly contact me about banks’ unfair practices and credit rip offs, so it’s clear how important it is to take action with over the top charges in credit card bills, credit repayments or the high cost of credit on things like store cards.

“Consumers using their cards responsibly and making payments on time should not pay the price for excessive risk-taking by financial institutions; it is not acceptable for companies to increase interest rates without proper explanation and I will be pushing for the Government to ban or at least restrict the re-pricing of existing debt.”

Consumer Minister Kevin Brennan said:

“Card companies have to get their act together and do more for consumers.

“It is not acceptable for card companies to impose complex and confusing terms and conditions that can leave people baffled, or to increase interest rates without a proper explanation. Consumers have a real responsibility to manage their finances properly, but they also have a right to clear information to enable them to do that.

“Consumers should not feel each month as if they’ve been exploited or disadvantaged.”

The Labour Government has published a consultation document giving the detail of proposed changes in the law on repayment policies imposed by credit and store card providers. It examines:

Changing the rules that set out the order in which debts built up on a credit card are paid off

Most credit card companies make customers pay the cheapest debt off first. This is a particular problem for consumers who withdraw cash on their card, typically charged at 25 per cent APR or more. They are often the most likely to be vulnerable to financial difficulties. The Government is considering rules that would mean the most expensive debt is paid off first.

Raising the minimum monthly repayments levels to encourage people to pay off their debt faster.

Around one third of people who don’t pay off their credit card bill in full each month make only the minimum repayment. This can mean consumers take decades to pay off the debt. The Government is considering the introduction of a mandatory higher minimum payment each month.

Banning the practice of increasing credit limits without prior consent

It is common practice for credit and store card lenders to increase credit limits without consent. According to recent research by Uswitch, 5.7 million consumers saw their credit limits changed in this way in the last year. The Government is considering banning this practice or requiring consumers to opt-in to credit limit increases.

Placing restrictions on increasing the interest rate on existing debt

Labour is concerned about interest rates being increased without proper explanation. Consumers using their cards responsibly and making payments on time should not pay the price for excessive risk-taking by financial institutions. The Government is considering banning or restricting the re-pricing of existing debt.

The credit and store card consultation runs until January 19 and people can read the proposals and register their views at: www.bis.gov.uk/creditconsultation

The Government said in the Consumer White Paper (published July 2 2009) that it would examine the way credit card repayment policies can lead to people paying more in interest charges than they expect.

The Government is already taking action and is legislating to ban unsolicited credit card cheques in November. Under the Office of Fair Trading’s Guidance on Irresponsible Lending Practices, coming into force in January, lenders should not encourage borrowers to increase existing debt. Lenders failing to follow the OFT’s guidance can be stripped of their credit licences. This could be used to enforce changes to minimum payments and credit limit increases. The Consumer Credit Directive comes into force in June, requiring credit card companies to properly explain their charges.

The consultation builds on the ‘fair principles’ agreed at the Credit Card Summit at the Department for Business in November 2008.