JEFF PRESTRIDGE: Military man on mission to rid world of all the jargon

A few weeks ago I had the privilege of meeting Mike Ellicock, a person with a risqué military background – and more recently on a crusade to de-jargon financial services.

Like many ex-servicemen who have witnessed things most of us (fortunately) will only see in a war movie, Mike is incredibly humble. For the record, he helped rescue soldiers who were abducted (and badly injured) in Sierra Leone in 2000 and then served in Iraq.

He is also adept at running marathons with a heavy pack on his back – he holds world records for doing so – and takes part in mammoth physical challenges such as the Bob Graham Round.

This involves running up and down 42 Lake District peaks, climbing 27,000 feet and completing the 66-mile course in less than 24 hours. Mike did it six years ago in an astounding 18 hours and 34 minutes (and no, I won’t do it when I’m in the Lakes in the summer).

While I am in awe of Mike’s physical achievements, it is his work in the financial arena that fascinates me the most. After leaving the Forces, he served for nine years as the chief executive of National Numeracy, a charity founded to increase the numeracy skills of young and old.

Only recently, Rishi Sunak spoke of plans to ensure that all young people leave school armed with sufficient knowledge of mathematics to do math. Three years ago, Mike co-founded The Plain Numbers Project, an organization created to help businesses present key financial information in documents to clients in a more user-friendly way.

The work it has done has been groundbreaking. By allowing companies to rework their literature and replace jargon with plain English, customers’ understanding of the products they have (and how they work) has improved significantly. By being better informed, they are less vulnerable to making costly mistakes – and can keep their finances under control.

Of course, customer-friendly documents cannot hide bad news, such as sharp increases in insurance premiums or a shortfall on the energy bill. But it should be a given that all information provided to customers can be easily understood.

More power on Mike’s elbow.

Close the shutters

Yes, we are firmly in the mire. However you analyze Thursday’s decision by the Bank of England to raise the banks’ base interest rates to 5%, it’s not good news.

While BoE boss Andrew Bailey can be blamed for not getting inflation under control fast enough, this won’t help any homeowner who is now dealing with higher mortgage payments and more strain on household finances.

The range of mortgage support measures agreed by banks and building societies on Friday is welcome, but let’s not get carried away by it. Sure, the pressure on household finances will continue until rates finally turn the corner.

What I find most depressing about all of this is its destructiveness. I find it hard to accept that Bailey – and for that matter, Rishi Sunak and Treasury Secretary Jeremy Hunt – now believe that a recession is a price worth paying if higher interest rates lead to overcoming inflation.

In other words, it’s OK for people’s jobs — in some cases their homes — and small businesses founded by budding entrepreneurs to be sacrificed in the pursuit of inflation destruction. In my eyes it is the policy of the madhouse. There must be another way (please answer on a postcard).

The only consolation, and it is a small one, is that the current occupations of Bailey, Sunak and Hunt are as much in danger as ours. Close the shutters, dear readers.

Inflation is not a cause of coverage increases

Earlier this month, Admiral UK’s CEO was one of three insurance representatives to sit before the Treasury Select Committee, defending the industry against allegations of unjustified premium increases.

Cristina Nestares blamed rising damage costs for car and home coverage by double digits (due to ongoing inflation). Cristina Nestares came across quite well – and was relatively unscathed.

Still, I can’t help but think that Nestares is playing tricks on us. In the wake of her appearance before the TSC, I was approached by numerous readers complaining about Admiral asking them to renew the car policy at prices 50 percent higher than the previous year. This despite a record of no claims and exemplary driving behaviour.

Among those who contacted me was Martin Waller, a former financial journalist at The Times who is now retired with his wife in Woodbridge, Suffolk.

Despite living in an area where crime is almost nonexistent and carjackings are unheard of, insurance company Diamond (an Admiral-owned brand) has just sent him a stunning extension of his motorcycle coverage. Diamond wanted 53 percent more than last year to cover Martin’s car, a 12-year-old Hyundai that he uses purely to get around locally.

Understandably, Martin was not impressed. He immediately complained and, after speaking with the insurer, was offered a lower premium, albeit still 30 percent higher than last year.

A follow-up letter from Diamond confirmed that inflation was the main reason for the 53 percent increase. He has now found an alternative coverage that is cheaper than last year’s premium. Martin doesn’t believe the inflation statement (we’re not at 53 percent yet). He thinks insurers use it to make a profit. I agree with that.

The boss of NS&I responds to our call to boost the price

It seems that the new boss of NS&I, the government-backed savings organization, is a good listener – and also an avid reader of The Mail on Sunday.

Seven days ago, encouraged by many loyal NS&I customers, I urged CEO Dax Harkins to give Premium Bond savers a lift. He duly obliged.

The result is that from next month the price percentage (the effective interest rate) will rise from 3.3 to 3.7 percent, the highest in 15 years.

Of course, it doesn’t mean that bondholders will now earn prices equivalent to 3.7 percent per annum – that’s not the way Premium Bonds work, with monthly prices set by Ernie, the Electronic Random Number Indicator Equipment. Still, more winnings will be available with savers sharing a wider range of prizes valued between £50 and £100,000.

I am a big fan of Premium Bonds. The prizes are tax-free and make a wonderful gift for children and grandchildren (grandsons Arthur and Archie have received some bonds in recent months).

I also like to use the NS&I Prize Draw Checker app at the beginning of each month to see if I’ve won anything. A little light relief to offset all the doom and gloom.

Over the last six months I have received £175 in prizes with a modest company – money which I have gratefully received and spent on a summer walking holiday in the Lake District. Martin Grugeon, from Trowbridge in Wiltshire, was one of those who asked me last week to give the NS&I boss a push on the Premium Bond prize percentage.

When he heard about the price increase on Tuesday, he said to me, ‘Good job Jeff. I knew that a few words from myself and yourself in your column would suffice.’

They sure did (thanks Martin). To all the Premium Bond holders out there, good luck in the July draw. Remember: someone out there has to win the £1 million prize.

Let me know if it’s you.