British Gas Bonus Claims To Be Investigated

Claims that British Gas workers have been paid large bonuses to inflate customer bills are to be investigated by the energy regulator, Ofgem.

It comes after a former employee claimed the energy company encouraged its sales staff to sign up charities, churches and small businesses to its highest-priced tariffs in order to boost their own earnings.

British Gas has strongly denied the allegations.

The whistleblower, who worked for the company between 2010 and 2013, told the Daily Mail the firm's policies were designed "to rip off" customers.

He claimed sales agent typically earned between £4 and £37 in commission per deal if they persuaded existing customers to renew contracts.

But by moving a customer to a more expensive deal they could earn more than £400 a time, he alleged.

"People were desperate to make the salaries they had been promised, so everyone inflated the prices," he told the paper.

"Scout clubs was a favourite one; churches, charities, small businesses, where people would just go for the maximum 5p notch-up," he added.

Ofgem will investigate whether the sales activities were 'honest and fair'

A British Gas spokeswoman said: "British Gas strongly refutes any suggestion that employees are paid commission on any prices charged to residential customers."

British Gas Business managing director Stephen Beynon said his sales agents are paid commission, but he denied any suggestion that contracts were negotiated inappropriately.

"This is a highly regulated market, and every part of the sales negotiation process is closely monitored," he said.

"Sales agents in British Gas Business do receive commission, but we are reducing its importance.

"We're leading the way in addressing the variability in price that customers face in this market, and we'll continue to do so."

Ofgem said in a statement: "There are strict rules in place which require suppliers to take all reasonable steps to ensure information provided is accurate and not misleading, and that sales activities are conducted in a fair, honest, transparent and professional manner.

"Ofgem is an evidenced-based regulator and we would encourage anyone with information that an energy company is not complying with Ofgem rules to provide us with this."

The allegations come days after Ofgem fined British Gas Business for a series of failures including blocking firms from switching to other suppliers.

Ofgem said British Gas Business would pay a total penalty of £5.6m of which £800,000 would be in fines, on top of £1.3m already paid to 1,200 customers who paid higher bills because they were not notified when their contracts were due to expire.

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Teachers' Strike Possible If Talks Break Down

Teachers are considering a fresh walkout just weeks after strike action forced schools across England and Wales to close.

Members of the National Union of Teachers (NUT) meeting for their annual conference today will debate the possibility of industrial action next term unless "significant progress" is made in talks with the Government.

NUT general secretary Christine Blower said: "We have a motion that's going to be put to delegates which envisages industrial action in late June if we don't make progress in the talks with the Government in May.

"But the first priority is for a minister to actually come to those talks and we'd like to make progress on a list of things."

That list includes performance-related pay due to be introduced from September, heavy workloads and pensions.

The national walkout on March 26 saw 12% of schools shutting their doors, according to the Government, but thousands more were disrupted.

Any further strike action would be held in the week starting Monday, June 23 after the majority of GCSEs and A Level exams are over.

Teachers gathering for the conference called on Education Secretary Michael Gove to listen to their concerns.

"Certainly I will be thinking about voting to strike," said one. "Where I work people are concerned about the work loads, targets and the pressure Government puts on teachers."

Last month's national walkout organised by the NUT

Another told Sky News: "If Mr Gove would just listen to us and negotiate with us then strike action wouldn't go forward but he has to listen to us."

A poll commissioned by the NUT shows that two thirds of parents support teachers' right to strike.

But for the Lamberti family it smacks of double standards.

Mother-of-two Clare Lamberti said: "We applied for a day's holiday to take the girls away for the weekend and they turned it down.

"They said it would disrupt their education but obviously a day here and a day there for strikes, that's going to disrupt their education.

"One rule for them ... one rule for us obviously."

The National Association of Schoolmasters Union of Women Teachers (NASUWT) is also holding its conference this weekend.

Both unions will be discussing concerns over the growing number of unqualified teachers taking classes.

Of 7,000 teachers surveyed, 53% told the NASUWT they worked alongside unqualified staff. That rose to 61% in academies.

But in a separate poll by the NUT, 82% of parents said schools should only employ qualified teachers.

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House Price Increases Create 'Generation Rent'

By Siobhan Robbins, Sky News Reporter

The booming housing market is causing a generation of young people to become increasingly pessimistic about their chances of getting on the property ladder, according to a new study.

Halifax's 'Generation Rent' report found that despite the launch of schemes like Help to Buy to give a boost to people with small deposits, 36% of 20 to 45-year-olds felt they have no realistic prospect of owning their home in the next five years.

Around half of those polled in England, Scotland and Wales agreed Britain will become a nation of renters in the next generation and 20% of people aged 23 to 27 said they have no desire to own their own home.

A fifth of people surveyed said they had no desire to own their own home

Caroline Hill, 23, told Sky News she would rather rent than buy.

"I can see myself being able to buy in the future but I'm just really not interested in doing so," he said.

"My parents have always been renters and I think that has had a big effect on the way I feel about it."

Danny Palmer, 27, is frustrated the market is running away from him.

"I think it's going to be really difficult for me to get onto the property ladder purely because rent these days is taking up about 40% of my salary, and that's before bills, living costs and anything else," he said.

Estate agents say high prices mean potential buyers are moving into rentals

Halifax mortgages director Craig McKinlay, said: "We may be heading towards the point where the aspiration to own a nice home will be replaced by the aspiration to simply live in one.

"It seems that people are now beginning to accept a lifetime of renting and this would not only change the way the property ladder looks in the future, it could even bring into question whether or not it will exist at all for some people."

The report warned that any future collapse in the number of first-time buyers - the "life blood" of the housing market - will have a knock-on impact on people trying to move up the property ladder.

If some existing home owners are unable to trade up because of a lack of potential buyers for their property, the market will be brought to a standstill, the report warns.

Woking estate agent Yassar Latif, said: "People who were thinking of buying, but have been let down by the rise in prices, have moved towards rentals now."

The Government has said that Help to Buy and plans to build more houses should ease the problem. But despite this, only around 30% of the people polled believed Help to Buy was working.

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Boy, 14, Charged With Raping 10-Year-Old Girl

A 14-year-old boy is due to appear in court charged with raping a 10-year-old girl.

West Mercia Police said the teenager has been charged with rape and attempted rape.

The youngster, who cannot be named for legal reasons, will appear at Telford Magistrates' Court later.

It comes after a girl was sexually assaulted at an isolated spot on disused land in Shrewsbury, Shropshire.

The offence occurred near the Arc car wash centre, off St Michael's Street, between 3.30pm and 4.30pm on April 11.

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School Places: Parents Warned About 'Crisis'

Families are facing a "growing crisis" when it comes to getting their children into primary schools, the head of a teaching union has said.

The warning comes as figures indicate tens of thousands of youngsters have missed out on their first choice of school.

One school in Bristol was so oversubscribed it had 4,000 applicants competing for just 40 places.

Council across England have been warned they must increase school capacity by 20% by 2016 if they are to cope with the increasing number of children.

Dr Mary Bousted, of the Association of Teachers and Lecturers, accused the Education Secretary Michael Gove of failing to deliver on his main responsibility "to provide school places for the nation's children".

For the first time parents across the country learned whether their children had secured places at the school of their choice on the same day.

Dr Mary Bousted says the Government is failing children

The picture emerging on National Offer Day showed significant disparities across the country, with an expected one in five children missing out on their first choice in areas such as Bristol and London.

According to the Local Government Association, some areas - Costessey in Norfolk, Purfleet in Essex and central Croydon in south London - will see 75% more pupils than school places by next year.

The increasing squeeze on school places has been blamed on a rising birth rate and the impact of immigration.

Dr Mary Bousted said: "We know there is a growing crisis in primary school places and we know the Government, for all the money they say they are throwing at the problem, simply haven't got the mechanism (or) the ability to plan school provision where it's needed.

"They have divested themselves of the levers to manage this situation."

She added: "It's no surprise there's a crisis in primary school places, because Michael Gove has divested himself of his first key responsibility, which is to provide school places for children."

The Department for Education said it has given councils more than £5bn to establish new school places, with more than 260,000 created already.

But Lydia Gibbs, primary teaching and curriculum lead for the Reach Academy in Feltham, west London, said: "There is a shortage of primary school places throughout the country.

"There is a sense of competition that parents would love to have their children come to our school. I know that because we were oversubscribed for reception places."

Last year the school had 160 applications for just 60 primary school places.

Bristol Cathedral School received 100 applications for each of its 40 places.

Lou Birbeck, whose twin girls failed to win spaces there, said it was hardly surprising her application had been unsuccessful, given the level of competition.

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Co-op To Unveil £2.5bn Losses As Crisis Deepens

By Mike McCarthy, Sky News Correspondent

The Co-operative Group is set to announce losses of up to £2.5bn after a series of "catastrophically inept decisions".

It is coming under increasing pressure to reform as it faces the biggest crisis in its history.

Former city minister Lord Myners, who was brought in help push through reform, has accused managers of making catastrophically inept decisions.

However, he is is set to step down amid internal resistance to his plans.

One Co-operative insider told Sky News he was in doubt where responsibility lay for the group's latest ills.

Jim Lee, an active member for 25 years, said:  "The blame lies ultimately with the board.

"Clearly we have to look again at how that board came to be put together.

"Clearly we have to look at the personnel on that board and clearly we have to change those things in the future."

Elections to the board are based on a complex three-tier structure with area committees and regional boards.

Critics say it is an outdated system which is ill-equipped to function in a globalised 21st century business environment.

There has been no evidence so far of Co-operative customers switching to other brands, but the series of crises do seem to be affecting confidence.

Outside one Co-op bank in the Lancashire town of Rochdale, where it was founded in the mid-19th century, customers told Sky News they were growing concerned.

One woman said:  "I've always been a Co-op member. My mother was and my grandma was and we've always dealt with the Co-op."

But asked if she would consider banking elsewhere, she said:  "Well we've got money in other places but it just depends how it goes.  I'll be watching - let's put it that way."

Financial analyst Brenda Kelly said apparent differences at the top of the Co-operative Group were hampering the chances of recovery.

"To reform the Co-op will take time, but ultimately having agreement within Co-op itself will help shareholders get some confidence that they might get back on the front foot."

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Tesco Full-Year Profit Slumps 6% To £3.3bn

Tesco has reported a 6% fall in full-year group trading profit of £3.3bn.

Stripping out exceptional items incurred in the last year, pre-tax profit was down 6.9% to £3.1bn.

The UK's biggest supermarket chain also announced like-for-like sales, excluding fuel and VAT, fell 3% in the three months to the end of February 2014.

The results do not include figures for Tesco Bank, which reports separately.

Shares in the company were up more than 3% in early trades on Wednesday.

Tesco's market share hit a 10-year low of 28.6% - its lowest since 2004 - in the 12 weeks to March 30 compared with the same period the year before, according to the latest data from market researcher Kantar Worldpanel.

It remains the third biggest retailer in the world.

The company, led by chief executive Philip Clarke, is 24 months into a turnaround plan for its main UK business that has seen over £1bn invested in store revamps, more staff, new product ranges and pricing initiatives.

Mr Clarke said: "We are transforming Tesco through a relentless focus on providing the most compelling offer for our customers.

"Our results today reflect the challenges we face in a trading environment which is changing more rapidly than ever before."

He added: "We are determined to lead the industry in this period of change."

The sales drop in the last three months was the biggest quarterly drop recorded during Mr Clarke's three-year tenure.

The company said it would put customers "at the heart" of what it does in this "new era of retail".

It added the second-half of the year was particularly competitive in the UK sector.

A spokesman for Tesco said: "Our performance in the year was not where we had planned it to be."

Although it cited problems in countries such as South Korea and Thailand, the company is also looking further afield.

It recently announced it would return to the United States with its F&F clothing business.

In November, Tesco completed the sale of its loss-making US supermarkets operation Fresh & Easy to investment firm Yucaipa.

Earlier in the month the supermarket's finance director, Laurie McIlwee, resigned.

Sky News also understands Mr Clarke has decided to appoint a new chief marketing officer in place of Matt Atkinson, who has been in the role for just over a year.

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Army Failings Blamed Over Camp Bastion Attack

By Alistair Bunkall, Defence Correspondent

British commanders must take some blame for inadequate security at Camp Bastion when it was attacked in 2012, a parliamentary report has concluded.

Fifteen Taliban insurgents broke through the perimeter fence on September 14, 2012, killing two US Marines in a battle lasting into the following day.

Eight British and eight American military personnel and one civilian were injured. Six US Harrier jets were destroyed.

Fourteen of the insurgents were killed and the remaining one wounded, captured and interrogated.

That night one of the guard towers, Tower 16, was left unmanned, allowing the attackers to approach the base unseen.

All towers are now manned constantly by a team of guards working on rotation.

The Defence Select Committee report also noted concern that poppies were being cultivated immediately outside the fence, allowing Afghans to approach the walls easily and at will.

Camp Bastion is the HQ of the British military operation in Afghanistan

This could have allowed potential attackers to get a good sense of the base, up close, in preparation for an attack.

However, no evidence was found that requests for improved force protection were turned down on cost grounds.

"We are satisfied that as far as possible, the vulnerabilities which led to this extraordinary attack have now been addressed," committee chairman James Arbuthnot said.

"But we recommend that the MoD capture the lessons identified as part of its wider efforts to learn lessons for future operations."

A similar report in 2013 found two US commanders accountable for failures to adequately protect the base, but because the attack took place in the British section of Camp Bastion, the committee said British commanders should have had more responsibility.

The Ministry of Defence turned down a request for an interview but commenting on the report's findings, Defence Secretary Philip Hammond said: "The MoD is not complacent and always seeks to capture and learn lessons from current operations.

Watchtowers at the base are now constantly manned

"Commanders in the field have to prioritise resources against potential threats in theatre and at the time a threat to Camp Bastion was considered to be lower than to other ISAF (International Security Assistance Force) assets in Helmand.

"UK commanders have identified and acted upon all lessons following the attack on Camp Bastion in 2012."

The committee criticised the MoD for not revealing information they requested, specifically details of the security situation in Helmand during the years leading up to the attack.

"The Committee were unimpressed by the evidence from the Chief of Joint Operations, who explained that the number of security incidents was unusually high in Helmand Province in 2012.

"The Committee was told the focus of ISAF commanders had been on security incidents elsewhere in Helmand Province and on threats from insider attack.

"Unfortunately the MoD has declined to provide the Committee with comparable details of the level of security incidents recorded in Helmand for previous years as this information was classified.

"This would have allowed the Committee to make an informed assessment of the relative threat levels in the area at the time."

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UKIP Poll Boost: Tory And Lib Dem Support Falls

Nigel Farage's UKIP has been given a boost in a new poll which puts support for the party at 20%, four points higher than last month.

It comes after he was said to have come out top in the head-to-head clashes with Liberal Democrat leader Nick Clegg over Britain's future in Europe.

It is UKIP's highest rating in a ComRes survey, while the Conservatives have scored their lowest rating so far this year at 29%, down three.

In the new poll for the Independent on Sunday and Sunday Mirror, the Tories are six points behind Labour which are unchanged on 35%.

The Liberal Democrats have fallen to just 7% - a dip of two points and their lowest since they went into coalition with the Conservatives in 2010.

Mr Farage's personal rating also appears to have received a boost after the recent debates.

Nigel Farage was said to have come out top in the debates

The UKIP chief has enjoyed a seven-point bounce since February, taking him to 27%.

Deputy Prime Minister Mr Clegg is down one point to 12%, while Prime Minister David Cameron has dropped four points to 27% and Labour leader Ed Miliband is down two points to 20%.

Mr Cameron's rating may have been dented by his handling of the expenses furore involving former culture secretary Maria Miller.

Some 62% of voters believe he showed a serious lack of leadership in the way he dealt with the case.

Most voters, 62%, believe constituents should be able to force sitting MPs to defend their seat in a by-election if enough people sign a petition demanding it, the research found.

A second poll also puts Labour in a six-point lead

Sky News Political Correspondent Anushka Asthana said: "We're only a few weeks out from the European elections and UKIP are kind of what the Lib Dems used to be - the party that stands against the establishment.

"They used to just talk about Europe - now it is local, popular issues such as HS2.

"The Conservatives are really badly hit by UKIP rising because that tends to split the right.

"And pollsters say if UKIP get anything over eight points in a general election they would split the right and would stop David Cameron from winning an overall majority.

"So he will be very worried about that."

Meanwhile, a Opinium poll for the Observer newspaper puts the Conservatives on 30%, Labour 36%, Lib Dems 7% and UKIP on 18%.

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Nigel Evans' Defence Cost £130K Life Savings

Former Deputy Speaker Nigel Evans says the cost of defending himself against sex charges over a five-week trial has deprived him of his life savings.

Speaking to The Mail On Sunday, the 56-year-old politician called for an investigation into the way the Crown Prosecution Service (CPS) pursues high-profile cases.

Mr Evans said the CPS should pay his legal fees after he was acquitted at Preston Crown Court last Thursday.

He said the fight to clear his name has cost him his life savings of £130,000.

"Every penny is gone, in addition to the £30,000-a-year additional parliamentary salary I was paid as Deputy Speaker," Mr Evans told the newspaper.

"If someone is dragged through the courts through no fault of their own and is acquitted they should get their legal fees back from the CPS budget.

"Maybe that will make them focus on whether a case is worth pursuing."

Mr Evans was found not guilty of all charges, including one count of rape and four counts of sexual assault.

The charges were related to events involving seven men between 2003 and 2013.

On Friday, former shadow home secretary David Davis called on the Attorney General to launch a review into the way sex offence prosecutions are carried out.

He said Mr Evans' case highlighted "serious concerns" about the practices of the police and the CPS.

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