What you need to know this week
- Public sentiment ahead of the Autumn Budget remains negative, with 79% believing the UK economy is in a bad state and 77% rating government performance poorly.
- UK inflation fell to 3.6% in October 2025, with food prices rising again.
- Companies House reforms introduce significant new compliance requirements from 18 November 2025.
- MaPS warns that nearly one in three adults would be uncomfortable telling friends they have been scammed.
- Ofgem announces a 0.2% rise in the energy price cap for January–March 2026, with consumer arrears remaining high.
- Water sector social tariff uptake rises, with proactive data-driven identification of eligible customers.
- FCA highlights a growing financial capability gap and calls for “capability-by-design” in product development.
- CSA publishes research on financial misinformation and calls for stronger protections under the Online Safety Act.
- Insolvency levels remain elevated: 10,552 individual insolvencies in October 2025.
- Breathingspace registrations reached 7,701 in October 2025.
- Multiple collaborations announced, including technology-enabled debt solutions and customer support partnerships.
- Several sector events scheduled, including the CIVEA enforcement collaboration event (27 November 2025, London) and the Lowry Hotel collections event (4 December 2025, Manchester).
Key Themes
Economic and Policy Environment link, link
- Public confidence in economic management is low, shaping expectations for fiscal policy and impacting consumer behaviour and affordability assessments.
- Inflation remains above target and volatile, relevant to credit providers modelling household resilience and repayment capacity.
Regulatory and Compliance Developments
Companies House reforms link
FCA arrests (unauthorised debt activity) link
FCA CP25/33 fee proposals link
- New identity verification requirements and transparency rules will impact corporate governance and AML controls for firms.
- FCA’s enforcement actions emphasise the regulatory focus on unauthorised debt activity, relevant to consumer protection and market integrity.
- Proposed changes to regulatory fees affect cost planning for firms preparing for the 2026/27 financial year.
Energy, Utilities and Cost-of-Living Pressures
Price cap update link, link, link
Ofgem consultation link
Arum analytics on debt relief scheme link
- Energy arrears continue to rise, driving vulnerability levels and increasing the likelihood of non-payment across household bills.
- The proposed consumer outcomes framework and Debt Relief Scheme have material implications for collections strategies.
- Firms must track emerging affordability support schemes as they directly influence repayment prospects.
Water Sector Vulnerability and Data Use
Water tariffs and data-driven identification link, link, link
- Automatic enrolment into social tariffs shows increasing regulatory appetite for proactive, data-driven customer support.
- Water arrears remain high, signalling cross-utility debt accumulation that affects credit risk and multi-sector collections operations.
Customer Behaviour, Complaints and Capability
Customer complaints and feedback trends link
FCA focus on capability-by-design link, link
- Rising DSAR volumes and heightened expectations of transparency require operational investment in data governance.
- FCA’s emphasis on consumer understanding has immediate implications for product design, communication, and testing frameworks.
Misinformation and Consumer Protection
CSA misinformation report link, link
- Financial misinformation poses heightened risk to indebted consumers, with regulatory bodies urged to strengthen digital protections.
- This is critical for firms as misinformation drives detriment, distorts customer expectations, and increases complaint volumes.
Insolvency Trends
Insolvency Service statistics link
- Insolvency volumes remain elevated, signalling continued financial stress among households and implications for provisioning and debt strategy.
- DROs remain historically high, reflecting significant low-income vulnerability and impacting longer-term recovery prospects.
Vulnerability Frameworks and Ethics
Revised insolvency code of ethics link
CII customer vulnerability guidance link, link
- Updated ethical standards and new vulnerability frameworks reinforce expectations for data quality, governance, and fair customer treatment.
- Firms must ensure systems can accurately classify and manage vulnerability data, linking directly to Consumer Duty obligations.
AI, Technology and Operational Innovation
AI strategy and industry developments link
Contact centre transformation link
Credit Connect event insights link, link
- AI adoption continues to accelerate, but requires strong data foundations to unlock efficiency and compliance benefits.
- Hybrid people–technology models remain core to delivering regulated customer outcomes.
- Sector leaders signal rising regulatory pressure, increased vulnerability detection, and further personalisation requirements.
Sector Collaborations and Partnerships
Economic abuse awareness partnership link
MoneyPlus–Kallidus partnership link
- Partnerships increasingly focus on training, performance, and specialist support for vulnerable customers.
- Cross-sector collaborations reflect the growing interdependence between financial services, advice providers, and technology vendors.
Events and Industry Engagement
Preventing debt and homelessness webinar (26 November 2025)
CIVEA enforcement collaboration event (27 November 2025, London)
Lowry Hotel Debt Buyer / BPO event (4 December 2025, Manchester) link, link
- Events align with rising industry focus on affordability, vulnerability, data sharing, and technology-enabled support models.
Key Statistics
- 79% of adults believe the UK economy is in a bad state.
- 77% think the government is managing the economy poorly.
- UK inflation: 3.6% in the year to October 2025.
- Energy price cap: £1,758 per year for an average household (Jan–Mar 2026).
- Water debt estimated at £2.8bn before 2025–26 bill increases.
- 31% of adults would be uncomfortable telling friends they were scammed; 46% would tell family.
- Fraud case: £568,000 stolen by offenders posing as bank customers.
- October 2025 individual insolvencies: 10,552 (4% lower than September; 14% higher than October 2024).
- DROs in October 2025: 3,846 (71% above long-term average of 2,252).
- Breathing Space registrations in October 2025: 7,701.
Newsletter Contents
- Public sentiment and inflation update
- Companies House reforms and regulatory developments
- Scam awareness insights and fraud enforcement
- Energy price cap rise and debt relief scheme updates
- Water sector social tariff developments
- Customer complaints and financial capability trends
- FCA capability-by-design and AI guidance
- CSA financial misinformation report
- Insolvency and Breathing Space statistics
- Collaborations across financial services, utilities and technology
- AI and contact centre transformation insights
- Key upcoming sector events
Find the full DEMSA newsletter, commentary and links here
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