DEMSA Key themes summary

What you need to know this week Bank of England Q1 2025 Credit Union data shows arrears rising despite small rebounds in assets and profits.UK private rents rose to £1,343 by July 2025, with growth slowing but still increasing pressure on households.FCA and VRS highlight Consumer Duty two years on, focusing on third-party vulnerability data and “tell us once” models.Ofgem confirmed a 2% rise in the energy price cap from October 2025, adding £35 to typical household bills.Insolvency Service FoI… Read more

What you need to know this week UK inflation rose to 3.8% in July 2025, exceeding expectations and driven by air fares and food prices.Consumer confidence has fallen by 31 points year-on-year, with pensioners the most pessimistic group.2.1 million UK households missed at least one essential payment in July 2025.13.9 million households made at least one adjustment to cover essential spending in the same month.The ICO has launched consultations on ‘recognised legitimate interest’ and mandatory data protection complaints processes.Breathing Space… Read more

What you need to know this week FCA outlines three strategic priorities for consumer credit: innovation, support for vulnerable customers, and improved access to affordable credit.Ofgem issues policy update on its Debt Relief Scheme, targeting energy arrears accumulated between April 2022 and March 2024.Mortgage arrears fell in Q2 2025, but possessions rose by 10% compared to Q1.FOS consultation on differentiated case fees continues, with possible changes to complaint handling cost allocation.New consultation from Ofwat mandates customer involvement in water company… Read more

What you need to know this week Bank of England reduced interest rates from 4.25% to 4% after a narrow MPC vote; inflation at 3.6% remains a concern.Ofwat CEO resigned; Chris Walters appointed Interim CEO, Helen Campbell appointed Executive Director, Delivery.Updated sector briefing on AI Voice Agents in debt collections released; FCA AI Lab continues work on AI governance and bias.Money Advice Hub launched Gracie-A, a human-in-the-loop AI assistant for debt advisers.FCA published feedback on the Future Entity for UK… Read more

What you need to know this week The Supreme Court ruled on the legality of motor finance discretionary commissions, with FCA response expected before 4 August.FCA calls for improvement to digital loan journeys, highlighting design issues impacting vulnerable customers.Insolvency Service annual plan includes strategic assessment of the IVA sector and DRO API development.Private rents outside London have increased by 44% in five years; StepChange highlights affordability risks for renters.Microsoft SharePoint vulnerability being actively exploited—NCSC urges urgent action.FCA feedback issued on… Read more

What you need to know this week Consumer Duty Board reports must be signed off by the end of next week.UK government borrowing in June 2025 reached £20.7bn – £6.6bn higher than June 2024.Car and van production is at its lowest level since 1953, excluding the Covid period.The FCA released a comprehensive update on the retail insurance market, including claims handling, motor premiums, and premium finance.Rachel Reeves is considering retrospective legislation over a potential £44bn car finance Supreme Court ruling.PayPlan… Read more