DEMSA Key themes summary

What you need to know this week Rachel Reeves signals potential tax rises in November 2025 Budget.ONS data shows mothers’ earnings fall by £1,051 per month on average, five years after childbirth.Citizens Advice handled 233,257 enquiries in August 2025, up 3.6% YoY; debt accounted for 19.7% of issues.UK energy bills rise 2% from October 2025; 6.4m adults are behind on payments, arrears total £4.4bn.FCA and NCA focus on financial crime, including money mules and cash-based laundering.ECCTA mandates director ID verification… Read more

What you need to know this week OECD raises UK inflation forecast for 2025 to 3.5%; August 2025 CPI recorded at 3.8%.SME lending by main high street banks grew 8% in Q2 2025 to £4.24bn; lending to small businesses up 28% year-on-year.Mortgage lending dipped early Q2 2025 post Stamp Duty changes but recovered by June.MaPS 2025–2028 strategy launched, with focus on customer experience, pensions dashboard, SFS standardisation, and digital integration.FCA business strategy to 2030 highlights economic crime prevention as a… Read more

What you need to know this week Bank Rate held at 4% following the MPC meeting ending 17 September 2025; governor warns inflation risks remain.UK public borrowing in August 2025 reached £18 billion, the highest for that month in five years.Cyber-attack affecting Collins Aerospace software caused operational disruption at Heathrow and other European airports.Enforcement Conduct Board consultation open on ‘Vulnerability and Ability to Pay’ standards for enforcement activity.Phase One consultation on Consumer Credit Act reform (CCA) has closed; Phase Two… Read more

What you need to know this week FCA growth-challenge measures could make contactless spend thresholds discretionary; past increases (2007 £10 → 2020 £45 → Oct 2021 £100) correlated with higher average contactless spend.ONS: zero GDP growth in July 2025 (after +0.4% in June 2025).Resolution Foundation: essentials and energy debt have risen sharply; energy debt has tripled in a decade.StepChange: over two in five clients are in energy arrears; average energy arrears ~£2,300; average council tax arrears ~£2,000.Warm Home Discount now… Read more

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