DEMSA Key themes summary

What you need to know this week UK Finance calls for FOS reform and clearer direction on open banking and digital payments. The FCA soft-launches a tailored Handbook website aligned by permissions and sectors. FOS reports a 54% year-on-year increase in complaints, driven largely by credit affordability and motor finance. Consumer credit balances and BNPL usage continue to rise, raising questions around affordability and risk. FCA stakeholder event focuses on simplifying regulation and improving communications. Personal insolvency framework update published;… Read more

What you need to know this week Council tax arrears in England have reached £6.6bn, a 10% annual increase, with 25% of National Debtline callers affected. The FCA has launched a mortgage rule review aimed at improving home ownership and affordability. The Data Use and Access Act 2025 introduces phased reforms to UK data protection law. The Lending Standards Board will wind down by 31 October 2025, removing independent oversight for SME lending protections. New research from TransUnion UK reveals… Read more

What you need to know this week Government confirms 1.2% average annual real-terms increase in departmental spending between 2025/26 and 2028/29. Local Government DEL to rise from £15bn in 2025/26 to £15.8bn by 2028/29. HMRC receives £500m to deliver 90% digital self-service by 2029/30. 2,400 new HMRC debt management staff and 5,500 compliance roles confirmed. £1.9bn investment in cross-department digital and AI transformation announced. NHS England to be merged into the Department of Health and Social Care by 2025/26. Valuation… Read more

What you need to know this week The FCA is reviewing motor finance commissions, with potential for a redress scheme affecting over 2 million customers. NatWest suffered a major outage, highlighting continued risks to operational resilience in essential financial services. HSBC UK CEO underscores the sector’s high cybersecurity costs and focus. ICO released new guidance on data breaches and launched a strategy on AI and biometrics regulation. Lowell’s Financial Vulnerability Index shows vulnerability at its highest since the pandemic. Ofwat… Read more

What you need to know this week Average UK private rents increased 7.4% year-on-year to £1,335 as of April 2025. A revised IVA Protocol will take effect from 1 July 2025, with significant safeguards for consumers. 4,000 individuals may still claim DRO-related refunds via the Insolvency Service. Ofgem mandates £18.6m in redress for unauthorised prepayment meter installations affecting 40,000 customers. FCA updates 11,000 firm requirements and permissions, impacting over 9,000 regulated entities. Aryza acquires Webio to accelerate AI integration across… Read more

What you need to know this week Inflation rose to 3.5% in April 2025, up from 2.6% in March, impacting household budgets and potentially delaying interest rate cuts. FCA’s CP25/13 proposes aligning complaint reporting to calendar year-end and includes new categorisation rules for Consumer Duty and Vulnerability. Individual insolvencies for April 2025 reached 10,012, including 5,586 IVAs and 3,837 DROs. 7,273 Breathing Space registrations in April 2025, a 5% year-on-year decrease. New rules will bring Buy Now Pay Later (BNPL)… Read more