DEMSA Key themes summary

What you need to know this week The Government will launch a consultation on council tax debt collection practices following sector lobbying. UK GDP grew by 0.7% in Q1 2025, with 0.2% month-on-month growth in March. Domestic abuse estimates highlight 3.9 million people affected in the past year, with economic abuse and coerced debt in focus. 90,140 homeowner mortgages were in arrears in Q1 2025; 2,030 properties were repossessed. The Money and Pensions Service (MaPS) has launched a consultation on… Read more

What you need to know this week The Bank of England cut the Bank Rate by 0.25% to 4.25%, impacting tracker mortgages. FCA launched CP25/11 consultation to simplify mortgage changes. FCA published PS25/3 confirming new Consumer Credit Return (CCR009) reporting requirements from 2025. Aryza’s Q1 2025 insolvency insights highlight increasing consumer struggles with priority bills. FOS received over 141,000 complaints in H2 2024, with gambling-related harm cases rising. Treasury Select Committee examined AI in financial services, focusing on balancing innovation… Read more

What you need to know this week Roma Pearson, former Director of Consumer Finance at the FCA, joined Square 4 Partners as Senior Advisory Director. Net mortgage borrowing by individuals rose sharply to £13 billion in March 2025, per Bank of England data. Net borrowing of consumer credit fell to £0.9 billion, with credit card borrowing dropping to its lowest level since April 2024. Citizens Advice published Deeper in Debt, reporting a 50% rise in household arrears since 2019 and… Read more

What you need to know this week Annual energy bills forecasted to fall by £166 in July 2025. UK GDP growth could slow to 0.8% in 2025 and 2026 if tariffs are imposed. Inflation expected to return to 2% by mid-2026 after a short-term rise. Over £1 trillion card transactions made in the UK in 2024. Financial vulnerability now increasingly affects middle-class and affluent households. 9,205 individuals entered personal insolvency in March 2025 in England & Wales. DRO volumes remain… Read more

What you need to know this week Inflation fell slightly to 2.6% in March 2025. Household budgets remain strained due to increased utility, council tax, and other bills. Consumer confidence remained flat in Q1 2025. Consumer finance new business increased by 3% in February 2025. Credit cards and personal loans new business rose by 2% in February 2025. Retail and online credit new business fell by 2%. Employment market weakened with fewer job vacancies and payroll declines. FCA paused changes… Read more

What you need to know this week US tariffs increase coffee prices, impacting café and bakery owners. UK exporters face challenges due to a new 10% US tariff on goods. The FCA focuses on supporting innovative financial products and easing new firm regulations. Ofwat introduces mandatory PSR standards to aid vulnerable customers. UKRN's 2025-2026 delivery plan emphasises collaboration and effective regulation. Target Group enhances customer interaction with AI-driven functionalities. Individual insolvency rates vary significantly across regions in England & Wales.… Read more