DEMSA Key themes summary

What you need to know this week Data from Money Wellness revealed 3,994 visits seeking debt advice during the Christmas period, highlighting growing financial pressures. Rising costs are expected in 2025, including food, energy, water, and council tax. Citizens Advice identified low awareness of water social tariffs, with 42% of eligible individuals unaware of their existence. Darryl Matthews joins Inicio AI as CX Director, emphasising strategic creditor liaison in 2025. The FCA investigated unauthorised debt and claims management activities, conducting… Read more

What you need to know this week UK interest rates held at 4.75% until February 2025, despite inflation exceeding targets. Private renters face significant financial pressures, with over half struggling to meet bills and credit commitments. Ofwat confirms a 36% rise in water bills by 2029 to fund £104 billion in sector upgrades. FCA extends motor finance complaints deadlines to December 2025, following recent court rulings on discretionary commission disclosures. StepChange highlights financial vulnerability in the rental sector, advocating for… Read more

What you need to know this week The UK economy contracted by 0.1% in October 2024, marking a second consecutive monthly decline. 74% of households rely on credit products like Buy-Now-Pay-Later (BNPL) for Christmas, with usage rising to 87% among 25–34-year-olds. Ofgem launched consultations on debt strategy proposals, including zero-standing-charge tariffs, closing on 6 February 2025. Energy arrears reached £3.82 billion in September 2024, a 91% increase in two years. The FCA reviewed Consumer Duty Board reports from 180 firms,… Read more

What you need to know this week UK house prices hit a record high in November 2024 (£298,083), with a 1.3% monthly increase, marking the fifth consecutive rise. Retail footfall increased by 15% week-on-week and was 5% higher compared to the same week in 2023. Cash usage in shops rose for the second consecutive year, with digital payment trends varying by demographics. The FCA has launched consultations on regulatory fees (CP24/25) and changes to debt management (CP24/26) for FY 2025/26.… Read more

What you need to know this week Net mortgage borrowing increased to £3.4bn in October 2024, while consumer credit borrowing decreased slightly to £1.1bn. The inflation rate rose to 2.3%, exceeding the government's target of 2%. The FCA has increased regulatory activities, focusing on financial promotions, unused permissions, and data requests with December deadlines. Consumer credit annual growth slowed to 7.3%, with credit card borrowing growth stable at 9.5%. The FCA and FOS are seeking input on modernising the redress… Read more

What you need to know this week The Consumer Prices Index (CPI) inflation rose to 2.3% in October 2024, up from 1.7% in September. Private rental prices increased by 8.7% year-on-year, with 53% of renters struggling to meet bills and 32% relying on credit to afford rent. Ofgem announced an energy price cap reduction to £1,738 effective January 2025, down from £1,928. E.ON Next paid £14.5m for billing errors affecting 250,000 prepayment meter customers, including 100,000 accounts in credit. The… Read more