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 priority.
- Which? lodges a super-complaint to the FCA on travel and home insurance; FCA has 90 days to respond.
- Ofgem reports record £4.4bn energy arrears; Q2 2025 average debts £1,716 (electricity) and £1,489 (gas).
- FCA/FOS joint consultation on redress reform and case fee structure closes 8 October 2025.
- Enforcement Conduct Board expands Board with Caroline Wells and Delroy Corinaldi.
- PayPlan warns of rising BNPL use for purchases below £50; FCA supervision from 2026.
- Utility event “One Voice on Affordability” to be held on 9 October 2025, Edwardian Hotel, Manchester.
- StepChange Connected event confirmed for 16 October 2025, Leeds.
Key Themes
Inflation and Economic Volatility link
OECD raised UK inflation forecast to 3.5% for 2025; August CPI reached 3.8%. High inflation challenges debt budgeting using the SFS, highlighting the importance of open banking for accurate expenditure analysis. Mortgage and SME lending trends provide insight into consumer and business credit demand, critical for financial services planning.
MaPS Strategic Direction link, link, link
The MaPS 2025–2028 plan emphasises quality frameworks, SFS standardisation (including API options), digital pensions dashboards, and customer connectivity at points of vulnerability. These measures are significant for creditors, advisers and financial institutions aiming to achieve consistency, efficiency, and regulatory compliance.
Vulnerability and Consumer Duty link, link, link, link
MorganAsh webinar highlighted consumer vulnerability management, data sharing (VRS, Experian SupportHub), and AI/speech analytics. For regulated firms, ensuring alignment with Duty reporting and evolving FCA standards is essential to mitigate compliance risk and improve customer treatment.
Regulatory Intervention: Insurance and Redress link, link, link, link
Which? has raised a super-complaint to the FCA on insurance practices. In parallel, FCA/FOS consultations propose modernising redress, including differentiated case fees, mass redress tools, and a 10-year complaint longstop. These developments are central for firms’ risk management, complaint handling and compliance with Consumer Duty.
Energy and Utilities Arrears link, link, link
Ofgem data shows £4.4bn owed to suppliers, with average arrears at £1,716 (electricity) and £1,489 (gas). New tariff structures and debates around national water social tariffs highlight the regulatory push to improve affordability and protect vulnerable consumers. For creditors, understanding these dynamics is critical when assessing affordability and repayment capacity.
Enforcement and Data Sharing link, link, link
CIVEA’s Enforcement News covers “Tell Us Once” in vulnerability management, aligned with ECB consultations on standards. Shared data platforms (VRS, Experian SupportHub) are seen as crucial in enforcement and collections to ensure fair treatment of vulnerable debtors.
Consumer Credit Trends link
PayPlan notes BNPL growth for low-value purchases. This trend reflects both coping strategies and behavioural shifts in consumer spending. For debt advisers and lenders, this increases the importance of accurate affordability assessment and monitoring of repayment stress.
Appointments and Leadership link, link
The ECB added Caroline Wells and Delroy Corinaldi to its Board, reinforcing focus on enforcement standards. MALG announced CEO recruitment, a pivotal leadership change for the sector. Leadership shifts inform stakeholders about strategic direction and governance priorities.
Sector Collaborations link
Collaborations include Everyday People Financial Solutions with StepChange (direct referral growth), Marston with Stop Loan Sharks England, and TelSolutions with MEGA.AI. These alliances aim to improve consumer access to advice, protection, and technological solutions, reflecting the increasing need for partnership approaches across the ecosystem.
Events link
Upcoming events include:
- One Voice on Affordability, Edwardian Hotel, Manchester, 9 October 2025.
- StepChange Connected, Leeds, 16 October 2025.
- Debt Buyer, Debt Management & BPO, Lowry Hotel, 4 December 2025.
These sessions will cover affordability, AI in customer service, and industry collaboration.
Key Statistics
- OECD UK inflation forecast 2025: 3.5%.
- UK CPI August 2025: 3.8%.
- SME lending in Q2 2025: £4.24bn, up 8% year-on-year.
- Small business lending (≤£2m turnover) in Q2 2025: up 28% year-on-year.
- Average Q2 2025 energy arrears: £1,716 electricity, £1,489 gas.
- Total energy arrears owed to suppliers: £4.4bn (2025 record high).
- ABI figure (2024): travel insurers paid out £472m across 500,000+ claims.
- StepChange Direct referrals completing FMA journey increased by 32% in 2025.
Newsletter Contents
- OECD inflation forecast raised to 3.5% for 2025.
- UK Finance reports SME lending up 8% in Q2 2025.
- Mortgage lending recovered by June 2025 after early dip.
- MaPS 2025–2028 strategy introduces new standards and pensions dashboard.
- MorganAsh webinar on managing vulnerable customers.
- Which? super-complaint on home and travel insurance conduct.
- FCA/FOS consultation on redress reform closes 8 October 2025.
- Ofgem reports £4.4bn energy arrears; new standing charge tariffs announced.
- CIVEA Enforcement News Autumn edition focuses on “Tell Us Once”.
- PayPlan highlights BNPL growth for low-value purchases.
- ECB appoints Caroline Wells and Delroy Corinaldi; MALG seeks new CEO.
- Sector collaborations (StepChange, Marston, TelSolutions) and upcoming events (Manchester 9 Oct, Leeds 16 Oct, Manchester 4 Dec).
Find the full DEMSA newsletter, commentary and links here
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