DEMSA Key themes

What you need to know this week The ICO emphasised AI's potential to contribute £47 billion annually to the UK economy and its role in fostering responsible innovation. Money mule activity cases rose by 11% in the first half of 2024, highlighting the need for robust financial crime policies. The FCA reported over 11.7 million active open banking users, with variable recurring payments (VRPs) enhancing consumer control over finances. StepChange December 2024 data showed “lack of control over finances” overtaking… Read more

What you need to know this week UK economy grew by 0.1% in November 2024, but retail sales dropped 0.3% in December. ICAEW reports significant decline in business confidence, suggesting stagflation risks. FCA launched initiatives on AI and digital innovation, promoting safe AI usage in financial services. FSCS proposed a £103.6m management expenses budget for FY 2025/26, with consultation ongoing. Citizens Advice reported concerns over inappropriate IVA placements due to poor debt advice. Ofwat consultation on Priority Service Registers (PSR)… Read more

What you need to know this week Severe cold in Scotland has led to a 30% increase in water pipe bursts, with further issues expected due to fluctuating temperatures. Government borrowing costs have risen to a 16-year high, while the pound has hit a 14-month low, raising concerns about interest rate increases. Over half of UK businesses plan price hikes within the next three months, citing rising costs and taxes. Scammers are targeting consumers with fake winter fuel payment texts,… Read more

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