Money news: page 15
- August 2025
Unaffordable lending complaints halve year on year
The Financial Ombudsman Service processed 68,000 new complaints between April and June 2025, with unaffordable lending cases halving to 10,000 from 21,600 a year earlier.
Government publishes Low Pay Commission remit and updated National Living Wage estimates for April 2026
The Government has published the Low Pay Commission's remit for April 2026 minimum wage rates, alongside an updated central estimate that the National Living Wage would need to reach £12.71.
Reports of fake HMCTS debt collection letters spike
Which? has reported a spike in fake debt collection letters claiming to come from HM Courts & Tribunals Service, alongside cold calls from fraudsters posing as debt advisers.
- July 2025
MPs open Child Maintenance Service inquiry
The Work and Pensions Committee has opened an inquiry into the Child Maintenance Service, examining payment compliance, how it treats families, payment levels and proposed changes to Direct Pay and Collect and Pay.
Work and Pensions Committee publishes Pathways to Work report raising concerns about UC health cuts
The Work and Pensions Committee has published its Pathways to Work report, warning that planned cuts to the Universal Credit health component could push disabled people into poverty and calling for a delay.
Guidance added on repaying the Winter Fuel Payment
HMRC has added guidance explaining who must repay the Winter Fuel Payment and how the money will be recovered through tax codes or Self Assessment returns.
MPs call for national strategy to tackle pensioner poverty
The Work and Pensions Committee has called for a UK-wide cross-government strategy on ageing, a Pension Credit take-up strategy for England by the end of 2025 and a Government-set minimum retirement income.
Consultation on Council Tax administration and enforcement in Wales closes
The Welsh Government's consultation on changing Council Tax administration and enforcement in Wales closed on 23 July 2025, with 272 responses and proposals due to take effect from 1 April 2026.
Affordability, explanation and switching policy rules revised
The Financial Conduct Authority has updated mortgage rulebook provisions on remortgaging without additional borrowing, covering the more affordable test, explanation and warning requirements, and internal switching policies.
FCA updated MCOB 4.8A execution-only sales rules
The FCA Handbook shows mortgage advising and selling rules in MCOB 4 carrying a 22 July 2025 date, including a new requirement for firms to identify execution-only customers who may need advice.
New rule on expired term customers took effect
A new Financial Conduct Authority rule took effect on 22 July 2025 requiring mortgage firms to deal fairly with customers whose mortgage term has expired with a balance still outstanding.
Draft Finance Bill 2025-26 published
The Lords Economic Affairs Finance Bill Sub-Committee has published a report on inheritance tax measures covering unused pension funds and agricultural and business property reliefs in the draft Finance Bill 2025-26.
Draft legislation published for MTD for Income Tax and penalty reform
HMRC has published draft legislation to refine and simplify Making Tax Digital for Income Tax and penalty reform, including deferrals for certain groups and a consultation closing on 16 September 2025.
Government abandons PSA-led model for Inheritance Tax on pensions
The government has dropped plans to make pension scheme administrators responsible for reporting and paying Inheritance Tax on unused pension funds, keeping that duty with personal representatives from April 2027.
Government publishes consultation outcome confirming personal representatives liable for IHT on pensions from April 2027
The government has confirmed that personal representatives, not pension scheme administrators, will report and pay inheritance tax on unused pension funds and death benefits from 6 April 2027.
More than 18,000 claims for overpaid inheritance tax made in three years
HMRC figures obtained by NFU Mutual show more than 18,000 claims for overpaid inheritance tax in three years, most of them after property sold for less than its value at death.
FCA publishes consultation paper CP25/23 on final rules for BNPL lenders
The FCA has published consultation paper CP25/23 setting out proposed rules for buy now pay later lenders, with regulation limited to third-party lender agreements and due to take effect on 15 July 2026.
Which? highlights five phone scams currently circulating in the UK
Which? has set out five phone scams circulating in the UK, including calls impersonating a GP practice health adviser, WhatsApp job offers and bank fraud departments, alongside Ofcom survey data on suspicious calls.
ISA and CTF rule changes take effect for recognised funds, LTAFs and flexible ISAs
Rules covering Child Trust Funds, recognised funds, Long Term Asset Funds and flexible ISAs took effect on 15 July 2025, with separate National Insurance number requirements for ISA investors following in 2027.
Most ISA amendment provisions come into force
Most provisions of the Individual Savings Account (Amendment) Regulations 2025 came into force on 15th July 2025, changing ISA subscription, withdrawal and investment rules, with one measure deferred to April 2027.
2025 Order passed setting provisions for regulating BNPL products
The 2025 Order passed on 14 July 2025 sets provisions to bring interest-free buy now pay later products under Financial Conduct Authority regulation from 15 July 2026.
Guide updated following changes to Winter Fuel Payment
The Department for Work and Pensions updated its detailed Pension Credit guide for advisers on 14 July 2025 to reflect changes to Winter Fuel Payment, with further rate updates following in 2026.
Toolkit updated to remove Winter Fuel Payment link to Pension Credit
The Department for Work and Pensions has updated its Pension Credit toolkit to remove the link between Winter Fuel Payment and Pension Credit, saying entitlement to the payment no longer depends on the benefit.
Open letter urges Chancellor to maintain Cash ISA allowance
More than 50 building societies, trade associations and financial firms wrote to the Chancellor on 9 July 2025 urging the Government to keep the current Cash ISA allowance.
PIP eligibility rules unchanged pending Timms review
PIP reforms in the 2025 Welfare Reform Bill have been temporarily removed pending a review, with eligibility rules unchanged until that review is completed.
Scammers impersonate DWP with fake energy support texts
Which? has reported scam text messages impersonating the Department for Work and Pensions that offer fake energy grants of £200 to £300 and link to websites designed to steal personal and financial information.
Bank of England introduces temporary exemption to the 15% loan-to-income limit
The Bank of England introduced a temporary exemption to its 15% cap on mortgages above 4.5 times income in July 2025, letting individual lenders exceed the limit if the market as a whole does not.
BNPL to come under FCA regulation
Buy Now Pay Later will come under Financial Conduct Authority regulation in July, the Centre for Responsible Credit has told the Treasury Committee, though it warns current affordability rules may not protect borrowers.
DWP publishes fairness analysis of machine learning model for the first time
The Department for Work and Pensions has published detailed information on its fairness analysis of a machine learning model used to flag potentially fraudulent benefit claims, showing some groups are over-referred for review.
Energy price cap to rise by £221 (13%) from 1 July
The energy price cap rose by £221, or 13%, on 1 July, taking a typical household bill to £1,663 a year, with a further 4% rise confirmed for October.