Rates and the Economy news in 2025
33 stories, newest first.
- December 2025
November 2025 UK consumer price inflation time series published
The Office for National Statistics has published its November 2025 time series of UK consumer price inflation measures, covering CPIH, CPI and RPI, as accredited official statistics.
Consumer credit borrowing slowed in December 2025
Bank of England figures show net consumer credit borrowing fell to £1.5 billion in December from £2.1 billion in November, with credit card borrowing down to £0.7 billion.
- November 2025
Government accepts LPC minimum wage recommendations at Autumn Budget
The Government accepted the Low Pay Commission's recommended minimum wage rates at the Autumn Budget on 26 November, raising the National Living Wage for workers aged 21 and over to £12.71 an hour from April 2026.
Government announces minimum wage rates for April 2026
The Government has accepted the Low Pay Commission's recommendations in full, raising the National Living Wage for workers aged 21 and over to £12.71 an hour from April 2026.
Government extends income tax and National Insurance threshold freeze by three years
The 2025 Budget extended the freeze on income tax and National Insurance thresholds by three years, taking it beyond its scheduled April 2028 end date and prompting dispute over Labour's manifesto pledges.
Budget 2025 announced NICs thresholds frozen until 2030-31
Budget 2025 extended the freeze on Income Tax and National Insurance thresholds for a further three years, with the main personal allowance and higher rate threshold held until 2030-31.
Budget 2025 announces changes to income tax, duties and allowances
Budget 2025 raises dividend tax from April 2026 and savings and property income tax from April 2027, freezes personal allowances to 2031 and adds new duties on vaping and gambling.
Effective rate on newly drawn mortgages rose for the first time since February 2025
The Bank of England says the effective interest rate on newly drawn mortgages rose to 4.20% in November, the first increase since February 2025, as mortgage borrowing and credit card growth also picked up.
Net mortgage borrowing by individuals rose to £4.5 billion in November 2025
Net mortgage borrowing by individuals rose to £4.5 billion in November 2025, up from £4.2 billion in October, while the effective interest rate on newly drawn mortgages increased for the first time since February 2025.
- October 2025
Low Pay Commission submits 2026 minimum wage recommendations
The Low Pay Commission submitted its recommended minimum wage rates for April 2026 to the Government on 27 October 2025, proposing a National Living Wage of £12.71 an hour for workers aged 21 and over.
Consumer credit borrowing decreases for second consecutive month
Bank of England data show net consumer credit borrowing fell to £1.1 billion in October, a second monthly decline, while mortgage approvals for house purchase also edged lower.
Energy price cap to rise 2% to £1,755 for Q4 2025
The Ofgem energy price cap for a typical household rises 2% to £1,755 a year for the final quarter of 2025, taking effect on 1 October.
Mortgage borrowing and remortgage approvals fall in October 2025
Bank of England figures show net mortgage borrowing fell to £4.3 billion in October 2025, with remortgage approvals dropping to 33,100, the lowest since February 2025.
- September 2025
Share of savings accounts beating inflation falls to 49%
Which? analysis published on 22 September 2025 found the share of savings accounts paying rates above inflation fell from 80% in January to 49%, as UK Savings Week began.
Effective rate on newly drawn mortgages fell to 4.19%, the lowest since January 2023
The effective interest rate on newly drawn mortgages fell by 7 basis points to 4.19% in September, the lowest since January 2023, the Bank of England has reported.
Mortgage borrowing by individuals rose to £5.5 billion in September 2025, the highest since March 2025
Bank of England data show net mortgage borrowing by individuals rose by £1.2 billion to £5.5 billion in September 2025, the highest since March, while the effective rate on new mortgages fell to 4.19%.
- August 2025
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.
- July 2025
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.
HMRC figures confirm more people pulled into higher tax bands
HMRC estimates show around half a million more people moving into the higher-rate tax band this year, with 420,000 more pensioners paying tax on retirement income.
Santander UK increases credit card standard interest rates
Santander UK is raising standard interest rates on credit cards from July 2025 for customers who have been told their rate is going up, with a 60-day window to reject the change.
- June 2025
Household saving ratio falls to 10.9% in Quarter 1 2025
The Office for National Statistics says the household saving ratio fell to 10.9% in the first quarter of 2025, down from 12.0%, as real household disposable income per head also declined.
Real household disposable income per head falls 1.0% in Quarter 1 2025
Real household disposable income per head fell 1.0% in the first quarter of 2025, the Office for National Statistics said, after growth of 1.8% in the previous quarter.
Resolution Foundation projects weak income growth to 2029-30 with rising child poverty
The Resolution Foundation projects typical non-pensioner incomes will grow just 1 per cent in real terms between 2024-25 and 2029-30, with child poverty rising from 31 to 34 per cent.
M4Lex net lending reaches highest level since September 2022
Bank of England data show sterling net lending to private sector companies and households reached £18.9 billion in June 2025, the highest monthly figure since September 2022.
- May 2025
Ofgem announces new energy price cap with standard credit premium unchanged
Ofgem has announced a new energy price cap under which households that pay after receiving their bill will still pay £135 a year more than those paying by direct debit.
- April 2025
April 2025 tax, benefit and bill changes take effect
Freezing of personal tax thresholds, a higher employer National Insurance rate, Council Tax and water bill rises, a £111 energy price cap increase and 1.7 per cent benefit uprating all took effect in April 2025.
Energy price cap rises to £1,849 for typical dual-fuel consumer
Ofgem's energy price cap rose 6.4% on 1 April 2025, taking the typical dual-fuel bill to £1,849 a year, as water, council tax and rail costs also increased.
National Living Wage rises to £12.21 and other minimum wage rates increase
The National Living Wage rose to £12.21 an hour on 1 April 2025, with lower minimum wage rates for younger workers and apprentices also increasing, alongside the daily accommodation offset.
State pension to rise by 4.1% in April 2025
The state pension rises by 4.1% in April 2025 after July earnings growth was revised up, taking the full new state pension to £230.30 a week and £11,975 a year.
Working-age benefits uprated by 1.7%, below CPI of 3.5%
Benefits rose by 1.7% in April 2025, pegged to September 2024 inflation, while CPI had reached 3.5% by that month, leaving a gap between benefit income and rising prices.
- March 2025
2025 Spring Statement balances the books largely through social security cuts
The Chancellor closed a £4.1 billion shortfall in the 2025 Spring Statement mainly through social security cuts, with no fresh tax rises, according to Resolution Foundation analysis.
Spring Statement announces payroll option for paying the high-income child benefit charge
Families liable for the high income child benefit charge will be able to pay it through their tax code and company payroll from summer 2025, under changes announced in the Spring Statement.
- February 2025
Government lays legislation confirming new National Living Wage and National Minimum Wage rates from 1 April 2025
The government has laid legislation confirming a National Living Wage of £12.21 an hour for those aged 21 and over, and a National Minimum Wage of £10.00 for 18 to 20 year olds, from 1 April 2025.