Saving and Pensions - Personal Finance News August 2025

Based on a review of UK personal finance news from the past month, The Cosgrove Partnership brings you a summary of the key developments:

Mortgages and Housing

• The average two-year fixed-rate mortgage has dropped below 5% for the first time since September 2022.

• The average five-year fixed mortgage rate is also below 5%.

• In a report from The Guardian, it was noted that Rachel Reeves is reportedly considering a new property tax to replace stamp duty.

Saving and Pensions

• Lidl announced its fifth pay rise in two years for its UK employees, bringing their wages in line with Aldi.

• A new report from the government on the State Pension age shows that the planned rise to 67 will occur between 2026 and 2028, and to 68 between 2044 and 2046.

• The Department for Work and Pensions (DWP) announced that benefit payments due over the August bank holiday weekend will be paid early on Friday, August 22nd.

Inflation and Cost of Living

• UK inflation rose to 3.8% in July, nearly double the Bank of England's target of 2%.

• Rail fares in England are on a path to rise by 5.8% next year, based on the July inflation data.

• The average price of car insurance has fallen by £60 in the last year, a record-breaking drop.

Scams and Advice

• The Financial Conduct Authority (FCA) is warning people about a new type of scam involving fake motor finance compensation offers.

• A new government regime of "targeted support" for pensions and investments is being proposed by the FCA to help people make more informed decisions.

• The Bank of England is reviewing its analytical framework for financial policy.

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The Cosgrove Partnership stays current with personal finance trends and regulations through continuous education, industry research, and active participation in professional networks. By regularly attending seminars and workshops, as well as subscribing to leading financial publications, the team ensures they are well-informed about the latest strategies and tools available. This commitment to knowledge enables the firm to provide tailored saving and pension financial advice that aligns with each client's unique goals and circumstances, ultimately empowering clients to make informed decisions and achieve financial success.