Welcome to the Money blog, Sky News’ consumer and personal finance hub. Today, we have everything you need to know about inflation rising to 3.8%, including potentially bad news for mortgages and train fares. And Tesco has announced it is raising the price of its meal deal.
Wednesday 20 August 2025 18:00, UK
Waitrose has upgraded its app to give shoppers the ability to see if the items on their list are available in-store.
The new mode has been rolled out to the MyWaitrose app and uses location data to recognise when a person is in a store.
The function links directly to the store’s Wi-Fi, and also allows customers to access Scan Pay Go through the app.
“We already know that our app is used by tens of thousands of customers every day when visiting us in-store, so these changes will take their experience to the next level,” James Kay, digital product lead at Waitrose, said.
“It’s already had great feedback from customers and we’re continuing to look at other ways to make their shopping experience even more seamless and enjoyable.”
There is no clear data on exactly how much making a claim impacts your car insurance premium – so we want to hear your stories to come up with an anecdotal overview.
Let us know in the comments or via email at moneyblog@sky.uk how much your premium went up and, crucially, whether it was an at fault or no-fault claim.
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Tesco will be raising the price of its meal deals by 25p from tomorrow.
The supermarket will now sell meal deals at £3.85 for those with a Clubcard, and £4.25 for those without.
The price was previously raised by Tesco in August last year, from £3.40 to £3.60 for Clubcard holders.
Sainsbury’s has also joined Tesco in raising its meal deal prices, with customers now paying £3.95.
“Our meal deal remains great value and the ideal way to grab lunch on-the-go at just £3.85 for a main, snack and drink when bought with a Clubcard,” a Tesco spokesperson said.
“With more than 20m possible combinations the Tesco meal deal has got something for every taste, from a classic Chicken Club Sandwich to Tesco Korean Style Chicken Dragon Rolls.”
How does this compare?
Waitrose has the most expensive meal deal at £5 for the main, snack and drink combo.
As we’ve mentioned already, Sainsbury’s increased the cost of its lunchtime meal deal by 20p to £3.95.
A Morrisons meal deal costs £4, which is the same as Co-op non-members – though members pay £3.50.
Asda doesn’t offer a fixed price for its meal deal. Instead, it operates a 3 for 2 system, which gives customers the cheapest item for free.
Earlier, we told you about a pub in London that’s adding a 4% service fee to all orders, even if you’re served at the bar (see 11.52 post).
You’ve been getting in touch with your thoughts, and it’s safe to say it’s not a popular decision with pubgoers…
Absolutely ridiculous adding a 4% service charge. It’s purely for the pub owner to get more money in as the staff get a living wage. We’re getting as bad as America. Do you really need a service charge for pulling a handle to pour a pint, it’s not like they’re brewing the hops.
Gibbo
4% service charge means you wont be getting any tips because you already took it…
Benjy
As for 4% service charge for zero service my advice would be go to another pub. Outrageous con!
Simon
Service charge – it’s disgusting, no wonder pubs are going out of business. I do not agree with adding any service charge to any bill, you should pay what you think is the right amount for service.
Cad
Some even said it’s a glimpse of where things are heading…
Service charge for pulling a pint, next we will have the supermarket charge us for the cashier service instead of self scan ? You can see where this is heading.
Nhxfh
The pubs are shooting themselves in the foot. Soon only the richest of the rich will be able to afford to go for a pint, and that will not be enough trade to support the industry.
Mark0
By Sarah Taaffe-Maguire, business and economics reporter
Rents have continued to rise faster than wages and overall inflation, official figures have shown.
The average UK private rent increased by 5.9%, to £1,343 a month, in the year to July, the Office for National Statistics said.
That’s £75 higher than 12 months ago.
It also means rent rises are steeper than the latest official 3.8% rate of inflation and 4.6% level of wage rises.
Rent rises have slowed, however, down from 6.7% a month earlier and from a record high of 9.1% in March 2024.
There are two reasons behind this slowing, said Richard Donnell, the executive director of property website Zoopla:
By Sarah Taaffe-Maguire, business and economics reporter
Borrowing costs could remain higher for longer as a result of today’s news that prices rose faster than at any point in the last 18 months in July.
While the debate rages on whether the Bank of England will respond by changing the base interest rate, the UK government has seen its long-term borrowing cost fall.
The interest rate demanded by holders of 30-year government bonds (loans issued to the state) has dropped.
While the fall is slight, down from 5.63% on Tuesday to 5.4% this morning, it’s a drop from the highest level since 1998.
The 10-year borrowing cost, which is the benchmark for state lending costs, also dropped from a recent high of 4.76% to 4.7%.
Some good news also came in an initial lift to sterling on the back of the inflation news.
One pound now buys just below $1.35 and €1.15.
A pub in London has raised eyebrows by adding a 4% service fee to all orders, even if you’re served at the bar.
The Well and Boot in Waterloo adds the discretionary service charge automatically to all punters’ food and drink bills, taking the average price of a pint up by 30p.
Looking at the pub’s menu online, a pint of Guinness costs £7.45. The 4% charge takes that to £7.75 (assuming you just ordered one).
Cocktails cost £12.50, but customers would end up paying £13 if they ordered one.
At the bottom of the menu, there is a note that says: “VAT is included in all prices. A discretionary service charge of 4% will be added to all bills.”
A sign at the bar tells customers that “100% of tips” go to staff.
What do you think? Let us know in the comments
While service charges are not unusual, they tend to apply in establishments where customers are seated and served by a waiter, and it usually means there is no expectation for a customer to leave a tip.
Customer Martin Quinn stopped at the pub, owned by Glendola Leisure, to grab a quick half pint of cider but felt he was “disadvantaged twice” after being hit by the 4% charge and forced to pay by card.
“There are two issues. One, why are they charging 4% when you’re not getting any service? You’re literally being poured the drink at the counter. I think [automatic service charges] are disgraceful,” said Quinn, a campaigner for the use of cash.
“The second is that I wanted to pay with my £20 note, but I wasn’t allowed to. I didn’t want to pay with my card, but I had to. I had no choice in the matter.”
He said he didn’t realise he had to pay the extra 4% at the time, and only noticed after taking a photo of his drink and seeing a sign in the background.
“Why should the poor punter be at the brunt of this? It’s an optional surcharge, but we don’t like complaining,” he added.
Glendola Leisure has been contacted for comment.
Do you have to pay a ’discretionary service charge’?
In government guidance to businesses, it says there is no obligation for customers to pay a voluntary service charge.
“HMRC accepts that a payment is a voluntary service charge if it is clearly presented to the customer as an entirely optional payment,” it says.
“The literature seen by the customer should reflect that and be consistent with advice given to customers by staff.”
Under the Employment (Allocation of Tips) Act 2023, which was introduced last year, all service charges, tips and gratuities must be paid directly to staff.
We asked Rupert Wesson, director of professional coaching company Debretts, what you should say if you are faced with a service charge.
“Adding a 4% service charge to every order, whether served at table or at the bar, seems a rather inelegant solution to the problem of very low margins in hospitality,” he said.
“If faced with a 4% service charge, it is important to establish if it is mandatory or optional. When presented with the bill, say ‘could I ask if the service charge is optional?’ This should be made clear before ordering, of course, but this may not be the case.
“If it is optional, you have the choice not to pay and you should not feel bad about this… It does, of course, give you the chance to pay a tip via the tips jar.”
Topshop has teased its return to the high street in a new video posted on social media.
The video reveals where people will be able to buy Topshop clothes for the first time since 2021 after its parent company went into administration.
Excited shoppers in the comments were quick to identify the setting outside Liberty’s iconic shopfront in London.
There has been weeks of speculation, with the identity of Topshop’s wholesale partner being kept under wraps.
But the news has since been confirmed to Elle UK by Liberty’s group buying and merchandising director Lydia King.
It comes days after the brand relaunched its standalone website under its own domain with a collection featuring model Cara Delevingne.
The collection also hit the catwalk at Trafalgar Square in central London last Saturday.
Less than half of savings accounts beat the 3.8% rate of inflation, meaning savers are more likely to be losing out on real returns, according to Moneyfacts.
A total of 956 out of 2,004 accounts on the market are paying above the inflation rate, the comparison site said.
These are broken down into:
“After almost a year and a half of savings growth, many savers are slipping back into earning negative real returns as inflation figures jump again,” said Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk.
“With inflation running higher than the interest savings earn, money left languishing in a low-interest account is losing its spending power – making it tougher to achieve a sense of financial resilience or save towards goals such as a car, house or comfortable retirement.
“This comes hot on the heels of the latest base rate reduction which had an almost instantaneous effect, with over a dozen savings account providers cutting variable rates within 24 hours and many more likely to tumble in the coming weeks.”
We rounded up the best rates on offer in our latest Savings Guide earlier – you can read it here…
Santander is axing a popular account this week, affecting hundreds of thousands of customers.
From tomorrow, the bank will close its 123 Lite current account, which has not been available to new customers since 2022.
The account offered 3% cashback on household bills for a £2 fee, with the rewards programme ending tomorrow as well.
Anyone affected by the closure will be automatically switched over to Santander’s Everyday Current Account.
The good news is that there’s no monthly fee involved with that account, though it doesn’t offer cashback.
Santander has said customers also have the option to close or switch their account without charge.
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