Welcome to the Money blog, Sky News’ consumer and personal finance hub. Today’s Money Problem is a “he said, she said” dispute between a reader and Wickes. In news, there are reports the chancellor is considering a new property tax and we look ahead to tomorrow’s inflation data.
Tuesday 19 August 2025 18:14, UK
Here’s a look at three of today’s big business stories…
Poundland confirms last day for online sales
Poundland will stop taking online orders and will close its rewards app next month.
From 16 September, the budget retailer’s site will be for “browsing only” and its Poundland Perks app will shut down.
Customers will still be able to use their vouchers in-store until January 2026.
“We’re currently working very hard behind the scenes to simplify and refocus our stores,” it said.
“And that means very soon there’ll be even more ranges at £1 and new items to choose from each week, but unfortunately, we will no longer be providing an online delivery service from the 16th September 2025.”
Monzo looks at launching mobile service
Monzo is considering launching mobile phone contracts to take on the UK’s biggest phone networks.
The 10-year-old digital bank confirmed it was in the “early stages” of developing the idea.
The Financial Times reported that Monzo was exploring the launch of a digital sim and offering monthly contracts.
Monzo said: “Monzo is known for transforming products – and an entire industry – to deliver a great experience for customers.
“So when we heard from our customers that mobile contracts can be a pain point, we set out to explore how we could do this the Monzo way, and are in the early stages of developing this idea.”
Soho House sold for £2bn – and picks up a celebrity investor
Soho House, the global network of private members’ clubs, is being bought by a group led by hotel owners MCR – valuing the business at $2.7bn (£1.99bn).
The deal will take the London-based hospitality group back into private ownership, meaning it will no longer be listed on the New York Stock Exchange.
Actor Ashton Kutcher will lead a consortium providing new funding to the business and join Soho House’s board of directors once the transaction is complete.
Economists think inflation figures for July – released at 7am tomorrow – will nudge further above target to 3.7%.
Travel costs and rising grocery bills are likely to be blamed – the former due to higher air fares in summer and a possible “Oasis bump” to hotel prices.
Susannah Streeter, head of money and markets for Hargreaves Lansdown, said: “We are unlikely to see the Gallagher effect show up in quite the same way as Taylor Swift’s bump to prices in June 2024.
“But demand for hotel rooms, beer, bucket hats and Nineties-style gear could be one of the factors that keep inflation heading higher.”
Analysts for Pantheon Macroeconomics forecast that air fares could have surged by 17.1% between June and July – package holiday prices and rail costs are also likely to have been higher.
Significantly, July’s Retail Prices Index (RPI) measure of inflation will also be announced on Wednesday.
The government has not confirmed how it will determine the cap on regulated train fare rises in England in 2026, but this year’s 4.6% hike was one percentage point above RPI in July 2024.
If forecasts are correct and RPI comes in at 4.5%, that could mean a 5.5% hike in regulated train ticket prices – something pressure group Railfuture said would be “outrageous”.
Jojo Maman Bebe has launched its first pre-loved clothing platform.
The new site, called JoJo Reloved, allows parents to trade in children’s clothes for credit that can be spent on its website.
Created in partnership with second-hand marketplace, thelittleloop, you can also spend the credit with other partner brands, such as Ducky Zebra, Kite and Toby Tiger.
How does it work?
You can use a trade-in tool on the JoJo Reloved website to get an instant estimate of what your items are worth, or pick up a “clear out bag” from stores.
You can send your items in using the “clear-out bag” to get your postage for free, or if you are using your own bag, you can get free postage when you trade in 10 items or more.
You can send in clothes from any brand as long as they are “clean and wearable”.
Unlike other pre-loved marketplaces, you don’t have to wait for the item to sell in order to get your credit.
Once your item has been received and deemed “sellable”, you’ll automatically get the credit applied to your account.
According to the Jojo Reloved website, you’ll receive 30% of the price the item can be sold for (the recommended retail price).
Those prices are calculated as:
By Sarah Taaffe-Maguire, business and economics reporter
People are spending less time cooking and turning to quicker ways of preparing an evening meal, according to industry data.
The typical time spent making dinner dropped to just under 31 minutes, according to market research provider Worldpanel.
That’s three minutes less than in 2017, the company said, a trend which can be seen in the increase in spending on microwaveable rice, ready meals and chilled pizza.
Over the summer, the number of trips taken to casual and fast service restaurants fell by 6% – but visits to coffee shops rose by 3%.
Buying habits
While savings were made outside of the home, shoppers turned to brand-name goods in the supermarket.
Sales of branded goods rose 6% in the four weeks up to 10 August – faster than the increase in own-label item sales, which rose by 4.1%.
In particular, people tended to buy branded personal care, sweets, chocolate, and fizzy and soft drinks.
Sales of such items accounted for 75% of the total money spent on groceries.
It’s far above 46% of overall spending that went on branded products.
The tendency is also seen in the rise of premium own-label goods, which saw an 11.5% rise this month, compared with the same time last year.
The increase came despite shopping becoming more expensive.
There is one thing scarier than markets lurching around. And that’s markets lurching around without a very compelling explanation.
Just yesterday, the yield on the government’s 30-year bonds – the best measure out there of the UK government’s long-term cost of borrowing – closed at the highest level since 1998, not long after Oasis released the album Be Here Now. Indeed, the yields on pretty much all UK government debt has been creeping up in recent weeks, though not all are back to Britpop era levels.
In some senses, this looks very odd indeed. After all, the Bank of England just cut interest rates. In normal circumstances, you would expect measures of borrowing costs to be falling across the board. But clearly these are not normal times.
I take a look…
You can earn double Avios points on Loganair flights – but you’ll have to be quick!
The offer is for members of the airline’s Loganair Loyalty programme who complete their booking by the end of today.
Once you log into your Loganair Loyalty account to book, Avios points should automatically be credited to you after you travel.
The deal excludes group bookings, and it’s worth checking the terms and conditions beforehand as well.
By Sarah Taaffe-Maguire, business and economics reporter
The headache for Rachel Reeves, civil servants and taxpayers seems to grow every day.
Long-term government borrowing became even more expensive today, surpassing the highest level since 1998 recorded yesterday.
The effective interest rate the government pays on 30-year bonds – a loan issued to the state to raise money – rose to a new recent high of 5.63%, before easing off to 5.6% this afternoon.
Spending more to borrow money poses a challenge for the chancellor’s self-imposed fiscal rules to bring down government debt and balance the budget by 2030.
Paying more on debt means the gap between state income, in the form of taxes, and expenditure, on things like public services, is narrowed.
Oil traders optimism
News of the US giving security guarantees in a possible deal between Russia and Ukraine appears to be what oil traders are taking away from the White House gathering of European leaders on Monday.
After rising yesterday afternoon, the price of a barrel of Brent crude oil fell to $65.81.
A resolution of the Ukraine war could benefit oil supplies as a possible end to Russian energy sanctions could allow a freer flow of Russian oil.
The energy price cap will rise by £17 this winter, a major forecaster has predicted.
Energy consultant Cornwall Insights believes the price cap will rise to £1,737 a year for a typical dual fuel household in October – a 1% increase from the current rate of £1,720.
Ofgem, the regulator, is due to announce the cap next Wednesday.
What is the price cap?
The cap, set by Ofgem, aims to prevent households on variable tariffs from being ripped off.
It doesn’t represent a maximum bill. Instead, it creates an average bill by limiting how much you pay per unit of gas and electricity, as well as setting a maximum daily standing charge (which all households must pay to stay connected to the grid).
Until 30 September, gas prices are capped at the reduced level of 5.48p per kilowatt hour (kWh), and electricity at 22.36p per kWh.
Standing charges are currently around 60p a day for electricity and 31p a day for gas (though they vary by region).
The cap is reviewed and set every three months, so the next one will be introduced in October and last until December.
Cornwall Insights is predicting these charges will change to…
Why are we expecting the price cap to increase?
Cornwall Insights says its forecast reflects changes it assumes Ofgem will make in October.
This includes the expansion of the Warm Home Discount for vulnerable homes, which was announced by the government in June.
It says the scheme will add around £15 to a typical bill while providing £150 of support to 2.7 million additional people.
Read more about the scheme, which opens in October, here…
Wholesale gas and energy prices have also been volatile, largely due to global conflicts and Donald Trump’s US trade policy, but have been on a general decline recently.
Dr Craig Lowrey, principal consultant at Cornwall Insight, says: “News of higher bills will not be welcomed by households, especially as winter approaches.
“While the added costs behind this forecasted rise are aimed at supporting those most in need, it does mean typical bills will increase despite relatively lower wholesale costs. It’s a reminder that the price cap reflects more than just the market price of energy.
“This immediate challenge underscores a broader uncertainty facing millions of households, with current forecasts suggesting a sharp drop in bills is unlikely in the near term.”
Despite this, Cornwall Insight expects a “small drop” in the price cap in January.
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.
By emailing us, you’re giving us permission to use your words in the Money blog – of course we’re happy to keep it anonymous if requested.
Packing for your summer holiday? Here’s something you definitely should take with you – a tip from the Money team that will save you cash when shopping abroad.
You might not know you’re entitled to shop tax-free in many European countries, meaning you can claim back VAT.
With rates as high as 27% (looking at you, Hungary), it can be well worth the effort. You can get up to 24% off in Greece, 21% in Spain and around 12% in France.
Many people don’t realise they have this option – or can’t be bothered to go through the process – but in this handy guide, we explain where you can claim back your VAT and how simple it can be.
VAT, or value added tax, is a type of tax that is applied on the sale of goods and services. It is charged to customers in the price of products and is collected by businesses, who are then responsible for reporting it to the government.
In the UK, the standard rate of VAT is 20% and the reduced rate is 5%.
The reduced rate is applied to specific products and services such as items related to health, fuel, heating and children’s car seats.
Countries that are part of the European Union must have a standard VAT rate of at least 15%, and can also set reduced rates as long as they are at least 5%.
Some sectors, usually those that are considered to be basic necessities, are exempt from VAT altogether.
You can claim back VAT on goods you buy in all 27 countries that are part of the European Union – but each country has its own criteria to be met for a refund to be valid.
The most common requirements are:
It’s worth checking all the specific requirements for the country you are travelling to before trying to claim back the VAT.
Here’s a look at the amount you are required to spend in each country in order to claim back the VAT…
It’s unlikely that you will be able to claim the full amount of VAT back. Most countries offer part of it back, and there may also be fees to consider.
The percentage that you get refunded will differ depending on the country, and some may charge intermediary fees.
A lot of countries use VAT refund agents, such as Global Blue or Planet, to handle your request, and they tend to charge an administration fee.
If you choose to receive your refund on a British card, you may need to pay foreign exchange fees.
Again, this may vary depending on the country you are visiting, but here are six general steps to take that should keep you covered:
1. Shop and meet the minimum spend requirement
While shopping, and meeting the minimum spend requirement, ask the shop staff about the VAT refund policy.
In some countries, staff will give you a form at the point of checkout that you will need to fill in – in others, they will direct you to an online platform.
Luxury retailers tend to proactively offer you the form before you make your final purchase.
You’ll need to have your passport with you as well. Most shops need to check you are a non-EU resident before giving you the VAT refund documents that you need.
2. Fill out the refund form
You’ll have to fill out the form and keep hold of the receipt for your purchase.
The form will ask for the date of purchase and is usually signed by you and the retailer.
3. Get the form stamped
Before you head home, you need to head to the customs office at the airport.
Here you will hand over your form, along with your receipt, for staff to stamp it.
Staff may ask to see the items you have purchased, so you may need to do this before checking your bag in.
This is the most crucial step as it proves that you are taking goods outside the EU.
4. Obtain your refund
After your form has been stamped, you can head to a tax refund office at the airport or border crossing.
You can receive your refund in cash or credited to your card. Some agents also offer digital wallet transfers.
If you opt for cash, you will get the refund immediately, but if you choose to have the amount refunded to a card, it will take several days to land back into your account.
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