Energy price change set to cut bills by over £100 a year

BBC Business • May 22, 2025 • Business

Ofgem, the energy regulator, is expected to announce a decrease in gas and electricity prices for households in England, Scotland, and Wales from July. This change is projected to save households more than £100 annually, but many customers still face high energy debts, totaling about £4 billion.

Key Facts:

• Ofgem sets a price cap on energy every three months, affecting 22 million households.
• Analysts predict an annual bill reduction of £129 for typical usage, which is nearly a 7% drop.
• A typical household is assumed to use 11,500 kWh of gas and 2,700 kWh of electricity each year.
• The new typical annual bill could be £1,720, down from the current £1,849.
• Despite the decrease, energy prices remain higher than last year and past decade levels.
• Customer debt to energy suppliers is currently just under £4 billion.
• Many pensioners were affected by changes to winter fuel payments, and there could be new eligibility adjustments.

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BBC Business

Heathrow workers' strike may intensify - union

BBC Business • May 22, 2025 • Business

Workers at Heathrow Airport who help passengers with mobility issues are on strike due to a pay dispute. The union representing them, Unite, warns that the strike will continue and possibly get worse if the issue is not resolved.

Key Facts:

• Around 800 workers from the company Wilson James at Heathrow Airport are on strike.
• The workers help passengers with restricted mobility.
• The strike began with 500 workers on April 9, and more than 300 have joined since.
• Workers are protesting because they say they earn 10% less than similar workers at Gatwick Airport.
• Some of the striking workers held a protest outside Heathrow's head offices.
• The union, Unite, wants Heathrow management to push Wilson James for a better pay offer.
• Wilson James has put plans in place to reduce the disruption caused by the strikes.
• The union states that the strikes will become more intense over the summer if no agreement is reached.

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BBC Business

Teachers and doctors in England offered 4% pay rise

BBC Business • May 22, 2025 • Business

Most doctors and teachers in England have been offered a 4% pay rise after the government followed suggestions from pay review bodies. The increases are higher than planned, and while education unions mostly support the decision, health unions are unhappy with smaller increases for other NHS staff. An additional £615 million will help cover these raises, but schools may need to find more money within their existing budgets.

Key Facts:

• Doctors and teachers in England are set to receive a 4% pay increase.
• The government originally planned a 2.8% increase but decided on higher raises based on recommendations.
• Nurses and other NHS staff, except doctors, were offered a 3.6% pay rise, which upset some health unions.
• Resident doctors will receive a 5.4% average increase because of an extra payment.
• The education department will provide £615 million to help fund the raises for teachers, but schools might still need to adjust their budgets.
• NHS staff on specific pay contracts have been offered a 3.6% increase.
• Senior NHS managers and civil servants were offered a 3.25% rise, and armed forces members received a 4.5% offer.
• Inflation, the rate at which prices increase, recently rose to 3.5% for the year to April and is projected to peak at 3.7% later this year.

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BBC Business

Higher-than-expected borrowing figures put pressure on Reeves

BBC Business • May 22, 2025 • Business

Borrowing by the UK government in April was higher than expected, totaling £20.2 billion, which puts pressure on financial planning. Experts believe taxes might need to increase in the autumn to address the economic challenges. Spending was higher due to pay rises and inflation, while borrowing remains above earlier estimates.

Key Facts:

• The UK government borrowed £20.2 billion in April, £1 billion more than the previous year.
• This is the fourth highest borrowing figure for April since 1993.
• Experts predict that future tax increases might be necessary to meet financial goals.
• Tax income increased by more than £5 billion, partly due to higher National Insurance contributions.
• Spending rose due to pay increases, inflation, pensions, and benefits.
• The estimated borrowing for the financial year ending in March was revised to £148.3 billion.
• This figure is £11 billion more than the expectation of the Office for Budget Responsibility.
• The Treasury highlighted rate cuts as a measure to stabilize public finances.

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BBC Business

Nike to hike prices as it faces tariffs uncertainty

BBC Business • May 22, 2025 • Business

Nike plans to increase the prices of some shoes and clothing starting June 1. This decision comes amid uncertainty over U.S. tariffs and will affect products sold directly through Amazon in the U.S. Shoes like the Air Force 1 and items for children, as well as Jordan brand products, will not have price hikes.

Key Facts:

• Nike will raise prices on some shoes and clothing from June 1.
• Price increases will be between $2 to $10 for clothing and up to $10 for shoes costing more than $100.
• Air Force 1 trainers, shoes under $100, and children's products will not have price increases.
• Nike will resume selling products directly to Amazon in the U.S. for the first time since 2019.
• The company faces uncertainty from tariffs announced by the Trump administration, affecting goods from Asia.
• Almost all Nike trainers are made in Asia, which is subject to significant U.S. import taxes.
• The U.S. market is crucial for Nike's sales, with North America being its largest market.

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BBC Business

How a joke about rice cost a Japan cabinet minister his job

BBC Business • May 21, 2025 • Business

Japan's farm minister, Taku Eto, resigned after making a joke about receiving free rice, which upset many people. His comments came during a cost-of-living crisis where rice prices in Japan have more than doubled due to high demand and low production. Eto’s resignation added pressure on the already struggling government.

Key Facts:

• Taku Eto was Japan’s farm minister who resigned after joking about receiving rice as gifts.
• Japan is experiencing a cost-of-living crisis, with rice prices doubling over the past year.
• Demand for rice increased due to more tourists and people dining out post-pandemic.
• In 2023 and 2024, there was a mismatch between estimated rice demand and actual production.
• Actual rice production was 6.61 million tonnes, lower than the estimated 6.8 million tonnes.
• High temperatures affected the rice quality and contributed to lower production.
• Rice farmers have found it unprofitable due to production costs and low selling prices.
• The government has offered subsidies for farmers to grow other crops like wheat or soybeans.

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BBC Business

Gordon Lyons calls for return of universal winter fuel payment

BBC Business • May 21, 2025 • Business

Gordon Lyons, the Communities Minister in Northern Ireland, is urging the return of the universal winter fuel payment for all pensioners. He criticized recent changes that made these payments dependent on income, which led to many pensioners missing out. After political pressure, UK Prime Minister Keir Starmer plans to reverse some cuts to these payments.

Key Facts:

• Gordon Lyons supports bringing back the winter fuel payment for all pensioners.
• The payment was previously universal but became means-tested, affecting eligibility.
• Approximately 250,000 people in Northern Ireland did not receive the payment last year.
• The Prime Minister plans to partially reverse the cuts after political pressure.
• Winter Fuel Payments were originally created to help pensioners with heating costs in winter.
• Last year, Northern Ireland pensioners received a one-off £100 payment due to extra funds.
• Means-testing required pensioners to prove they had low income to receive the payment.
• The changes resulted in 180,000 households in Northern Ireland losing access to the payment.

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BBC Business

Nvidia boss calls US chip policy a 'failure'

BBC Business • May 21, 2025 • Business

Nvidia's CEO, Jensen Huang, criticized U.S. rules that stopped exporting advanced computer chips to China, claiming they hurt American companies instead. These rules, started under Trump and tightened by Biden, caused Nvidia's sales in China to fall sharply. Huang said the restrictions helped China invest more in its own technology, which may not have been what the U.S. wanted.

Key Facts:

• Nvidia's CEO said U.S. export rules for computer chips to China hurt American businesses.
• The U.S. began these export controls during Trump's presidency, and Biden tightened them.
• Under Biden, Nvidia's market share in China dropped from 95% to 50%.
• The U.S. restrictions aim to keep technology with possible military uses away from companies linked to the Chinese government.
• Huang claimed the restrictions led Chinese companies to invest in their own chip technology.
• Recently, the U.S. decided to ease some Biden-era rules but introduced new restrictions on other exports to China.
• The Commerce Department plans to implement new licensing requirements for exporting specific Nvidia chips.
• China criticized the U.S. for recent moves, saying it undermined international trade agreements.

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BBC Business

Inflation surprise suggests the outlook could be gloomier than we thought

BBC Business • May 21, 2025 • Business

Inflation in the UK rose to 3.5% in April, mainly due to increased energy, water, and service costs. While pay rises are helping some people keep ahead of inflation, overall prices are expected to stay high for a while longer.

Key Facts:

• UK inflation reached 3.5% in the 12 months to April.
• Energy and water bills were major contributors to the rise in inflation.
• There was a significant increase in airfare costs in April due to late Easter holidays.
• Some pay rises are still outpacing inflation, helping workers maintain purchasing power.
• Global energy costs are falling, but lower bills for customers will take time.
• Inflation in services, like restaurants, remains high.
• Economists expect inflation to stay under 4% and not drop to 3% until next year.
• The Bank of England may cut interest rates only once more this year.

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BBC Business

Inflation surge: 'I have nothing left after paying my bills'

BBC Business • May 21, 2025 • Business

Inflation in the UK increased by 3.5% over the past year, mainly due to higher household bills like gas, electricity, and water. Although some wages and benefits increased recently, many people still struggle to cover living costs. Individuals like Ieuan Hood, Tracy McGuigan-Haigh, and Peter Murphy shared their experiences of managing tight budgets as everyday expenses rise.

Key Facts:

• The UK inflation rate increased by 3.5% in the year leading up to April.
• Household bills, especially gas, electricity, and water, contributed greatly to the inflation rise.
• A recent increase in minimum wage and some benefits doesn't fully cover living costs for many people.
• Ieuan Hood, a single father, receives a monthly income of £2,500 with universal credit, but high expenses leave him with little leftover.
• Tracy McGuigan-Haigh finds that food costs have risen, making it hard to stretch her income, even with budgeting.
• Peter Murphy, reliant on pensions, sees his income rise more slowly than his living costs, making it harder to manage expenses.
• Some individuals express concern that regulatory bodies are not doing enough to control rising prices.

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BBC Business

How much is the winter fuel payment and who can still get it?

BBC Business • May 21, 2025 • Business

Millions of pensioners no longer receive the winter fuel payment due to new government rules. Now, only those who get pension credit or similar benefits qualify for the payment.

Key Facts:

• The winter fuel payment helps pensioners with energy costs during winter.
• New rules mean that only pensioners on low incomes who get pension credit receive the payment.
• The changes started in July 2024, affecting pensioners in England and Wales.
• Over 10 million pensioners missed out on the payment in winter 2024.
• The payment amount is £200 or £300, depending on the person's birth date and benefits received.
• Pension credit acts as a top-up to the state pension and connects to other benefits.
• Many eligible pensioners do not claim pension credit, missing out on the winter payment.
• The government expects more pensioners will fall into relative poverty due to these changes.

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BBC Business

Bills push inflation to highest in more than a year

BBC Business • May 21, 2025 • Business

Inflation in the UK reached 3.5% in April, higher than the previous month and above expectations. The increase was mainly due to rising costs for household bills like water, gas, and electricity. This rise places inflation above the Bank of England's target and raises concerns about future economic measures.

Key Facts:

• UK's inflation rate was 3.5% in April, up from 2.6% in March.
• The increase is the highest inflation rate in more than a year.
• Major contributors to the rise were increased prices in housing, transport, and recreation.
• Water and sewerage prices rose by 26.1% in April, the largest rise since February 1988.
• Airfares and food prices also pushed inflation higher.
• The cost of services rose by 5.4% in the year to April due to changes in employer National Insurance contributions and a higher minimum wage.
• Core inflation, which excludes energy and food prices, also increased more than expected.
• Inflation concerns have led to uncertainty about future interest rate changes, with fewer expected cuts.

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BBC Business

M&S cyber-attack disruption to last until July and cost £300m

BBC Business • May 21, 2025 • Business

Marks & Spencer (M&S) experienced a cyber-attack that disrupted its online services and will continue to affect them until July. The attack, which happened in April, is expected to cost M&S about £300 million in profits this year. The company is working to restore its online operations gradually and improve its systems for the future.

Key Facts:

• M&S's online services have been disrupted since a cyber-attack occurred over the Easter weekend.
• The company estimates a financial impact of roughly £300 million due to the attack.
• Hackers used social engineering, manipulating people rather than exploiting a technology flaw.
• Police suspect a hacking group named Scattered Spider, involved in similar attacks, is responsible.
• M&S plans to bring back 85% of their online product range quickly.
• The attack affected M&S's online shopping, reducing availability of their products.
• Some losses might be covered by cyber-insurance and cost reductions.
• M&S reported a profit rise before the hack but expects lower profits this year due to attack-related issues.

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BBC Business

Toddler group parents struggle as costs rise

BBC Business • May 21, 2025 • Business

The article discusses how parents in a toddler group in Newport, Shropshire, are finding it challenging to manage their finances due to rising costs of living. Increases in bills like water, energy, and council tax have made it difficult for some families to save money or afford extra activities.

Key Facts:

• Parents at a toddler group in Newport, Shropshire, are experiencing financial strain due to rising costs.
• In April, water bills, energy prices, and council tax increased.
• Citizens Advice noted that many people with low incomes are struggling to cope financially.
• Danielle Thomas, a mother, stated her family sometimes has less than £20 left at the month's end.
• Ben Stanley, another parent, emphasized the need to shop smartly and save wherever possible.
• Some families cannot plan holidays or days out due to financial constraints.
• Parents like Philippa Crumpton are seeking better deals, like changing broadband providers, to save money.
• Rising costs have led parents to find ways to cut expenses, such as cooking in bulk.

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BBC Business

Thames Water halts bosses bonus scheme

BBC Business • May 21, 2025 • Business

Thames Water has paused its plan to give large bonuses to senior managers after criticism from the UK government. This decision follows concerns that the company, which has financial issues and environmental criticisms, is rewarding executives despite its problems.

Key Facts:

• Thames Water paused its bonus scheme for senior managers connected to a £3 billion rescue loan.
• The UK government criticized the plan, saying rewarding failure is unacceptable.
• The bonus scheme would have given bosses up to 50% more on top of their annual pay.
• Thames Water has faced scrutiny over sewage leaks and financial mismanagement.
• The company is trying to manage its £20 billion debt by negotiating with lenders.
• It serves about a quarter of the UK population, mainly in London and southern England.
• The regulator Ofwat may soon have rules to prevent water companies from giving bonuses.
• Despite its financial issues, Thames continues to provide normal water and waste services.

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BBC Business

Did Trump really strike Gulf deals worth $2tn?

BBC Business • May 20, 2025 • Business

President Donald Trump claimed to have secured deals worth over $2 trillion during his visit to Saudi Arabia, Qatar, and the United Arab Emirates. The deals included investments in various sectors such as defense, artificial intelligence, and infrastructure, though there is uncertainty about the actual amounts involved.

Key Facts:

• President Trump visited Saudi Arabia, Qatar, and the UAE on a four-day trip aiming to secure investments.
• Trump announced deals worth over $2 trillion, but actual amounts may be less clear.
• Saudi Arabia reportedly pledged $600 billion for U.S.-Saudi partnerships, including a large $142 billion defense deal.
• In Qatar, Trump mentioned an "economic exchange" of $1.2 trillion, although verified deals were valued at $243.5 billion.
• Qatar Airways planned to buy 210 passenger jets from Boeing for $96 billion, potentially supporting 154,000 U.S. jobs each year.
• The UAE agreed to build the world's largest AI campus outside the US, involving U.S. technology.
• The feasibility of these deals is questioned due to past discrepancies and fluctuating oil prices.

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BBC Business

Google starts embedding AI chatbot into search

BBC Business • May 20, 2025 • Business

Google has introduced a new feature called "AI Mode" to its search engine in the U.S., allowing users to interact with a chatbot for more detailed answers. The company also announced plans for AI-powered glasses and a subscription AI tool during its annual developers conference.

Key Facts:

• Google's "AI Mode" became available in the U.S. search bar on Tuesday.
• The goal is to make searching feel like talking to an expert using AI technology.
• This move is part of Google's effort to compete with other AI services like ChatGPT.
• Google plans to launch AI-powered glasses developed with Warby Parker and Gentle Monster.
• The company expects to start making these glasses later this year.
• AI Overviews, an AI-generated summaries tool, now has 1.5 billion monthly uses worldwide.
• Google is currently dealing with a court issue in the U.S. regarding its search business monopoly.
• Google previously attempted smart glasses with "Google Glasses," which did not succeed.

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BBC Business

File on 4 Investigates

BBC Business • May 20, 2025 • Business

A BBC investigation called "Missing Billions" looks into financial assets that are lost or not accounted for. This program tries to find out how and why these assets are missing.

Key Facts:

• The investigation is called "Missing Billions."
• It is part of the BBC's "File on 4" series.
• The focus is on financial assets that are lost or not accounted for.
• "Missing Billions" was released on May 20, 2025.
• The program is available for listening for 27 days after its release.
• The investigation runs for 37 minutes.
• The program is available on BBC Sounds, a platform for audio content from the BBC.

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BBC Business

Doubts over whether Brits can use EU e-gates this summer

BBC Business • May 20, 2025 • Business

UK citizens will likely not be able to use e-gates at EU airports this summer because a new border security system, called the European Entry/Exit System (EES), needs to be in place first. The new system is planned to start in October 2025, but until then, it depends on each EU country to decide if they want to allow British passport holders to use e-gates.

Key Facts:

• UK citizens currently face long lines at EU airports for passport checks since leaving the EU.
• The new European Entry/Exit System (EES) will collect biometric data from non-EU travelers.
• The EU plans to implement the EES system in October 2025.
• Once the EES is active, UK citizens may use e-gates in EU countries that allow it.
• Some EU countries already let UK citizens use e-gates, which speeds up border processing.
• Biometric data means using scans like fingerprints or facial recognition.
• Talks between the UK and individual EU countries are ongoing to enable quicker rollout.
• The new deal aims to reduce the need for additional passport stamp checks at EU borders.

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BBC Business

Liberty Steel plants in Rotherham and Sheffield under threat

BBC Business • May 20, 2025 • Business

Liberty Steel is trying to prevent the closure of its plants in Rotherham and Sheffield due to unpaid debts. If they cannot delay a court decision, 1,450 jobs could be at risk because creditors want to sell the company’s assets to recover money owed. The government has not committed to directly helping Liberty Steel but might step in if court action forces the company to shut down.

Key Facts:

• Liberty Steel's operations in Rotherham and Sheffield are under threat of closure due to unpaid debts.
• A court could decide to close the company on Wednesday if an agreement is not reached.
• Around 1,450 jobs are at risk if the closure happens.
• The company is in discussions with creditors to try and delay the court decision.
• Creditors want to liquidate the company to recover the money they are owed.
• The government has not agreed to pay off Liberty Steel’s debts but might intervene if the company is forced into insolvency.
• Liberty Steel sought court approval to restructure its debts but failed to reach an agreement.
• A creditor mentioned that working with Liberty Steel has been difficult due to uncertainties in payment.

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BBC Business