Average house prices are set to increase by £80,000 over the next five years, according to property firm Savills. Leave your thoughts, and read the rest of today’s personal finance and consumer news, below.
Thursday 6 November 2025 06:06, UK
It had got a bit dull for a while – so much so that most months we didn’t bother doing a post about it.
But the battle to be named Which?’s cheapest supermarket each month has been hotting up of late.
Aldi’s long hold on the title was broken for a month this summer – and after a back and forth, Lidl is once again in top spot.
Among the traditional supermarkets, Tesco had been leading the way for a basket of 70 items – but Asda is now cheaper, even if you use a Clubcard.
Asda is also still top when it comes to a fuller trolley.
The longer list at Asda costs £469.11, making it cheaper than Tesco with a Clubcard by £7 (£476.11).
Here’s how the basket table looks…
“High food prices are still a growing concern for many households, especially as we approach Christmas, but our analysis shows it pays to shop around; simply choosing one supermarket over another could save you 26 per cent,” Which? said.
On Sunday, the Money team reported how millions of people were being forced out of work by long-term illnesses.
Health issues were striking down the workforce in something of a pincer movement: mental health problems at the start of their careers and musculoskeletal ones at the end, among others.
GPs, experts and people living with health conditions explained how this was due to anything but a “sick note culture”.
If you missed it, you can catch up here…
Now a charity and major researcher on the topic has called for statutory sick pay (SSP) to be increased to stop people dropping out of the labour market.
David Finch, assistant director for healthy lives at the Health Foundation, said better sick pay would act as an incentive for employers and employees.
Employees are entitled to just £118.75 a week for 28 weeks, paid by their employer.
“[It] would provide employers with greater reason to be proactive, and give workers an adequate income to recover and return to work,” he said.
Employers, while at the core of improving the system, cannot improve it alone, he added.
“The government needs to commit to improving the quality of and access to health support for employees and employers. GPs have a role, but tailored workplace health support is needed.”
His comments came after the government today published a major review of the problem led by former John Lewis boss Sir Charlie Mayfield.
Mayfield warned the UK is “sliding into an avoidable crisis” that already costs the country around 7% of GDP.
Around 2.8 million people are off work long-term sick. Projections show another 600,000 people will add their names to the list by 2030 if the trend continues, he said.
“Britain is facing a quiet but urgent crisis,” he said.
“Ill health has become one of the biggest brakes on growth and opportunity. But this is not inevitable.”
He has proposed that responsibility for health at work is shared between employers, employees and health services rather than being left to the worker and the NHS.
GPs are being asked to assess both the treatment needs of a patient and their capacity to work “despite most lacking occupational health training and time to get into sufficient detail”.
Employers needed to provide advice and early intervention, he said.
Thousands of homeless people will be able to open bank accounts for the first time under a new government pilot.
The scheme works with charity Shelter and major banks: Lloyds, NatWest, Barclays, Nationwide, Santander and HSBC.
HSBC and Shelter previously worked on a similar scheme, which has helped open 7,000 accounts for homeless people since 2019.
The pilot intends to help more people access a bank account by waiving the need for an address. The scheme is part of the government’s new Financial Inclusion Strategy.
The Treasury says the plan is about “opening doors”, and it could also help victims of domestic abuse and support families with no savings.
Lucy Rigby, the economic secretary to the Treasury, says: “No one should be locked out of the chance to build a better future.
“Our strategy gives people the tools to get on and boosts the economy by supporting more people back into work through our Plan for Change.”
The term “working people ” has split Sky News readers, after deputy political editor Sam Coates reported the Treasury defined them as people earning £45,000 or less.
After we published this survey earlier…
…some wrote in to tell us the government was out of touch for setting the level so low, while others said £45,000 was far too high in their area of the country.
Before we share some of your reactions, though, reader Aaron wanted some clarification…
“Important context is required for your poll of what defines a “working person” – how many people are in each band? What percentage of Brits earn less than £45,000, what percentage earn between £45,000 and £125,000?”
Aaron
How many people earn what in the UK
There’s some competing data on this, but we can paint a rough picture, starting with government data on income tax payers in 2024-25:
Now, the second bracket (£50,271 and £125,140) is extremely wide and covers very different qualities of life.
An HSBC survey helps us narrow that down, finding only 3.8% of earners take a salary of more than £100,000.
There’s also theoretically no limit to how large the £125,140+ bracket could be.
A 2019 study from the Institute of Fiscal Studies, while relying on older data, gives us a ballpark understanding of how earnings are distributed at the top.
The top 1% of income tax payers earn £160,000; the top 0.5% earn £236,000; and the top 0.1% earn £650,000.
‘£45,000 is a joke’
Reader Andrew in Oxford, who is in the top 16.9% of earners, took issue with how the Treasury arrived at its £45,000 figure.
“My salary is £82,000 for a 35-hour week which is a decent salary if the government is to be believed. However, in reality I work 55 hours a week and if you adjust the figures to reflect the true hourly rate I am on the equivalent of £50,000 – am I a working person?”
As did others…
“The working people definition is absurd. Higher rate taxpayers foot the bill for the economy because they work far more hours than the 9-5 assumption that Labour and the cohort of followers seem to believe. Any industry, any position, higher salary=longer hours.”
Phil
“The level stated by the Treasury is a joke. I earn £62k a year, I pay lots in taxes that are taken from what I EARN. I work long days/night shifts to earn that, yet I’m not a working person? My wife earns £21k, so between us we are not well off.”
Jamie B
“I work as a paramedic in Scotland for over 30 years. We earn over £47k, so we are front line staff, how am I not ‘working people’?”
HMAC
‘You’re rich if you earn £45,000’
Other readers took the opposite view…
“£45,000 is too high. People who earn this are rich.”
Silkin
“Here in the North East you will find that the vast majority of people only earn minimum wage, no matter how skilled their job is. They earn nowhere near £45,000. Minimum wage is a way for employers to get cheap labour and pocket the profits.”
Kathleen Scott
“Try living on a good wage in Hull which is £30,000″
Gaz
“I don’t earn anywhere near £45,000.”
Mikesmith
Some pointed out the Treasury definition omits geography…
“In certain areas of the country (particularly London and the Home Counties) an income of £45,000 is subsistence level, whilst in many areas of the North East and Scotland it would be considered a fortune. Shouldn’t the government allow for these regional variations?”
Panopticon
Let’s just drop the phrase altogether, said one reader…
“‘Working people’ are surely those that are working with what ever salary they earn. Let’s go back to the word ‘working class’ if differentiation’s have to be made!”
Mandilifeboats
Average house prices are set to increase by £80,000 over the next five years, according to property firm Savills.
It forecasts that prices will hit an average of £440,000 by 2030 – growth of just over 22% from today.
Lucian Cook, head of residential research at Savills, says that the upcoming budget “continues to weigh on the market” this year.
In 2026, prices are forecast to increase by 2% (down from 4% previously) – equal to around £7,200.
But growth over the next five years, Savills says, will peak in 2028 and 2029 at 5% and 5.5% respectively.
There’s a significant difference in where these price rises will fall, though.
Yorkshire and the Humber and the North East are expected to see the highest rises, with London seeing the lowest.
By Sarah Taaffe-Maguire, business and economics reporter
Less than 24 hours before a decision is made on UK interest rates and the odds are still in favour of a hold – but it’s no longer certain.
A hold would mean no change to the cost of borrowing, with the base interest rate staying at 4%.
There’s more jeopardy than before, however. Traders now say there’s a 66% chance of rates being unchanged, with a 34% chance of them being reduced, according to London Stock Exchange Group (LSEG) data.
Anyone set to remortgage a house in late December or early January will be heartened to hear that a cut is anticipated when the rate-setters meet again on 18 December.
At that point, economists and traders anticipate the interest rate will be brought below 4%, to 3.75%, for the first time in nearly three years.
Not since January 2023 has the cost of borrowing been so low.
Why will they fall?
While inflation has remained high, at 3.8%, the expected rise to 4% in September did not materialise.
Despite inflation being nearly double the Bank of England’s 2% target, this stagnation and signs of increasing unemployment have made some analysts – notably those at Goldman Sachs – forecast a cut.
But the majority opinion is backing no change as wage growth remains high and above inflation.
Nationwide Building Society is cutting mortgage rates by up to 0.25 percentage points today.
The rate reductions are being made on two, three, five and 10-year fixed-rate products, and include a 3.64%, two-year fixed-rate home mover mortgage for borrowers with a 40% deposit.
The move comes ahead of the next Bank of England base rate decision tomorrow.
“Swap rates are currently sitting around their 30-day lows, so it is possible that more reductions could follow suit,” says Caitlyn Eastell, from Moneyfacts.
“However, with the next base rate decision looming, it is not yet certain how the swap markets will react.”
She also pointed out the size of the deposit required to take advantage of Nationwide’s headline reduced rate, which only applies to loans of £300,000 or more (with a £1,499 fee).
“The borrowers that can afford a 40% deposit may certainly find the headline rate appealing, and if they make regular overpayments on a low rate, that could set them up nicely for when they come to refinance.
“Remortgage customers will also feel the relief as they could see their monthly repayments drop significantly.”
Nationwide will also offer a two-year fixed rate remortgage deal at 3.79%, reduced by 0.15 percentage points, for borrowers with a 40% deposit.
For those with less capital, the building society has reduced its two-year fixed rate with a 10% deposit to 4.79%.
By Sarah Taaffe-Maguire, business and economics reporter
A lot has been said about the uncertain future for the British pub – including here on the Money blog – but at one of the UK’s largest chains of pubs, at least, people are still drinking.
At JD Wetherspoon, sales are up nearly 4% (3.7%) from last year when the effect of new pub openings is excluded.
Bar sales are the biggest contributor to that, with food sales growing at a slower pace.
The outlook is uncertain, however, as it sees a threat from Chancellor Rachel Reeves’s forthcoming budget.
The pub group’s chief executive, Tim Martin, has regularly highlighted the higher VAT prices on pub alcohol versus drinking at home, as well as the costs of employing staff, and he continues to make the point.
“The company is pleased with the continued sales momentum but is mindful of the chancellor’s budget statement later this month and, as a result, is slightly more cautious in its outlook for the remainder of the year,” Martin said in a trading update.
US market moves
Elsewhere, US markets have retreated from their record highs and are set to fall today.
Major American stock indexes are, based on pre-market trading, expected to drop when they open this afternoon.
The index of 30 major companies listed on US stock exchanges, the Dow Jones Industrial Average (DJIA), dropped more than 05% at the close yesterday, while the tech-focused Nasdaq shed more than 2%.
The US index containing companies relied on to be stable and profitable, the S&P 500, also lost more than 1%.
It comes as major AI-invested firms like software company Palantir lost 8% and AI computer chip maker Nvidia dropped 4%.
A major investor, who predicted the collapse of the housing market in 2007, placed a large bet against the stocks (as we reported on Money yesterday).
Pound woes
There’s no let-up to the pound’s woes, though the slide appears to have paused.
Sterling has been hanging around the level of a two-and-a-half-year low against the euro, with a pound still buying €1.13.
Against the dollar, a pound is equal to $1.30, still around the April low when Donald Trump roiled markets with his announcement of country-specific tariffs.
If you thought Coca-Cola’s famed Christmas lorries looked a little different in this year’s holiday ad, you’d be right.
The sparkling red trucks weren’t actually in the video – an AI-generated rendering was.
In fact, the whole advert was made using Real Magic AI, the second time the company has used AI in its Christmas adverts, leading to some criticism online.
“Disappointing. Even worse than last year,” wrote Mendy Miriam, chief executive of Uncut Media Kenya on LinkedIn.
“What’s missing is everything that made the original campaigns timeless; emotion, texture, human warmth. Tech can replicate visuals, but not feeling. This one feels strangely hollow. Awful.”
Nusa Studios video editor Sam Gavin said: “I’m not particularly worried about generative AI taking all our jobs when used at this scale, because all this does is make brands look cheap to me.”
But Andrew Tindall, senior vice president of marketing research firm System1, said the ad scored top marks in its tests with “millions of people”.
“People love it. Exactly the same as last year. No one in proper creative testing knows or cares AI made this ad.”
Sky News has contacted Coca-Cola for comment.
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