National Savings & Investments (NS&I) has raised interest rates across its range of Guaranteed Income Bonds and Guaranteed Growth Bonds – collectively known as their British Savings Bonds. And for the first time in over 15 years, all four bond terms: 1, 2, 3, and 5 years are available to both new and existing customers.

This move is presumably a response to the government's decision in the Spring Budget to raise NS&I’s net financing target for 2024–25, from £9 billion in the previous tax year, to £12 billion in 2025-26. A notable 33% increase.

The net financing target is the amount of money NS&I needs to raise from savers, allowing for any customer withdrawals and money paid out as Premium Bond prizes. With a higher fundraising target, it’s not surprising that NS&I is stepping up efforts to attract savers’ money – good news for savers.

What’s changed?

NS&I has made moderate but welcome improvements to its fixed-term savings products. Here’s how the rates compare before and after the latest update:

Source: NS&I, 2025

However, even with these new rates, better returns can still be found elsewhere -  particularly if you're happy to look beyond the high-street names and explore the wider savings market.

For example, Cynergy Bank is paying 4.65% on its 1-year Fixed Rate Bond – on a deposit of £50,000 there’s a difference of earning £2,325 (before the deduction of tax) or £2,025 with NS&I.

Take a look at our Best Buy tables for all the current top rates.

Over longer periods, this adds up significantly.  

With the top 5-year bond on the market paying 4.56% (Secure Trust Bank) a deposit of £50,000 would provide interest of £250 more each year than it would with NS&I – and if you were to roll over and compound that interest, you could miss out on nearly £1,500 over the term. Not a trivial amount.

Why the rate hikes now?

Considering that the markets are anticipating a base rate cut at next Bank of England MPC meeting, this is an interesting move from NS&I.  

NS&I generally relies on its trusted name and government backing to attract savers, as its rates are rarely market leading. However, the revised net financing target, set by the Treasury not NS&I itself, is likely to be the driving force of this decision. Essentially, NS&I is tasked with helping to raise money for the government, directly from savers. When the target increases, as it has now, NS&I need to raise its rates to become more attractive.

Although not offering top rates, NS&I products offer a unique advantage that any funds deposited are 100% backed by HM Treasury, not limited to the Financial Services Compensation Scheme’s (FSCS) usual £85,000 limit per person, per institution. And savers can deposit up to £1m into each issue of the British Savings Bonds – and more still into the easy access accounts. This security is unmatched and gives real peace of mind, especially for those with large sums to put away.

It’s all about what matters most to you. If absolute security is your priority and you have a large cash holding, NS&I is a useful option. But if maximising your return is the aim, and you're willing to split your savings between different providers, keeping within the FSCS limit of £85,000 per institution, there are certainly stronger rates out there.

For those with larger amounts of cash, the rise of cash savings platforms has added a simple and flexible way to get more from your savings.  

Think of them like a supermarket for savings, offering a range of competitive accounts from different banks, all accessible through a single application and login. Whether you’re after easy access or fixed-term options, these platforms do often offer competitive and sometimes even market-leading and exclusive products even if they’re not whole of the market.  

Perhaps most importantly, they make it easier to spread your savings across multiple banks, helping you stay within FSCS protection limits while keeping your money working harder.  

With our Savers Hub, powered by Insignis, you can now open, manage and switch between accounts all in one place bringing ease and efficiency to managing your savings.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash advice.

Question: As I was a bit late getting organised, I put £20,000 into an easy-access cash ISA at the end of the last tax year in a last-minute effort to use up my allowance, but now I’d like to move it to a fixed-rate ISA. Are there any restrictions on transferring it so soon? And will the transfer affect this year’s ISA allowance?

It was a smart move to make use of your ISA allowance before the end of the last tax year—especially with increasing speculation that the current £20,000 cash ISA limit could be reduced in the near future. Every year, many people miss out simply by not acting in time, so even a last-minute deposit means you’ve managed to make the most of your tax-free savings allowance.

Choosing an easy access ISA was a sensible decision too. It gives you the flexibility to pause and reflect on how and when you might need access to that money - perfect for reassessing your financial goals without locking anything in immediately.

Now to your question - yes, you absolutely can move funds from an easy access ISA to another ISA, even if you just opened it. There’s no minimum time you need to hold the funds before transferring. You can choose to transfer the full amount or just a portion, either to a new provider or within the same one, especially if they’re offering a competitive fixed rate that fits your needs. But it’s always wise to shop around to get the best returns. You can find our best buy tables here.

Just one crucial reminder: always transfer using your new provider’s official ISA transfer process. Withdrawing the money yourself and redepositing it could strip away the tax-free status and use up part or all of the new year’s ISA allowance.

For those who have already opened the current year’s cash ISA, following the ISA rule changes introduced in April 2024, you now have even greater flexibility when it comes to transferring. Unlike before, when only full transfers of the current year’s ISA were allowed, you can now make partial transfers too - giving you more control over how you manage your savings.

Importantly, as you managed to open and deposit cash into your ISA ahead of the end of the tax year on 5th April 2025, you can still deposit up to £20,000 until 5th April 2026, as well as transferring last year’s easy access ISA.

That said, it’s worth getting a move on - both with transferring your existing ISA and opening a new one. There’s a lot of talk in the markets about possible interest rate cuts in the near future. If you’re considering locking into a fixed rate, now might be the time to act before the most attractive deals disappear. Fixing your rate now could help protect your savings from potential rate drops, giving you the chance to enjoy inflation-beating, tax-free interest over the term.

And remember, using your new ISA allowance sooner rather than later means you start earning tax-free interest earlier, which could make a meaningful difference over time. 

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate tax advice. 

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office. 

For decades, investing in property has been a go-to strategy for building wealth and generating income in the UK. Buy-to-let properties or owning a second home were often seen as a reliable way to create long-term financial security, whether supplementing income during working life or supporting a more comfortable retirement. But in today’s climate, many landlords and second-home owners are beginning to question whether the benefits still outweigh the challenges.

The reality is that the landscape has shifted dramatically. What was once a tax-efficient, stable investment is now subject to a range of pressures that are squeezing profitability and testing investor confidence. While property remains a tangible asset with potential long-term value, the short-term headwinds are increasingly difficult to ignore.

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Rising tax and Regulatory pressures

One of the most significant changes has been the removal of full mortgage interest tax relief for private landlords. Before April 2020, landlords could deduct mortgage interest from their rental income, significantly reducing their tax bill. Now, however, this relief has been replaced with a 20% tax credit, which is far less favourable, particularly for higher and additional rate taxpayers. This change alone has increased tax liabilities for many, particularly those with large mortgages or multiple properties.

Alongside this, property investors face higher rates of stamp duty on second homes, frozen personal tax allowances until at least 2028, and increased scrutiny around rental income in tax calculations. For some, rental income that previously sat comfortably within a lower tax band is now pushing them into higher brackets, often unintentionally. As these thresholds remain static while incomes and rents rise, more landlords are being caught out.

The cost of borrowing has risen

The picture becomes even more challenging when you factor in rising interest rates. Over the past two years, the Bank of England has raised the base rate in response to inflationary pressures. This has caused mortgage rates to jump significantly from the historic lows that many landlords had become accustomed to. For those coming off fixed-rate deals, the cost of borrowing has risen sharply, compressing net rental yields and in some cases, turning previously profitable properties into break-even or even loss-making ventures.

Data from the NRLA (National Residential Landlords Association) and other property bodies has shown a growing number of landlords reconsidering their future in the market. Some are scaling back their portfolios, while others are choosing to exit the market entirely, citing diminishing returns, higher costs, and increasing administrative burdens.

Upcoming legislation

New and upcoming legislation is also adding to the pressure. The government’s plan to tighten energy efficiency standards for rental properties is looming, with all new tenancies expected to meet an EPC rating of C or above by 2028, and existing tenancies by 2030. The cost of upgrading older properties—particularly those with traditional construction—can be substantial, and non-compliance risks fines of up to £30,000. Combined with routine maintenance, licensing requirements, and ongoing tenant management, the once 'passive' nature of property investment now looks much more involved.

Higher stamp duty and local tax changes

Announced in the Budget 2024, second home buyers are hit with a 5% surcharge for stamp duty, on top of the existing stamp duty rates.

Current stamp duty rates are:

Rates for a single property

You pay SDLT (Stamp Duty Land Tax) at these rates if, after buying the property, it is the only residential property you own. You usually pay 5% on top of these rates if you own another residential property.

Source: gov.uk

And another blow landed on the 1 April 2025. In an effort to discourage vacant second homes, several councils across the UK have introduced higher council tax rates on these properties—doubling the charges in some areas. While intended to free up housing stock and reduce the strain on local communities, the financial impact on second-home owners is undeniable.

Exploring your options

Faced with all of these challenges, many landlords are reviewing their options. Some are exploring the benefits of transferring properties into limited companies, which may allow for a more favourable tax treatment on mortgage interest and profits. However, this route isn’t without complications. Company mortgage rates are typically higher, and the costs of transferring properties—such as stamp duty and legal fees—can be significant. It’s not a one-size-fits-all solution, and the right approach will depend on an individual’s broader financial goals and circumstances.

Another avenue being considered is changing ownership of properties to a lower-earning spouse to minimise the overall tax burden. This strategy can be effective in some situations but must be carefully structured to avoid unintended tax consequences, especially around capital gains or future inheritance.

There is also a growing interest in diversifying away from property altogether. For those who have built up substantial equity, selling one or more properties and reinvesting the proceeds into a broader, more tax-efficient investment portfolio could be an option. Investment portfolios can be tailored to individual goals, risk tolerance, and tax planning needs. They can also provide greater flexibility and liquidity, unlike bricks and mortar.

Taking stock of your Financial Plan

It’s clear that the days of easy property profits are behind us, at least for the time being. That’s not to say property doesn’t still have a place in a diversified investment strategy—but relying on it as the cornerstone of a retirement or income plan may no longer be as robust as it once was. The combination of tax changes, regulation, interest rates, and property-specific risks mean that today’s landlords need to be far more strategic.

If you're currently weighing up your options, now may be the right time to seek independent financial advice. We can help you assess the viability of your property investments within the context of your broader financial plan. We can also identify opportunities to reduce tax, spread risk, and ensure your portfolio aligns with your financial goals—whether that’s maximising income, protecting capital, or planning for retirement.

At The Private Office, we work with clients who have £100,000 or more in investible assets to create bespoke financial strategies. As a chartered firm of independent advisers, The Private Office can help you understand your position, explore alternative investments, and develop a plan that’s tailored to your future.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 
The information provided in this article is based on the current allowances and legislation and is subject to change.

The Financial Conduct Authority (FCA) does not regulate tax advice or Buy to Let advice.

The latest inflation figures from the Office for National Statistics (ONS) revealed that inflation had fallen yet again to 2.6%, down from 2.8% in February, inching ever closer to the Bank of England’s 2% target.

It’s thought that petrol prices were the main contributor, falling to 137.5p per litre between February and March. The inflation decrease was also driven by a drop in recreation and culture prices, with toys, games and hobbies, in particular, falling significantly.

"The only significant offset came from the price of clothes which rose strongly this month" said Grant Fitzner, Chief Economist at the ONS.

However, analysts warn that the fall may only be temporary as rising bills and higher business costs could cause inflation rates to rise again.  

What is inflation and how is it measured?

Inflation is a measure of how the prices of goods and services have increased over time. Goods are tangible items sold to customers, such as food, while services are tasks performed for the benefit of recipients, such as a haircut. Generally, this increase is measured by considering the cost of things today compared to how much they cost a year ago. The average increase between these prices is demonstrated in the inflation rate.

Rising interest rates directly affect the cost of living. For example, if the price of a bottle of milk is £1, and inflation is increasing by 5%, then your bottle of milk will cost you 5p more. Or, in other words, the spending power of your money has decreased by 5%. 
Ideally, the Government wants to keep inflation low and stable. The general mandated target for the Bank of England is 2%. Anything significantly above or below this target is thought to cause issues for the economy.

The cost of living surged in recent years, with inflation peaking at 11% in 2022 - way above the Bank of England's 2% target, partly due to the increase in energy prices following Russia's invasion of Ukraine.

To try to slow price rises, the Bank of England increased rates to encourage people to spend less, in order to bring inflation down.

While the rate has dropped, falling inflation does not mean the goods and services are coming down in price overall, it is just that they are rising at a slower pace.

Check if your savings are keeping ahead of inflation with our inflation calculator below:

If you’d like to know more, or to request a free non-committal initial consultation with one of our advisers, give us a call on 0333 323 9065 or get in touch below.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash advice.

A proposed change to banking regulations could significantly increase the amount of savers' money protected if a bank or building society collapses, up from the current £85,000 to £110,000.

Currently, the deposit protection scheme, operated by the Financial Services Compensation Scheme (FSCS), guarantees up to £85,000 of a customer's savings if a financial institution fails. Under the new proposal, this limit would rise to £110,000 to match inflation.

The Prudential Regulation Authority (PRA), which oversees UK banks, stated that the planned increase reflects the changes in interest levels since the original limit was set in 2017, as consumer prices have increased significantly since then, meaning the current £85,000 protects a lot less than it used to.

Martyn Beauchamp, Chief Executive of the FSCS, said it was important the limit was reviewed regularly to ensure it stayed "appropriate and relevant".

The review could also see the Temporary High Balance protection rise from £1m to £1.4m. This offers temporary protection for large sums of money (above the usual £85,000 FSCS deposit limit) for a period of up to six months from when the money is received following certain life events such as an inheritance, receiving proceeds from a divorce or a life insurance policy and the sale of your main residence.

The plan is now open for consultation, and if approved, the higher protection limit would come into effect from 1 December 2025.

What is the deposit protection scheme?

The FSCS protects 100% of the first £85,000 you have saved in a cash savings account, per UK-regulated financial institution (not per account). So, in simple terms, if your bank, building society or credit union were to fail, the FSCS aims to get any savings up to this amount back to you within seven working days.

Aside from protecting your cash, the FSCS was created to prevent ‘bank runs’ - where many depositors attempt to withdraw their funds at the same time. No bank has enough liquidity to pay back all its deposits at once, so if someone thinks other depositors might withdraw soon, it is rational for them to do it first as a kind of pre-emptive measure which can lead to a cascade of withdrawals that results in a bank run. The existence of deposit insurance serves to break this reasoning.

Since the £85,000 Financial Services Compensation Scheme (FSCS) limit was set in 2010, consumer prices have increased more than 40%, meaning the same £85,000 buys a lot less. Moreover, the total amount of bank deposits has broadly doubled since 2010. In other words, the same limit is providing less insurance today than it did when it was established.

Should the limit be raised?

According to research by the Building Societies Association, the average that a person in the UK has in savings is £16,232 – well below the current level of £85,000.

So, although it sounds like a good idea, in reality it may not actually be of benefit to the majority, as most savers are already well protected, and the extra cost could actually mean that interest rates on offer are reduced to cover this cost.

The scheme is funded by a levy paid by financial services companies that are members of the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA), and an increase in the deposit protection will come with an additional cost to the financial institutions.

Added to that, advances in technology means that there are now cash savings platforms, such as our Savers Hub, allowing savers with larger sums to make just one application onto the platform, and then have access to multiple competitive savings accounts that are protected by the FSCS scheme.

Hopefully this will be taken into consideration in the consultation.

Understanding what kind of protections are available to you is key to proper financial planning. With the uncertainty in the global economy right now, it’s more important than ever to seek financial planning advice to help safeguard your future.

If you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation with one of our chartered advisers to find out how can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.

Thankfully, Chancellor Rachel Reeves confirmed there would be no cuts to the cash ISA allowance in the Spring Forecast which was delivered on 26th March 2025. This is good news as millions of people are being dragged into paying more tax due to frozen personal tax allowances, and higher interest rates.  

That said, just because nothing is changing now doesn’t mean changes won’t come later. So, if you haven’t maxed out your £20,000 annual ISA allowance, now’s the time to take full advantage while you still can.

The tax squeeze has been building for years. Back in March 2021, then-Chancellor Rishi Sunak announced a freeze on personal tax allowances until 2025/26. That freeze was later extended to 2027/28, meaning more and more people are paying tax for the first time—or finding themselves in a higher tax bracket.

The Personal Allowance—the amount you can earn before paying income tax—has been stuck at £12,570 since April 2021, despite rising wages. On top of that, the thresholds for basic, higher, and additional rate tax have also remained frozen. In fact, the 45% additional tax rate now kicks in at an income threshold of £125,140, down from £150,000 previously, so more people are being caught in the highest tax band.

HMRC data shows the impact: in 2024-25, there are an estimated 37.4 million income taxpayers—up from 33 million when the freeze first hit in 2021-22. That includes three million more people now paying higher-rate tax and 400,000 pushed into the top tax bracket.

Savers aren’t escaping the pain either. The Personal Savings Allowance (PSA) has been frozen since it was introduced in 2016. That might not have been a big deal when interest rates were low, but with rates climbing, more people are hitting their PSA limits with far smaller deposits.

Basic-rate taxpayers can still earn £1,000 in savings interest tax-free, but higher-rate taxpayers only get £500, and additional-rate taxpayers get nothing. That means a lot of savers are now facing unexpected tax bills on their interest earnings, especially if they’ve been pushed into a higher tax bracket.

This is why ISAs remain such a valuable tool. Any interest earned within an ISA stays completely tax-free, regardless of the amount, making them a great way to shelter your savings from the taxman.

If you haven’t maxed out your ISA allowance yet, now’s the time to act. There are less than two weeks left to use this year’s allowance, and once it’s gone, it’s gone. And why not get ahead by using next year’s allowance as soon as possible? The sooner you do, the more tax-free interest you can earn.

And don’t neglect your old ISA accounts. Remember that transferring an existing ISA from a previous tax year will not affect your current tax year allowance, so you may as well make sure you are making your older savings work as hard as any new cash you are depositing.  

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The opinions shared in this article are solely those of the individual and they do not necessarily reflect those of The Private Office. 

Following the government’s Spring Statement on Wednesday 26th March 2025, National Savings & Investments (NS&I) published its unaudited results for the third quarter of the 2024-25 financial year (that’s October to December 2024) and the numbers are pretty interesting.

So far this tax year, NS&I has pulled in a net £8.9 billion - £5.5 billion in the last quarter alone. The net amount is the difference between all the money coming in from deposits, interest, and customers rolling over their savings – and all the money going out through withdrawals and Premium Bonds prize payouts. For the whole year, the latest forecast suggests NS&I will land at around £10.5 billion, which is within their target range of £9 billion, plus or minus £4 billion.

The fact that it is on to slightly exceed its target could be the reason NS&I has made a series of interest rate reductions to some of its savings accounts recently. However, they are citing the recent base rate reductions as the key reason and NS&I does also have to strike a balance between raising what it needs to, keeping savers happy whilst ensuring good value for taxpayers, and not disrupting the wider financial services market too much.
But what about next year? Well, the government has set a new Net Financing Target for 2025-26, and it’s going up – to £12 billion, again with a leeway of plus or minus £4 billion.

That means NS&I may need to bring in more money, which raises a big question: could this mean we see interest rates on their savings accounts go up again?

Of course, nothing is certain. NS&I carefully adjusts its offerings depending on economic conditions, government borrowing needs, and, let’s be honest, how much money they’re already attracting. But if they do need to bring in more savers, improving rates is the way to do it.

NS&I is a National Treasure – so many savers stay put come what may. And if you have very large sums of money, the fact that all cash held with NS&I is protected by HM Treasury means that you don’t have to go through the hassle of opening multiple accounts in order to keep your cash protected by the Financial Services Compensation Scheme (FSCS) which offers protection on funds up to £85,000 per banking licence.

But, as a result, NS&I generally doesn’t offer the best rates as the tables below show.

Rates correct as at 28/03/25

So, for those who want to earn more interest whilst keeping the hassle of opening multiple savings accounts to a minimum, perhaps a cash platform could be the answer!
Imagine a cash savings platform as a marketplace for savings, where a single application and login gives you access to a range of competitive savings accounts—from easy access to fixed-term bonds—across multiple providers with just a few clicks.

While not whole of market, these platforms often feature attractive and even market-leading and exclusive rates. The key advantage is the ease of spreading your savings across different accounts; maximising protection under the Financial Services Compensation Scheme (FSCS) while optimising your returns.

With our Savers Hub, powered by Insignis, you can now open, manage, and switch between multiple competitive savings accounts—all from one convenient login.

Request an illustration today, to see how much interest you could be enjoying. There’s no obligation, so the only thing you are missing out on is the possibility of more interest!

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.

The Chancellor previously confirmed that she only wanted to make major tax and spending announcements once a year, with this being in the Autumn Budget.  Therefore, no tax changes were expected and none were delivered.

The headline from the speech was that the Office for Budget Responsibility (OBR) has halved its 2025 growth estimate for the UK from 2% to 1% in 2025, but it has upgraded its longer term forecasts from 2026 onwards.

Alongside this, previously announced cuts to Welfare and Overseas Aid payments, Increases in Defence spending and Planning Reforms were confirmed.

In terms of signposting future changes that could be announced:

• The government confirmed it is looking at options to reform ISAs to “get the balance right between cash and equities to earn better returns for savers” which could indicate limited cash ISA allowances relative to Stocks and Shares ISA allowances.
• The government will also be holding a series of roundtables with key stakeholders over April as it considers the role of tax reliefs for Enterprise Management Incentives Schemes, Enterprise Investment Schemes and Venture Capital Trusts.

After the pension changes over the last few years and, in particular, last year’s confusion as the new pension rules were ‘bedded in’ and legislation adjusted, it was a relief to have no further tinkering with pension rules.

We already know of course, of various areas of impending change, including the removal of the ‘domicile’ tax regime from 6 April this year, the Business Property Relief and Agricultural Property Relief changes from April 2026 and of course the Pensions and IHT changes from April 2027 – which we await further details on.

These areas and others, including the employer National Insurance increases, are covered off in our Autumn Statement 2024 summary.

There were some changes announced to Universal Credit from 2026 onwards and from this summer it will become possible for those newly liable for the High Income Child Benefit Charge to pay the tax through PAYE rather than via self-assessment.

If you’d like to discuss any of the announcements from the Spring Statement or Autumn Budget last October, and are concerned about how they will affect your financial plan, why not get in touch and speak to one of our expert advisers.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate tax advice.

In its annual update to the ‘basket of goods and services’ used to monitor inflation price growth, the Office for National Statistics (ONS) added 23 new items and removed 15 to the list of over 700 that reflect typical consumer spending habits, with some additions that may come as a surprise.

Opening the basket of goods

Among the new additions to the basket were virtual reality (VR) headsets, pre-cooked pulled pork, yoga mats, noodles and mangos, while newspaper adverts, oven-ready gammon joints, in-store cafeteria meals and DVD rentals were removed.

As a surprise to some, men’s sliders/pool sandals also made their way into the basket. A sure-fire sign of the times!

Stephen Burgess, ONS Deputy Director for Prices, said the addition of VR headsets to the inflation basket pointed to Britons’ “appetite for emerging technology, while the loss of printed newspaper adverts demonstrates a continuing shift towards the online world.”

Burgess explained the addition of the yoga mats: “Yoga mats also limber up as a new addition due to their increased popularity since the pandemic."

As for the men’s sliders, we still aren’t entirely sure!

How is the basket of goods calculated

In order to calculate an inflation figure, the ONS tracks the prices of hundreds of everyday items and compiles them into one figure. This combination of all the different items and their prices is called the ‘basket of goods’. The basket is constantly updated and adjusted depending on the economic context, and different weightings within the basket are given to different areas of spending in the economy.

Each month the ONS releases a new inflation figure which shows how much the combined prices of items in the ‘basket of goods’ has risen since the same time last year.

The basket currently contains 752 items. The ONS collects the costs of these products and services across many different retailers to come up with the monthly inflation figures.

But what is added or removed each time also gives us a fascinating insight into our changing tastes, trends and lifestyles. For example, wild rabbit was one item included in the first list of 1947. Tea bags only made it in by 1980. It is essentially a reflection of our collective consumer habits in the UK.

Understanding how inflation can impact on your financial plan is key, so if you want to find out more, why not give us a call on 0333 323 9065 or book a free non-committal initial consultation to find out how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions. 

The Financial Conduct Authority (FCA) does not regulate cash flow planning or tax advice.

The financial support provided by parents and grandparents has long played a role in family life, but in recent years, it has become a defining force in the broader economy. Dubbed the ‘Bank of Mum and Dad’, this intergenerational flow of wealth is increasingly crucial in helping younger people buy their first homes, fund their education, and establish financial security.

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As house prices have surged far beyond wage growth, saving for a deposit has become an uphill battle for many. The average first-time buyer in the UK now needs around £60,000 for a deposit, a sum that would take years to accumulate without external support. Faced with this reality, nearly half of young homebuyers now rely on financial help from family to get onto the property ladder. This trend is even more pronounced in high-cost areas such as London and the South East, where deposits often exceed £100,000. Without parental contributions, home ownership is increasingly out of reach for those without inherited wealth.

A similar pattern is evident in higher education, where rising tuition fees and the high cost of living mean many students graduate with substantial debt. While some rely on student loans, others benefit from parents who cover their fees or living expenses outright. This financial head start can have long-term advantages, allowing some graduates to begin their careers unburdened by debt, while others face years of repayments that delay their ability to save, invest, or buy property.

What does this mean for society?

Beyond individual families, the ‘Bank of Mum and Dad’ has wider economic implications. As wealth is increasingly passed down through gifting, it alters patterns of financial security and social mobility. Those who receive help from their parents enjoy an advantage not only in property ownership but in long-term financial stability, while those without such support find it harder to build wealth. 
Research from the Institute for Fiscal Studies confirms that parental earnings are now a stronger predictor of young people’s future income than in previous generations, reinforcing economic divides.

The 7-year rule in inheritance tax

For wealthier families, gifting money to children can also serve a strategic purpose. Under current UK tax laws, financial gifts made more than seven years before the giver’s death typically fall outside of inheritance tax calculations. This means that parents and grandparents who transfer wealth earlier can help reduce the potential tax burden on their estate while providing meaningful support at a time when it is most needed. Given that inheritance tax is charged at 40% on estates above the £325,000 threshold known as the nil rate band (or £500,000 when passing a main residence to a direct descendant, known as the residence nil rate band), careful legacy planning can result in substantial savings.

However, parental generosity is not without its risks. As life expectancy increases and retirement lasts longer, many parents must balance their desire to support their children with their own financial security. Rising care costs and later-life expenses mean that some retirees could deplete their savings too quickly, potentially leaving them reliant on state support or requiring assistance from their own children in later years. A survey by Aegon suggests that over half of UK adults anticipate financially supporting their parents as they age, illustrating how wealth flows between generations in complex and often unpredictable ways.

The future of the ‘Bank of Mum and Dad’

Despite concerns about retirement preparedness, the influence of the ‘Bank of Mum and Dad’ is unlikely to diminish soon. Housebuilding targets remain unmet, real wages have not kept pace with property prices, and the need for financial support among younger generations shows no signs of easing. As a result, families will continue to navigate the challenges of intergenerational wealth transfers, seeking to strike a balance between supporting their children and securing their own financial futures.

For those considering passing on wealth, early planning is key. Seeking professional financial advice can help families structure gifts and inheritance in the most tax-efficient way, ensuring that wealth is preserved and maximised for future generations. As economic trends continue to shift, the role of the ‘Bank of Mum and Dad’ is, for the near future at least, here to stay.

If you’re looking for advice on the best way to support your loved ones, why not get in touch for a free initial consultation to see how we can help.

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This article is intended for general information only, it does not constitute individual advice and should not be used to inform financial decisions.

The Financial Conduct Authority (FCA) does not regulate cash flow planning, estate planning, tax or trust advice.