Money blog: Contactless card payment limit could be scrapped (2025)

BySarah Taaffe-Maguire, business and economics reporter

While there was bad news for the UK economy from the OECD (see 10.33 post), it wasn't looking good for the whole world either.

The poor global and US performance provided a silver lining for the UK - the pound was up as the dollar fell on the back of OECD forecasts showing smaller economic growth for the world due to Donald Trump's tariffs.

One pound neared a four-month high at £1.2975. The highs of £1 buying €1.21 early in March seem far away, as sterling hangs around €1.19.

On the stock markets, the UK's benchmark FTSE 100 index rose for the fourth day in a row.

The list of most valuable companies on the London Stock Exchange is up 0.27% while the larger FTSE 250 made up more of UK-based companies is down 0.2%.

It comes as no exemption was made for UK steel and aluminium exports to the US. Hundreds of millions of pounds worth of UK exports are now subject to a 25% tariff in the US.

We're in that brief time of year where New York is just four hours behind rather than the typical five hours. It means we can bring you Wall Street news an hour earlier than usual.

Today, US stocks are recovering from the steep falls of the past weeks as uncertainty over tariffs turned to concern when policies took effect.

The benchmark S&P 500 rose 0.45% with the tech-heavy Nasdaq up 0.28% and the Dow Jones Industrial Average (DJIA) index of 30 major companies listed on US stock exchanges up 0.38%.

The contactless limit for card payments could be scrapped as the Financial Conduct Authority (FCA) considers whether the move would benefit consumers, merchants and economic growth in the UK.

Businesses could be given greater control under the proposals being considered, and could promote innovative payment methods or fraud prevention solutions.

It comes after the FCA first announced it was exploring changes to the contactless limit in a letter to Sir Keir Starmer in January.

Among the options put forward, firms using technology to reinforce fraud control could be allowed to set their own limits, as happens in the US.

"This is the perfect opportunity to explore whether we can improve and increase trust in the UK's payments system," David Geale, executive director of payments and digital assets at the FCA said.

"We've worked fast to progress this work, which is one of around 50 measures we put forward at the start of the year to help support economic growth across the UK and, in turn, improve lives."

One of the main themes this week will be the government's plans to change welfare and benefits as they look to save money from the public purse.

Work and Pensions Secretary Liz Kendall is expected to set out the reforms tomorrow, but details of where those cuts could fall are proving highly divisive within Labour.

You can keep across updates in the Politics Hub as the story develops.

Meanwhile, a study released today feeds into the debate.

Research from PwC suggests economic inactivity will continue to grow, with 10% of workers actively considering leaving work for an extended period.

A further 20% have considered leaving in the past year - which rises to 25% for those aged between 18 and 24 - with concerns about mental health being the most cited factor.

Nine in 10 employers say they are concerned about inactivity, with six in 10 seeing an increase in the number of employees leaving the workplace.

57% of businesses say they are worried about recruiting someone who has been inactive, while over a third of employers associate inactivity with people "gaming the system".

Number of inactive workers a 'fundamental challenge'

The number of inactive workers in the UK has been described as a "fundamental issue" by Marco Amitrano, a senior partner at PwC.

"It's the fact that when you go to work with your employer, you're going to feel like it's a place you belong," he told our presenter Darren McCaffrey on Business Live.

"You want to feel like it's a place you want to stay, you want to feel like it's a place that supports you, and people - particularly young people - are not feeling like that."

Amitrano added that there was a "much more holistic solution" that could be pursued involving businesses and the government working together.

"Every client I speak to... they're all willing to lean in because they're all concerned about it," Amitrano said.

"They all see that it's an important matter for them to unlock their ambitions and growth, that in turn fuels the economy."

One of the fastest-growing bubble tea brands in the world has signed a franchise agreement to open more than 225 stores in the UK over the next few years.

Around 2,000 jobs will be created in the UK as Gong Cha looks to expand to 10,000 sites globally by 2032.

After signing the new agreement, Gong Cha, which operates 13 UK stores, hopes to open at sites in Sidcup, Gravesend, Romford and Hornchurch.

"As a market, the UK has huge potential for us," Paul Reynish, global chief executive of Gong Cha said.

"It's a market that is constantly evolving, ripe with innovation and made up of consumers willing to try new and exciting products."

Gong Cha is one of the largest bubble tea brands in the US, operating more than 250 stores across 20 states.

It's also a hit in Australia, New Zealand, Korea and Japan, while having expanded to France, Belgium and the Netherlands in Europe.

When searching for holidays this year, a strong pound means your money could go further in lots of places.

The Post Office has surveyed 47 destinations to create a handybarometer of costs- in the form of a report looking at prices for food, drinks and other items.

The good news is, these costs are going down in around half the areas surveyed last year.

After nine years, the Algarve takes the top spot as the best value location again thanks to the low cost of meals and drinks.

If you're holidaying in the Portuguese region, a three-course meal for two with wine will cost you just £40.33.

Meanwhile, long-haul destinations like Cape Town, Tokyo and Bali are also offering some of the lowest prices for UK travellers.

Take a look at the top 15 best-value destinations in the table below...

By Sarah Taaffe-Maguire, business and economics reporter

Global economic growth has been downgraded by the Organisation for Economic Co-operation and Development (OECD) - as the impact of US President Donald Trump's tariffs becomes apparent.

Major economies including the UK will have lower rates of GDP - a measure of an economy's value and everything produced - due to the US's imposition of taxes on some goods it imports, the Paris-based OECD club of 38 rich countries said.

The UK economy will grow only 1.4% this year, as opposed to the 1.7% previously anticipated.

Next year, the figure will be 1.2%, lower than the 1.3% forecast before Trump took office in January, according to the OECD interim economic outlook.

In response to the OECD figures, Reeves pointed out the UK was forecast to be "Europe's fastest growing G7 economy over the coming years - second only to the US".

"This report shows the world is changing, and increased global headwinds such as trade uncertainty are being felt across the board."

Plans to freeze some disability benefits have been scrapped after growing concerns about the scale of planned welfare cuts.

Work and Pensions Secretary Liz Kendall was expected to cancel an inflation-linked rise to the Personal Independence Payment (PIP) after pressure to cut the benefits bill.

But our deputy political editor Sam Coates has said the freeze on the payment - up to £9,000 a year for people with long-term physical and mental health conditions - will not be going ahead.

Speaking on the newPolitics at Jack and Anne'spodcast, hesaid: "Those suggestions that have been bubbling around for about a week that Personal Independence Payments (PIP) are going to be frozen - which would give the Treasury immediate billions in savings - that isn't going to happen.

"They are still going to rise. It looked like that would provoke too much of a backlash."

Instead, Coates explained, the government will make it harder for people to get the payments.

By Jess Sharp, Money live reporter

Lip filler could end up costing people thousands in dental work, a specialist orthodontist has warned.

Dr James Davies, who owns the Quayside Orthodontics chain in south Wales, told Money he had seen clients suffer from issues with their teeth after having the cosmetic procedure.

While lip fillers are temporary, your body eventually breaks down the hyaluronic acid, collagen and other materials used to plump your lips - Davies said he has "huge reservations" over the effect it's having on people's teeth.

"I have found that the force levels to overcome these fillers appears to be significantly increased and has a negative effect on the orthodontic progress leading to increased treatment times," he said.

Some clients have reported considerable tooth movements, which could leave them with splayed or crooked teeth, he added.

"The teeth are said to exist in a neutral zone of force between the lips, cheeks and tongue and in healthy individuals considered relatively stable.

"Altering the levels of these forces by introducing lip fillers has the serious potential to disrupt this balance and lead to crooked or splayed teeth. Introducing a filler can significantly alter the natural lip posture, leading to unwanted tooth movements which are rarely bargained for."

Dr Razvan Vasilas, an expert in non-invasive cosmetic procedures and founder of DRV Aesthetic Clinic, told Money that although he hadn't seen the issue first hand, it could be possible.

But he said that it would take years for teeth to move, and there would need to be "a lot of filler injected".

Aestheticians should inject a maximum of 1ml of lip filler at a time, he added, saying people should avoid getting any dental work for at least three weeks after the procedure.

When done correctly, lip fillers are generally safe, but leading cosmetic nurse Nina Prisk said there can be other dental health risks.

"One common concern is pressure or irritation on the nerves around the mouth, which can sometimes affect the teeth and gums," she said.

"Swelling or bruising is also a possibility and can temporarily impact the alignment of the lips and teeth. In rare cases, filler may migrate from the intended area and cause discomfort around the mouth.

"To minimise risks to dental health, it's crucial to choose a highly trained and qualified practitioner, like a nurse prescriber or doctor, who has expertise in facial anatomy and injectables."

How much does it cost to fix the problem?

Cosmetic orthodontic treatment, such as braces or aligners, is not available for adults on the NHS, meaning those who suffer from any issues must fork out huge amounts themselves to fix them.

NHS treatment is only approved for health reasons.

On average, private care for braces or aligners cost around £2,500, according to the NHS website.

But Davies said people could end up spending up to £5,000.

There are cheaper market alternatives, such as clear aligner firms Smile White and Invisalign, but they still come with a hefty price tag of more than £1,000.

Why is it hard to get a full picture of side effects?

Not all clinicians agree that there is a correlation between tooth movement and lip fillers.

Head of dentistry at Bupa Dental Care Anni Seaborne told Money people see a natural shift in their jaw shape in their early to mid 20s - an age group particularly popular for lip fillers.

This can ultimately cause teeth to become misaligned, she explained.

Getting an idea of all the side effects caused by filler is difficult because it is a fairly unregulated industry.

Dermal fillers used for medical purposes are regulated by the Medicines and Healthcare products Regulatory Agency, but those used for cosmetic-only procedures are not regulated.

The MHRA has not identified any adverse incident reports for dental related adverse effects in association with lip fillers.

Save Face is the only government-approved register of qualified practitioners, helping people to find someone they trust to perform filler procedures.

Founder Ashton Collins told Money that she hadn't come across any complaints related to teeth, and that she couldn't see how lip fillers would cause an issue unless they were "dangerously overfilled".

What should you be looking out for?

To minimise any risks, it's important to choose a highly trained and qualified practitioner.

Save Face recommended being treated by a nurse, doctor, dentist or prescribing pharmacist to ensure they can legally hand out prescriptions if something goes wrong.

It said you must not pay for treatments in advance of aconsultation with your practitioner, or proceed with treatment if you do notfully understand the information you are given.

"Take the necessary time to make your decisionsdo not be hurried into the treatment, ask forinformation in writing to take away," it advised.

"Ask for copies of before and after photographsfor your reference.

"Do not have treatment in your home, at parties or exhibitions or in environments thatare clearly not clean or appropriate."

For those having orthodontic treatment, Dr Davies advised people to consult their specialist orthodontist first on the effects lip filler might have on their treatment.

"Whilst the fillers serve an aesthetic purpose, this impact on dental alignment and orthodontic treatment should not be overlooked. To manage these concerns, I would ask people to really consider whether they need such a cosmetic procedure," he added.

If you've ever spent your morning commute daydreaming about starting afresh with your career, this feature is for you.Each Monday we speak to someone from a different profession to discover what it's really like.

This week we chat to Aaron Archer, fromJoseph And The Amazing Technicolor Dreamcoat and Mamma Mia! about life as a West End performer...

There's no such thing as a starting salary in the performing arts...A job may be an equity contract with a union that sets out minimum salaries depending on the size of the theatre or the amount of work and many other varying factors. Or it could be a privately/commercially financed job, meaning the salary can vary hugely. All equity minimum figures can be found online but it can range between £600-900 roughly a week for an ensemble member in a West End show. Again, this figure can vary below or above this. The principals will earn a higher salary as well as people who cover other roles or have extra responsibilities such as being the dance captain.

You don't necessarily havea stable income to rely on...Contracts can differ in length from just a few days to a year or more.

Many performers have another job on the side...to supplement their income, as sometimes you can't solely rely on the earnings from performing.

People might look down at a cruise ship contract...but these performers are extremely talented and earning money doing the job they love just the same as somebody in a show in the West End, with the cruise ship job paying more than a West End contract sometimes.

A usual week consists ofeightshows...but over busy periods extra shows can be added. With most shows being around two and half hours, as well as any additional rehearsals, we are working between 35-40 hours a week with one day off.

It's very hard toplan ahead... You never know what you're going to be doing or where you are going to be from one year to the next. I went from working on a cruise as a dancer travelling the world, to then the next year making my West End debut in Mamma Mia.

The most important skill to do this job wellis... to just be a nice person. Obviously your talent and hard work and dedication will be a huge factor in getting jobs but if you are a nice, friendly person then that will make you 10x more employable.

My favourite part of my job is...knowing that six-year-old me would have never imagined I'd be doing this as my career and getting to meet so many amazing people.

You meetamazing people at the stage door... who want to meet the cast members and sometimes get a picture or signature after the show. But stage door isn't compulsory and sometimes you do just want to get home to rest and you can be made to feel guilty if people are unhappy that they didn't get the chance to see you afterwards.

My mind has gone blank for split seconds... and there have been multiple occasions where in a scene carrying bagpipes the pipes have fallen off or broken on stage. I've just had to carry on while holding a snapped pipe in my hand, somehow managing to keep a straight face.

Rejection is a regular thing to deal with... It's normal to get emotionally attached to opportunities that you have put so much time and effort into, after rounds and rounds of auditions for a job and waiting weeks to hear if you've booked the job or not. It is emotionally draining.

For one role I had to fake tan twice a week... and another I had to wear a wetsuit and flippers on stage while dancing.

Dealing with burnout from a very physically and mentally demanding schedule... can make it harder to have other commitments outside of work and seeing friends and family.

Theatre is good value for money when you look at...how much work goes into what the audience members are seeing on the stage. The sheer volume of people that it takes to put on a show, from the production team to the backstage team, cast, creatives, wardrobe, wigs, makeup, sound, theatre front of house staff and many other teams of people that make it possible. I do think that some ticket prices for some shows have become not as easily accessible, but apps like TodayTiks are great for finding affordable tickets for various shows.

Welcome back to Money, Sky News' hub for personal finance and consumer news, tips and analysis.

We'll be kicking off the week with our latestWhat it's really like to be...feature shortly. This week we have spoken to a West End performer.

Here are five more reasons to come back this week...

Interest rates day

It might not be a date marked in your calendar, but it is in ours - the Bank of England will make its latest interest rate decision on Thursday.

It is expected to hold interest rates at 4.5%, but investors are pricing inaround two further 0.25% cuts over therest of the year.

We'll have all the latest reaction and analysis after the decision.

Lip fillers could cost you thousands in dental work

Lip filler could end up costing people thousands in dental work, a specialist orthodontist has warned.

Dr James Davies, who owns the Quayside Orthodontics chain in south Wales, told Money he had seen clients suffering with teeth issues after the cosmetic procedure.

This morning we'll explore the problems he has been noticing, how much it costs to get them fixed and what you should be looking out for if you're getting lip filler.

Bills going up across the board in April - we'll tell you how to beat (some of) the increases

April is the month when most household bills go up - coinciding with the start of a new financial year.

We'll run down every hike, what discounts are available and how else you could potentially avoid paying more in our Saturday deep dive.

Chef reveals 'underrated' cut of meat and cheap noodle recipe

In this week's Cheap Eats on Thursday, we'll be speaking to Anthony "Murf" Murphy, co-founder of The Beefy Boys.

He shares his top cheap recipe to cook at home and the most underrated cut of meat you can buy at the supermarket.

Money Problem, Savings Guide and Mortgage Guide

Each Tuesday we get experts to answer a reader's Money Problem.

Tomorrow we'll be talking to consumer expert Scott Dixon about what to do when Deliveroo gets your order wrong and won't replace it.

Every Wednesday, savings queen Anna Bowes offers advice for making the most of your spare cash and reveals the best rates on the market right now.

And on Fridays, we do similarly with mortgages, hearing from industry experts on what anyone seeking to borrow needs to know now before rounding up the best rates with the help of Moneyfacts.