Money blog: Price of a pint is about to hit big milestone; Asda slashes thousands of prices (2025)

Every Tuesday we get an expert to answer your Money Problems. You canWhatsApp us yourshereor email moneyblog@sky.uk.Today, we are tackling this issue sent to us by Sarah from Hornsey:

I am organising a hen-do for six people - we are going to Budapest in a couple of weeks and everyone was due to pay the balance of just under £350 for accommodation and various things we've got planned next week. Last weekend, one of the six has just dropped out - meaning we're all going to have to pay £70 more. Some of the group really won't be able to afford this but the dropout hasn't offered to pay anything. Do I ask her to, do I make everyone pay and risk more dropouts or do I take the hit myself?

We gave this one to ourMoney live reporter Jess Sharp...

Speaking from my own experiences of hen-dos, paying the difference isn't the solution, and instead you should ask the dropout to at least offer some money towards the cost.

We asked our readers in a poll whether they thought people who cancel late should still have to pay and the majority of them agreed...

Here's what some of them had to say...

"It depends on the reason for having to drop out. Some things are unavoidable."
Leslie McGregor

"Depends on how last minute and why they are dropping out. Genuine emergencies? Fair enough, but backing out last second 'cause they changed their mind. That's a different story."

Andrew Morley

Having the conversation about paying might be difficult, but there are some techniques you can try to make it easier.

I'd say it's best to have the conversation in person or over the phone if you can - a text might come across a bit abrasive.

Advice firm MoneyHelper suggests putting emotions to one side when having these conversations - getting angry or upset isn't going to help.

If you start to get upset, maybe pause the conversation for a moment, either step out of the room or politely excuse yourself from the phone call, and then return a few minutes later.

It's possible that your friend is going to feel differently to you, so make sure you give her space to talk and respond to what you are saying. Interrupting her risks turning the conversation into an argument.

MoneyHelper also says you should also avoid being judgemental.

I'm not sure why your friend has dropped out, but you should try to avoid accusatory language when you bring up the costs with her, so don't start a sentence with "you did" or "you said" and think about your facial expressions when she answers.

It might be better to start with "I think" or "I feel" to show that this is an issue, but you would like to resolve it and you are not placing any blame.

If she agrees to pay all of the cost, then great. If not, maybe she could cover part of it and the other invitees might be willing to chip in to pay the rest.

If you have the funds to cover her costs - and by that I mean you have the money spare and are not putting yourself into any financial difficulty - another option could be to pay her part and set up a payment plan for her to give the money back to you.

My friends and I have used this method before over the space of three months or so to make sure we've all been able to enjoy an event together.

It's also important to realise you aren't the only one experiencing this tough situation - the average hen and stag-do group drops by around 20% after bookings, according to the guys at planning apps GoHen and StagWeb.

I thought it might help to speak to an expert in etiquette as well, so I got the opinion of Liz Wyse from Debretts, a professional coaching company that focuses on etiquette and behaviour.

Wyse was quite firm with her advice - "under no circumstances" should you be responsible for the extra cost.

"The person who has dropped out of the hen-do may have a good reason for cancelling, but she is doing so at very short notice," she said.

"Group bookings are predicated on a certain number of people committing to the arrangement, and thereby arriving at a fixed cost, and her cancellation will obviously have an unanticipated impact on the overall cost for everyone else."

Wyse felt that you would be "quite in your rights" to politely explain that the cancellation would have an impact on the other participants.

She said one option could be to suggest the dropout pays half of the remaining balance - but this should be if you think an extra £175 is "sustainable" for all invitees.

"If you feel that she has a really valid reason for dropping out, or if you feel you must seek a compromise, you could suggest that she pays 50% of the balance, and explain to her that this would ensure that her cancellation does not mean that other participants are also forced to drop out," Wyse said.

"As a general rule, in a situation where there is a group agreement to share the cost of a social event and an understanding that this money must be paid in advance, the person who drops out of the arrangement should take responsibility for their share of the cost.

"A social arrangement like this is a commitment, which involves other people (not least the bride to be), and should never be made (or cancelled) lightly," she added.

How can this problem be avoided next time?

Of course, the perfect situation would have been for there to be no dropouts - but this could have been made easier if some parameters had been put in place at the beginning.

It's worth making clear to invitees at the point of putting plans together that they will need to pay if they drop out at the last minute - this will help them to really think about the commitment, weeding out any of the potential liabilities early on.

Asking for a deposit is also an option. That way, the organiser knows that if anyone does cancel, they will at least have some funds to cover the cost.

While not always a viable, if people have the funds, it can be beneficial to ask them to pay the full amount of the hen do up front.

It might cause you less stress and hassle to use a dedicated planning app too.

GoHen and StagWeb allow organisers to book accommodation and activities in one place and then the invitees pay the service directly, so you don't have to chase them for the money yourself.

Do you agree with this advice? How would you handle it differently? Let us know in the comment box

Tesla's woes have made headlines repeatedly in recent months as Elon Musk's outsized influence in US politics and support of Donald Trump dent sales.

We've had the latest figures for sales in Europe through - and they add to the dismal outlook for the brand.

The market data by research platform JATO Dynamics shows Tesla sales on the continent fell behind Volkswagen and the BMW group last month.

Tesla's battery-electric vehicle (BEV) registrations in 25 EU markets, the UK, Norway and Switzerland fell on average by 44% on the same month last year, to under 16,000 cars sold.

Its market share last month fell to 9.6%, the lowest February reading in the last five years.

By comparison, Volkswagen's BEV sales were up 180% to under 20,000 cars, while the BMW brand and BMW-owned Mini combined sold almost 19,000 BEVs in February.

The Tesla brand has become the focal point for protests over Musk's role in cutting US government spending and his position in Trump's administration.

Musk's recent antics, such as making a gesture on stage that some interpreted as a Nazi salute and wielding a chainsaw on stage at a political conference, have also led to public scrutiny.

In response, Tesla has faced protests and vandalism across the US at its charging points and showrooms, with one dealership in Colorado being graffitied with the word Nazi.

This month, Trump displayed his support for the brand by saying he had bought a Tesla, which he called "Elon's baby".

Arrears on household bills have surged by 25% among those seeking debt advice, a charity has found.

The StepChange debt charity said its average client was £3,911 in arrears on household bills, up from £3,124 in 2023.

Overall, the average amount of debt for each StepChange client jumped up by 7% - from £16,706 in 2023 to £17,936 last year.

Meanwhile, mortgage arrears saw the most dramatic rise, soaring by 69% - from £6,054 in 2023 to £10,239 in 2024.

Energy arrears have risen by 28% year on year, with a 58% jump since 2022, from £1,485 to £2,340 last year.

Council tax arrears have increased by 14% in the last year to £1,972.

StepChange said fewer clients were now saying the cost of living is their main reason for debt. Many people have struggled to rebuild financial stability after "years of economic turmoil", the charity added.

Ahead of the spring statement, Money took a look at every household bill that will be rising in April - and how you could potentially beat the hikes.

Ed Sheeran has written to the government and appealed personally to the prime minister, saying schools need more money for music and pushing for immediate, long-term funding.

Elton John, Coldplay, Harry Styles, Stormzy, Paloma Faith and rapper Central Cee are among the artists backing the same appeal from the Ed Sheeran Foundation for £250m in funding for music education.

"We are writing collectively as artists, civil society and industry, appealing to your personal belief in music and the promise of opportunity for all under Labour," the letter reads.

"Learning an instrument and getting up on stage - whether in school or a community club - is now a luxury not every child can afford."

Last year, before becoming prime minister, Starmer told Classic FM he "passionately" wanted to undo the "degrading" of music and the creative arts in state schools.

The prime minister played the flute, piano and violin himself as a child.

Sheeran and the other artists are calling for a £250m UK music education package this spring to repair "decades of dismantling music", citing a 2019 report from the British Phonographic Industry group that found there had been a 21% decrease in music provision over five years in state schools.

Luxury department store Fortnum & Mason is launching a rapid delivery service that will be available any time of day or night via the Zapp app.

It's the retailer's first step into the booming on-demand delivery industry, but given some of its products retail at up to £1,000, it offers a much more expensive alternative to many delivery options and targets different customers.

From loose-leaf tea to biscuit selections and luxury hampers, customers will be able to order groceries directly to their door. The launch comes after the company saw a sharp rise in sales over the Christmas period.

Liz Darran, its chief brand officer, said partnering with Zapp would ensure "customers can enjoy their favourite Fortnum's treats whenever they wish, delivered in minutes, 24/7".

Rachel Reeves is set to provide an update on the economic health of the country when she delivers her spring statement on Wednesday.

She's under growing pressure as the latest data shows the economy flatlining - and her statement is likely to include big spending cuts and may include tax rises, which could depress economic activity further.

So what can we expect?

Income tax freeze

The chancellor could decide to extend the freeze on thresholds at which people start to pay different rates of income tax beyond the current freeze, due to end in April 2028.

This could raise about £7bn a year, investment bank Citi found, and is known as a stealth tax as it drags more people into paying higher tax as their pay goes up.

Business rates

Reeves promised to launch "a fairer business rates system" - but after reducing the relief rate for retail, hospitality, and leisure from 75% to 40% at the October budget, the industry is struggling further.

The government has been consulting with businesses to reform the current system, with the consultation closing this month, so there could be some help for those struggling - possibly increasing the relief rate from 40%.

Cash ISAs

The investment industry called on Reeves to reduce the £20,000 tax-free annual limit on cash ISAs to £4,000 to encourage more people to invest their savings in stocks and shares.

They said this would help reinvigorate the UK's capital markets, but leading building societies - who stand to lose out - objected and said it would hurt cash ISA savers

The change has been mooted for the spring statement but could be held for the budget in the autumn.

Employers' national insurance

The spring statement comes 11 days before the controversial 6 April rise in employers' national insurance contributions, announced at the October budget.

Reeves could offer some relief via an increased employment allowance, or a higher threshold before employers' national insurance becomes payable, and specific relief for the charity sector.

International aid

Reeves is expected to confirm details of how international aid funding will be reallocated to defence, after the PM said the UK's defence spending will rise to 2.5% of GDP by 2027.

Defence

The chancellor is expected to announce £400m in spending on the government's new UK Defence Investment body to "harness UK ingenuity and boost military technology", The Mirror reports.

You can read more frompolitical reporter Alix Culberton on the statement here...

This weekend we reported on the raft of price hikes that will come into force on 1 April.

We outlined what's coming when it comes to energy, broadband, car tax, water, stealth taxes, stamp duty and council tax -and how you could potentially beat the rises.

Catch up here if you missed it:

Readers got in touch to share their frustrations with the hikes:

Why is there a need for these energy companies to be hiking the prices? Why don't the government take back control of all our energy systems - steel, gas, electric, NHS - and bring back car manufactures to Britain railways. Margaret Thatcher sold us out.
Cindy 123

As a pensioner, we have not only lost our winter fuel allowance, we have also had enormous increases with energy providers, road tax, food prices and our local council tax. The pensioners have an increase of 4.1% which arrives in late April!
Pensioners distress

Why is the British government intent on destroying every household already struggling? It's take, take, take - they are robbing us for every last penny.
Steven

Why does the government have to raise the price cap?
Harris163

How can Ofgem let energy companies raise their prices so high that it's getting harder day by day to live in cold? The energy companies are making profits in billions of pounds per quarter.
Shashikant Patel

We've also reported today that the average price of a pint is set to top £5 next month.

Readers were quick to offer up their own thoughts.

How can pubs justify £5 a pint when my local Wetherspoons charges around £1.99 for some pints? I think some pubs just push up prices to see how much they can get away with.
Dando

£10 for two pints? Jeez! Just go to eBay. £10 will buy a superb (better quality) 40-pint beer kit . That works out at 40p per pint - not £5 per pint. Get it! Got it! Good!
Toorie

Our local pubs have been changing a fiver a pint for ales for a couple of years!
Slakemythirst

The blame game over the shutdown of Heathrow on Friday has stepped up after the boss of National Grid claimed the airport had enough power from other substations to keep running.

Around 1,300 flights were cancelled or diverted after a fire knocked out an electricity substation in west London, three miles away from the airport, last Thursday night. Flights were not able to resume until Friday evening, affecting as many as 300,000 people and costing multiple millions.

John Pettigrew, the chief executive of National Grid, said there were two other substations "always available for the distribution network companies and Heathrow to take power".

It comes after Heathrow boss Thomas Woldbye defended the airport's decision to close and denied it was too reliant on the substation that erupted into flames.

"We have other substations but to switch them in takes time," he told the BBC.

"The situation was not created at Heathrow Airport, it was created outside the airport and we had to deal with the consequences."

In Pettigrew's first comments since the disruption, however, he told the Financial Times there was "no lack of capacity from the substations" and that "each substation individually can provide enough power to Heathrow".

Read more on that story here...

Skipton Building Society is launching mortgage offers to help buyers who narrowly miss the stamp duty deadline in eight days' time.

Starting today, Skipton's five-year fixed products will be at 60%, 75%, 85%, 90% and 95% loan-to-value (LTV) ratios.

The products also have cashback incentives of either 0.75% or 1.5%, which will be paid directly into a borrower's bank account 15 days after completion.

The building society is also guaranteeing it will complete all submitted cases, where conveyancers have sent across certificates of title, by no later than 25 March.

It comes as pressure mounts on first-time buyers to complete house purchases before stamp duty changes come into force on 1 April.

Rightmove's stamp duty report identified an estimated 74,000 moves, which includes 25,000 first-time buyers, that will just miss the deadline.

Should they complete in April, it will be at a combined cost of £142m in extra tax, the property site found.

What is changing?

From 1 April, the threshold at which first-time buyers start paying the tax will return to previous levels, dropping to £300,000 (from £425,000) - meaning many more will be liable.

The rate is then 5% on the portion of the house price between £300,001 and £500,000.

The average family could be £1,400 a year worse off by the end of the decade, a charity has warned, with pressure mounting on the chancellor over her handling of the economy before her spring statement.

The Joseph Rowntree Foundation (JRF) said frozen tax thresholds, rising mortgage and rent costs, and falling real earnings are all predicted to take their toll on living standards in Britain.

It predicted the lowest income households will be £900 per year worse off than they are today - a 6% fall in their disposable income.

The poorest third will be disproportionately affected by job losses, rising housing costs and falling real benefit incomes, it said.

It warned that they could see their overall incomes fall twice as fast (6% vs around 3%) compared with the middle and top earners.

Average earnings are also set to fall by £700 per year by 2030, according to the JRF.

The charity - which conducts research into reducing poverty - said it came up with its prediction by modelling forecasts from the Bank of England and others.

The government has pledged to improve living standards across the UK by the next election, and Chancellor Rachel Reeves has rejected claims that living standards are falling.

She was asked about the JRF report on Sky News' Sunday Morning With Trevor Phillipsahead of her spring statement on Wednesday.

You can watch her response below...