Money blog: Meet the HENRYs - the group that could 'bear brunt' of tax rises (2025)

KitKats have become the latest product to fall victim to shrinkflation, with the bars in a multipack being cut.

The pack of nine now contains eight, while the multipack of 21 now has 18.

Prices have not come down with the size change, rising by as much 18.1%, according to analysis by The Grocer.

Nestle, the owner of the chocolate bar, said the changes had been made due to "significant increases" in cocoa costs.

Cocoa prices hit record-breaking highs last year after dry weather ruined crops.

"Like every manufacturer, we have seen significant increases in the cost of cocoa, making it much more expensive to manufacture our products," Nestle told Money.

"As always, we continue to be more efficient and absorb increasing costs where possible.

"To maintain the same high quality, delicious products that consumers know and love, it has sometimes been necessary to make adjustments to the price, weight or size of some of our products."

People earning around £100,000 a year could "bear the brunt" of tax rises in the autumn budget, new analysis has suggested.

Known as HENRYs (high earners, not rich yet), this group could be hit the hardest by increases to council tax, income tax and tax on pensions, Britain's biggest investment firm Hargreaves Lansdown found.

Rachel Reeves refused to rule out tax rises after unveiling her spending plans for government departments in her spending review last week, telling Sky News all the plans had been "fully costed and fully funded".

Watch her interview below...

Here are the taxes experts are keeping an eye on - and why Hargreaves Lansdown thinks any increases could leave HENRYs worse off.

Income tax

Income tax already falls most heavily on higher earners, with the top 5% (which HENRYs are part of) paying almost half of all income tax.

For every £2 you earn over £100,000 you lose £1 of your personal allowance.

By the time you earn £125,140 you've lost all of your personal allowance. Once you've breached £125,140 you pay 45% on the extra.

"The frozen income tax thresholds have taken a toll and the freeze to 2028 will only add to the pain. If the government was tempted to freeze them for longer to raise tax it would mean more people pass over the threshold to pay 60%, and more pass into the realms of 45% tax too," said Sarah Coles, head of personal finance at Hargreaves Lansdown.

Council tax

Many HENRYs tend to rent bigger, more expensive properties, so fall into higher council tax brackets.

Reeves has said council tax will not rise by more than 5%, but she could see council tax as a fundraising opportunity.

"As chancellor, George Osborne was said to have considered creating new levels of council tax on pricier properties - adding more bands to hike the tax on the most expensive homes," Coles said.

"The government could choose to explore it again. HENRYs, renting more expensive homes, would be in the frame for even higher tax bills."

Tax on pensions

Despite their higher earnings, Hargreaves Lansdown research shows fewer than half of people earning between £100,000 and £130,000 are falling short on pension savings.

Some may be using salary sacrifice schemes to bring down their taxable salary, or they will pay their entire bonus into the scheme to avoid paying tax on that portion.

"If the government outlaws these schemes, it would remove this option. It could also make company pensions less tax-efficient for firms, so they may be tempted to cut the benefits," Coles said.

Tax on inheritance

There have already been some changes made in this area, but the government might make further tweaks to the system.

Coles said: "This could include anything from reconsidering exemptions for spouses to extending the period of time it takes for larger gifts to leave the estate. All of them would come with serious downsides, but they remain possibilities."

In two weeks, the energy price cap will fall from £1,849 to £1,720.

Some of you think it's worth waiting until then to switch your tariff - but there are already 24 deals on the market offering a lower rate.

The cheapest fixed energy deal costs 11% less - that's an average saving of £185 a year, according to comparison site and switching service Uswitch.

"If you are still on a standard tariff, then you should run a comparison as soon as possible. Anyone with the option to switch could almost always save by switching to a fixed deal," Ben Gallizzi, energy expert at Uswitch, said.

The price cap is controlled by energy regulator Ofgem and aims to prevent households on variable tariffs being ripped off.

It doesn't represent a maximum bill. Instead it creates an average bill by limiting how much you pay per unit of gas and electricity, as well as setting a maximum daily standing charge (which all households must pay to stay connected to the grid).

Here are the best deals on the market...

Children are earning less weekly pocket money, according to a report.

Kids' weekly income fell by 1% to £9.12 from 2023, amounting to £474.76 a year, NatWest Rooster Money's annual pocket money report found.

But they are getting bigger rewards for chores, earning 7p more for walking the dog, 21p more for mowing the lawn and an extra 8p for washing the car.

They're also being visited by an inflation-busting tooth fairy, who is paying 5.25% more at £4.21 a tooth.

Analysing data from more than 350,000 Rooster Card users, the report found fewer parents are giving their children regular pocket money, with more opting for an ad-hoc, reward-based system.

Since 2023, the percentage of parents giving regular pocket money has fallen 1.8% to 27.4%. Children who do get a weekly allowance are giving an average of £3.85.

Saturday is the most popular pocket money payday, favoured by almost half of families (45%), with 17-year-olds being paid the most at an average of £8.31 a week.

Overall, children are spending more and saving less, with the average amount set aside falling 48% to £30.38 of their annual income.

How much pocket money do you give your children - and how do you decide how much they get? Tell us your thoughts in the comments box above.

Poundland is set to close 68 stores and two UK warehouses as part of its restructuring plan.

The plans are understood to be leaving 1,350 jobs at risk.

The high street discount store was sold to investment firm Gordon Brothers last week for a nominal fee after recording mounting losses.

If approved by the court, the restructuring plan will aim to deliver "a financially sustainable operating model" for the business.

The company'sfrozen and digital distribution centre at Darton, South Yorkshire will close later this year and its national distribution centre at Springvale in Bilston, West Midlands will shut its doors in early 2026, according to the plan.

The plan will also see remaining stores no longer selling frozen food and a reduction in its chilled food offerings.

Yesterday, our City editor Mark Kleinman learnt the company will halt rent payments at hundreds of its shops.

According to a letter sent to creditors in the last few days, roughly 250 shops have been classed as Category C sites, with rent payments "reduced to nil".

"It's no secret that we have much work to do to get Poundland back on track," said Barry Williams, the company's managing director.

"While Poundland remains a strong brand, serving 20m-plus shoppers each year, our performance for a significant period has fallen short of our high standards and action is needed to enable the business to return to growth.

"It's sincerely regrettable that this plan includes the closure of stores and distribution centres, but it’s necessary if we’re to achieve our goal of securing the future of thousands of jobs and hundreds of stores."

Thousands of Utilita customers will get up to £150 in compensation after the energy company failed to pay its Warm Home Discount payments on time.

The firm will pay a total of £277,000 to customers after the energy regulator Ofgem found more than 4,000 people were not given the mandatory discount quickly enough due to an internal error.

Utilita told Money: "All customers received their payment within 12 days. We sincerely apologise for any inconvenience this may have caused. We promptly reported our mistake to Ofgem and paid the impacted customers a goodwill gesture."

What is the discount?

The Warm Home Discount scheme gives low income households an automatic payment of £150 to help with their energy bills.

"The Warm Home Discount is a lifeline for vulnerable energy consumers on low incomes. Even a short delay in making these payments can cause harm to vulnerable customers, so it's vital that suppliers make these payments on time and without hassle," Cathryn Scott, regulatory director of market oversight and enforcement at Ofgem, said.

"Unfortunately, on this occasion, Utilita fell short of our standards by failing to pay some of their customers in a timely manner. Utilita has conducted an audit of their Warm Home Discount processes to make sure this doesn't happen again."

Amazon is extending its Prime Day discount to give shoppers double the amount of time to snap up a deal.

The annual sale will last four days from 8 to 11 July, twice the two days last year.

The online retailer says there are savings to be made on Bose, De'Longhi, Dyson, Lego, Shark, CeraVe, Ninja and Sonos products, with new deals dropping at midnight each day - though to get the discounts, you need to be a Prime member.

How to prepare for Prime Day

If you aren't a Prime member already, you can sign up for a 30-day free trial - just remember to cancel it at the end if you don't want to be charged.

It costs £8.99 a month or £95 a year, unless you're aged between 18 and 22, then it's £4.49 a month or £47.49 a year.

To make sure you are getting the best deal, it's worth checking the price of any products you need now. Note it down and see how much you are really getting off during Prime Day.

Amazon isn't always the cheapest retailer either, so double check other sites to see if you can get a better bargain elsewhere.

By James Sillars, business and economics reporter

There are signs global stock markets are starting to reflect greater risk due to the Israel-Iran conflict.

Hopes of a quick resolution appear to have faded since Donald Trump, while suggesting he was working towards a broad peace agenda, urged Iranian civilians to evacuate Tehran.

At the same time, Israel has vowed to maintain its attacks.

European stock markets, including the FTSE 100, were broadly lower by more than 0.5% at the open today.

The falls swiftly erased tentative gains seen in the previous session. Within the FTSE, only six stocks were in positive territory.

US futures also showed that gains made yesterday were to come under pressure.

Brent crude oil costs remain about 7% up since Israel's attacks began.

It's trading just shy of $74 a barrel and is up by almost 1% on yesterday's session.

The lower price, when compared with Friday's highs, reflects the fact that the tit-for-tat aerial attacks between Israel and Iran have yet to affect oil flows.

Every Tuesday we get an expert to answer your financial problems or consumer disputes. WhatsApp us here or email moneyblog@sky.uk.Today's question is...

I paid a bathroom fitter £10,000 for a new bathroom and he has left the job halfway through, took all the products and closed his social media and phone line down. What can I do?

Muly

We are really sorry to hear your story, Muly. Sadly, you're not alone in messaging in with experiences like this. While most tradespeople are trustworthy and reliable, a minority give the rest a bad name.

We asked consumer rights expert Scott Dixon, AKA the Complaints Resolver, to look at your case. He said...

A lot of this hinges on how you paid.

If you paid cash, you could unfortunately be without recourse unless you got a receipt. If you did, I suggest you report this case to the police and Action Fraud and get a crime reference number.

Cheques are treated like cash once the funds have cleared, but a bank may be able to trace the account that received the funds if you report it as fraud and a scam. Having a police reference number will also help here.

Most people will make payments this large via bank transfer, so your main recourse is contacting your bank and telling them you've been scammed.

There are two types of payment scams - one where you have fraudulently paid money direct to a scammer and one where your account has been hacked.

The Contingent Reimbursement Model code is a voluntary code banks have signed up to where you have fraudulently paid money direct to a scammer.

It sets out a number of circumstances in which firms are required to reimburse customers who have been the victims of certain types of scam.

You need to push hard on this and say you were scammed, as claims often fail on the first attempt with staff not fully understanding how it works.

It can and should be resolved within days, but some banks are much better than others.

If your bank refuses to reimburse you for your losses, ask them for a deadlock letter. This is their final response, so you can refer it to the Financial Ombudsman Service for review.

Banks don't like complaints being referred to the Financial Ombudsman as it costs them money and they risk negative publicity.

Trade associations

This seems unlikely in your case, but check to see if the builder is a member of a trade association such as the Federation of Master Builders.

The FMB conducts a vetting and independent inspection process for prospective members to ensure they meet the high standards expected of a Master Builder company.

If they are a member of a trade association or a trader recommendation site like Checkatrade, you can contact them and ask if they can help you resolve your dispute.

Small claims court

If all else fails and you cannot secure a refund of your deposit and agree for the work to be completed, you could take your case to the small claims court if it was England, or followSimple Procedure in Scotland.

If you paid via cheque or bank transfer, this will help you track down the rogue builder.

You can also find out if they are registered as a Limited Company on Companies House.

I would also report this trader to Trading Standards and leave reviews online.

General advice with tradespeople

The most important thing whenever you get a quote from a tradesperson is to ask for it in writing - and insist on a full written contract (not just a quote) before work begins.

Always get any promises or verbal confirmations put in writing. Don't feel guilty by insisting on it. It protects both parties and eliminates any confusion over what was discussed and promised.

This creates a paper trail of evidence if you need to escalate a complaint.

If they don't confirm what was verbally agreed, write or text them afterwards so you have that written confirmation.

If the quote was made verbally, and you have no written contract, you could try and rely on any text messages or emails as part of your evidence if you need to escalate your complaint.

A trader will often ask for a deposit to buy materials and agree staged payments in a contract to provide you with peace of mind if any issues arise before making a final payment.

Many builders and tradespeople have multiple jobs ongoing and work around the weather. Sourcing materials can also be problematic, so ensure the contract covers this and any delays completing the work and disputes that may arise on quality of work. Seek a deadline for completion in writing.

This featureis not intended as financial advice - the aim is to give an overview of the things you should think about.Submit your dilemma or consumer dispute via:

• WhatsApp ushere
• Email moneyblog@sky.uk with the subject line "Money Problem"

Readers of our new Money newsletter got an exclusive early look at this piece in Friday's edition. Sign up today and join our Money community....

We love hearing from our readers and a lot of you have been in touch to share tales of woe after reading our weekend feature about the realities of living on a freehold estate.

Some of you got in touch to share similar experiences...

I live on a freehold estate - it's the worst decision I have ever made. They can charge me whatever amount they want and do absolutely no work. I have no rights to challenge them or take them to court as I will lose and they can take my property. It's the biggest scam ever.

Dan

Management companies are ripping off freehold estates. I currently live in one in Amersham. We have zero street lighting and they say it's too expensive to put them. It's dangerous for pedestrians to walk at night. No one cares. No EV charging facility in shared car park area.

user01

We live in a freehold estate and it's an absolute nightmare. Avoid!!! We have been hit with so many fees for work that hasn't been done and they keep trying to charge us for parts of the estate that isn't owned by them. The company even changed their name in recent years.

JessieR94

These companies are ripping people off - bills have increased year on year since 2008. 70% of the costs are admin charges. They wanted to charge over £1,500 to paint a 12ft iron fence, would be done with two tins of paint! And charge us for terrorism insurance in Andover!

Qalvince

Freehold estate - spent 10 years living in a property paying yearly increasing service charges for management of the estate, being forced to pay fees or else threatened with legal action for work that I could find no evidence had been done. Unregulated licence to print money.

546

I used to be a block property manager and even I wouldn't live in a freehold property! You are paying for things in the communal areas and if you have any major issues you will probably be asked to pay more money and some issues might not be improving your property.

Jtlover007

This reader felt so strongly about the estates that they called for them to be made illegal...

These kinds of estates should be outlawed. It's bad enough we're forced to pay council tax at extortionate rates, but then to be hit with extra fees and held to ransom just to get permission to make changes to our own property? It's disgraceful.

Mozzis1

One reader said their management company did a "reasonable" job, while another called for government intervention...

A point about freehold estates. On ours the management company do a reasonable job but when the bills arrive a number of people complain. There seems to be a lot of misunderstanding as to who does what. This is exacerbated as residents have to maintain an off estate public footpath.

Rasbo

It's more common in my experience that developers simply stand to make more money from the private management option whereas they have to pay the council for maintenance otherwise - the government should give councils better planning controls rather than constantly weakening them.

RW78